If a business does not file and pay sales and use, withholding, admissions and amusement or corporate income taxes, the Comptroller's Office must issue assessments based on whatever information is available. When an assessment notice is sent, you have 30 days to respond and request a hearing to dispute the liability. If the assessment is not appealed, it becomes final and the estimated liability becomes subject to the collection process.
To inquire about company charters forfeited at the request of the Comptroller for unpaid taxes, contact the Collection Section at 410-649-0633. This information is not available to the public. You must be a legal representative of the company to receive information. To make an inquiry, you must have the company's FEIN or Central Registration number. In order to revive a charter that was forfeited at the request of the Comptroller, you must obtain a clearance from the Compliance Division. Call 410-649-0633 to clear up any outstanding issues and obtain a clearance. It will also be necessary to submit articles of revival with the Department of Assessments and Taxation.
Liabilities due to various state agencies, including the Comptroller, are matched against state and federal tax refunds, federal vendor payments and state vendor payments. When a liability is matched to a payment, a letter is mailed to the taxpayer or vendor listing the billing agency, the invoice date, and amount. This letter also identifies the type of tax or liability due and the appropriate state agency telephone number needed to resolve the issue. If the liability is not satisfied, the intercepted funds will be applied to your account and the taxpayer or vendor will receive notification of same. If the liability is not satisfied, the intercepted funds will be applied directly to that liability and the taxpayer or vendor will receive notification of same.
A notice of tax lien may be filed with the clerk of the circuit court where your business or residence is located. The lien has the same force and effect as a court issued judgment lien. A lien may affect your ability to maintain existing credit, secure new credit, or obtain a security clearance. The recorded lien serves as notice that the state may have a claim against your assets. If you pay your tax lien, a certified copy of your release of lien must be submitted to the credit reporting agencies to have your credit report promptly updated to reflect your lien release. You may obtain a certified copy of your release from the circuit court where your tax lien was filed. The Comptroller does report lien releases to the credit agencies but if you need expedited service, it is your responsibility to obtain the required certified copy and contact the credit agency to update your credit report.
Renewals
In most jurisdictions, including Baltimore City and the City of Annapolis, the Comptroller may request the Liquor Board to hold the renewal of a state liquor license until the account is current with its filing requirements and/or has made satisfactory payment arrangements. The Comptroller may hold renewals for failure to comply with the sales and use, employee withholding, and admissions and amusement tax requirements. Transfers
The Liquor Boards of the various jurisdictions report all liquor license transfer requests to the Comptroller. The Comptroller will place a hold on the transfer of any license where the seller has not paid in full the outstanding liabilities.
When a tax clearance has been denied for a license renewal, state contract or grant, contact the Compliance Division for assistance by phone, fax or e-mail at the numbers and addresses listed below. To obtain a tax clearance for a contract with the state of Maryland, e-mail or fax the request to the Compliance Division's Business Tax Collection Section. Be sure to include the full name of the corporation and the corporation's federal employer identification number. Once the tax issue has been resolved, the Comptroller's Office will notify the appropriate agency. Business Taxes
Phone: 410-649-0633
Fax: 410-333-7499
E-mail: cdcollectionbizz@marylandtaxes.gov
The Comptroller of Maryland regularly requests the seizure of bank accounts and also has the ability to seize liquor licenses, cash on the premises, equipment, vehicles, inventory and real property. Any money the state owes you for goods or services, or as a personal or corporation income tax refund will either be applied to unpaid tax balances or held pending the filing of missing returns.
Request for penalty and interest waivers are not automatically granted. In certain instances, penalties and interest may be waived for reasonable cause. Each account will be reviewed to verify that all criteria have been met. For example, no abatement will be considered if you are not current with your tax filings. In cases where the taxpayer is unable to pay the tax in full and all other efforts to resolve the liability have been unsuccessful, the account may be referred to the Comptroller's Case Review Board for resolution under our Offer in Compromise (OIC) program.
