Maryland Sales Tax Guide
Chapter 7: How to manage late Maryland sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Maryland sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Maryland sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Comptroller of Maryland?
Maryland sales and use tax returns that are filed late are subject to a 10 percent penalty and interest at a rate of not less than 1 percent per month thereafter. Businesses that file a late sales and use tax return are precluded from claiming the timely filing discount for vendors.
Businesses that fail to file their Maryland sales and use tax return will receive a notice instructing them to complete their filing. Should the missing return not be filed after receiving the notice, an estimated assessment may be levied and additional penalty applied.
Finally, a $30.00 service charge is applied for all bad checks submitted to the Comptroller of Maryland.If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Comptroller of Maryland and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Maryland sales and use tax liability.