EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0369*
SENATE BILL 369
Q3 2lr0540
CF HB 252
By: Senator King
Introduced and read first time: January 21, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Return Preparation Assistance Program for Low –Income Families 2
FOR the purpose of establishing the Income Tax Return Preparation Assistance Program 3
for Low–Income Families; requiring the Comptroller, for certain taxable years, to 4
prepare, as a part of the Program, certain income tax returns and amended income 5
tax returns for certain eligible taxpayers; requiring the Comptroller to provide 6
certain notice to eligible taxpayers concerning the Program; prohibiting a tax 7
collector from assessing a certain penalty under certain circumstances; and generally 8
relating to the Income Tax Return Preparation Assistance Program for Low–Income 9
Families. 10
BY adding to 11
Article – Tax – General 12
Section 2–116 13
Annotated Code of Maryland 14
(2016 Replacement Volume and 2021 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Tax – General 18
2–116. 19
(A) IN THIS SECTION , “PROGRAM” MEANS THE INCOME TAX RETURN 20
PREPARATION ASSISTANCE PROGRAM FOR LOW–INCOME FAMILIES. 21
(B) (1) THERE IS AN INCOME TAX RETURN PREPARATION ASSISTANCE 22
PROGRAM FOR LOW–INCOME FAMILIES. 23
2 SENATE BILL 369
(2) THE PURPOSE OF THE PROGRAM IS TO: 1
(I) PROVIDE ELIGIBLE TAX PAYERS PREPARED INCO ME TAX 2
RETURNS AND AMENDED INCOME T AX RETURNS BY USING DATA ALREADY 3
COLLECTED BY THE COMPTROLLER FROM REPO RTS FROM EMPLOYERS A ND OTHER 4
SOURCES; AND 5
(II) ESTABLISH AN OPTIONA L FILING METHOD BY W HICH 6
ELIGIBLE TAXPAYERS M AY SUBMIT THOSE RETU RNS. 7
(3) THE COMPTROLLER SHALL ADMINISTER THE PROGRAM. 8
(C) (1) THIS SUBSECTION APPLI ES TO A TAXABLE YEAR BEGINNING 9
AFTER DECEMBER 31, 2024. 10
(2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , THE 11
COMPTROLLER SHALL PRE PARE, AS PART OF THE PROGRAM: 12
(I) A TAX RETURN FOR ANY TAXPAYER: 13
1. WHO IS A MARYLAND RESIDENT ; 14
2. WHO FAILED TO FILE A MARYLAND TAX RETURN F OR 15
THE MOST RECENT TAXA BLE YEAR FOR WHICH D ATA IS AVAILABLE; 16
3. WHOSE WAGES WERE REP ORTED BY THE TAXPAYE R’S 17
EMPLOYER TO THE COMPTROLLER FOR THAT TAXABLE YEAR; AND 18
4. WHO THE COMPTROLLER BELIEVES MAY BE ELIGIBLE 19
TO CLAIM THE CREDIT UNDER § 10–704 OF THIS ARTICLE FOR THAT TAXABLE YEAR ; 20
AND 21
(II) AN AMENDED RETURN FO R ANY TAXPAYER WHO I S A 22
MARYLAND RESIDENT AND WHO THE COMPTROLLER BELIEVES MAY HAVE BEEN 23
ELIGIBLE TO CLAIM TH E CREDIT UNDER § 10–704 OF THIS ARTICLE FOR THE 24
CURRENT TAXABLE YEAR OR ANY OF THE 3 IMMEDIATELY PRECEDIN G TAXABLE 25
YEARS BUT FAILED TO CLAIM THE CREDIT ON THE TAXPAYER ’S RETURN. 26
(3) THE COMPTROLLER SHALL USE DATA FROM WAGES REPO RTED 27
BY THE TAXPAYER ’S EMPLOYER TO THE COMPTROLLER AND OTHER SOURCES TO 28
PREPARE THE RETURN I N ACCORDANCE WITH PA RAGRAPH (2)(I) OF THIS 29
SUBSECTION. 30
SENATE BILL 369 3
(D) IN PREPARING A RETURN IN ACCORDANCE WITH S UBSECTION (C)(2)(I) 1
OF THIS SECTION , THE COMPTROLLER SHALL PRE PARE THE RETURN AS THOU GH 2
THE TAXPAYER ELECTED TO USE THE STANDARD DEDUCTION UNDER § 10–217 OF 3
THIS ARTICLE TO COMP UTE MARYLAND TAXABLE INCO ME. 4
(E) THE COMPTROLLER SHALL DEV ELOP AN ALTERNATIVE METHOD FOR 5
AN ELIGIBLE TAXPAYER TO REQUEST THE TAXPA YER’S COMPLETED TAX RETURN IN 6
PAPER FORM . 7
(F) (1) THE COMPTROLLER SHALL NOT IFY EACH TAXPAYER WH O IS 8
ELIGIBLE FOR A TAX R ETURN OR AN AMENDED RETURN UNDER THIS SE CTION THAT 9
THE PROGRAM IS A FILING O PTION AVAILABLE TO E LIGIBLE TAXPAYERS . 10
(2) THE NOTIFICATION REQU IRED UNDER PARAGRAPH (1) OF THIS 11
SUBSECTION SHALL INC LUDE: 12
(I) A DESCRIPTION OF THE PROGRAM; 13
(II) AN EXPLANATION OF TH E TAXPAYER’S ELIGIBILITY FOR 14
PARTICIPATION IN THE PROGRAM AND THE TAXPA YER’S ABILITY TO VIEW OR FILE A 15
TAX RETURN PREPARED FOR THE TAXPAYER UNDER THE PROGRAM; AND 16
(III) AN EXPLANATION THAT THE TAXPAYER ’S PARTICIPATION IN 17
THE PROGRAM IS OPTIONAL B UT SUBJECT TO THE LI MITATION UNDER SUBSE CTION 18
(D) OF THIS SECTION. 19
(G) IF A TAXPAYER TIMELY FILES A RETURN PREPA RED IN ACCORDANCE 20
WITH THIS SECTION , A TAX COLLECTOR MAY NOT ASSESS A PENALTY UNDER § 21
13–701 OF THIS ARTICLE WITH RESPECT TO ANY UNPAI D TAX. 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 23
October 1, 2022. 24