LAWRENCE J. HOGAN, JR., Governor Ch. 110
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Chapter 110
(House Bill 252)
AN ACT concerning
Income Tax – Return Preparation Maryland Earned Income Tax Credit
Assistance Program for Low–Income Families
FOR the purpose of establishing the Income Tax Return Preparation Maryland Earned
Income Tax Credit Assistance Program for Low–Income Families; requiring the
Comptroller, for certain taxable years, to prepare provide, as a part of the Program,
certain income tax returns and amended income tax returns for forms to claim the
Maryland earned income tax credit to certain eligible taxpayers residents; requiring
the Comptroller to provide certain notice to eligible taxpayers residents concerning
the Program; prohibiting requiring a tax collector from assessing a certain penalty
to waive certain penalties and interest under certain circumstances; and generally
relating to the Income Tax Return Preparation Maryland Earned Income Tax Credit
Assistance Program for Low–Income Families.
BY adding to
Article – Tax – General
Section 2–116
Annotated Code of Maryland
(2016 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Tax – General
2–116.
(A) IN THIS SECTION , “PROGRAM” MEANS THE INCOME TAX RETURN
PREPARATION MARYLAND EARNED INCOME TAX CREDIT ASSISTANCE PROGRAM
FOR LOW–INCOME FAMILIES.
(B) (1) THERE IS AN INCOME TAX RETURN PREPARATION A MARYLAND
EARNED INCOME TAX CREDIT ASSISTANCE PROGRAM FOR LOW–INCOME
FAMILIES.
(2) THE PURPOSE OF THE PROGRAM IS TO:
(I) PROVIDE ELIGIBLE TAX PAYERS PREPARED INCO ME TAX
RETURNS AND AMENDED INCOME TAX RETURNS B Y USING DATA ALREADY
COLLECTED BY THE COMPTROLLER F ROM REPORTS FROM EMP LOYERS AND OTHER Ch. 110 2022 LAWS OF MARYLAND
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SOURCES IDENTIFY RESIDENTS W HO ARE ELIGIBLE TO C LAIM THE CREDIT UNDE R §
10–704 OF THIS ARTICLE BUT HAVE FAILED TO CLAIM THE CREDIT; AND
(II) ESTABLISH AN OPTIONA L FILING METHOD BY W HICH
ELIGIBLE TAXPAYERS M AY SUBMIT THOSE RETURNS PROVIDE RESIDENTS
IDENTIFIED UNDER ITE M (I) OF THIS PARAGRAPH WI TH A STREAMLINED
MECHANISM TO CLAIM T HE CREDIT UNDER § 10–704 OF THIS ARTICLE.
(3) THE COMPTROLLER SHALL ADM INISTER THE PROGRAM.
(C) (1) THIS SUBSECTION APPLI ES TO A TAXABLE YEAR BEGINNI NG
AFTER DECEMBER 31, 2024.
(2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , THE
COMPTROLLER SHALL PREPARE PROVIDE, AS PART OF THE PROGRAM, A FORM TO
CLAIM THE CREDIT UND ER § 10–704 OF THIS ARTICLE TO A NY RESIDENT:
(I) A TAX RETURN FOR ANY TAXPAYER :
1. WHO IS A MARYLAND RESIDENT ;
2. WHO FAILED TO FILE A MARYLAND TAX RETURN F OR
THE MOST RECENT TAXA BLE YEAR FOR WHICH D ATA IS AVAILABLE FOR WHOM THE
COMPTROLLER HAS RECEI VED FEDERAL INCOME T AX RETURN INFORMATIO N FOR A
TAXABLE YEAR DESCRIBED IN § 13–1104(C)(1) OF THIS ARTICLE;
3. (II) WHOSE WAGES WERE REP ORTED BY THE
TAXPAYER’S RESIDENT’S EMPLOYER TO THE COMPTROLLER FOR THAT TAXABLE
YEAR; AND
4. (III) WHO THE COMPTROLLER BELIEVES
DETERMINES , BASED ON ALL AVAILAB LE DATA, MAY BE ELIGIBLE TO C LAIM THE
CREDIT UNDER § 10–704 OF THIS ARTICLE FOR THAT TAXABLE YEAR ; AND
(IV) WHO FAILED TO CLAIM THE CREDIT UNDER § 10–704 OF
THIS ARTICLE FOR THA T TAXABLE YEAR ; AND
(V) WHO IS AUTHORIZED TO REQUEST A REFUND UND ER §
13–1104(C)(1) OF THIS ARTICLE.
