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.
Italics indicate opposite chamber/conference committee amendments.
*sb0369*
SENATE BILL 369
Q3 (2lr0540)
ENROLLED BILL
— Budget and Taxation/Ways and Means —
Introduced by Senator King
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
President.
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 2 SENATE BILL 369
Article – Tax – General 1
Section 2–116 2
Annotated Code of Maryland 3
(2016 Replacement Volume and 2021 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Tax – General 7
2–116. 8
(A) IN THIS SECTION , “PROGRAM” MEANS THE INCOME TAX RETURN 9
PREPARATION MARYLAND EARNED INCOME TAX CREDIT ASSISTANCE PROGRAM 10
FOR LOW–INCOME FAMILIES. 11
(B) (1) THERE IS AN INCOME TAX RETURN PREPARATION A MARYLAND 12
EARNED INCOME TAX CREDIT ASSISTANCE PROGRAM FOR LOW–INCOME 13
FAMILIES. 14
(2) THE PURPOSE OF THE PROGRAM IS TO: 15
(I) PROVIDE ELIGIBLE TAX PAYERS PREPARED INCO ME TAX 16
RETURNS AND AMENDED INCOME TAX RETURNS B Y USING DATA ALREADY 17
COLLECTED BY THE COMPTROLLER FROM REPORTS FROM EMPLOYE RS AND OTHER 18
SOURCES IDENTIFY RESIDENTS W HO ARE ELIGIBLE TO C LAIM THE CREDIT UNDE R § 19
10–704 OF THIS ARTICLE BUT HAVE FAILED TO CLAIM THE CREDIT; AND 20
(II) ESTABLISH AN OPTIONA L FILING METHOD BY W HICH 21
ELIGIBLE TAXPAYERS M AY SUBMIT THO SE RETURNS PROVIDE RESIDENTS 22
IDENTIFIED UNDER ITE M (I) OF THIS PARAGRAPH WI TH A STREAMLINED 23
MECHANISM TO CLAIM T HE CREDIT UNDER § 10–704 OF THIS ARTICLE. 24
(3) THE COMPTROLLER SHALL ADM INISTER THE PROGRAM. 25
(C) (1) THIS SUBSECTION APPLI ES TO A TAXABLE Y EAR BEGINNING 26
AFTER DECEMBER 31, 2024. 27
(2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , THE 28
COMPTROLLER SHALL PREPARE PROVIDE, AS PART OF THE PROGRAM, A FORM TO 29
CLAIM THE CREDIT UND ER § 10–704 OF THIS ARTICLE TO A NY RESIDENT: 30
(I) A TAX RETURN FOR ANY TAXPAYER: 31
1. WHO IS A MARYLAND RESIDENT ; 32 SENATE BILL 369 3
2. WHO FAILED TO FILE A MARYLAND TAX RETURN F OR 1
THE MOST RECENT TAXA BLE YEAR FOR WHICH D ATA IS AVAILABLE FOR WHOM THE 2
COMPTROLLER HAS RECEI VED FEDERAL INCOME T AX RETURN INFORMATIO N FOR A 3
TAXABLE YEAR DESCRIBED IN § 13–1104(C)(1) OF THIS ARTICLE; 4
3. (II) WHOSE WAGES WERE REP ORTED BY THE 5
TAXPAYER’S RESIDENT’S EMPLOYER TO THE COMPTROLLER FOR THAT TAXABLE 6
YEAR; AND 7
4. (III) WHO THE COMPTROLLER BELIEVES 8
DETERMINES , BASED ON ALL AVAILAB LE DATA, MAY BE ELIGIBLE TO CLAIM THE 9
CREDIT UNDER § 10–704 OF THIS ARTICLE FOR THAT TAXABLE YEAR ; AND 10
(IV) WHO FAILED TO CLAIM THE CREDIT UNDER § 10–704 OF 11
THIS ARTICLE FOR THA T TAXABLE YEAR ; AND 12
(V) WHO IS AUTHORIZED TO REQUEST A REFUND UND ER § 13
13–1104(C)(1) OF THIS ARTICLE. 14
(3) THE COMPTROLLER SHALL PRO VIDE THE FORM REQUIR ED 15
UNDER THIS SUBSECTIO N NO LATER THAN 45 DAYS BEFORE THE EXPI RATION OF 16
THE STATUTE OF LIMIT ATIONS FOR CLAIMING A REFUND UNDER § 13–1104(C)(1) OF 17
THIS ARTICLE. 18
(II) AN AMENDED RETURN FOR A NY TAXPAYER WHO IS A 19
MARYLAND RESIDENT AND WHO THE COMPTROLLER BELIEVES MAY HAVE BEEN 20
ELIGIBLE TO CLAIM TH E CREDIT UNDER § 10–704 OF THIS ARTICLE FOR THE 21
CURRENT TAXABLE YEAR OR ANY OF THE 3 IMMEDIATELY PRECEDIN G TAXABLE 22
YEARS BUT FAILE D TO CLAIM THE CREDI T ON THE TAXPAYER ’S RETURN. 23
(3) THE COMPTROLLER SHALL USE DATA FROM WAGES REPO RTED 24
BY THE TAXPAYER ’S EMPLOYER TO THE COMPTROLLER AND OTHER SOURCES TO 25
PREPARE THE RETURN I N ACCORDANCE WITH PA RAGRAPH (2)(I) OF THIS 26
SUBSECTION. 27
(D) IN PREPARING A RETURN I N ACCORDANCE WITH SU BSECTION (C)(2)(I) 28
OF THIS SECTION PROCESSING THE FORM TO CLAIM THE CREDIT UNDER § 10–704 29
