EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 26, 2022
CHAPTER ______
AN ACT concerning 1
Income Tax – Return Preparation Maryland Earned Income Tax Credit 2
Assistance Program for Low–Income Families 3
FOR the purpose of establishing the Income Tax Return Preparation Maryland Earned 4
Income Tax Credit Assistance Program for Low–Income Families; requiring the 5
Comptroller, for certain taxable years, to prepare provide, as a part of the Program, 6
certain income tax returns and amended income tax returns for forms to claim the 7
Maryland earned income tax credit to certain eligible taxpayers residents; requiring 8
the Comptroller to provide certain notice to eligible taxpayers residents concerning 9
the Program; prohibiting requiring a tax collector from assessing a certain penalty 10
to waive certain penalties and interest under certain circumstances; and generally 11
relating to the Income Tax Return Preparation Maryland Earned Income Tax Credit 12
Assistance Program for Low–Income Families. 13
BY adding to 14
Article – Tax – General 15
Section 2–116 16
Annotated Code of Maryland 17
(2016 Replacement Volume and 2021 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Tax – General 21
2 SENATE BILL 369
2–116. 1
(A) IN THIS SECTION , “PROGRAM” MEANS THE INCOME TAX RETURN 2
PREPARATION MARYLAND EARNED INCOME TAX CREDIT ASSISTANCE PROGRAM 3
FOR LOW–INCOME FAMILIES. 4
(B) (1) THERE IS AN INCOME TAX RETURN PREPARATION A MARYLAND 5
EARNED INCOME TAX CREDIT ASSISTANCE PROGRAM FOR LOW–INCOME 6
FAMILIES. 7
(2) THE PURPOSE OF THE PROGRAM IS TO: 8
(I) PROVIDE ELIGIBLE TAX PAYERS PREPARED INCO ME TAX 9
RETURNS AND AMENDED INCOME TAX RETURNS B Y USING DATA ALREADY 10
COLLECTED BY THE COMPTROLLER FROM RE PORTS FROM EMPLOYERS AND OTHER 11
SOURCES IDENTIFY RESIDENTS W HO ARE ELIGIBLE TO C LAIM THE CREDIT UNDE R § 12
10–704 OF THIS ARTICLE BUT HAVE FAILED TO CLAIM THE CREDIT; AND 13
(II) ESTABLISH AN OPTIONA L FILING METHOD BY W HICH 14
ELIGIBLE TAXPAYERS M AY SUBMIT THOSE RETURNS PROVIDE RESIDENTS 15
IDENTIFIED UNDER ITE M (I) OF THIS PARAGRAPH WI TH A STREAMLINED 16
MECHANISM TO CLAIM T HE CREDIT UNDER § 10–704 OF THIS ARTICLE. 17
(3) THE COMPTROLLER SHALL ADM INISTER THE PROGRAM. 18
(C) (1) THIS SUBSECTION APPLI ES TO A TAXABLE YEA R BEGINNING 19
AFTER DECEMBER 31, 2024. 20
(2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , THE 21
COMPTROLLER SHALL PREPARE PROVIDE, AS PART OF THE PROGRAM, A FORM TO 22
CLAIM THE CREDIT UND ER § 10–704 OF THIS ARTICLE TO A NY RESIDENT: 23
(I) A TAX RETURN FOR ANY TAXPAYER: 24
1. WHO IS A MARYLAND RESIDENT ; 25
2. WHO FAILED TO FILE A MARYLAND TAX RETURN F OR 26
THE MOST RECENT TAXA BLE YEAR FOR WHICH D ATA IS AVAILABLE FOR WHOM THE 27
