How and When to Pay

Let us help resolve your compliance or collections problem. Learn about reasons why we think you owe us taxes, how we discover the information, what types of notices we send, and what to do about it.

Below you will find links for the most common reasons you may have a Maryland Individual tax liability. You may have received a notice in the mail from us and want more information about it.

If you have not paid your taxes due in full, or have not filed a Maryland return that we believe you should have, you will receive an income tax notice from the Comptroller of Maryland. If you do not respond to the first notice, an assessment notice will be issued.  

Once you receive an assessment notice you will be billed for the amount of the assessment in addition to a substantial penalty and interest charge on the tax owed.

Use the links below if you'd like to learn more about the notice you received, how we determined that there was a problem, and what you need to do about it.

In all cases, if you have questions about the notice you received, or you can't find your notice defined here, call the phone number on the notice promptly. By calling the number on your notice, you can find out how to resolve the dispute or file an appeal and Dispute It! Failure to respond to the notice may cause us to assess additional penalty and interest charges and result in further collections efforts.

If you believe you owe state taxes but have not received a notice, call our taxpayer service office at 410-260-7980 from Central Maryland or 1-800-MDTAXES from elsewhere.

This letter is to inform you that your tax account has been referred to Collections because the balance was not paid. Unless this is resolved by the payment due date, we will enforce collection. Click here for additional information about what happens if you don't pay.

This notice is to advise that a Notice of Lien of Judgment has been satisfied.

Click here for additional information about Tax Liens.

This letter is to inform you that any federal refunds or vendor payments to which you may be entitled will be applied to state tax debts. You can avoid the offset of vendor payments by entering into and remaining current with a payment agreement. However, the balance must be paid in full to avoid the offset of your federal income tax refunds. Additionally, the Department of Treasury charges a fee for each payment offset which will be deducted from your check amount. This notice is required even if a payment plan has been established. Click here for additional information about our Liability Offset Program.

This letter is required by law and advises you that you may file an appeal in writing to the Compliance Division, Hearings and Appeals Section. This notice also reflects the penalty and accrued interest to date and is required even if a payment plan has been established. If a plan is in effect, continue to follow the terms of the agreement. Click here to find out how to file an appeal and Dispute It!

Notice of Lien of Judgment has been filed in the county of the address of record to serve notice to your creditors for delinquent and unpaid tax, interest, penalties and delinquent fees thereon, extending to and covering all property and rights to property, real and personal as long as the Lien is not fully satisfied. Click here for additional information about Tax Liens.

This letter is to inform you payment in full has not been received. This bill constitutes demand for payment.

This letter is to inform you that your tax account has been referred to Collections because the balance was not paid. Unless this is resolved by the payment due date, we will enforce collection. Click here for additional information about what happens if you don't pay.

This letter is to inform you that we have processed your return and found that you have a balance due. This notice also will explain any corrections we made while processing your return. If you need assistance in understanding why you owe, please contact our Taxpayer Services Division.

The Non-Filer program identifies individuals who have filed federal income tax returns using a Maryland address but have not filed a corresponding Maryland income tax return.

If you received an Information Request letter but you have previously submitted a Maryland income tax return, please check box A and provide a copy of the Maryland return. If you do not believe that you had a filing requirement, please check box B, and provide an explanation along with documentation substantiating why you were not required to file with the State of Maryland (e.g., copy of W-2, resident income tax return, etc.). If you are required to file but have not yet submitted a return, please check box C and submit your completed Maryland income tax return using the envelope provided.

The Revenue Agent Report Program (RARNF) is based on information received from the Internal Revenue Service (IRS) indicating that a taxpayer's federal return was audited or adjusted. The program compares the information to our records and when no Maryland return is located, an Information Request RARNF letter is generated.

If you received an Information Request letter but you have previously submitted a Maryland income tax return, please check box A and provide a copy of the Maryland return. If you do not believe that you had a filing requirement, please check box B, and provide an explanation along with documentation substantiating why you were not required to file with the State of Maryland (e.g., copy of W-2, resident income tax return, etc.). If you are required to file but have not yet submitted a return, please check box C and submit your completed Maryland income tax return using the envelope provided.

The Extension Non-filer Program (EXTNF) identifies individuals who have made estimated or extension payments but have not filed a corresponding income tax return.

If you received an EXTNF Information Request letter but you have previously submitted a Maryland income tax return, please check box A and provide a copy of the Maryland return. If you do not believe that you had a filing requirement, please check box B, and provide an explanation along with documentation substantiating why you were not required to file with the State of Maryland (e.g., copy of W-2, resident income tax return, etc.). If you are required to file but have not yet submitted a return, please check box C and submit your completed Maryland income tax return using the envelope provided.

The RFLNF Program is a non-filer program based on information received as part of an exchange agreement between Maryland and various neighboring states. When we receive information from a participating state that a taxpayer filed a non-resident income tax return indicating they are a Maryland resident, we review our records to verify that a Maryland resident return has been filed. If we cannot locate a Maryland return, an Information Request- RFLNF letter is issued to the taxpayer.

