Docstoc

corporate

Document Sample
corporate Powered By Docstoc
					INSTRUCTIONS FOR
MARYLAND FORM 500
                                                                CORPORATION INCOME
2002                                                                TAX RETURN
GENERAL                                                      An LLC is treated as a partnership for Maryland
                                                             income tax purposes, unless it is treated as a cor-
                                                                                                                      • Insurance companies within the meaning of the
                                                                                                                        Insurance Article, Annotated Code of Maryland are
INSTRUCTIONS                                                 poration for federal income tax purposes.                  subject to the insurance company premium tax.
                                                                                                                        Insurance companies must contact the Maryland
                                                                These entities are afforded pass-through tax
                                                             treatment and must file an income tax return on            Insurance Administration regarding filing require-
FILING FORM 500                                              Form 510 for information purposes. Additionally,           ments and taxation. (See back cover of tax booklet
Purpose of Form Form 500 is used by a corpora-               each partner or shareholder must file an individual        for address and phone number.)
tion and certain other organizations to file an income       income tax return on Form 502 (Form 505 for non-         • Common trust funds as defined in the
tax return for a specific tax year or period.                residents).                                                Maryland Financial Institutions Article Section
NOTE: S corporations must use Form 510 — Pass-                  An exception to the pass-through tax treatment is       3-501(b).
Through Entity Income Tax Return. (See inside front          S corporation income that is subject to federal          • Fiduciary taxpayers must file an income tax return
cover of this tax booklet to request forms.)                 income tax at the corporation level. This income is        on Form 504. For additional information contact the
Taxpayers Required to File Every Maryland cor-               also subject to Maryland corporation income tax.           Maryland Revenue Administration Division. (See
poration must file an income tax return on Form 500,            Maryland will follow the IRS rules for a single         back cover of tax booklet for address and phone
even if it has no taxable income or if the corporation       member LLC electing to be disregarded as a sepa-           number.)
is inactive. Every other corporation which is subject        rate entity (“check-the-box”) and certain partner-       SPECIAL REQUIREMENTS FOR CERTAIN OR-
to Maryland income tax law and has income or loss-           ships that do not actively conduct a business and        GANIZATIONS
es attributable to sources within Maryland must also         have elected not to be treated as a partnership.         • Affiliated corporations that file consolidated fed-
file Form 500.                                                  For additional information regarding the taxation       eral returns must file separate Maryland returns for
    Corporations operating in Maryland and in one or         and filing requirements of pass-through entities, see      each member corporation. Each member corpora-
more other states are subject to Maryland income tax         the instructions provided with Form 510. (See inside       tion must file and report the taxable income on a
if they exceed the provisions for federal protection         front cover of tax booklet to request information and      separate basis, without regard to the consolidation
from state taxation. U.S.C.A. Title 15, Section 381 of       forms.)                                                    for federal income tax purposes. Consolidation
the Interstate Commerce Tax Act (P.L. 86-272) pre-           • Nonprofit organizations that are exempt from             adjustments reported for federal purposes are not
scribes the extent of business activity required before        taxation under Internal Revenue Code Section             allowed for Maryland purposes.
states may impose income taxes.                                501, except those with taxable income for federal      • Qualified Sub-S Subsidiaries are treated as divi-
   A multistate corporation which operates in Mary-            purposes, such as unrelated business taxable             sions by the Internal Revenue Code and are not
land but is not subject to the Maryland income tax             income.                                                  considered as separate entities for Maryland pur-
law is not required to file, although a return reflecting       Under Section 501, a variety of organizations,          poses. These divisions will be included on the par-
an apportionment factor of zero may be filed for             generally nonprofit groups organized for charitable        ent company’s annual Maryland return.
