Recognizing that many businesses are still awaiting approval of applications for COVID-related grants and loans, the Comptroller of Maryland has announced a new extension for filing and paying taxes and quarterly estimates. The extension applies to returns and payments that would otherwise be due in January, February, and March 2021 that are now due by April 15, 2021. Businesses don’t need to file for an extension, and they will not be subject to interest or penalties.
The extension applies to business tax filings under the authority of the Comptroller. It includes sales and use, admissions and amusement, alcohol, tobacco, tire recycling, and motor fuel fees and payments usually due between January 1 and April 14, 2021. The extension also applies to self-employed individuals and independent contractors who would normally file estimated tax returns and payments on January 15.
In providing the extension, Comptroller Franchot expects it to keep $1 to 1.5 billion in the pockets of consumers and businesses to help them “keep their lights on.” The action is similar to the one he took last year to provide relief during the early stages of a pandemic.
Employers are still required to complete their 2020 withholding returns by January 31 to ensure taxpayers receive their W-2 forms in time for the tax season. They are also required to file and pay federal withholding taxes. Employers may wait until April 15 to file state withholding returns and payments that were initially due between February 1 and April 14. However, Comptroller Franchot has requested that the IRA Commissioner apply the same forbearance period for federal monthly business tax payments.
The Comptroller has also indicated that, if the IRS extends its April 15 filing date as it did in 2020, Maryland will conform to the federal tax deadline.
More information on the extension can be found at a dedicated email address established by the Comptroller’s office — email@example.com. The advisors at Glass Jacobson also stand ready to answer your questions.