Maryland has enacted another tax amnesty program, which will commence on September 1, 2015. It will allow qualified taxpayers the opportunity to avoid civil penalties and one-half of the interest due on unreported, underreported, and unpaid taxes. The program will cover corporate income, personal income, sales and use, and admission and amusement taxes.
Taxpayers who participated in an earlier Maryland amnesty are not eligible to participate in this program. Taxpayers who were eligible to participate in the Delaware holding company settlement period in 2004 will also be disqualified from participating in the current amnesty program.
The current amnesty program will run through October 30, 2015.
Amnesty programs offer the opportunity to revisit the implications of state tax nexus for your organization. For example, many are unaware that a salesperson traveling in and out of states creates nexus for sales and other non-income type taxes. Solicitation activity could actually trigger income tax nexus for companies that are engaged in a service business.
Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.