If you’re a Maryland Pass-Through Entities (PTE), you can breathe a little easier. On Wednesday, June 30th, Comptroller Peter Franchot announced that his office will postpone the filing deadline for 2020 income tax returns from PTEs to September 15, 2021.
Here’s what we know:
- Filings of 2020 extensions and payments of 2020 liabilities for Maryland S-Corporations and Partnerships have been postponed to September 15, 2021. Interest and penalties for those payments will be automatically waived through September 15, 2021.
- PTE owners and shareholders whose returns cannot be filed until the PTE files and issues K-1s may request a waiver of penalties and interest.
- If you are a PTE entity or impacted individual taking advantage of the workaround, you will likely still receive notices for interest and penalty due to IT system limitations. Email email@example.com to request a waiver of interest and penalties.
- Individual, corporate, and trust 2020 extensions are still due by July 15th.
We are still awaiting direction on whether or not 2021 estimates for entities and individuals will be affected by this new deadline.
This news comes on the heels of yet another big announcement from the Comptroller’s office. The long-awaited final versions of Form 511 and Form 510 and their related instructions have been released and are now available on the Comptroller’s website. In addition, the new form and instructions clarify what is included in the calculation of the PTE tax.
As with any new tax announcement or postponement, there are still many questions. Ellin & Tucker’s expertise with multi-state tax compliance and planning will point you in the right direction to get the answers you need.
We will continue to update this article with new information as it becomes available.