FAQs
What happens if I don’t pay my taxes?
If you refuse to make payment arrangements, or you fail to follow through on arrangements that you have made, the Comptroller's Office may enforce any combination of the following actions against you. For information about each enforcement action, follow the links below.
File a Tax Lien
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.
Liability Offset
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 billing agency, 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.
Attach Your Assets
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.