If you received a RFLNF Information Request letter but you have previously submitted a Maryland income tax return, please check box A and provide a copy of the Maryland return. If you do not believe that you have a filing requirement, please check box B, and provide an explanation along with documentation substantiating why you were not required to file with the State of Maryland (e.g., copy of W-2, resident income tax return, etc.). If you are required to file but have not yet submitted a return, please check box C and submit your completed Maryland income tax return using the envelope provided.

The CP2000 Non-filer Program (CPNF) is based on information received from the Internal Revenue Service (IRS) indicating that a taxpayer's federal return was adjusted to include unreported income. The program compares the information to our records and when no Maryland return is located, an Information Request CPNF letter is generated.

If you received a CPNF Information Request letter but you have previously submitted a Maryland income tax return, please check box A and provide a copy of the Maryland return. If you do not believe that you have a filing requirement, please check box B, and provide an explanation along with documentation substantiating why you were not required to file with the State of Maryland (e.g., copy of W-2, resident income tax return, etc.). If you are required to file but have not yet submitted a return, please check box C and submit your completed Maryland income tax return using the envelope provided.

The RFLNF Program is a non-filer program which identifies individuals who appear to have a filing requirement but have not filed a Maryland income tax return.

If you received a CPNF Information Request letter but you have previously submitted a Maryland income tax return, please check box A and provide a copy of the Maryland return. If you do not believe that you have a filing requirement, please check box B, and provide an explanation along with documentation substantiating why you were not required to file with the State of Maryland (e.g., copy of W-2, resident income tax return, etc.). If you are required to file but have not yet submitted a return, please check box C and submit your completed Maryland income tax return using the envelope provided.

The W-2 Non-filer Program (W2NF) compares our W-2 database against our filing records. When we find that a taxpayer has received a W-2 with income sufficient to require them to file a Maryland income tax return, but has not filed, we issue an Information Request- W2NF letter.

If you received an Information Request- W2NF letter but you have previously submitted a Maryland income tax return, please check box A and provide a copy of the Maryland return. If you do not believe that you have a filing requirement, please check box B, and provide an explanation along with documentation substantiating why you were not required to file with the State of Maryland (e.g., copy of W-2, resident income tax return, etc.). If you are required to file but have not yet submitted a return, please check box C and submit your completed Maryland income tax return using the envelope provided.

The 1099 Miscellaneous Non-filer program identifies individuals who have received 1099-MISC income from a Maryland source but have not filed a corresponding income tax return.

If you received a 1099MISCNF Information Request letter but you have previously submitted a Maryland income tax return, please check box A and provide a copy of the Maryland return. If you do not believe that you had a filing requirement, please check box B , and provide an explanation along with documentation substantiating why you were not required to file with the State of Maryland. If you are required to file but have not yet submitted a return, please check box C and submit your completed Maryland income tax return using the envelope provided.

If you have questions about the notice you received, or you can't find your notice defined here, call the phone number on the notice promptly. By calling the number on your notice, you can find out how to resolve the dispute or file an appeal and request a hearing. Failure to respond to the notice may cause us to assess additional penalty and interest charges and result in further collections efforts.

An adjustment notice is issued when a taxpayer's account has been adjusted based on an audit program conducted by the Comptroller of Maryland. The notice indicates the reason for the adjustment and the resulting tax and interest due.

We receive information from the Internal Revenue Service advising us of changes made to a taxpayer's federal return, as a result of an audit. We make an adjustment to the taxpayer's account to incorporate all changes which impact the Maryland return. A Notice of Adjustment (RAR) is issued to notify the taxpayer of the changes made and the resulting tax and interest due.

If you received a Notice of Adjustment (RAR) and do not agree with our adjustment, please provide documentation showing that the federal adjustment has been revised. Acceptable documentation would be an updated federal audit report, or a federal Account Transcript. If an amended return was filed with the IRS response to the audit, please provide a copy of the federal amended return and the IRS acceptance letter. Documentation should be sent to the Compliance Programs Section, as indicated on the notice.

We compare the income reported on a taxpayer's Maryland income tax return against the income reported on their federal return. When the income reported on the Maryland return is less than the income reported on the federal return, the Maryland return is adjusted to increase the income accordingly. A Notice of Adjustment (FAGIM) is issued to notify the taxpayer of the changes made and the resulting tax and interest due.

If you received a Notice of Adjustment (FAGIM) and do not agree with our adjustment, please provide documentation to explain the difference in income along with a copy of your federal income tax return. Documentation should be sent to the Compliance Programs Section, as indicated on the notice.

We receive information from the Internal Revenue Service that indicates they have adjusted a taxpayer's federal income tax return to include income not previously reported. Since the Maryland return is based on the federal return, we adjust the Maryland return to include the unreported income accordingly.