record purposes. Letters in lieu of filing will not be       or mutual benefit purposes, are exempt from
accepted.                                                    income taxation. However, they may be subject to         GENERAL INFORMATION FOR FORM 500
All financial institutions formerly subject to financial     income tax if they have income from the operation        Accounting Periods The taxable year or period
institution franchise tax are subject to corporation         of a business not related to the purpose for which       used for the federal return must be used for the
income tax and have special apportionment rules.             they received their exemption.                           Maryland return. Accordingly, calendar tax years, fis-
See Maryland Tax Regulations 03.04.08.                          The same tax treatment that is afforded for feder-    cal tax years, 52-53 week tax years, one-day returns
When and Where to File File Form 500 by the                  al income tax purposes is afforded for Maryland          and short tax periods may be necessary for Mary-
15th day of the 3rd month following the close of the         income tax purposes. Income that is taxable for fed-     land filing purposes.
taxable year or period, or by the original due date          eral purposes is also taxable for Maryland purpos-          A Maryland return must be filed for each reporting
required for filing the federal return. The return must      es. Exempt organizations with federal taxable            period for which a federal return is filed or required.
be filed with the Comptroller of Maryland, Revenue           income must file Form 500 to report the income and       The form used for filing must reflect the preprinted
Administration Division, Annapolis, Maryland 21411-          pay the tax.                                             tax year in which the corporation’s tax year begins.
0001.                                                           Whether or not required to file Form 500, non-           In the case of a 52-53 week taxable year, Mary-
   Corporations and organizations that are afforded          profit organizations operating in Maryland that are      land follows federal treatment as to effective dates or
a later due date for federal returns under the Internal      subject to federal exempt-status notification require-   the applicability of any provision expressed in terms
Revenue Code are afforded the same due date for              ments must register with the Maryland Revenue            of taxable years beginning, including or ending with
Maryland income tax returns.                                 Administration Division. To register, an authorized      reference to a specified date.
Signatures Required Form 500 must be signed                  official must submit a letter of request accompanied     Use of Federal Figures In preparing Form 500, all
by a duly authorized corporate officer. Preparers,           by a copy of the Internal Revenue Service determi-       items that are reported for federal purposes must be
other than corporate employees, must also sign the           nation of tax-exempt status.                             reported on the Maryland return in the same manner.
return.                                                         Other agencies such as the State Executive            The character of an item cannot be changed from that
   In the case of a return filed by a fiduciary, the fidu-   Department - Secretary of State, State Department        required or elected for federal purposes.
ciary must sign the return and attach verification of        of Assessments & Taxation and Attorney General’s         Copy of Federal Return Required A copy of pages
the authority to do so.                                      Office, each have their own specific requirements        1 through 4 of the actual federal income tax return as
                                                             for nonprofit organizations.                             filed with the Internal Revenue Service for the corre-
ORGANIZATIONS EXEMPT FROM FILING The
following organizations are not subject to the Maryland      • Investment conduits such as a Regulated Invest-        sponding tax period must be attached to Form 500.
corporate income tax and are exempt from filing an             ment Company (RIC), Real Estate Investment             The Maryland filing will not be complete unless the
income tax return on Form 500, except as specified:            Trust (REIT) and a Real Estate Mortgage Invest-        required federal copy is attached.
                                                               ment Conduit (REMIC), except those with taxable            Corporations included in a consolidated filing for
• Business trusts shall be classified as corpora-              income for federal purposes. Investment conduits
  tions, partnerships, trusts or otherwise, as shall be                                                               federal income tax purposes must file separate
                                                               with such taxable income must file Form 500            returns for Maryland purposes and attach a copy of
  determined under United States Internal Revenue              reporting the taxable income.
  Code.                                                                                                               pages one through four of the actual consolidated fed-
                                                             • Individual retirement account (IRA) trusts that        eral return to each Maryland filing. Each Maryland fil-
• Pass-through entities defined as partnerships in             are exempt from taxation under Internal Revenue        ing must also include a copy of the columnar sched-
  Internal Revenue Code Section 761, S corpo-                  Code Section 408 (e)(1), except those with taxable     ules of income and expense and of balance sheet
  rations in Internal Revenue Code Sections 1361               income for federal purposes. IRA trusts with such      items (which are required for the federal filing), recon-
  and 1362, limited liability companies (LLC) in Mary-         taxable income must file Form 500 reporting the        ciling the separate items of each member corporation
  land Corporations and Associations Article Section           taxable income.                                        to the consolidated totals.
