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Sales and Use Tax Filing Information

Sales Tax Filing

Sales tax is collected on the sale of goods subject to the 6% sales tax rate. Sales tax is also collected on alcoholic beverages sold based on a 9% sales tax rate. The sales tax is remitted on a sales and use tax return.

Use Tax Filing

If you make a tax-free purchase out of state and need to pay Maryland's 6 percent use tax, file the Consumer Use Tax Return with your payment, by the appropriate due date. If you do not pay Maryland's use tax on purchases made out of state, you could be liable for penalties and interest in addition to the tax due.

The use tax form and the required payment should be mailed to:

Revenue Administration Division
110 Carroll Street
Annapolis, Maryland 21411

Use Tax Due Date

Purchase Period Due Date
January - March April 20
April - June July 20
July - September October 20
October - December January 20

Penalties, Interest and Late Charges

A sales and use tax, withholding tax, admissions and amusement tax or tire recycling fee return that is filed late is subject to a 10 percent penalty and interest at a rate of not less than 1 percent per month. If you file a late sales and use tax or tire fee return, you may not claim the timely filing discount for vendors.

If you do not file a missing return after receiving a notice, an estimated assessment may be levied and additional penalty applied. Additionally, a $30 service charge is applied for bad checks.

Missed, Delinquent or Late Payments

The Comptroller of Maryland sends a Statement of Account to taxpayers who have incurred charges for taxes, interest and penalties. This statement also serves as a notice of failure to file a required return. If the statement indicates a balance due, the balance - including penalties and late charges - is due immediately. You are responsible for responding to the Statement of Account in a timely manner. If you have questions, call the phone number on the statement immediately.

If you know you need to file but did not receive a form, file a return in letter form. Make sure you include your account number, the tax type you are reporting and the period for which the report is being filed. Notify our Taxpayer Service Division about the problem.

You also may file and pay your withholding, sales and use tax and admissions and amusement tax using our B-Filed system. Go to the B-File page to file the appropriate tax return.

If you don't respond to the statement promptly, our Collection Section will contact you by phone or U.S. mail to address your tax issue(s).You will be expected to make a specific commitment to bring your account up-to-date to avoid further collection or enforcement action.

If you are eligible, you can apply for the Comptroller's Offer in Compromise Tax Liability Resolution Program, which may be a solution to your tax issues.

Failure to Pay

If you refuse to make payment arrangements, or you fail to follow through on arrangements that you have made, the Comptroller's Office may file a lien against you, attach your assets, file an estimated assessment for taxes due in the unreported periods, issue a summons for a sales and use tax license revocation hearing or institute other legal processes. For information about each enforcement action, follow the links below.

If you are the president, vice president, treasurer or any other officer who owns 20 percent of a corporation, you may be personally liable for unpaid sales and use taxes, penalties and interest owed by the corporation. Any officer of the corporation who exercises direct control over its fiscal management is personally liable for withholding and admissions and amusements taxes, penalties and interest.

Payment of your business taxes may not be avoided through bankruptcy proceedings because sales and use tax and withholding tax are not discharged in bankruptcy. If a bankrupt business does not have enough assets to pay the state taxes, the owners and specified corporate officers are personally responsible for payment.

If your business provides services to the state of Maryland, you will not receive payment until you have addressed your tax issues.

Slow Down... You Won't Get Your License or Car Registration Renewed If You Don't Pay Up!

The Motor Vehicle Administration, the Maryland Department of Labor, and the Comptroller are partnering to make sure that everyone pays their fair share. State law requires that individuals and businesses that have unpaid, undisputed state tax liabilities and/or unpaid unemployment insurance contributions satisfy the debt(s) prior to renewing a Maryland driver's license or vehicle registration.

If you have unpaid individual income taxes and are not in an approved payment plan, you can request a payment arrangement online, by email at mvahold@marylandtaxes.gov, by calling the Comptroller's Collection Unit toll free at 855-213-6669, or in person at one of the Comptroller's 12 local branch offices. Please include your name, address, the last four digits of your Social Security Number, case number or notice number and your phone number in your e-mail message. This will help us generate a quick response to your inquiry.

If you have unpaid business taxes and are not in an approved payment plan, you can request a payment arrangement by calling Business Tax Collections at 410-649-0633 or emailing cdcollectionbizz@marylandtaxes.gov.

If your business has unpaid unemployment insurance contributions and is not already in an approved payment plan, you can make payment arrangements by contacting the Maryland Department of Labor at 410-368-5440 or via email at uiskip@dllr.state.md.us.

Don't let unpaid taxes slow you down!

For more important information on this new law and how you can pay your debt quickly, check out the links below.

A sales and use tax, withholding tax, admissions and amusement tax or tire recycling fee return that is filed late is subject to a 10 percent penalty and interest at a rate of not less than 1 percent per month. If you file a late sales and use tax or tire fee return, you may not claim the timely filing discount for vendors.

