Maryland 2021 first quarter filing and payment due dates extended
Maryland Comptroller Peter Franchot has announced deadline extensions for Maryland related filings and payments to assist individual and business entity taxpayers during the continued COVID-19 pandemic. Select Maryland individual income and business taxes, including monthly and quarterly estimated payments due in January, February, and March 2021, are now due April 15, 2021. No interest or penalties will be assessed during this time, and there is no need to file an extension.
The Comptroller’s office has set up an email address – firstname.lastname@example.org – dedicated to assisting businesses with extension-related questions.
What does this mean?
Corporate and pass-through entity income tax filings and payments
For any corporate or pass-through entity income tax filings or estimated payments normally due between Jan. 1, 2021, and April 14, 2021, the due date has now been extended to April 15, 2021. No penalties or interest will be assessed on any tax due during this period if paid by April 15, 2021. No extension filing is needed to take advantage of the extended deadline. The extended deadline also extends any statute of limitations related to this tax period to April 15, 2024.
Historically, Maryland has required corporations and pass-through entities with no additional tax due by the original due date to electronically file separate state extensions (Forms 500E or 510E); however, the alert announcing the new relief measures provides that extensions to Nov. 15, 2021, will now be automatic as long as a federal extension has been filed.
Sales and use tax
Sales and use tax returns due between Jan. 20, 2021, and April 14, 2021, are extended to April 15, 2021. This affects sales taking place during December 2020, January 2021, and February 2021. Maryland has requested that taxpayers not combine reporting periods into a single return. Returns and payments should be submitted separately for each filing period as if they were filed per their original due dates.
Withholding returns and payments for periods beginning Jan. 1, 2021, through March 31, 2021, have been granted an extended deadline of April 15, 2021. This does not include any 2020 withholding returns or payments due on or before Jan. 31, 2021, as to not delay the delivery of W-2s to employees. No penalties or interest will be assessed on withholding returns or payments originally due Feb. 1, 2021, through April 14, 2021, if filed and paid by April 15, 2021.
Individual and fiduciary estimated income tax filings and payments
Quarterly declarations of estimated income tax and corresponding payments normally due between Jan. 15, 2021, and April 14, 2021, have been extended to April 15, 2021. No extension filing is required to take advantage of the extended deadline during this time.
Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
Coronavirus Resource Center
InsightMaryland sales and use tax now applies to digital productsJohn Iannotti, Marissa McClainRead what “digital products” and codes are taxed under House Bill 932, what should be used as a “customer tax address,” and more.
InsightVirginia updates Internal Revenue Code conformity legislationJohn Iannotti, Marissa McClainVirginia’s IRC conformity date has been updated to Dec. 31, 2020, and the state has decoupled from a number of CARES Act and other federal tax provisions. Read more.
InsightHOSPITALITY: Food delivery ‘marketplace facilitators’ may complicate restaurants’ sales tax collectionJohn Iannotti, Suzanne WilsonSome food delivery services are collecting sales tax on sales facilitated for restaurants or other sellers. Learn what risks and complications that may bring.
InsightCalifornia offers additional tax relief, funding for small businesses amid COVID-19Krista Schipp, John On, Mariam MemonRead about sales and use tax payment extensions and deferrals; tax credits; grants; loans; and other options for eligible businesses affected by the pandemic.
InsightApply early for California’s new Small Business Hiring Tax CreditKrista Schipp, John On, Mariam MemonIn the wake of COVID-19, California is offering qualifying small businesses a credit of $1,000 for each net increase in qualified employees. Learn more.