On January 6, 2021, the Maryland Comptroller announced that due to the ongoing state of emergency related to COVID-19 in Maryland, the upcoming due dates for filing returns and making payments of certain business taxes and quarterly estimated income tax payments and returns has been deferred temporarily. As a general matter, the deferral extends the deadline for returns and payments for included taxes that would be due in January, February and March 2021 until April 15, 2021. No interest or penalties will be assessed on taxes considered timely under the extension. The deferral is available to all taxpayers, and taxpayers need take no action to qualify for the deferral.
The deferral applies generally to all business taxes administered by the Comptroller. Those taxes include corporate and pass-through entity income tax (including estimated tax declarations for tax year 2021), sales and use tax, motor fuels tax, admissions and amusement tax, alcohol tax, beer tax, tobacco taxes, and tire recycling and bay restoration fees.
Maryland Tax Alert 01-06-21 provides additional detail for each type of tax; items of particular note include:
- Corporate and pass-through entity income tax return filings and payments as well as declarations and payments of estimated tax that are due between January 1, 2021 and April 14, 2021 are now due April 15, 2021. Calendar year entities remain required to file their 4th quarter declaration and payment for tax year 2020 on or before December 15, 2020.
- Individuals and fiduciaries who are calendar year filers remain required to file their 4th quarter declarations and payments on or before January 15, 2021. Declarations and payments due after January 15 and before April 14, 2021 are now due April 15, 2021.
- The statute of limitations for filing a claim for refund of income tax for returns filed with a statutory due date between January 1, 2021 and April 14, 2021 is also extended to April 15, 2024.
- Employer’s withholding returns and withholding payments for periods beginning January 1, 2021 through March 31, 2021 are now due April 15, 2021. The extension does not include the filing or payment of the 2020 year-end withholding reconciliation due on or before January 31, 2021 and does not include any return or payment for all periods through December 31, 2020.
- Returns and remittances for indirect taxes (including sales and use, motor fuels, admissions and amusement, alcohol and tobacco, and tire recycling and bay restoration taxes and fees) that are due under current law from January 1 through April 14, 2021 are extended to April 15, 2021.
Please stay tuned to TWIST for additional information on COVID-19 related extensions.