If you received a Notice of Adjustment (CP2000) and do not agree with our adjustment, please provide documentation showing that the federal adjustment has been revised. Acceptable documentation would be an updated federal audit report, or a federal Account Transcript. If an amended return was filed with the IRS in response to the audit, please provide a copy of the federal amended return and the IRS acceptance letter. Documentation should be sent to the Compliance Programs Section, as indicated on the notice.

Notices of Adjustments are issued when a taxpayer's return is adjusted based on one of the following audit programs:

A taxpayer's return is adjusted to eliminate or reduce the Earned Income Credit (EIC), Local EIC and Refundable EIC based on information we received from the Internal Revenue Service (IRS). Maryland taxpayer's are entitled to claim a credit equal to 50% of the allowable federal EIC.

If you have received this notice and feel it is in error, please provide a copy of your federal income tax return along with an Account Transcript which indicates the credit allowed on your federal return. Documentation should be sent to the Compliance Programs Section, as indicated on the notice.

Maryland income tax law requires taxpayers to add back an amount equal to the tuition and fees deduction claimed on their federal return. Information is received from the IRS identifying Maryland taxpayers who have claimed the tuition and fees deduction on their federal return. If the correct addition is not included on the Maryland return, the return is adjusted to include an addition modification equal to the tuition and fees deduction.

If you have received this notice and feel it is in error, please provide a copy of your federal income tax return along with an Account Transcript. If an amended return was previously filed with the IRS to change or eliminate the deduction, please provide a copy of the federal amended return and the IRS acceptance letter. Documentation should be sent to the Compliance Programs Section, as indicated on the notice.

The amount of withholding taxes claimed on an individual's tax return is matched against the W-2 Wage and Tax Statements provided to the Comptroller's office by the individual's employer. When there is a discrepancy in the amount claimed, the return is adjusted accordingly.

If you have received this notice and feel it is in error, please provide copies of the statements (W-2s, 1099-Rs, etc.) showing the amount of additional Maryland withholding. Documentation should be sent to the Compliance Programs Section, as indicated on the notice.

We verify that taxpayers claiming the pension exclusion had income from a qualifying employee retirement system and were at least 65 years old, or totally disabled, or had a spouse who was totally disabled, during the tax year in question. If our records indicate that one of these criteria is not met, an adjustment is made to eliminate the pension exclusion claimed.

If the individual meets the criteria to claim the exclusion, the amount claimed is then verified to determine that the exclusion has been properly calculated. If we find that there was an error in the calculation, the tax return is adjusted to allow the proper amount of exclusion.

A qualified employee retirement plan must be qualified under Sections 401(a), 403 or 457(b) of the Internal Revenue Code. Foreign pensions do not qualify for the pension exclusion.

To be considered totally disabled, an individual must have a mental or physical impairment which prevents you from engaging in substantial gainful activity. The taxpayer must expect the impairment to be of long, continued or indefinite duration or to result in death.

If you received this notice, and feel it is in error, please provide your explanation and documentation to Compliance Programs as indicated on the notice.

Hearing Request (RAR-1202)

In receipt of your correspondence regarding your request for a hearing.

If you have questions about the notice you received, or you can't find your notice defined here, call the phone number on the notice promptly. By calling the number on your notice, you can find out how to resolve the dispute or file an appeal and request a hearing. Failure to respond to the notice may cause us to assess additional penalty and interest charges and result in further collections efforts.

When sales are made at shows or fairs by vendors who do not have a permanent sales and use tax license, the sales tax is collected and remitted on a thirty (30) day Temporary License Form. You can view a sample of COM/ST-203 by clicking the link.

If you are going to participate in an event/ craft show involving the sale of tangible personal property in Maryland, you are required to collect the 6% Maryland sales and use tax, and remit the tax collected to the Comptroller of Maryland on form COM/ST-203, within thirty (30) days of the event.

For a one-time event you must obtain a thirty (30) day Temporary License, to remit any tax collected. A temporary license can be obtained by calling our Business Nexus Unit at 410-767-1543 or 410-767-1531. If you are a promoter, you may also complete and return the Temporary Sales Tax License Information form to templicense@marylandtaxes.gov. You must file the thirty (30) Day Temporary License even if no tax is due.

If you participate in three (3) or more events each year, you are required to obtain a permanent sales tax license. A permanent license can be obtained by visiting our web site at www.marylandtaxes.gov and completing a Combined Registration Application Form.

You did not remit the sales & use tax return by the due date indicated on the return so a Past Due Notice was issued. You must file the sales & use tax return even if no tax is due. For your convenience, there is a sales & use tax return provided at the bottom of the past due notice.

If you have questions about the notice you received, please call the number provided on the notice.

Section 13-408(b) of the Tax General Article, Annotated Code of Maryland provides, "If the Comptroller determines that a person has possessed or transported cigarettes or other tobacco products on which the tobacco tax has not been paid as required under Title 12 of this article, the Comptroller shall assess the tobacco tax due."