  4A-101 and business trusts in Maryland Corpora-
  tion and Associations Article Section 12-101.

                                                                                                                                                                              1
Taxable Income The starting point for Form 500 is               1/1/1986 to 12/31/1989              12%                     In the event of revision and assessment or reduced
the taxable income as developed for the federal                 1/1/1990 to 12/31/1990              13%                  refund, the Comptroller will notify the corporation. If in
income tax return after net operating loss and special                                                                   disagreement with the assessment or denial of the
                                                                1/1/1991 to 12/31/1992              12%
deductions for dividends. (See “Specific Instructions”                                                                   refund, the corporation may file with the Compliance
for line 1.) No modification of the federal net operating       1/1/1993 to 12/31/2003              13%                  Division a written request for revision of the assess-
loss or special deductions is allowed under Maryland            (The rate for calendar year 2004 will be                 ment or reconsideration of the refund denial. The
income tax law except in the case of a Foreign Source           set and available by 10/1/2003.)                         request, in either case, must be done by submitting an
Dividend Subtraction. For more information see                  A penalty is applicable for late filing of tax returns   application for an informal hearing with the Compli-
Administrative Release No. 18.                               and/or late payment of any taxes due. Additional            ance Division within 30 days of the assessment or
   The federal net operating loss deduction is effec-        penalties are applicable for the filing of false, fraudu-   denial of the refund.
tively allowed for the Maryland filing by using federal      lent or frivolous returns and civil and/or criminal fines      Failure to file a written request or attend the
taxable income. The federal provisions for carryback         and imprisonment may apply.                                 informal hearing will result in the assessment or denial
and carryover also apply for purposes of the Maryland           In the case of delinquent taxes, the State will record   of refund becoming final and non-appealable.
return unless you are following the additional carry-        a lien and judgment and proceed with legal action as           You may file an appeal with the Maryland Tax Court
back provisions or claiming the bonus depreciation           necessary to effect collection of the balance due.          within 30 days of a final determination by the Compli-
based on the Federal Jobs Creation and Worker                                                                            ance Division hearing officer.
Assistance Act (JCWAA) of 2002. For more informa-
                                                             OTHER MATTERS                                               Amended Returns To correct an error in a pre-
tion regarding the JCWAA, see Administrative
                                                                                                                         viously filed return, complete and submit Form 500X -
Release No. 38. If an election is made to relinquish a       Extension of Time to File If unable to file Form 500
                                                                                                                         Amended Corporation Income Tax Return. Attach
carryback and to carryover the net operating loss, a         by the due date, a corporation must submit Form
                                                                                                                         copies of the documents required and filed with the
copy of the federal election must be included with the       500E - Application for Extension of Time to File Cor-
                                                                                                                         Internal Revenue Service. If the corrections affect only
Maryland return for the taxable year of the net operat-      poration Income Tax Return. Maryland law provides
                                                                                                                         the Maryland return and not items of federal taxable
ing loss.                                                    for an extension of time to file, but in no case can an
                                                                                                                         income, include a thorough explanation of the
   For the taxable year in which a net operating loss        extension be granted for more than 6 months beyond
                                                                                                                         changes.
occurs, that current operating loss is used to offset        the original due date.
                                                                                                                           Each affected member of a consolidated federal fil-
Maryland modifications. If the total of addition modifi-       The request for extension of time to file will be auto-
                                                                                                                         ing must also include a schedule reconciling the
cations exceeds the total subtraction modifications in       matically granted for six months and will not be
                                                                                                                         amendments of each member corporation to the con-
the taxable year of the net operating loss, a modifica-      acknowledged, provided that:
                                                                                                                         solidated totals.
tion to recapture the excess of additions over subtrac-      1) the application is properly filed and submitted by
tions is required when claiming the corresponding net                                                                       Federal income tax law provides for both a capital
                                                                the 15th day of the 3rd month following the close of
operating loss deduction. See the Specific Instructions                                                                  loss carryback and carryover. Any carryover is effec-
                                                                the tax year or period, or by the original due date
for additional information.                                                                                              tively allowed when reporting federal taxable income
                                                                required for filing of the federal return;
                                                                                                                         on the Maryland return. The carryback deduction is
   The federal special deduction for dividends is            2) full payment of any balance due is submitted with        not allowed on the Maryland return and must be
treated as a current year deduction. It is deducted             the application; and                                     added to federal taxable income.
from federal taxable income before application of the
                                                             3) an application for extension of time has been filed        Do not attach amended returns to an original cor-
net operating loss deduction. The deduction reduces
                                                                with the Internal Revenue Service or an acceptable       poration income tax filing.
taxable income and may create a net operating loss.
