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Maryland Taxpayers Are Granted Tax Filing and Payment Extensions

Maryland Taxpayers Are Granted Tax Filing and Payment Extensions

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Maryland Comptroller Peter Franchot announced extended filing and payment deadlines for certain state business and individual taxes and quarterly estimated income tax returns and payments.

What’s Extended?

Maryland business taxes, quarterly estimated income tax returns and payments that are normally due in January, February and March 2021 have been extended to April 15, 2021.

Individual Maryland taxpayers whose estimated income tax declarations and payments are due between January 15, 2021 and April 14, 2021 now have until April 15, 2021 to pay. 

Businesses and self-employed individuals or independent contractors with estimated income tax returns and payments due on January 15, 2021 have also been granted an extension to April 15, 2021.

Are There Penalties If I Take the Extension?

No interest or penalties will be assessed. Also, there is no need to file an extension request.

Why the Extensions?

You might recall during the early stages of the pandemic that a number of tax deadlines were extended by the IRS. This is a similar move on Maryland’s part and is intended to offer economic relief to Maryland businesses and employees.

In a news release from the Comptroller of Maryland’s office, Franchot said, “My directive for a tax forbearance that is interest and penalty free is a direct and immediate economic stimulus for Maryland businesses and workers — a decision that we estimate keeps more than $1 billion in consumers’ pockets and helps businesses keep their lights on.”

He added, “As businesses await approval of applications for grants and loans, receipt of funds and additional federal government action, these tax extensions immediately alleviate financial pressures during challenging times.”

What Should I Do Next?

If you’re an employer, you have to complete your 2020 withholding tax returns and payments due by January 31, 2021. This will ensure that W-2s will be delivered on time for employees to file when the tax season begins at the end of January. Any state withholding returns and payments originally due between February 1, 2021 and April 14, 2021 can be submitted by April 15, 2021 without incurring interest and penalties. Employers still have to file and pay federal withholding taxes.

If you're an individual, you must remit your estimated income tax payment by April 15, 2021.

What Does the Extension Apply To?

The extension applies to business taxes administered by the Comptroller, including sales and use, admissions and amusement, alcohol, tobacco, and motor fuel tax, as well as tire recycling fee and bay restoration fee returns and payments with due dates between January 1, 2021 and April 14, 2021.

The extension has also been granted to individuals who make quarterly estimated tax payments sue between January 15 and April 14, 2021.

What Are the Extended Deadlines?

Maryland tax deadline extensions

source: www.marylandtaxes.gov

Looking Ahead to the April 15 Federal Tax Deadline

Looking ahead, if the IRS extends its April 15, 2021 filing deadline for 2020 corporate, pass-through entity and individual income tax returns, Maryland will conform to the IRS action, just as it did last year.

Need Help?

If you have any questions, contact us here or call 800.899.4623 for help.

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Published on January 07, 2021