It is illegal to purchase cigarettes over the Internet. It is also illegal to bring more than five cartons per person into Maryland from another state. Importing more than five cartons is a felony if transported. See Tax General TG 12-104 and TG 13-1015. The current tax rate is $2.00 per pack of twenty (20).

The Comptroller received information indicating you purchased cigarettes over the Internet or out-of- state. The cigarettes purchased did not have the proper Maryland tobacco stamps affixed. According to our records, neither the Maryland tobacco tax nor the Maryland sales & use tax has been paid as required.

As a result, you, as the consumer who possessed the cigarettes, are responsible for remitting the cigarette tax. In addition, Maryland sales tax is due based on the total cost of the cigarettes.

For additional information, please view Consumer FAQs about Tobacco.

If you have questions about the letter you received, please call the number provided on the letter.

Individual Income Tax Computation Notice

An Individual Income Tax Computation Notice is an initial notice showing the tax and interest currently due on an individual income tax account.

Notice of Income Tax Assessment

A Notice of Income Tax Assessment (NITA) is issued when there is no response to an initial notice or when a tax liability is not resolved or paid within the time indicated on the initial notice. The NITA includes updated interest and a penalty of up to 25% based on the unpaid tax. Appeal rights are provided on this notice.

The Compliance Program Section conducts numerous audits to ensure that tax returns filed with the State of Maryland are in compliance with federal and Maryland income tax laws. Listed below are some of our most common audit programs. You may have received a notice if one of our programs indicated that we need more information, made an adjustment, or an assessment.  Look up your notice under "I Received a Notice" to learn more about a notice you may have received.

  • CP2000 - We received information from the Internal Revenue Service that indicates 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.
  • Federal Adjusted Gross Income Match (FAGIM)- 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.
  • Revenue Agent Report (RAR) - 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.
  • Earned Income Credit – We adjusted your return to eliminate or reduce the Earned Income Credit (EIC), Local EIC and Refundable EIC based on information we received from the Internal Revenue Service. The corrected EIC was based on the allowable federal EIC as provided by the Internal Revenue Service.
  • Tuition and Fees –Maryland income tax law requires taxpayers to add back an amount equal to the tuition and fees deduction claimed on the federal return. Based on information received from the Internal Revenue Service, you claimed a deduction for tuition and fees on your federal income tax return. According to our records, no corresponding addition modification was reported on your Maryland return. Your Maryland return was adjusted to include an addition modification for the tuition and fees deduction.
  • Withholding Verification- We have adjusted your Maryland income tax return to reduce the Maryland withholding tax claimed to agree with the withholding shown on the wage and tax statements (W-2's) provided to our office by your employer(s).
  • Pension Exclusion – As part of our audit program, we verify the individual claiming the pension exclusion had income from a qualifying employee retirement system and that the individual was at least 65 years old, or totally disabled, or had a spouse who was totally disabled, during the year in question. If our records indicate that one of these criteria is not met, an adjustment is made to eliminate the pension exclusion claimed. If the individual meets the criteria to claim the exclusion, the amount claimed is then verified to ensure that the exclusion was properly calculated. If we find that it was not properly calculated, an adjustment is made to allow the correct amount of pension exclusion.
  • General Audit – Maryland income tax law allows the Comptroller to independently audit Maryland income tax returns. As part of our audit program, we had previously contacted you and requested that documentation be provided to substantiate items (such as, itemized deductions, business expenses, etc.) claimed on your Maryland return. If no documentation was provided, your return was adjusted to eliminate all the items in question. If documentation was provided, your account was adjusted to allow the items properly substantiated.

Statute of Limitations

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 one (1) year to assess the deficiency.

If you have question regarding any of our audit programs, you may call (410) 767-1966 or toll free at 1 (800) 648-9638.



  • You did not pay the full amount due with your return.
  • A correction was made to your return when it was processed which resulted in additional tax due.
  • Your return was adjusted based on an audit which resulted in additional tax due.

Look up your notice under "I Received a Notice" to learn more about the notice you received and what to do next. If you have questions about the notice you received, you may call the number provided on the notice you've received to speak with a representative.

If you lived in Maryland during the year indicated on your notice and you believe you have filed a Maryland income tax return, please provide a copy of the return along with all attachments such as W-2's and 1099(s), also provide a copy of the cancelled check(s) of any payment made with your return.

If you have questions call (410) 767-1966 or toll free 1 (800) 648-9638. Please don't assume the problem will go away, even if you believe the notice is incorrect.

If you need additional help, please contact us to Get Help!

There are several reasons why you may not have filed a Maryland return. We have information that indicates that you should have.

You may have received an Information Request Notice from the Comptroller's Office if you filed a federal income tax return using a Maryland address, but did not file a return with the State of Maryland. As part of our non-filer program, we compare our records against information received from the Internal Revenue Service to identify Maryland residents who have not filed a Maryland income tax return. Individuals, who are identified as non-filers, are issued an Information Request notice. Your response to the notice helps us determine whether you are required to file a Maryland tax return.