                                                                reason has been provided with the Maryland appli-
   In the case of an affiliated group of corporations fil-      cation.                                                  Internal Revenue Service (IRS) Adjustments If
ing a consolidated return for federal purposes, each                                                                     the items of federal taxable income reported for any
                                                                The application extends only the time allowed to file
member corporation must calculate any net operating                                                                      taxable year or period are adjusted by the IRS and will
                                                             the annual income tax return and not the time allowed
loss and special deductions based on its separate fed-                                                                   increase Maryland taxable income, an amended
                                                             to pay the tax.
eral taxable income and loss. The deductions must be                                                                     return together with a copy of the final IRS adjustment
calculated in strict accordance with federal income tax         For additional information regarding extensions of       report must be submitted within 90 days.
provisions, as if the member corporation is not              time to file, see the instructions provided with Form
                                                                                                                            Each affected member of a consolidated federal fil-
involved in a consolidated filing and files a separate       500E. (Form 500E is included in this booklet.)
                                                                                                                         ing must also include a schedule reconciling the sep-
return with the Internal Revenue Service.                    Estimated Income Tax Every corporation that rea-            arate adjustments of each member corporation to the
    Maryland modified income is federal taxable              sonably expects their Maryland taxable income to            consolidated totals.
income after statutory addition and subtraction mod-         develop a tax in excess of $1,000 for the taxable year
                                                                                                                         Refund Claims Generally, a claim for a refund
ifications. For a listing of the statutory addition and      or period must make estimated income tax payments
                                                                                                                         (amended return) must be filed within 3 years from
subtraction modifications, see the Specific Instruc-         with Form 500DP - Declaration of Estimated Corpora-
                                                                                                                         the date the original return was filed or within 2
tions.                                                       tion Income Tax. If the corporation does not have the
                                                                                                                         years from the date the tax was paid, whichever is
                                                             estimated tax packet containing the Form 500DP
   Maryland apportioned income is applicable only                                                                        later. A return filed early is considered filed on the
                                                             vouchers, Form 500D may be used.
for multistate corporations and is developed by apply-                                                                   date it was due.
ing the apportionment factor to Maryland modified               Declaration of estimated income tax payments
                                                                                                                            If the claim for refund resulted from an Internal
income. For an explanation of apportionment provi-           are due by the 15th day of the 4th, 6th, 9th and 12th
                                                                                                                         Revenue Service adjustment or final decision of a
sions, see the Instructions for Computation of Appor-        months following the beginning of the tax year or
                                                                                                                         federal court which is more than 3 years from the
tionment Factor.                                             period. The total estimated tax payments for the year
                                                                                                                         date of filing the return or more than 2 years from
                                                             must be at least 90% of the tax developed for the cur-
   Maryland taxable income is federal taxable                                                                            the time the tax was paid, a claim for refund must
                                                             rent taxable year or 100% of the tax developed for the
income after statutory modifications and applicable                                                                      be filed within 1 year from the date of the adjust-
                                                             prior tax year. At least 25% of the total estimated
apportionment.                                                                                                           ment or final decision.
                                                             tax must be remitted by each of the four installment
Business Tax Credits For more information about              due dates.                                                     A claim for refund based on a federal net operat-
credits against the tax see Specific Instructions for line                                                               ing loss carryback must be filed within 3 years after
                                                                In the case of a short tax period the total estimated
10c or the Instructions provided for Form 500CR Busi-                                                                    the due date of the return for the tax year of the net
                                                             tax required is the same as for a regular taxable year:
ness Tax Credits. Form 500CR is available from the                                                                       operating loss.
