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§ 13-602. Deficiency in estimated 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 6. Interest (Refs & Annos)
Effective: March 14, 2021
MD Code, Tax - General, § 13-602
§ 13-602. Deficiency in estimated tax
Currentness
Financial institution franchise tax, public service company franchise tax, and income tax
(a) Except as provided in subsections (b) and (c) of this section, a tax collector shall assess interest on unpaid tax from the due date to the date on which the tax is paid 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.
Exceptions for income tax
(b) Interest 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 interest 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. 110, § 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, §§ 130A, 312.
MD Code, Tax - General, § 13-602, MD TAX GENERAL § 13-602
Current with legislation effective through July 1, 2023, from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document