COMPTROLLER HAS RECEI VED FEDERAL INCOME T AX RETURN INFORMATIO N FOR A 28
TAXABLE YEAR DESCRIBED IN § 13–1104(C)(1) OF THIS ARTICLE; 29
3. (II) WHOSE WAGES WERE REP ORTED BY THE 30
TAXPAYER’S RESIDENT’S EMPLOYER TO THE COMPTROLLER FOR THAT TAXABLE 31
YEAR; AND 32 SENATE BILL 369 3
4. (III) WHO THE COMPTROLLER BELIEVES DETERMINES , 1
BASED ON ALL AVAILAB LE DATA, MAY BE ELIGIBLE TO C LAIM THE CREDIT UNDE R § 2
10–704 OF THIS ARTICLE FOR THAT TAXABLE YEAR ; AND 3
(IV) WHO FAILED TO CLAIM THE CREDIT UNDER § 10–704 OF 4
THIS ARTICLE FOR THA T TAXABLE YEAR ; AND 5
(V) WHO IS AUTHORIZED TO REQUEST A REFUND UND ER § 6
13–1104(C)(1) OF THIS ARTICLE. 7
(3) THE COMPTROLLER SHALL PRO VIDE THE FORM REQUIR ED 8
UNDER THIS SUBSECTIO N NO LATER THAN 45 DAYS BEFORE THE EXPI RATION OF 9
THE STATUTE OF LIMIT ATIONS FOR CLAIMING A REFUND UNDER § 13–1104(C)(1) OF 10
THIS ARTICLE. 11
(II) AN AMENDED RETURN FOR A NY TAXPAYER WHO IS A 12
MARYLAND RESIDENT AND WHO THE COMPTROLLER BELIEVES MAY HAVE BEEN 13
ELIGIBLE TO CLAIM TH E CREDIT UNDER § 10–704 OF THIS ARTICLE FOR THE 14
CURRENT TAXABLE YEAR OR ANY OF THE 3 IMMEDIATELY PRECEDIN G TAXABLE 15
YEARS BUT FAILE D TO CLAIM THE CREDI T ON THE TAXPAYER ’S RETURN. 16
(3) THE COMPTROLLER SHALL USE DATA FROM WAGES REPO RTED 17
BY THE TAXPAYER ’S EMPLOYER TO THE COMPTROLLER AND OTHER SOURCES TO 18
PREPARE THE RETURN I N ACCORDANCE WITH PA RAGRAPH (2)(I) OF THIS 19
SUBSECTION. 20
(D) IN PREPARING A RETURN I N ACCORDANCE WITH SU BSECTION (C)(2)(I) 21
OF THIS SECTION PROCESSING THE FORM TO CLAIM THE CREDIT UNDER § 10–704 22
OF THIS ARTICLE , THE COMPTROLLER SHALL PREPARE THE RETURN CALCULATE 23
THE CREDIT AS THOUGH THE TAXPAYER RESIDENT ELECTED TO USE THE STANDARD 24
DEDUCTION UNDER § 10–217 OF THIS ARTICLE TO C OMPUTE MARYLAND TAXABLE 25
INCOME. 26
(E) THE COMPTROLLER SHALL DEV ELOP AN ALTERNATIVE METHOD FOR 27
AN ELIGIBLE TAXPAYER TO REQUEST THE TAXPA YER’S COMPLETED TAX RETU RN IN 28
PAPER FORM . 29
(F) (E) (1) THE COMPTROLLER SHALL NOT IFY EACH TAXPAYER WHO IS 30
ELIGIBLE FOR A TAX R ETURN OR AN AMENDED RETURN UNDER RESIDENT 31
IDENTIFIED UNDER SUB SECTION (C)(2) OF THIS SECTION THAT TH E PROGRAM IS A 32
FILING OPTION METHOD OF CLAIMING T HE CREDIT UNDER § 10–704 OF THIS 33
ARTICLE AVAILABLE TO ELIGIBL E TAXPAYERS RESIDENTS. 34
4 SENATE BILL 369
(2) THE NOTIFICATION REQU IRED UNDER PARAGRAPH (1) OF THIS 1
SUBSECTION SHALL INC LUDE: 2
(I) A DESCRIPTION OF THE PROGRAM; 3
(II) AN EXPLANATION OF TH E TAXPAYER’S RESIDENT’S 4
ELIGIBILITY FOR PART ICIPATION IN THE PROGRAM AND THE TAXPAYER ’S ABILITY 5
TO VIEW OR FILE A TAX RETURN PREPARED FOR THE TAXPAYER UND ER THE 6
PROGRAM; AND; 7
(III) AN EXPLANATION THAT THE TAXPAYER’S RESIDENT’S 8
