Many people do not understand that the new Maryland corporate income tax reporting requirements are not just for public companies. In fact, any corporation that is a member of a “controlled group” or consolidated entity, including non-profits, could be subject to massive penalties ($10,000 per day) if they do not file the information returns by the deadline of Oct. 15, 2008.
Essentially, Maryland is requiring corporations to file the information that would be used to calculate “combined reporting” as if the state had that requirement. No taxes are due, but the necessary information must be submitted via the Comptroller’s reporting Web site by the deadline or you could face massive fines ($5,000 per day x 2 reports due for 2006 and 2007).
Our New / Young Professionals Network recently hosted a special webcast that featured Bev Richard (SC&H Group), chair of MACPA’s State Tax Committee, and two members of the Maryland Comptroller’s Office — David Roose, director of Bureau Estimates, and Keith Akers, assistant chief auditor in the Compliance Division. They did a live presentation that was also webcast to CPAs throughout Maryland. They answered more than 50 questions from the audience and had plenty more before we ran out of time.
The MACPA was instrumental in reducing the requirements of this bill, which initially included a penalty of five years in jail and much worse disclosure requirements before being amended during the 2008 session of the General Assembly.
The MACPA has created an online resource center to help you understand and comply with these new requirements.
More resources:
- Download Bev Richard’s presentation.
- Download the comptroller’s presentation.
- Plans are under way for one more webcast on Oct. 10, 2008. Check the MACPA’s Web site for details.