Maryland Corporate Tax Extension
A Maryland corporate tax extension is available to companies that need it but there are rules that apply and you need to follow them correctly.3 min read
2. What Form Do I Need to File to Apply for a Maryland Corporation Extension?
3. Who Receives the Tax Payment?
4. S-Corporation Extensions
5. Are There Additional Local Income Taxes in Maryland?
A Maryland corporate tax extension is available to companies that need it. There are certain rules that apply, so you should be sure to pay attention to these to make sure you follow them correctly and don't miss any important deadlines.
How Long Is the Income Tax Extension Granted to Maryland Corporations?
All income tax returns for corporations must be filed by March 15, or the 15th day in the third month that's after the end of the taxable year. For pass-through entities, income tax returns must be filed by April 15, or the 15th day in the fourth month after the taxable year. These are both for fiscal year filers. Maryland has a seven-month extension that corporations can take advantage of. This moves the deadline for filing to Oct. 15. A six-month extension is given to pass-through entities, allowing them to file as late as Oct. 15.
What Form Do I Need to File to Apply for a Maryland Corporation Extension?
To apply to get a corporation extension in the state of Maryland, Form 500E must be filed by the initial deadline of the return. This must be filed if it's the company's first-year filing, and it doesn't matter if any tax is owed or not. In order to apply for a pass-through entity extension, Form 510E needs to be filed by the initial deadline of the return. The pass-through entity needs to file the form regardless if any tax is owed or not if it's their first-year filing.
Who Receives the Tax Payment?
Tax gets paid to the comptroller of Maryland. If there are members in the LLC who aren't Maryland residents, you can look at the comptroller website to see current tax forms and rates. In some cases, the LLC owners may choose to have their business treated like it's a corporation for tax reasons. This is done by filing IRS Form 2553. Maryland employers will also need to pay taxes to the state.
If the LLC sells items to customers who are in Maryland, the company needs to collect sales tax as well as pay it. Every year, they'll need to file Form 202, a state sales and use tax return. It's preferred by the comptroller that this is done online through the bFile system. Paper forms can also be requested.
S-corporations can get a seven-month tax extension from Maryland when they file Form 510E. However, it doesn't mean you get an extension to pay when you have extra time to file. If you owe any tax to Maryland, it needs to be paid in full by the due date or else you'll have penalties and interest applied. If no Maryland tax is owed, the extension needs to be electronically filed. This can be done through Maryland's Internet Business Filing system. You can also call 410-260-7829 from central Maryland or 1-800-260-3664 from everywhere else.
If state tax is owed and you need to ask for an extension, you need to file Form 502E, which is the Maryland Application for Extension to File Personal Income Tax Return. You need to include a money order or check for how much you owe. You may also pay with a credit card. If Maryland state tax is owed, you can only get an extension to file if your payment is included with your extension request. You'll accrue interest and penalties on any amount that's not paid after your extension date.
Are There Additional Local Income Taxes in Maryland?
There are additional local income taxes for the 23 counties in Maryland and the city of Baltimore. Those who aren't residents will need to pay an extra 1.25 percent for nonresident income tax. There is a 6 percent sales tax that Maryland has for most of its goods and some of its services. There aren't any extra local sales taxes for Maryland. Certain goods, such as prescription medications, newspapers, and food that's sold in grocery stores, aren't subject to the sales tax. There are also two sales tax holidays each year in the state of Maryland.
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