In November, the IRS issued Notice 2020-75, allowing Maryland pass-through entities to elect to have their state and local taxes deducted at the entity level. We’ve since been awaiting the release of a new form as well as further guidance from the state. June 1st, Senate Bill 787 was passed, which included legislation requiring the MD Comptroller’s office to release the new form, Maryland Form 511.
The problem? Maryland Form 511 will be available on June 29th, according to the MD Comptroller’s office. Afterward, tax preparation software vendors must spend additional time programing and testing the forms for accuracy. When tax preparers finally receive the forms, they’ll have less than two weeks before the July 15th deadline to complete all the returns they’d had to put on hold. This has put all CPA firms in a very difficult position.
Due to the limited turn-around time and volume of returns on hold, some Maryland tax returns for partnerships, S-corps, and their related individual returns may need to be extended. We will do our best to have all Hoffman Group client tax returns completed by the July 15th deadline and contact any clients affected to discuss what this means for them.
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