CATEGORY:

HOMEOWNERS' TAX CREDIT

012

SUBJECT:

Application

020

TOPIC:

Verification of Income

090

Date Issued
1/1/82

Revision #1
5/1/88

Any applicant may be required to submit verification of the individual items of income reported. This requirement is established by statutory provisions; a formal advisory Attorney General's opinion; Maryland Court decisions; and by the Code of Maryland Administrative Regulations.

1. Section 9-104(k) of the Tax Property Article states "the applicant may be required to provide a copy of an income tax return or other evidence detailing gross income or net worth" (emphasis supplied).
2. The regulation at COMAR 18.07.01.03(B)(1) states that an applicant shall submit with the application form copies of the Federal income tax return and accompanying schedules and forms.
3. A formal Attorney General's opinion states that "this tax credit is in the nature of an exemption and a burden is on a taxpayer to affirmatively show that he is qualified for an exemption." 63 Op. Att'y Gen. 38 (1978).
4. The Maryland Tax Court has ruled in the case of Anna M. Provenza v. State of Maryland, Miscellaneous No. 413, that "any rights a taxpayer would have to a tax credit became waived upon refusal to supply requested income information."
5. The regulations at COMAR 18.07.01.03(B) (3) and (7) specifically state that an applicant may be required to complete an affidavit to substantiate any information reported on the application and that an applicant who refuses to complete the affidavit shall be denied a tax credit for failure to substantiate the income reported.