OF THIS ARTICLE , THE COMPTROLLER SHALL PREPARE THE RETURN CALCULATE 30
THE CREDIT AS THOUGH THE TAXPAYER RESIDENT ELECTED TO USE THE STANDARD 31
DEDUCTION UNDER § 10–217 OF THIS ARTICLE TO C OMPUTE MARYLAND TAXABLE 32
INCOME. 33
4 SENATE BILL 369
(E) THE COMPTROLLER SHALL DEV ELOP AN ALTERNATIVE METHOD FOR 1
AN ELIGIBLE TAXPAYER TO REQUEST THE TAXPA YER’S COMPLETED TAX RETU RN IN 2
PAPER FORM . 3
(F) (E) (1) THE COMPTROLLER SHALL NOTI FY EACH TAXPAYER WHO 4
IS ELIGIBLE FOR A TAX R ETURN OR AN AMENDED RETURN UNDER RESIDENT 5
IDENTIFIED UNDER SUB SECTION (C)(2) OF THIS SECTION THAT TH E PROGRAM IS A 6
FILING OPTION METHOD OF CLAIMING T HE CREDIT UNDER § 10–704 OF THIS 7
ARTICLE AVAILABLE TO ELIGIBLE TAXPAYERS RESIDENTS. 8
(2) THE NOTIFICATION REQU IRED UNDER PARAGRAPH (1) OF THIS 9
SUBSECTION SHALL INC LUDE: 10
(I) A DESCRIPTION OF THE PROGRAM; 11
(II) AN EXPLANATION OF TH E TAXPAYER’S RESIDENT’S 12
ELIGIBILITY FOR PART ICIPATION IN THE PROGRAM AND THE TAXPAYER ’S ABILITY 13
TO VIEW OR FILE A TAX RETURN PREPARED FOR THE TAXPAYER UND ER THE 14
PROGRAM; AND; 15
(III) AN EXPLANATION THAT THE TAXPAYER’S RESIDENT’S 16
PARTICIPATION IN THE PROGRAM IS OPTIONAL B UT SUBJECT TO THE LIMITATIO N 17
UNDER SUBSECTION (D) OF THIS SECTION; 18
(IV) AN EXPLANATION THAT , NOTWITHSTANDING THE 19
PROVISIONS OF THIS S ECTION, THE RESIDENT ’S PARTICIPATION IN T HE PROGRAM 20
IS SUBJECT TO THE PR OVISIONS OF THIS ART ICLE RELATING TO THE FILING OF A 21
TAX RETURN; 22
(V) THE TIME BY WHICH TH E FORM MUST BE COMPL ETED AND 23
RETURNED IN ORDER TO CLAIM THE CREDIT UND ER § 10–704 OF THIS ARTICLE; AND 24
(VI) A STATEMENT THAT THE RESIDENT MAY BE ELIG IBLE FOR, 25
IN A SUCCEEDING TAXA BLE YEAR: 26
1. THE FEDERAL EARNED INCOME CREDIT UNDER § 32 27
OF THE INTERNAL REVENUE CODE; AND 28
2. THE CREDIT UNDER § 10–704 OF THIS ARTICLE. 29
(F) ON REQUEST BY A RESID ENT, A TAX COLLECTOR SHAL L WAIVE ANY 30
PENALTIES OR INTERES T ON ANY ASSESSMENT OF TAX DUE ON THE FO RM PROVIDED 31
TO THE RESIDENT UNDER S UBSECTION (C)(2) OF THIS SECTION UNLE SS THE TAX 32 SENATE BILL 369 5
COLLECTOR REASONABLY BELIEVES THE RESIDEN T KNEW OR SHOULD HAV E KNOWN 1
THE TAX WAS MISCALCU LATED. 2
(G) ON OR BEFORE DECEMBER 31, 2026 2025, AND EACH DECEMBER 31 3
THEREAFTER THROUGH DECEMBER 31, 2030, THE COMPTROLLER SHALL REP ORT 4
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 5
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON: 6
(1) THE EFFECTIVENESS OF THE PROGRAM IN MEETING TH E 7
PURPOSE SPECIFIED IN SUBSECTION (B)(2) OF THIS SECTION AND 8
RECOMMENDATIONS FOR POTENTIAL STATUTORY OR ADMINISTRATIVE CH ANGES 9
TO ENHANCE PARTICIPA TION IN THE PROGRAM; 10
(2) THE NUMBER OF CLAIM FORMS PROVIDED TO RE SIDENTS DURING 11
THE PREVIOUS FISCAL YEAR; 12
(3) THE NUMBER OF CLAIM FORMS FILED BY RESID ENTS DURING THE 13
PREVIOUS FISCAL YEAR ; 14
(4) THE NUMBER OF REFUND ABLE CREDITS PROVIDE D TO RESIDENTS 15
DURING THE PREVIOUS FISCAL YEAR; AND 16
(5) THE TOTAL AMOUNT OF REFUNDABLE CREDITS P ROVIDED TO 17
RESIDENTS DURING THE PREVIOUS FISCAL YEAR . 18
(H) THE COMPTROLLER SHAL L ADOPT REGULATIONS TO CARRY OUT THIS 19
SECTION. 20
(G) IF A TAXPAYER TIMELY FILES A RETURN PREPA RED IN ACCORDANCE 21
WITH THIS SECTION , A TAX COLLECTOR MAY NOT ASSESS A PENALTY UNDER § 22
13–701 OF THIS ARTICLE WITH RESPECT TO ANY UNPAI D TAX. 23
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 24
October 1, 2022. It shall remain effective for a period of 8 years and 3 months and, at the 25
end of December 31, 2030, this Act, with no further action required by the General 26
Assembly, shall be abrogated and of no further force and effect. 27