If you do not file a missing return after receiving a notice, an estimated assessment may be levied and additional penalty applied. Additionally, a $30 service charge is applied for bad checks.

If a business does not file and pay sales and use, withholding, admissions and amusement or corporate income taxes, the Comptroller's Office must issue assessments based on whatever information is available.

When an assessment notice is sent, you have 30 days to respond and request a hearing to dispute the liability. If the assessment is not appealed, it becomes final and the estimated liability becomes subject to the collection process.

Renewals

In most jurisdictions, including Baltimore City and the City of Annapolis, the Comptroller may request the Liquor Board to hold the renewal of a state liquor license until the account is current with its filing requirements and/or has made satisfactory payment arrangements. The Comptroller may hold renewals for failure to comply with the sales and use, employee withholding, and admissions and amusement tax requirements.

Transfers

The Liquor Boards of the various jurisdictions report all liquor license transfer request to the Comptroller. The Comptroller will place a hold on the transfer of any license where the seller has not complied with the sales and use, employee withholding, and admissions and amusement tax requirements.

To inquire about company charters forfeited at the request of the Comptroller for unpaid taxes, contact the Collection Section at (410) 767-1908. This information is not available to the public. You must be a legal representative of the company to receive information.

To make an inquiry, you must have the company's FEIN or Central Registration number. In order to revive a charter that was forfeited at the request of the Comptroller, you must obtain a clearance from the Compliance Division. Call (410) 767-1908 to clear up any outstanding issues and obtain a clearance. It will also be necessary to submit articles of revival with the Department of Assessments and Taxation.

When a tax clearance has been denied for a license renewal, state contract or grant, contact the Compliance Division for assistance by phone, fax or e-mail at the numbers and addresses listed below.

To obtain a tax clearance for a contract with the state of Maryland, e-mail or fax the request to the Compliance Division's Business Tax Collection Section. Be sure to include the full name of the corporation and the corporation's federal employer identification number. Once the tax issue has been resolved, the Comptroller's Office will notify the appropriate agency.

Individual Income Taxes
Phone: 410-974-2432 or 1-888-674-0016
Fax: 410-974-3053
E-mail: cdcollectionind@marylandtaxes.gov

Business Taxes
Phone: 410-649-0633
Fax: 410-333-7499
E-mail: cdcollectionbizz@marylandtaxes.gov

Liabilities due to various state agencies, including the Comptroller, are matched against state and federal tax refunds, federal vendor payments and state vendor payments.

When a liability is matched to a payment, a letter is mailed to the taxpayer or vendor listing the agency billed, the invoice date, and amount. This letter also identifies the type of tax or liability due and the appropriate state agency telephone number needed to resolve the issue. If the liability is not satisfied, the intercepted funds will be applied to your account and the taxpayer or vendor will receive notification of same.

If the liability is not satisfied, the intercepted funds will be applied directly to that liability and the taxpayer or vendor will receive notification of same.

The state and local agencies listed below must verify that an applicant renewing a license has paid all states taxes due - or made a satisfactory payment arrangement - before the license can be renewed:

  • Comptroller of Maryland
  • Clerks of the Circuit Court
  • Maryland Department of Labor
  • Department of Health and Mental Hygiene
  • Motor Vehicles Administration
  • Department of Natural Resources
  • Department of the Environment
If you hold a license issued by one of these agencies, you should file any necessary tax returns and pay all taxes due without delay. If you wait until license renewal time to resolve a tax liability, your renewal may be delayed

Once the tax issue has been resolved, the Comptroller's Office will notify the appropriate agency.

You may contact us for additional information.

Individual Income Taxes
Phone: 410-974-2432 or 1-888-674-0016
Fax: 410-974-3053
E-mail: cdcollectionind@marylandtaxes.gov

Business Taxes
Phone: 410-649-0633
Fax: 410-333-7499
E-mail: cdcollectionbizz@marylandtaxes.gov

The Comptroller of Maryland regularly requests the seizure of bank accounts and also has the ability to seize liquor licenses, cash on the premises, equipment, vehicles, inventory and real property.

Any money the state owes you for goods or services, or as a personal or corporation income tax refund will either be applied to unpaid tax balances or held pending the filing of missing returns.

A notice of tax lien may be filed with the clerk of the circuit court where your business or residence is located. The lien has the same force and effect as a court issued judgment lien. A lien may affect your ability to maintain existing credit, secure new credit, or obtain a security clearance. The recorded lien serves as notice that the state may have a claim against your assets.

If you pay your tax lien, a certified copy of your release of lien must be submitted to the credit reporting agencies to have your credit report promptly updated to reflect your lien release. You may obtain a certified copy of your release from the circuit court where your tax lien was filed. The Comptroller does report lien releases to the credit agencies but if you need expedited service, it is your responsibility to obtain the required certified copy and contact the credit agency to update your credit report.

