TAX DEBT RELIEF OPTIONS – Comptroller of MAryland


M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Maryland since 2010 and nationwide since 2005.  We deal with the IRS and State taxing authorities, so you do not have to!  

If you or your business owes the Comptroller of Maryland back-taxes we recommend reviewing your Taxpayer Rights.

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.


PAYMENT PLANS TO RESOLVE MARYLAND BACK TAXES


The Comptroller of Maryland has a few Payment Agreement options available to help satisfy a tax liability.  Typically, the Comptroller in not as flexible collecting business tax debts as they are personal tax debts.  Here are some tips to help you set up a Maryland Payment Agreement: 
  • Payment Agreements of 6 months or less typically avoid a tax lien being filed
  • A Supervisor’s approval is required for payment plans longer than 6 months. 
  • Tax liability greater than $15,000 will likely required 25% down payment requirement.  
    • Individual tax payers may be able to get down payment requirement waived.
    • Down payment requirement may increase to 33% for business sales tax liability.
  • 24 months is standard term for business Payment Agreements.  
  • Consistent compliance for one tax period may be required to obtain a monthly Payment Plan on liabilities larger than $10,000. 
If your business owes sales tax, full payment will be required to renew your sales tax license.

REDUCE YOUR COMPTROLLER OF MARYLAND TAX DEBT


Offer in Compromise


Comptroller of Maryland has an Offer in Compromise program.  It is typically not a good strategy for operating businesses, but may be a good option for individual taxpayers struggling to resolve their tax debt.  

If you have little or no equity in assets and do not have the ability to make monthly payments, the Offer in Compromise may work for you.

Quick Tips  
  • Complete the following forms while preparing your Comptroller of Maryland Offer in Compromise
    • Form MD 656
    • Form MD 433-A
    • Form MD 433-B
  • You cannot appeal an Offer in Compromise that has been denied by the Comptroller of Maryland.  Be sure to complete your Offer thoroughly and completely before submitting it. 

Penalty Relief


According to the Comptroller of Maryland website, the abatement of penalty and interest is possible.  In our experience, Maryland is not willing to remove penalties or interest assessed to business sales tax liabilities.  The Comptroller is more willing to grant penalty relief to an individual taxpayer that has a good compliance history and can prove that an unavoidable hardship, out of their control caused the accrual of the penalty.

MARYLAND TAX RESOLUTION CASE EXAMPLES


The Comptroller of Maryland has some flexibility when it comes to back tax liabilities.Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.


page last reviewed 1/4/2018

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