New Reporting Requirements

The Maryland General Assembly has imposed new reporting requirements for certain corporations, set forth in the Tax Reform Act (Chapter 3, Acts of 2007), in order to provide the new Maryland Business Tax Reform Commission with the necessary information to review and evaluate the state's current business tax structure and make specific recommendations for changes.

The new reporting requirements apply to all taxable years beginning after December 31, 2005, and are to be filed on or before dates specified by the Comptroller in an electronic format specified by the Comptroller.

Section 10 of the new law specifically provides that, except as provided in regulations that the Comptroller adopts, the reports required for a taxable year beginning before January 1, 2007 shall be submitted as part of the corporation's tax return for the next taxable year beginning after December 31, 2006.

However, until the Comptroller's Office issues regulations on due dates, format and other issues related to corporate reporting, corporations subject to the new reporting requirements are requested to file their returns with an attached statement acknowledging the new reporting requirements and their intention to comply with those reporting requirements in a timely manner.