Additional information about tax liens may be found at:

We may assign your case to one or more of the following collection agencies. Additional fees may apply. Once your case has been assigned, arrangements for payment must be made through that agency.

Penn Credit 916 South 14th Street Post Office Box 988 Harrisburg, PA 17108 1-800-900-1362

Harris and Harris, LTD Arnold Scott Harris, P.C. Attorneys At Law 111 West Jackson Blvd., Suite 600 Chicago, IL 60604-4134 1-855-223-1731

The Comptroller of Maryland is serious about retrieving unresolved tax liabilities. As a part of the collection process, we publish the names of businesses, individuals and corporate officers having large unresolved liabilities - including individuals who have large unresolved personal income tax liabilities. All of the information is public since liens and judgments have been recorded in the judgment dockets of one or more circuit courts of Maryland.

No one is above the tax laws. If you don't want to see your name posted on our site along with other tax delinquents, be sure to keep up with your tax obligations.

If your name appears in the listing, you should contact the Comptroller's Office to make arrangements to resolve the liability. For business tax liabilities call 410-767-1601. For individual tax liabilities call 410-260-7482, 410-260-7623 or 1-800-MD-TAXES or e-mail sut@marylandtaxes.gov for either tax.

This is an ongoing program to assure that everyone pays his or her fair share of taxes. Names will be added periodically. If you have not already done so, resolve any deficiencies prior to being selected for the list.

2018 Tax Evasion: Top 20 Individuals and Top 25 Business Tax Evaders

If you refuse to make payment arrangements, or you fail to follow through on arrangements that you have made, the Comptroller's Office may file a lien against you, attach your assets, file an estimated assessment for taxes due in the unreported periods, place a hold on driver's or professional license or institute other legal processes. For information about each enforcement action, follow the links below.

Collection Action Annotated Code
Business Collections
Individual Collections
13-401
13-409
13-601
13-402
13-509
Rates 13-604
Liability Offset Program
Salary Lien 13-811(f)
Property Lien/Lien in Judgment 13-604
External Collection Agency Referral
Attach Your Assets 13-812
Business & Professional License Hold
Motor Vehicle License and Registration Non-renewal
Caught in the Web!
Charter Forfeitures
Tax Clearances
Liquor License Renewals and Transfers
Estimated Assessments

We are no longer automatically sending you a paper coupon booklet for Sales and Use Tax returns. You can file your Sales and Use tax returns through our bFile system. If you would like to continue receiving paper coupons you can request them by e-mailing IwantmySUTcoupons@marylandtaxes.gov or you can mail your request to Comptroller of Maryland Revenue Administration Division P.O. Box 1829 Annapolis, MD, 21404.

File Yourself!

There are several ways you can file your personal or business income tax returns on paper or electronically. Please review the links at the bottom of the page, and choose the filing method that best fits your needs.

...Or You Can Use Independent Computer Software Products

You can file both your Maryland and federal tax returns online using approved software on your personal computer. To use this method, you'll need to know the correct county abbreviation for the Maryland county in which you live. You may need to enter the correct subdivision code for the city in Maryland in which you live.

County Abbreviation
Allegany AL
Anne Arundel AA
Baltimore County BL
Baltimore City BC
Calvert CV
Caroline CL
Carroll CR
Cecil CC
Charles CH
Dorchester DR
Frederick FR
Garrett GR
Harford HR
Howard HW
Kent KN
Montgomery MG
Prince George's PG
Queen Anne's QA
St. Mary's SM
Somerset SS
Talbot TB
Washington WH
Wicomico WC
Worcester WR

...Or You Can Use a Professional Tax Preparer

You can choose among a host of professional tax preparers in Maryland who can file your return electronically for you. While we cannot endorse any specific professional, we offer a list of e-file providers for individuals and businesses for your convenience.

IRS Electronic Free File for Federal Returns

You may qualify to electronically file your federal return for free by using IRS Free File Some of the companies participating in the IRS Free File service will file your Maryland return electronically for free as well. No matter what company you select, you can always return to file your Maryland tax return for free online, using our iFile or bFile services. Keep in mind that your Maryland return begins with your federal adjusted gross income, so you must prepare your federal return first before you can prepare your Maryland return.

Maryland grants a credit for sales tax paid to another state, up to the amount of Maryland's 6 percent sales and use tax liability on goods and the 9% sales and use tax liability on alcoholic beverages. For example, if you paid a 4 percent sales tax to another state, you would be liable only for the difference of 2 percent for Maryland tax purposes.

To claim the credit for taxes paid, complete the Consumer Use Tax Return, enter the credit amount on line 4 of both coupons A and B and mail the return to:

Revenue Administration Division
110 Carroll Street
Annapolis, MD 21411