You have questions; we have answers! Please review the following questions as it pertains to Compliance Programs and your nexus issue. If you have a question that has not been answered below, feel to free to contact us.
1. Why do I have a balance due?
You could have a balance due for many reasons. 1) You may have filed a return with a balance due and did not remit a payment or when we processed your return an error was discovered and corrected which resulted in additional tax due. 2) According to our records, we did not receive a return for the year noted on the bill; we estimated a liability for the year in question and billed you accordingly. 3) We have adjusted your return based on an audit which resulted in additional tax due.
2. How do I request a hearing?
You may request a hearing by writing to:
Hearings & Appeals
301 West Preston Street, Room 315
Baltimore, MD 21201
Or e-mail email@example.com
3. Why am I being charged interest and penalty?
Maryland law requires that interest be charged on unpaid tax from the date the return is due to be filed to the date the tax is paid. The interest rate is 13% per year or 1.08% per month. A one time penalty of up to 25% may be assessed on the unpaid tax amount.
4. I recently sent in a payment, how will my payment be applied?
Payments submitted with your return are applied to tax first, then penalty and interest, if applicable. Payments received in response to a notice are applied first to penalty and interest and then to tax.
5. Do you have someone who speaks Spanish?
Yes. Contact our general information line at (410) 767-1966 or toll-free at 1 (800) 648-9638.
6. I received a notice stating that you have not received my tax return but I do not have a filing requirement, how do I get this resolved?
• If you were active duty military during the year in question, you need to send a copy of your W-2 or a copy of a Leave and Earnings Statement (LES) .for the applicable tax period.
• If you were a resident of another state, you need to send a copy of your return along with copies of all W-2(s)/1099(s) for the applicable tax period..
• If you were a resident of a state that does not have an income tax, you need to submit a written statement indicating where you were a resident for the applicable tax period along with copies of all W-2(s) or other income statements.
7. I am a student using my parents address while attending school in another state. Am I required to file an income tax return with the State of Maryland.?
In general, if you were a resident prior to leaving Maryland to attend school in another state and your parent(s) are entitled to claim you as a dependent on their income tax return, you are required to file a Maryland resident income tax return if your income is above the minimum filing requirement. If you worked and were required to file a return with another state you may be entitled to a credit on your Maryland return based on the taxes paid to the other state. See form 502-CR for information concerning this credit.
8. I received a “Notice of Adjustment – CP 2000”, from the Comptroller of Maryland and it shows that I owe taxes and interest. Can you explain why I owe?
We received information from the Internal Revenue Service that indicates that they adjusted your Federal income tax return to include income not previously reported. Since your Maryland return is based on your federal return, we have adjusted your Maryland return to include the unreported income accordingly. The interest is assessed against the unpaid tax, at a rate of 13% a year, calculated from the date the return was due to be filed until the issuance of the notice. Interest will continue to accrue until such time as the tax is paid in full.
9. I received a “Notice of Adjustment – FAGIM”, from the Comptroller of Maryland and it shows that I owe taxes and interest. Can you explain why I owe?
As part of our audit program, we compare the amount of income reported on your Maryland income tax return against the income reported on your federal return. According to our records, the income reported to Maryland was less than that reported to the Internal Revenue Service. Since the Maryland return is based on the federal return, we have adjusted your Maryland return to increase the income to agree with what was reported on your federal return. The interest is assessed against the unpaid tax, at a rate of 13% a year, calculated from the date the return was due to be filed until the issuance of the notice. Interest will continue to accrue until such time as the tax is paid in full.
10. I received a “Notice of Adjustment – RAR”, from the Comptroller of Maryland and it shows that I owe taxes and interest. Can you explain why I owe?
We received information from the Internal Revenue Service advising us of changes they made to your federal return as a result of an audit. We have analyzed the changes made by the Internal Revenue Service and adjusted your Maryland return to incorporate all changes which impacted your Maryland return.
11. I want to come into the office and speak to someone face-to-face concerning my account. Do I need an appointment? What do I need to bring?
An appointment is not needed. The office is open from 8:30 AM to 4:30 PM, Monday thru Friday. Be sure to bring photo identification to gain entry to the building. Our office is located on the fourth floor, room 408. Please bring all documents you feel are relevant to your tax case, such as copies of your state and federal income tax returns, W-2(s),all correspondence and audit reports.
12. I have recently moved, how can I update my address?
You may provide the updated address information by sending an e-mail to firstname.lastname@example.org or by calling (410) 767-1966, or call toll free at 1 (800) 648-9638.
13. I received a notice indicating that my current year refund has been applied to an outstanding debt. Can you tell me why this happened?
If your Maryland income tax refund was intercepted you may have an outstanding liability with one or more of the following government agencies:
• Comptroller of Maryland – back tax liabilities
• Central Collection Unit (CCU) – court fees, student loans, MVA
• Department of Human Resource – child support arrears
• Internal Revenue Service – federal tax liability
• Other State Income Tax Liabilities: Delaware, New Jersey, New York, Connecticut, District of Columbia
14. What is the statue of limitations to audit a Maryland income tax return?
Generally the Comptroller’s Office has three (3) years to audit a tax return from the due date of the return or the date the return was filed, whichever is later. However, there is no statue of limitations when there has been a change made to the federal return by the IRS and the taxpayer fails to notify the Comptroller’s Office within ninety (90) days of the final determination by the IRS. If the Comptroller’s Office is notified within the ninety (90) days, the Comptroller’s Office has 1 year to assess the deficiency.
15. I received an audit notice from the Comptroller’s Office; however, I was not audited by the IRS, how can the State of Maryland change my return?
Sections 13-301& 13-302 of the Tax-General Article, Annotated Code of Maryland, gives the Comptroller’s Office the authority to audit an income tax return independent of the IRS.
16. How do I contact the Compliance Programs Section?
The office address is:
301 West Preston Street, Room 404
Baltimore, MD 21201
The office phone number is (410) 767-1966 or 1-(800)-648-9638
The office fax number is 410-767-1924
The e-mail address is email@example.com