If you were in the military and were a resident of another state, please send us a copy of your military W-2 or your Leave and Earnings Statement (LES) for the year in question. Remember, if you earned non-military income in Maryland, a non-resident income tax return must be filed.

If you were required to file a federal return but not required to file a Maryland return due to the exclusion of social security and/or railroad retirement income, please send us a copy of your social security and/or railroad retirement statement.

If you were a resident of another state for the year in question, please provide a copy of the other state's income tax return with attachments, such as W-2(s) and 1099(s). If the other state does not have an income tax, please provide 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.

If you did not live in Maryland during the year in question, please provide an explanation as to why a Maryland address was used on your federal income tax return.

If you have questions or your situation doesn't fit into any of the examples listed above, call (410) 767-1966 or toll free 1 (800) 648-9638. Please don't assume the problem will go away, even if you believe the notice is incorrect.

Please mail your completed return with any payment due in the envelope provided with the notice. If you need forms please call our office at (410) 260-7951 get the form from the Individual Tax Forms section.

If you lived in Maryland for only a part of the year, you may be required to file a return as either a part-year resident or nonresident. Click here to determine your residency status to find out which form you should file.

If you have questions or your situation doesn't fit into any of the examples listed above, call (410) 767-1966 or toll free 1 (800) 648-9638. Please don't assume the problem will go away, even if you believe the notice is incorrect.

All requested documentation should be sent along with the Information Request notice to: Comptroller of Maryland, 301 W. Preston Street, Room 404, Baltimore, MD 21201.

The Compliance Division receives referrals and complaints from taxpayers and concerned citizens for investigation. When they do, we look into it and determine if any action is necessary and we will send you notification.

In order to report a concern, please contact cdfieldaudit@marylandtaxes.gov.

What Happens if I Don't Pay?

Enforcement Actions

If you refuse to make payment arrangements, or you fail to follow through on arrangements that you have made, the Comptroller's Office may enforce any combination of the following actions against you. For information about each enforcement action, follow the links below.

Slow Down... You Won't Get Your License or Car Registration Renewed If You Don't Pay Up!

The Motor Vehicle Administration, the Maryland Department of Labor and the Comptroller are partnering to make sure that everyone pays their fair share. State law requires that individuals and businesses that have unpaid, undisputed state tax liabilities and/or unpaid unemployment insurance contributions satisfy the debt(s) prior to renewing a Maryland driver's license or vehicle registration. 

If you have unpaid individual income taxes and are not in an approved payment plan, you can request a payment arrangement online, by email at mvahold@marylandtaxes.gov, by calling the Comptroller's Collection Unit toll free at 855-213-6669, or in person at one of the Comptroller's 12 local branch offices. Please include your name, address, the last four digits of your Social Security Number, case number or notice number and your phone number in your e-mail message. This will help us generate a quick response to your inquiry.

If you have unpaid business taxes and are not in an approved payment plan, you can request a payment arrangement by calling Business Tax Collections at  410-649-0633 or emailing cdcollectionbizz@marylandtaxes.gov.

If your business has unpaid unemployment insurance contributions and is not already in an approved payment plan, you can make payment arrangements by contacting the Maryland Department of Labor at 410-368-5440 or via email at uiskip@dllr.state.md.us.

Don't let unpaid taxes slow you down!

For more important information on this new law and how you can pay your debt quickly, check out the links below.

Penalty and Interest Charges

If you do not respond to the first notice, you will receive an assessment notice that will include substantial penalty and interest charges. Under Maryland law, the assessment notice is presumed correct, and you would be required to file and appeal and request a hearing within 30 days of the assessment in order to dispute the amount due. Collection procedures will begin after the expiration of the 30-day period to appeal the assessment.

Your assessment will depend on the amount of taxes that we believe you owe. Maryland law requires us to charge interest at the annual rate of 11 percent during calendar year 2019, and at the annual rate of 10.5% during calendar year 2020. Interest will be calculated from the date the return was originally due. Penalty charges for late payments can be up to 25 percent of the amount of tax you owe.

If you do not settle your account promptly after you receive an assessment notice, legal action will begin that may include filing a property lien or attaching your bank accounts and salary, or referring your account to an outside collection agency.

You can file an appeal and Dispute It! within 30 days of an assessment.

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

Notice to Employers: Salary Lien Provision for Unpaid Income Taxes

The Maryland legislature, in its 2002 session, passed a bill that changed the amount to be exempted from the salary lien provision of the income tax law in order to conform with amounts for other wage liens listed in the Commercial Law Article, Section 15-601-1. What is currently exempted under the Commercial Law Article for wage liens now applies to the income tax law.

The amount exempt from the wage lien is the greater of:

  • $145 times the number of weeks in which the wages due were earned, or
  • 75% of disposable wages due;
  •  less medical insurance payments deducted by the employer from the employees wages.

