In an effort to provide immediate stimulus to Maryland businesses, the comptroller’s office announced today that it will be extending the deadlines of certain business taxes and quarterly estimated income tax returns and payments until April 15.
Businesses will not have to apply for an extension to take advantage of this forbearance, nor will they owe any interest or penalties.
Comptroller Peter Franchot estimates that this action will save Maryland consumers and businesses more than $1 billion dollars.
“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,” Franchot said. “Just like last year when we gave businesses a breather, after 90 days, taxpayers will remit what is due, ensuring this action is budget neutral for the State of Maryland.”
The measure is similar to one implemented in early 2020, at which time the comptroller delayed several business-related taxes due in the months of March, April and May.
Like the extension offered in 2020, this forbearance will apply to the following business taxes and fees administered by the Comptroller:
- corporate and pass-through entity income tax filings and payments
- sales and use tax
- withholding tax
- admissions and amusement tax
- alcohol taxes
- tobacco tax
- motor fuel tax
- tire recycling fees
- bay restoration fees
- individual and fiduciary declaration of estimated income tax filings and payments
State-level withholding tax returns and payments have also been delayed until April 15, though 2020 withholding tax returns and payments are still due by Jan. 31.
In addition to this statewide measure, Franchot also called on Internal Revenue Service Commissioner Charles Rettig to offer businesses nationwide forbearance on federal monthly business taxes.
In his letter to Rettig, Franchot stated that even in Maryland, one of the wealthiest states in the nation, millions of families are struggling to afford food and housing due to the economic impact of the pandemic before asking the commissioner to follow his lead in delaying taxes.
“I believe this will be the most immediate and effective remedy for American businesses and consequently its citizens that we can take at this juncture This same action helped countless millions last year and can do so again. Americans need decisive action now more than ever,” Franchot said in a letter to Reddig published Wednesday.
Businesses with questions related to these extensions may direct them to email@example.com.