Frequently Asked Questions About Reporting Requirements

Originally Posted: July 31, 2008

General Information

1. Why must this information report be filed?
2. Does this information reporting requirement change my tax liability or filing requirement?

Who is Subject to These Requirements

3. Who is required to file?
4. If I do not receive a Tax Alert with a tracking number from the Comptroller, am I still required to file the information report?
5. I am a Maryland single-entity company and have received a Tax Alert from the Comptroller regarding these requirements. Must I file this information report?
6. I am a nonprofit Maryland company. Must I file this information report?
7. My company has been dissolved/no longer exists. Do I still need to respond to the Tax Alert from the Comptroller or these reporting requirements?
8. Why have homeowners' associations received the Tax Alert about this reporting requirement?
9. Legislation talked about publicly traded corporations in relationship to the combined filing study. Are privately-held companies excluded from these requirements?
10. I own more than one corporation in the same combined group and more than one has received a Tax Alert from the Comptroller with a tracking number. Is there a way to show that all of them reported even though one is the primary reporting entity?
11. What if my company is not part of a unitary group in the first year and then in a subsequent year of the study becomes a member of a unitary group?
12. Will there be a way for taxpayers to check by name whether they are in compliance if they do not receive a Tax Alert from the Comptroller?

Penalties

13. Is there a penalty for not filing?

Submission of the Information Reports

14. How will the information reports be submitted?
15. Is there a pro forma return that I must file and will I owe additional tax?
16. Are there any companies developing software to facilitate this reporting requirement?
17. Is electronic filing required or optional for the study?
18. If I have not received a tracking number or the tracking number has been lost, can I comply with these reporting requirements using my federal employer identification number (FEIN)?
19. When are the information reports due?
20. Will the Comptroller extend the October 15, 2008 or any later due date?

Report Content

21. What entities are included in a water's edge report?
22. How is unitary business defined?
23. Will all entities be required to report sales, property and payroll apportionment information even if they currently apportion income on a different basis?
24. Must sales that could be subject to proposed throwback/throwout rules in the future be reported?
25. How are net operating losses (NOLs) treated in the unitary group?
26. How are eliminations handled in the study?
27. How will the dividends received deduction be treated in this study?
28. How should information from short tax years be reported?
29. If I have a significant number of entities within the unitary group, will there be an accommodation for each entity or must I summarize all the data on one entry?
30. Will the study use apportionment information based on the Joyce or Finnigan approach?