(3) THE COMPTROLLER SHALL PRO VIDE THE FORM REQUIR ED
UNDER THIS SUBSECTIO N NOT LATER THAN 45 DAYS BEFORE THE EXPI RATION OF LAWRENCE J. HOGAN, JR., Governor Ch. 110
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THE STATUTE OF LIMIT ATIONS FOR CLAIMING A REFUND UNDER § 13–1104(C)(1) OF
THIS ARTICLE.
(II) AN AMENDED RETURN FOR A NY TAXPAYER WHO IS A
MARYLAND RESIDENT AND WHO THE COMPTROLLER BELIEVES MAY HAVE BEEN
ELIGIBLE TO CLAIM TH E CREDIT UNDER § 10–704 OF THIS ARTICLE FOR THE
CURRENT TAXABLE YEAR OR ANY OF THE 3 IMMEDIATELY PRECEDIN G TAXABLE
YEARS BUT FAIL ED TO CLAIM THE CRED IT ON THE TAXPAYER ’S RETURN.
(3) THE COMPTROLLER SHALL USE DATA FROM WAGES REPO RTED
BY THE TAXPAYER ’S EMPLOYER TO THE COMPTROLLER AND OTHER SOURCES TO
PREPARE THE RETURN I N ACCORDANCE WITH PA RAGRAPH (2)(I) OF THIS
SUBSECTION.
(D) IN PREPARING A RETURN I N ACCORDANCE WITH SU BSECTION (C)(2)(I)
OF THIS SECTION PROCESSING THE FORM TO CLAIM THE CREDIT UNDER § 10–704
OF THIS ARTICLE , THE COMPTROLLER SHALL PREPARE THE RETURN CALCULATE
THE CREDIT AS THOUGH THE TAXPAYER RESIDENT ELECTED TO US E THE STANDARD
DEDUCTION UNDER § 10–217 OF THIS ARTICLE TO C OMPUTE MARYLAND TAXABLE
INCOME.
(E) THE COMPTROLLER SHALL DEV ELOP AN ALTERNATIVE METHOD FOR
AN ELIGIBLE TAXPAYER TO REQUEST THE TAXPA YER’S COMPLETED TAX RETU RN IN
PAPER FORM .
(F) (E) (1) THE COMPTROLLER SHALL NOT IFY EACH TAXPAYER WHO
IS ELIGIBLE FOR A TAX R ETURN OR AN AMENDED RETURN UNDER RESIDENT
IDENTIFIED UNDER SUB SECTION (C)(2) OF THIS SECTION THAT TH E PROGRAM IS A
FILING OPTION METHOD OF CLAIMING T HE CREDIT UNDER § 10–704 OF THIS
ARTICLE AVAILABLE TO ELIGIBL E TAXPAYERS RESIDENTS.