In Caroline, Kent, Queen Anne's and Worcester counties, for each work week, the greater of;

  • 75% of disposable wages due, or
  • 30 times the federal minimum hourly wage at the time the wages are due.
  •  less medical insurance payments deducted by the employer from the employees wages

Disposable wages are calculated by reducing the gross wage by the deductions required by law. Voluntary deductions such as credit union payments, charitable contributions, IRA, etc. are not included in the definition of disposable wages and should not be deducted before the computation is made.

The changes became effective July 1, 2002.

For example, if married with 2 exemptions, the calculation is as follows:

Gross Wages

$1,150.68

Federal Tax

-$58.75

State Tax

-$55.74

FICA

-$81.89

Disposable Wages

$954.30

Exemption (75%)

-$715.72

Sub-total

$238.58

Less Medical Insurance Payments by Employee

-$80.21

Amount Due to State Under Salary Lien

$158.37

If you have any questions, please contact our Collection Section at 410-260-7966

External Collection Agency Referral

We may assign your case to one or more of the following collection agencies. Additional fees may apply. Once your case has been assigned, arrangements for payment must be made through that agency.

Penn Credit
916 South 14th Street
Post Office Box 988
Harrisburg, PA 17108
1-800-900-1362
Harris and Harris, LTD
Arnold Scott Harris, P.C.
Attorneys At Law
111 West Jackson Blvd., Suite 600
Chicago, IL 60604-4134
1-855-223-1731

Business and Professional License Hold

The state and local agencies listed below must verify that an applicant renewing a license has paid all states taxes due - or made a satisfactory payment arrangement - before the license can be renewed:

  • Comptroller of Maryland
  • Clerks of the Circuit Court
  • Maryland Department of Labor
  • Department of Health and Mental Hygiene
  • Motor Vehicles Administration
  • Department of Natural Resources
  • Department of the Environment

If you hold a license issued by one of these agencies, you should file any necessary tax returns and pay all taxes due without delay. If you wait until license renewal time to resolve a tax liability, your renewal may be delayed

Once the tax issue has been resolved, the Comptroller's Office will notify the appropriate agency.

You may contact us for additional information.

Individual Income Taxes
Phone: 410-974-2432 or 1-888-674-0016
Fax: 410-974-3053
E-mail: cdcollectionind@marylandtaxes.gov

Business Taxes
Phone: 410-649-0633
Fax: 410-333-7499
E-mail: cdcollectionbizz@marylandtaxes.gov

File a Tax Lien

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. 

Attach Your Assets

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.

Caught in the Web

The Comptroller of Maryland is serious about retrieving unresolved tax liabilities. As a part of the collection process, we publish the names of businesses, individuals and corporate officers having large unresolved liabilities - including individuals who have large unresolved personal income tax liabilities. All of the information is public since liens and judgments have been recorded in the judgment dockets of one or more circuit courts of Maryland.

No one is above the tax laws. If you don't want to see your name posted on our site along with other tax delinquents, be sure to keep up with your tax obligations. 

If your name appears in the listing, you should contact the Comptroller's Office to make arrangements to resolve the liability. For business tax liabilities call 410-767-1601. For individual tax liabilities call 410-260-7482, 260-7623 or 1-800-MD-TAXES or e-mail sut@marylandtaxes.gov for either tax.

This is an ongoing program to assure that everyone pays his or her fair share of taxes. Names will be added periodically. If you have not already done so, resolve any deficiencies prior to being selected for the list.

 

2018 Tax Evasion: Top 20 Individuals and Top 25 Business Tax Evaders

Other Collections Actions

If you refuse to make payment arrangements, or you fail to follow through on arrangements that you have made, the Comptroller's Office may file a lien against you, attach your assets, file an estimated assessment for taxes due in the unreported periods, place a hold on driver?s or professional license or institute other legal processes.  For information about each enforcement action, follow the links below.

Collection Action

Annotated Code of Maryland - Tax-General Article

Penalty and Interest

  • Business Collections
  • Individual Collections

13-701

13-409

13-601

13-601

13-509

Rates 13-604

Liability Offset Program

 

Salary Lien

13-811

Property Lien/Lien in Judgment

13-805, 13-806, 13-807, 13-808, 13-809

External Collection Agency Referral

 

Attach Your Assets

13-812

Business & Professional License Hold

 

Motor Vehicle License and Registration Non-renewal

 

Caught in the Web!

 

Below you will find links for methods to pay your Maryland tax liability. If you are unable to pay the full amount due, you should still file a return and consider making payment arrangements. We will process your return and then send you an income tax notice for the remaining balance due for nonpayment of taxes.

If you file and pay electronically by April 15, you have until April 30 to make the electronic payment, using direct debit or a credit card. Electronic payment options eliminate postage costs, the potential for lost mail and possible penalties for late payments.

