Comptroller Extends Filing, Payment Deadlines for Pass-Through Entities

Maryland Comptroller Peter Franchot today extended the filing deadline for 2020 income tax returns from Pass-Through Entities (PTEs) to September 15, 2021, due to new laws requiring extensive changes to PTE tax forms, which are now available on the Comptroller’s website.

Taxpayers who file PTE returns and pay any outstanding liabilities by September 15 will not be charged interest or pay a penalty. No further action is required for PTEs to receive this waiver; it will be automatically granted.

“This has been an extraordinary tax filing season, and the changes required to PTE forms from legislation that became law just a month ago has been the latest complexity,” Comptroller Franchot said. “We recognize this puts a burden on taxpayers, so the decision to extend the filing deadline and not assess interest or penalties was made to provide additional relief.”

According to a press release:

PTE forms are expected to be available through software vendors soon, but the Comptroller’s Office cannot guarantee the date of availability of forms through any third-party vendor.

Tax year 2020 PTE returns were affected by two separate bills passed during the 2021 General Assembly session:  SB 496 – Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families (RELIEF) Act that became law on February 15, 2021 and SB787 Digital Advertising Gross Revenues, Income, Sales and Use, and Tobacco Taxes – Alterations and Implementation that became law on May 30, 2021.

Provisions in both bills required the Comptroller to revise the tax year 2020 PTE forms and to create a new Form 511 for Electing Pass-Through Entities.

This waiver is limited to late payment interest and late payment penalty and does not apply to interest or penalty charged on the underpayment of estimated tax.

PTEs that wish to request an abatement for reasonable cause of interest and penalty charges for underpayment of estimated PTE tax or for interest and penalty charges for returns filed after September 15, 2021, may submit their requests to PTEREQUEST@marylandtaxes.gov. Standard extensions of time to file Maryland PTE returns (November 15 for S-Corps and October 15 for all other PTEs) may be requested using Form 510E.

Individual members of PTEs whose returns cannot be filed until the PTE files and issues K-1s may request a waiver of penalties and interest by emailing PTEREQUEST@marylandtaxes.gov.

Visit the Comptroller of Maryland website for more information.

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