Maryland Business Taxpayer Alert!
Friday, March 5, 2021 – Remember when we shared with you the good news regarding the Maryland 523 tax payments? Well, the chickens are coming home to roost now.
Last week, Maryland advised tax preparers that it is in the process of creating a new form for some pass-through entities (i.e., those affected by Maryland 523), and instructed preparers to “hang in there” and wait for this new form before finalizing clients’ pass-through business tax returns.
What does this mean for you? If your returns have already been filed, they were filed under the rules which were in place at the time and do not require correction or amendment. However, if your returns have not yet been filed, be advised that Maryland has instructed tax preparers not to file until the new form is finalized and released.
The likelihood of the form being released and fully updated, tested, and released in our tax software with enough time to meet the March 15 filing deadline is minimal, at best. It might be necessary to extend your Federal pass-through entity tax return, as well as any state returns which are due by March 15.
Have no fear! LSWG is staying on top of this developing issue, and if you are affected, we will prepare your extensions.