Pay As You Earn

Maryland is a pay as you earn state. Avoid penalties, interest, fees and any adverse collection actions by making sure your tax is properly withheld and/or pay estimated taxes to insure you don't owe at the end of the year.

Correct Your Wage Withholding

Setup up Estimated payments

Payment Plans and Arrangements

If you are unable to pay the full amount due, you should still file a return and request a payment arrangement. We will process your return and then send you an income tax notice for the remaining balance due for nonpayment of taxes.

Payment Arrangements

You should pay as much as possible with your tax return, and continue making payments while waiting for your return to be processed. To insure proper credit to your account, be sure to note on your payment your Social Security number and the tax period for which the payment is intended.

When your return is processed, a Personal Income Tax Balance Due Notice will be sent to you. If you are unable to pay the notice in full at that time, you may indicate your preferred payment term on the notice and mail it back using the enclosed envelope. If the requested term is not listed, or if you need additional assistance, please contact the Collection Section by phone at 410-974-2432 or 1-888-674-0016 or by email at cdcollectionind@marylandtaxes.gov. If you are emailing us, please include your name, address, the last four digits of your Social Security Number, case number or notice number and your phone number in your message. This will help us generate a quick response to your inquiry.

If you prefer, you may request a payment arrangement online.

Payment to Release MVA Hold

To make payment arrangements in order to release an MVA hold please call us toll free at (855) 213-6669 or email us at mvahold@marylandtaxes.gov. Please include your name, address, the last four digits of your Social Security Number, case number or notice number and your phone number in your e-mail message. This will help us generate a quick response to your inquiry.

Set Up a Recurring Payment Plan

Already on a Payment Plan? Want Automated Payments? You don't have to write another check to pay your individual tax payment agreement, if you don't want to. With the State of Maryland recurring direct debit program you don't have to worry about mailing off a check for your individual tax payment plan.

Cash Payments

Beginning July 1, 2016 cash payments will no longer be accepted at any of our branch office locations.

Payments requiring immediately available funds must be made by certified check, cashier's check or money order.

Already on a Payment Plan? Want Automated Payments? You don't have to write another check to pay your individual tax payment agreement, if you don't want to. With the State of Maryland recurring direct debit program you don't have to worry about mailing off a check for your individual tax payment plan.

When you sign the direct debit authorization document you agree to have a predetermined amount deducted from your checking account on approximately the same day each month. Debit payments can be arranged to occur on your payment plan?s due date each month. The payment is sent to your bank approximately three days prior to your payment agreement?s due date. Please consult with your bank about the actual posting to your account.

The debits stop automatically after the payment plan has been completed. The money will be transferred to the State of Maryland with no additional service charge.

If you have provided us with a valid e-mail address, you will receive a notification indicating that your payment has been submitted for processing. You will also receive a payment plan installment bill that reflects the current balance due.

You will need your payment agreement number in order to set up an automatic payment for an existing payment agreement.

If you do not know your payment agreement number, call our Collection Section at 410-974-2432 or 1-888-674-0016.

If you do know your payment agreement number, you may set up your request for a recurring direct debit online.

Payment Methods

Below you will find links for methods to pay your Maryland tax liability. If you are unable to pay the full amount due, you should still file a return and consider making payment arrangements. We will process your return and then send you an income tax notice for the remaining balance due for nonpayment of taxes. See the Tax Compliance section for details regarding collections, payment arrangements, income tax notices, non-payment and missed or late payments.

Online Bill Pay is an easy, convenient and secure way to pay your Maryland tax liabilities online for free. This system may be used to make bill payments on business taxes using electronic funds withdrawal (direct debit) from a U.S. bank or financial institution. Foreign facilities will not be accepted. You must become a registered user to access this free online service. To register, click on the appropriate link listed below and follow the instructions.

Individuals who have a personal tax liability for the current year will be able to select a payment date of April 15 or earlier. Those who filed a return electronically by April 15 can select a payment date of April 30 or earlier.

To access online bill pay: Click Here

You can pay your Individual Maryland taxes with a personal check or money order if you prefer not to pay electronically, or with a credit card. If you file electronically and pay by check or money order, your payment is due by April 15, however, if you file electronically by the April 15 deadline and choose to pay electronically, you have until April 30 to make the electronic payment (by direct debit or credit card).

You may also drop off your completed tax form at one of our local branch offices.

The return address for a Form 502 or Form 505 filed with payment by check or money order is:

Comptroller of Maryland
Payment Processing
PO Box 8888
Annapolis, MD 21401-8888

Send all other returns, payments and other correspondence regarding your personal or business tax account(s) to:

Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, MD 21411-0001

Don't agree with our assessment or adjustments? Dispute it with an appeal.

The Comptroller's authority is granted through §13-508 and 13-904 of the Tax-General Article, Title 17 of the Commercial Law Article and COMAR 03.01.01.04, .03.01.01.05, and 03.05.02.03. For additional information see Tax Tip 34 - Comptroller's Office Hearings & Appeals Procedures.

