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§ 13-702. Underestimation of tax

West's Annotated Code of MarylandTax-GeneralEffective: March 14, 2021

West's Annotated Code of Maryland
Tax-General (Refs & Annos)
Title 13. Procedure (Refs & Annos)
Subtitle 7. Penalties (Refs & Annos)
Effective: March 14, 2021
MD Code, Tax - General, § 13-702
§ 13-702. Underestimation of tax
In general
(a) Except as provided in subsections (b) and (c) of this section, a tax collector shall assess a penalty not exceeding 25% of the amount underestimated, if a person who is required to estimate and pay digital advertising gross revenues tax, financial institution franchise tax, public service company franchise tax, or income tax under § 7.5-301, § 8-210(b), § 8-405(b), or § 10-902 of this article:
(1) fails to pay an installment when due; or
(2) estimates a tax that is:
(i) less than 90% of the tax required to be shown on the return for the current taxable year; and
(ii) less than 110% of the tax paid for the prior taxable year, reduced by the credit allowed under § 10-703 of this article.
Exception for income tax
(b) A penalty may not be assessed on the underestimation of individual income tax if:
(1) at least 90% of the individual's taxable income is also taxable by another state; and
(2) the underestimation is of the county income tax only.
Additional exception for income tax
(c) A tax collector may not assess a penalty on unpaid individual income tax under subsection (a) of this section if the amount of unpaid income tax is less than one-half the amount specified in § 6654(e)(1) of the Internal Revenue Code.

Credits

Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 1988, c. 569, § 1; Acts 1989, c. 5, § 1; Acts 1991, c. 487, § 1; Acts 1992, 1st. Sp. Sess., c. 1, § 6; Acts 1994, c. 578, § 1, eff. July 1, 1994; Acts 1994, c. 660, § 1, eff. July 1, 1994; Acts 1995, c. 3, § 1, eff. March 7, 1995; Acts 2003, c. 203, § 24, eff. July 1, 2003; Acts 2021, c. 37, § 2, eff. March 14, 2021.
Formerly Art. 81, § 312.
MD Code, Tax - General, § 13-702, MD TAX GENERAL § 13-702
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document