2013 Maryland Code
TAX - GENERAL
§ 10-804 - Requirements generally; checkoff; fractional part of dollar

§10-804.

(a) Each person required under this subtitle to file an income tax return or estimated income tax declaration or return shall file a return or declaration with the Comptroller, whether or not:

(1) the person owes income tax; or

(2) the Comptroller sends the person a form or otherwise requests that the return or declaration be filed.

(b) (1) Each income tax return and estimated income tax declaration and return shall be:

(i) signed in the same manner required for the signing of a federal return under §§ 6061 through 6064 of the Internal Revenue Code; and

(ii) made under oath.

(2) (i) An individual who is an income tax return preparer with respect to a return or claim for refund of tax shall sign the return or claim for refund after it is completed and before it is presented to the taxpayer or nontaxable entity for signature.

(ii) If the preparer is unavailable for signature, another preparer shall review the entire preparation of the return or claim for refund, and then shall sign the return or claim for refund. The preparer shall sign the return in the manner prescribed by the Comptroller in forms, instructions, or other appropriate guidance.

(3) If more than one income tax return preparer is involved in the preparation of the return or claim for refund, the individual preparer who has the primary responsibility as between or among the preparers for the overall substantive accuracy of the preparation of the return or claim for refund shall be considered to be the income tax return preparer for purposes of paragraph (2) of this subsection.

(c) (1) To properly identify persons listed in a return or other document, a person shall include in the document the Social Security or other identifying number that the Comptroller requires:

(i) of the person required to file the return or document; and

(ii) of the person on whose behalf the return or document is filed.

(2) If a return or document is filed on behalf of a person, that person shall provide the identifying number required in a return or document to the person who files the return or document.

(3) Any return or claim for refund prepared by an income tax return preparer shall bear the identifying number for securing proper identification of the preparer, the preparer’s employer, or both, as prescribed under § 6109(a)(4) of the Internal Revenue Code.

(d) Each resident shall include on the income tax return of the resident:

(1) for an individual other than a fiduciary, the name of the county and municipal corporation, if any, where the resident resides; and

(2) for a personal representative, the name of the county where the decedent was domiciled on the date of the decedent’s death; or

(3) for a fiduciary other than a personal representative, the name of:

(i) the county where the trust is principally administered; or

(ii) if the trust is not principally administered in the State, the county to which the trust is otherwise principally connected.

(e) Each person required under this subtitle to file an income tax return or estimated income tax declaration or return shall:

(1) comply with the regulations of the Comptroller;

(2) keep the records that the Comptroller requires; and

(3) attach to an income tax return or otherwise file with the Comptroller any records or statements that the Comptroller requires, including:

(i) for an individual who has income tax withheld from salary, wages, or other compensation for personal services, or other payments, a copy of the statement from the person who withholds the tax that states:

1. the amount of salary, wages, or other compensation for personal services paid and the income tax withheld; or

2. the amount of payments made and the income tax withheld;

(ii) a copy of the federal income tax return:

1. for a corporation; and

2. if the Comptroller requests, for an individual;

(iii) for a corporation, the statements required under § 10-804.1 of this subtitle; and

(iv) if the Comptroller requests, for a corporation that is a member of an affiliated group or controlled group under § 1504 or § 1563 of the Internal Revenue Code, a statement of all intermember costs or expenses and all intermember sales, exchanges, or other transactions involving tangible or intangible property for the taxable year.

(f) An individual may designate a contribution to the State Chesapeake Bay and Endangered Species Fund, established under §§ 1-701 through 1-706 of the Natural Resources Article, by the checkoff system on the return.

(g) The Comptroller shall provide that an income tax return may be completed using whole dollar amounts instead of expressing amounts in exact dollars and cents by:

(1) disregarding a fractional part of a dollar less than 50 cents; and

(2) increasing to 1 dollar a fractional part of a dollar of at least 50 cents.

(h) An individual may designate a contribution to the Maryland Cancer Fund, established under § 20-117 of the Health - General Article, by the checkoff system on the return.

(i) An individual may designate a contribution to the Waiting List Equity Fund, established under § 7-205 of the Health - General Article, by the checkoff system on the return.

(j) (1) A taxpayer claiming any of the following tax credits shall submit a claim for the credit by electronic means as required by the Comptroller by regulation:

(i) the Job Creation Tax Credit, as provided under Title 6, Subtitle 2 of the Economic Development Article;

(ii) the One Maryland Tax Credit, as provided under Title 6, Subtitle 4 of the Economic Development Article;

(iii) the Biotechnology Investment Incentive Tax Credit, as provided under § 10-725 of this title;

(iv) the Enterprise Zone Income Tax Credit, as provided under § 10-702 of this title; and

(v) any other tax credit specified by the Comptroller through regulation.

