The Maryland Comptroller has extended the deadline for pass-through entities (PTEs) to file and pay their 2020 income taxes to September 15th, 2021. Maryland PTEs will automatically receive a waiver and will not be charged interest or penalties as long as outstanding liabilities are paid by the new September 15th due date.
The decision came after new laws required the Comptroller to create a new Form 511 for Electing Pass-Through Entities and make significant revisions to the 2020 PTE tax forms. Though we expect the new PTE forms to be available through software vendors soon, the Comptroller’s Office cannot guarantee the date on which the forms will be available through third-party vendors. The Hoffman Group uses one of the nation’s largest software vendor’s tax product, CCH Axcess, and they are currently working with the state to update their software.
While the deadline for Maryland pass-through entities has been extended, individual returns are still due by July 15th. However, it’s unlikely K-1s will be issued by the July 15th deadline due to the third-party software issues mentioned above. Due to these circumstances, we expect many individual returns may need to be extended. Maryland has said that individuals who are a shareholder/partner in a pass-through entity will be eligible to apply for a waiver of interest and penalties if they do not have their 2020 tax balance paid by July 15th, 2021.
If you have any questions about how this will affect you or your business, please contact your Hoffman Group representative or email email@example.com.