The Good News/Bad News About Those Yet-To-Be-Released Maryland Tax Forms

Thursday, June 3, 2021 – For the S-corporations, partnerships and their owners patiently awaiting the release of Maryland Form 511, we have an update.

First, The Good News:  On June 1, 2021, Senate Bill 787 became law. As we previously reported, Senate Bill 787 included (among many other things) official legislation required by the Maryland Comptroller’s office to provide guidance and release of Maryland Form 511 (the new form for Maryland Pass-Through Entities electing to have Maryland tax be paid and then deducted at the entity level).  Now that the bill has become law, we have cleared the first hurdle for completing affected tax returns.

The Bad News:  Given our experience, we would be surprised if we receive forms by July 4 (we expect the State will need three weeks to finalize forms; tax preparation software vendors will need another week or so to program the forms and test for accuracy). When the forms are finally released to us (your tax preparer) less than two weeks will be left to complete all of the returns we have had to put on hold.

What does all of this mean to you?  Although we have appealed to our elected representatives and the Maryland Association of CPAs to extend Maryland’s deadline past July 15, 2021, we do not expect the date will change. While we will do our best to have your tax return completed by July 15, given the number of returns in the queue, it is likely that many returns will need to be extended.

In the meantime, we will be contacting our affected clients regarding their 2nd quarter federal estimated payment — which is due June 15, 2021.

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