You can request an appeal of assessments or refund denials of the following :

  • admissions and amusement tax
  • alcoholic beverage tax
  • bay restoration fee
  • boxing and wrestling tax
  • employer withholding tax
  • income tax
  • motor fuel tax
  • motor carrier tax
  • sales and use tax
  • tire recycling fee
  • tobacco tax
  • unclaimed property

You have the right to file an appeal if you are assessed tax or a fee or if your refund is denied. If you have received a notice and would like to file an appeal, follow the instructions in the notice. Appeals must be in writing.  For additional information see Your Rights Regarding Appeal.

Request an Appeal Online at the Maryland Online Hearing Appeal Request system.

Request an Appeal by Mail by sending it to: 

          Comptroller of Maryland
          Hearings and Appeals Office
          301 West Preston Street, Room 315
          Baltimore, Maryland 21201-2383

Request an Appeal by E-mail by sending it to cdhearings@marylandtaxes.gov.

Informal Hearing

If a taxpayer files a timely appeal, the first step in the appeal process is an informal hearing. An informal hearing is a structured meeting between you and a hearing officer who is designated by the Comptroller to review any issues in dispute. After you file your written appeal, you will receive a Notice of Hearing that advises of the date and time of the hearing. If you believe that the circumstances of your case are straight-forward or based on a lack of documentation, including any missing information with your appeal may help to resolve your dispute without the need to appear in person for a hearing.

You must bring photo identification to the hearing. You may bring your attorney, accountant, bookkeeper, or anyone else who has knowledge of your case and can assist you in your presentation. If you elect to have someone appear for you at the informal hearing, that representative may be required to submit a power-of-attorney granting him or her authority to represent you in the proceeding. You may also bring witnesses you feel are necessary to your case, and you may request the hearing officer to subpoena other witnesses. The subpoena request must be in writing, received at least ten days before the hearing, and include an explanation of why the subpoena is necessary. Subpoenas are sent via first class mail unless you make other arrangements.

Depending on the type of hearing, the Comptroller may have other representatives in attendance at your hearing. For example, if the case is based on an examination of your books and other records, the auditor who examined them and/or the auditor's supervisor, is expected to attend. For cases arising from collection activity, a representative from the collection section will usually attend.

At the informal hearing, you may present any position you have regarding your case, and the hearing officer will consider any relevant information you present in support of your position. Assessments and refund denials are presumed to be correct, and you have the burden of proving otherwise. Therefore, you should be fully prepared to address all of the issues you intend to raise and have with you all of the records and documents that support your positions. Copies are usually acceptable, and anything you submit will be returned to you if you ask for it after the case is concluded.

The hearing officer may question you and your witnesses as well as the auditor to clarify any issues you may raise. The hearings are recorded, and witnesses may be placed under oath.

In the absence of a settlement, the hearing officer will issue a written Notice of Final Determination that explains the basis for the decision. If you disagree with the hearing officers determination, you must file an appeal with the Maryland Tax Court within 30 days of the date of the Notice of Final Determination.

Postponements

If you have good cause, you may request to postpone the date of your hearing by submitting a written request at least five business days before the scheduled hearing date. You may be required to document any scheduling conflicts. Under Maryland law, failure to appear at an informal hearing is considered to be a withdrawal of your appeal, and the result is that the assessment or refund denial becomes final and nonappealable.

Online Hearings and Appeals Request

The Comptroller's authority is granted through §13-508, 13-509 and 13-904 of the Tax-General Article, Title 17 of the Commercial Law Article and COMAR 03.01.01.04, .03.01.01.05, and 03.05.02.03 . For additional information see Tax Tip 34 - Comptroller's Office Hearings & Appeals Procedures.

If you are self-employed or do not have Maryland income taxes withheld by an employer, you can make quarterly estimated tax payments as part of a pay-as-you-go plan. You can make estimated payments online using iFile, which also allows you to review your history of previous payments made through iFile and also schedule the payments. You can also submit estimated payments using Form PV. In an ongoing effort to protect sensitive taxpayer information, the Comptrollers Office has discontinued the mailing of the Estimated Personal Income Tax Packet.

If your employer does withhold Maryland taxes from your pay, you may still be required to make quarterly estimated income tax payments if you develop a tax liability that exceeds the amount withheld by your employer by more than $500.

If you receive $500 or more in income from awards, prizes, lotteries, racetracks or raffles, you must file Form PV - along with your full estimated tax payment - within 60 days of receiving the income.

If you file joint returns

You and your spouse may file a joint Form PV regardless of whether you file your final return jointly or separately.

The estimated tax may be claimed in any proportion on the final return as long as the amounts claimed separately do not exceed the total paid. If you and your spouse plan to file jointly, we recommend that you make estimated tax payments to a joint account.

Estimated Tax Forms and Services
Estimated Tax Calculator
iFile
Form PV - Personal Declaration of Estimated Income Tax Payment Voucher