Maryland Provides Tax Filing and Payment Relief

Tuesday, January 12, 2021 – The Maryland Comptroller’s Office has provided COVID relief for businesses filing tax returns and making tax payments coming due in January, February, March, and April 2021.

Automatic extensions. The following taxes are automatically extended to April 14, 2021:

• Corporate and pass-through entity income tax filings and payments originally due January 1 through April 14, 2021.
• Sales and use tax originally due January 20 through April 14, 2021.
• Withholding tax originally due February 1 through April 14, 2021.
• Individual and fiduciary declaration of estimated income tax filings and payments originally due January 15 through April 14, 2021.
• Admissions and amusement tax originally due January 10 through April 14, 2021.
• Alcohol taxes originally due January 1 through April 14, 2021.
• Tobacco taxes originally due January 15 through April 14, 2021.
• Motor fuel taxes originally due January 1 through April 14, 2021.
• Tire recycling fees originally due January 21, 2021.
• Bay restoration fees originally due January 20 through April 14, 2021.

No interest or penalties will be assessed and there is no need to file a request for an extension. The extensions apply only to tax filings under the authority of the Comptroller of Maryland. Taxpayers may need to consult other state agencies regarding deadlines for other tax filings such as personal property and unemployment insurance.

Estimated taxes. Businesses and self-employed individuals or independent contractors with estimated income tax returns and payments due on January 15, 2021, are also granted an extension until April 15, 2021

Witholding tax. However, employers must complete their 2020 withholding tax returns and payments due by January 31, ensuring that W-2s will be delivered on time for taxpayers to file when the tax season begins at the end of January. Any state withholding returns and payments originally due between February 1, 2021 and April 14, 2021 can be submitted by April 15, 2021 without incurring interest and penalties. Employers must still file and pay federal withholding taxes.

IRS conformity. If the IRS extends its April 15, 2021 filing deadline for 2020 corporate, pass-through entity, and individual income tax returns, Maryland will conform to the IRS action.