(2) THE NOTIFICATION REQU IRED UNDER PARAGRAPH (1) OF THIS
SUBSECTION SHALL INC LUDE:
(I) A DESCRIPTION OF THE PROGRAM;
(II) AN EXPLANATION OF TH E TAXPAYER’S RESIDENT’S
ELIGIBILITY FOR PART ICIPATION IN THE PROGRAM AND THE TAXPAYER ’S ABILITY
TO VIEW OR FILE A TAX RETURN PREPARED FOR THE TAXPAYER UND ER THE
PROGRAM; AND;
(III) AN EXPLANATION THAT THE TAXPAYER’S RESIDENT’S
PARTICIPATION IN THE PROGRAM IS OPTIONAL B UT SUBJECT TO THE LIMITATIO N
UNDER SUBSECTION (D) OF THIS SECTION; Ch. 110 2022 LAWS OF MARYLAND
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(IV) AN EXPLANATION THAT , NOTWITHSTANDING THE
PROVISIONS OF THIS S ECTION, THE RESIDENT ’S PARTICIPATION IN T HE PROGRAM
IS SUBJECT TO THE PR OVISIONS OF THIS ART ICLE RELATING TO THE FILING OF A
TAX RETURN;
(V) THE TIME BY WHICH TH E FORM MUST BE COMPL ETED AND
RETURNED IN ORDER TO CLAIM THE CREDIT UND ER § 10–704 OF THIS ARTICLE; AND
(VI) A STATEMENT THAT THE RESIDENT MAY BE ELIG IBLE FOR,
IN A SUCCEEDING TAXA BLE YEAR:
1. THE FEDERAL EARNED INCOME CREDIT UNDER § 32
OF THE INTERNAL REVENUE CODE; AND
2. THE CREDIT UNDER § 10–704 OF THIS ARTICLE.
(F) ON REQUEST BY A RESID ENT, A TAX COLLECTOR SHAL L WAIVE ANY
PENALTIES OR INTERES T ON ANY ASSESSMENT OF TAX DUE ON THE FO RM PROVIDED
TO THE RESIDENT UNDER S UBSECTION (C)(2) OF THIS SECTION UNLE SS THE TAX
COLLECTOR REASONABLY BELIEVES THE RESIDEN T KNEW OR SHOULD HAV E KNOWN
THE TAX WAS MISCALCU LATED.
(G) ON OR BEFORE DECEMBER 31, 2025, AND EACH DECEMBER 31
THEREAFTER THROUGH DECEMBER 31, 2030, THE COMPTROLLER SHALL REP ORT
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON:
(1) THE EFFECTIVENESS OF THE PROGRAM IN MEETING TH E
PURPOSE SPECIFIED IN SUBSECTION (B)(2) OF THIS SECTION AN D
RECOMMENDATIONS FOR POTENTIAL STATUTORY OR ADMINISTRATIVE CH ANGES
TO ENHANCE PARTICIPA TION IN THE PROGRAM;
(2) THE NUMBER OF CLAIM FORMS PROVIDED TO RE SIDENTS DURING
THE PREVIOUS FISCAL YEAR;
(3) THE NUMBER OF CLAIM FORMS FILED BY RESID ENTS DURING THE
PREVIOUS FISCAL YEAR ;
(4) THE NUMBER OF REFUND ABLE CREDITS PROVIDE D TO RESIDENTS
DURING THE PREVIOUS FISCAL YEAR; AND
LAWRENCE J. HOGAN, JR., Governor Ch. 110
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(5) THE TOTAL AMOUNT OF REFUNDABLE CREDITS P ROVIDED TO
RESIDENTS DURING THE PREVIOUS FISCAL YEAR .
(H) THE COMPTROLLER SHALL ADOPT REGULATIONS TO CARRY OUT THIS
SECTION.
(G) IF A TAXPAYER TIMELY FILES A RETURN PREPA RED IN ACCORDANCE
WITH THIS SECTION , A TAX COLLECTOR MAY NOT ASSESS A PENALTY UNDER §
13–701 OF THIS ARTICLE WITH RESPECT TO ANY UNPAI D TAX.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2022. It shall remain effective for a period of 8 years and 3 months and, at the
end of December 31, 2030, this Act, with no further action required by the General
Assembly, shall be abrogated and of no further force and effect.
Approved by the Governor, April 12, 2022.