(2) Before adding any tax credit not listed in paragraph (1)(i) through (iv) of this subsection to the requirement of this subsection, the Comptroller shall determine whether the addition of the tax credit will have a material adverse impact or undue administrative burden on the Comptroller.

§ 10-804 - 1. Corporations and corporate group returns.

(a) "Corporate group" defined. -- In this section:

(1) "corporate group" means:

(i) an affiliated group or controlled group under § 1504 or § 1563 of the Internal Revenue Code; or

(ii) an affiliated group of corporations:

1. that is engaged in a unitary business; and

2. more than 50% of the voting stock of each member of which is directly or indirectly owned by a common owner or common owners, either corporate or noncorporate, or by one or more members of the group; and

(2) "corporate group" does not include:

(i) any corporation that, for any reason, is not subject to United States federal income tax;

(ii) an insurer as defined in § 1-101 of the Insurance Article; or

(iii) a regulated investment company, as defined in § 851(a) of the Internal Revenue Code.

(b) Corporate group filings. -- Each corporation that is required to file an income tax return under this title and is a member of a corporate group shall file with the Comptroller:

(1) a pro forma "water's edge" combined corporate income tax return filed in accordance with regulations adopted by the Comptroller; and

(2) in a format specified by the Comptroller:

(i) the sales factor that would be calculated for this State and the difference in Maryland income tax that would be owed if the corporation were required to include in the numerator of the sales factor for purposes of apportioning income to the State all sales of property shipped from an office, store, warehouse, factory, or other place of storage in this State where:

1. the purchaser is the federal government; or

2. the property is shipped or delivered to a customer in a state in which the selling corporation is not subject to a state corporate income tax or state franchise tax measured by net income and could not be subjected to such a tax if the state were to impose it; and

(ii) for any income that the taxpayer has identified, on the income tax return filed under this title or on an income tax return filed in any state, as income that is nonoperational and therefore not apportionable:

1. the amount and source of that nonoperational income; and

2. if the commercial domicile of the corporation is in this State, the difference in tax that would be owed if the corporation were required to allocate 100% of the nonoperational income to Maryland to the fullest extent allowed under the United States Constitution.

(c) Requirements for statements to be filed. --

(1) The statements required under subsection (b) of this section:

(i) shall be filed annually, for all taxable years beginning after December 31, 2005, but before January 1, 2011, on or before dates specified by the Comptroller in an electronic format as specified by the Comptroller;

(ii) shall be:

1. made under oath and signed in the same manner as required for income tax returns under § 10-804 of this subtitle; and

2. subject to audit by the Comptroller in the course of and under the normal procedures applicable to corporate income tax return audits; and

(iii) notwithstanding any other provision of law, shall be treated as confidential taxpayer information subject to Title 13, Subtitle 2 of this article.

(2) The Comptroller shall develop and implement an oversight and penalty system to ensure that corporations provide the required disclosure statements in a timely and accurate manner.

(3) The Comptroller shall publish the name of, and penalty imposed on, any corporation failing to file a statement required under this section or filing an inaccurate statement.

(d) Submission of supplemental information. --

(1) A corporation submitting a statement required under this section may submit supplemental information that, in its sole judgment and discretion, could facilitate proper interpretation of the information included in the statement.

(2) A corporation shall file a supplemental statement under this section within 60 days after:

(i) the corporation files an amended tax return under this title; or

(ii) the corporation's tax liability for a tax year is changed as the result of an audit adjustment or final determination of liability by the Comptroller or by a court of law.

(e) Duties of Comptroller. --

(1) The Comptroller shall:

(i) collect, compile, and analyze the information submitted under this section;

(ii) use the information submitted under this section to provide analyses as requested by the Governor or the General Assembly relating to the corporate income tax or proposals for changes to the corporate income tax; and

(iii) on or before March 1 of each year, based on information provided in income tax returns and the data submitted under this subsection, submit a report to the Governor and, subject to § 2-1246 of the State Government Article, to the General Assembly, concerning the corporate income tax.

(2) The report required under this subsection shall:

(i) summarize the information submitted under this section; and

(ii) provide detailed analyses of the characteristics of corporate taxpayers, including:

1. historical series of data and detailed reports for the reported year; and

2. the distribution of Maryland taxable income, income tax liability, and other elements of the corporate income tax such as tax credits, modifications to income, and net operating loss carryovers.

(3) The information provided in the report shall be provided by various categories, including:

(i) business category; and

(ii) various measures of size, such as taxable income, in-State and worldwide payroll, and in-State and worldwide gross receipts.

(f) Regulations. -- The Comptroller shall adopt appropriate regulations to implement the provisions of this section.