Tax Amnesty Program

SB 552 (Chapter 277, Acts of 2009)

This Act requires the Comptroller to declare an amnesty period from September 1, 2009 to October 30, 2009, both inclusive, during which the Comptroller shall waive all civil penalties (except previously assessed fraud penalties) and one-half of the interest that would have been imposed on certain delinquent taxpayers for nonreporting of tax liability, underreporting of tax liability, and nonpayment of tax liability.

The waiver of civil penalties and interest under this amnesty program generally applies to a delinquent taxpayer who:

1. on or before December 31, 2008, failed to file a return required or pay the tax imposed for individual income tax, corporate income tax, withholding tax, sales and use tax, or admissions and amusement tax; and
2. during the tax amnesty period, files a delinquent return, pays the tax due under the return or has an agreement with the Comptroller to pay the tax due in accordance with the terms and schedules established in the agreement.

The Comptroller has the discretion as to whether the Comptroller is to enter into an agreement. The Comptroller further has the full discretion as to the terms and schedule for payment set forth under the agreement, provided that the delinquent tax under the agreement shall be paid in full on or before December 31, 2010. The waiver of civil penalties and interest under the agreement does not apply to interest accrued for periods after October 30, 2009. The waiver of civil penalties and interest under the agreement is void if the taxpayer fails to comply strictly with the terms and schedule for payment under the agreement.

This amnesty program does not apply to:

• any taxpayer that, as of September 1, 2009, has more than 500 employees in the United States or is a member of a corporate group that has more than 500 employees in the United States;
• any tax for which a taxpayer was granted amnesty under the 2001 Maryland tax amnesty program; or
• any taxpayer who was eligible for the July 1, 2004, through November 1, 2004, Settlement Period, as provided in Chapter 557 of the Acts of 2004, regardless whether or not the taxpayer participated in the Settlement Period.

A taxpayer will not be charged with a criminal tax offense arising out of any return filed and tax paid during the amnesty period, except for:

• any criminal charges pending in the courts of the State; or
• any criminal charges under investigation by an office with the constitutional authority to prosecute a person for violation of criminal laws.

The Comptroller, on or before March 15, 2010, shall report to the Governor the revenues raised under this amnesty program.

This Act takes effect June 1, 2009.