Tax Filing, Payment Deadlines Extended By MD Comptroller

MARYLAND — Because of the coronavirus pandemic's impact upon businesses, Maryland Comptroller Peter Franchot said his agency has extended filing and payment deadlines for certain Maryland business taxes and quarterly estimated income tax returns and payments that would have been due in January, February and March 2021. Those payments have been delayed until April 15, 2021.

The action is similar to an extension granted last year to businesses during the early stages of the pandemic. No interest or penalties will be assessed and there is no need to file a request for extension, Franchot stated. Businesses and self-employed individuals or independent contractors with estimated income tax returns and payments due Jan. 15 also will be granted an extension until April 15.

“My directive for a tax forbearance that is interest and penalty free is a direct and immediate economic stimulus for Maryland businesses and workers — a decision that we estimate keeps more than $1 billion in consumers’ pockets and helps businesses keep their lights on,” Franchot said in a statement.

Employers must complete their 2020 withholding tax returns and payments due by Jan. 31 so that W-2s will be delivered on time for taxpayers to file when the tax season begins at the end of January. Any state withholding returns and payments originally due between Feb. 1 and April 14 may be submitted by April 15 without incurring interest and penalties. Employers must still file and pay federal withholding taxes, Franchot noted.

The extension applies to business taxes administered by the comptroller: sales and use, admissions and amusement, alcohol, tobacco and motor fuel tax, as well as tire recycling fee and bay restoration fee returns and payments with due dates between Jan. 1 and April 14.