PARTICIPATION IN THE PROGRAM IS OPTIONAL B UT SUBJECT TO THE LIMIT ATION 9
UNDER SUBSECTION (D) OF THIS SECTION; 10
(IV) AN EXPLANATION THAT , NOTWITHSTANDING THE 11
PROVISIONS OF THIS S ECTION, THE RESIDENT ’S PARTICIPATION IN T HE PROGRAM 12
IS SUBJECT TO THE PR OVISIONS OF THIS ART ICLE RELATING TO THE FILING OF A 13
TAX RETURN; 14
(V) THE TIME BY WHICH TH E FORM MUST BE COMPL ETED AND 15
RETURNED IN ORDER TO CLAIM THE CREDIT UND ER § 10–704 OF THIS ARTICLE; AND 16
(VI) A STATEMENT THAT THE RESIDENT MAY BE ELIG IBLE FOR, 17
IN A SUCCEEDING TAXA BLE YEAR: 18
1. THE FEDERAL EARNED INCOME CREDIT UNDER § 32 19
OF THE INTERNAL REVENUE CODE; AND 20
2. THE CREDIT UNDER § 10–704 OF THIS ARTICLE. 21
(F) ON REQUEST BY A RESID ENT, A TAX COLLECTOR SHAL L WAIVE ANY 22
PENALTIES OR INTERES T ON ANY ASSESSMENT OF TAX DUE ON THE FO RM PROVIDED 23
TO THE RESIDENT UNDER S UBSECTION (C)(2) OF THIS SECTION UNLE SS THE TAX 24
COLLECTOR REASONABLY BELIEVES THE RESIDEN T KNEW OR SHOULD HAV E KNOWN 25
THE TAX WAS MISCALCU LATED. 26
(G) ON OR BEFORE DECEMBER 31, 2026, AND EACH DECEMBER 31 27
THEREAFTER THROUGH DECEMBER 31, 2030, THE COMPTROLLER SHALL REP ORT 28
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 29
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON: 30
(1) THE EFFECTIVENESS OF THE PROGRAM IN MEETING TH E 31
PURPOSE SPECIFIED IN SUBSECTION (B)(2) OF THIS SECTION AND 32 SENATE BILL 369 5
RECOMMENDATIONS FOR POTENTIAL STATUTORY OR ADMINISTRATIVE CH ANGES 1
TO ENHANCE PARTICIPA TION IN THE PROGRAM; 2
(2) THE NUMBER OF CLAIM FORMS PROVIDED TO RE SIDENTS DURING 3
THE PREVIOUS FISCAL YEAR; 4
(3) THE NUMBER OF CLAIM FORMS FILED BY RESID ENTS DURING THE 5
PREVIOUS FISCAL YEAR ; 6
(4) THE NUMBER OF REFUND ABLE CREDITS PROVIDE D TO RESIDENTS 7
DURING THE PREVIOUS FISCAL YEAR; AND 8
(5) THE TOTAL AMOUNT OF REFUNDABLE CREDITS P ROVIDED TO 9
RESIDENTS DURING THE PREVIOUS FISCAL YEAR . 10
(H) THE COMPTROLLER SHALL ADOPT REGULATIONS TO CARRY OUT THIS 11
SECTION. 12
(G) IF A TAXPAYER TIMELY FILES A RETURN PREPA RED IN ACCORDANCE 13
WITH THIS SECTION , A TAX COLLECTOR MAY NOT ASSESS A PENALTY UNDER § 14
13–701 OF THIS ARTICLE WITH RESPECT TO ANY UNPAI D TAX. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2022. It shall remain effective for a period of 8 years and 3 months and, at the 17
end of December 31, 2030, this Act, with no further action required by the General 18
Assembly, shall be abrogated and of no further force and effect. 19
Approved:
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Governor.
________________________________________________________________________________
President of the Senate.
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Speaker of the House of Delegates.