Maryland
Assessment

Procedures
Manual

Attachment 2 375-010-010
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GUIDELINES FOR IMPOSING INTEREST AND PENALTY
FOR PUBLIC SERVICE COMPANY FRANCHISE TAX


001: Procedures
004: Owners
008: Taxable Property
009: Exemptions
012: Credits
014: Valuation
018: Operating Property
of Utilities and Railroads
019: Real Property
029: Notices
045: Assessment Records
067: Allowances and
Removal
229: Maryland Tax Court
232: Administration
255: Appeals
300: Triennial Assessments
350: Personal Property
375: Personal Property
 
Alphabetical Index
Numerical Index
 
  Item   Interest   Penalty
1. Underestimation of Taxes
a. Failure to pay a installment when due. [TG - Sec. 13-602(a) 13-702(a)]   Interest charged from due date until tax is paid.   5% of unpaid tax for 1 to 30 days late.
10% of unpaid tax for 31 to 60 days late.
25% of unpaid tax for over 60 days.
b. Quarterly estimated tax payment is less than 25% of the required annual estimated tax or total annual estimated tax payment is less than: (1) 90% of the tax required to be shown on the return for the current tax year and (2) 110% of the tax paid for the prior tax year.   Interest charged from due date until tax is paid on amount of underestimate.   10% of underpayment during installment period
2. Failure to pay tax when due, including failure to pay tax by electronic funds transfer when required TG-Sec. 13-104(c), 13-601(a), 13-701(a).   Interest charged from due date until tax is paid.   5% of unpaid tax for 1 to 30 days late.
10% of unpaid tax for 31 to 60 days late.
25% of unpaid tax for over 60 days.
3. Failure to file return and pay tax within 30 days after notice of demand for return is mailed. [TG-Sec. 13-402(a)(5), 13-708].   25% of tax assessed
4. Filing a false return or failure to file a return with the intent to evade payment of the tax. (TG-Sec. 13-703, 13-704)   100% of the underpayment of the tax
5. Tax payment check not honored by bank. (TG -Sec.
13-713)
  $30 Service charge.

Note: A company with an annual public service company franchise tax liability of less than $1,000 is not required to make an estimated tax payment.

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