                                                             90% of the tax developed for the current (short) tax-
Maryland Revenue Administration Division. (See                                                                           Taxpayer Identification Required for Returns and
                                                             able year or 100% of the tax developed for the prior
inside front cover of tax booklet to request forms.)                                                                     Other Documents. All returns, correspondence,
                                                             tax year. The minimum estimated tax for each of the
Tax, Interest and Penalty The corporate tax rate is          installment due dates is the total estimated tax            payments or other documents must indicate the
7% of Maryland taxable income for taxable years and          required divided by the number of installment due           corporate name, Federal Employer Identification
periods beginning in 1967 through 2002. The annual           dates occurring during the short tax year.                  Number, type of tax and tax year(s) to which the
rate of interest charged for taxes owed to the State is                                                                  document relates.
                                                                For additional information regarding estimated
shown in the table below.                                                                                                    All corporations are required to secure a
                                                             income tax, see the instructions provided with Form
            Period                  Interest Rate            500DP or 500D. (Form 500D is included in this booklet.)     Federal Employer Identification Number (FEIN) from
    1/1/1967 to 06/30/1975              06%                                                                              the Internal Revenue Service (IRS). The FEIN is the
                                                             Audits and Appeals All items reported on Form
                                                                                                                         number used by the IRS for processing purposes
    7/1/1975 to 06/30/1982              09%                  500 are subject to audit, verification and revision,
                                                                                                                         and is also the primary number used by the Mary-
    7/1/1982 to 12/31/1983              15%                  including items reported for federal purposes. Returns
                                                                                                                         land Revenue Administration Division. For returns
                                                             and amendments are subject to audit and adjustment
    1/1/1984 to 12/31/1984              12%                                                                              filed without the federal number a temporary num-
                                                             for a period of 3 years from the date the return was
    1/1/1985 to 12/31/1985              13%                                                                              ber will be assigned for processing purposes until
                                                             due (including extensions) or the date the return was
                                                                                                                         the actual number is provided.
                                                             filed, whichever is later.
2
   The type of tax and tax year(s) are necessary
to identify the subject of the document and the              SPECIFIC                                                       A corporation included in a consolidated federal
                                                                                                                        filing and claiming net operating loss or special
intention of payments. This information ensures that
documents and payments are applied to the correct
                                                             INSTRUCTIONS                                               deductions must attach a schedule detailing the
                                                                                                                        deduction(s) on a separate return basis.
                                                             SPECIAL NOTE: Complete the federal income tax
account.
                                                             return first and use it in preparation of the Maryland
Use of Paid Preparers The corporation is                     return. After completing the Maryland return,
                                                                                                                        ADDITION MODIFICATIONS:
responsible for the timely filing of returns, payment        ATTACH A COPY OF PAGES 1 THROUGH 4 OF                      All entries must be positive amounts.
of tax, responding to requests and all other require-        THE FEDERAL INCOME TAX RETURN TO FORM
ments, even if a paid preparer is used.                      500.                                                       LINE 2a - STATE AND LOCAL INCOME TAX
Substitute Forms Maryland corporation income                                                                               Enter the total of all net income taxes and all
tax returns may be reproduced and filed on comput-           NAME, ADDRESS AND OTHER                                    other taxes based on income that are imposed by
er-prepared or computer-generated substitute forms           INFORMATION                                                any state or by a political subdivision of any state
provided that they are approved in advance by the                                                                       and deducted on the federal return.
                                                             IMPORTANT — PLEASE REMOVE THE LABEL
Maryland Revenue Administration Division. Repro-                                                                           Attach a schedule listing the type and amount of
                                                             FROM THE TAX BOOKLET COVER AND ATTACH
ductions or substitutes of forms in which machine-                                                                      all taxes deducted on the federal return. The sched-
                                                             IT TO THE DESIGNATED AREA ON THE FORM
readable taxpayer information has been preprinted                                                                       ule of taxes must reconcile to the amount of tax
                                                             500. IF SOMEONE ELSE IS PREPARING THE
by the Revenue Administration Division may not be                                                                       expense reported on the federal return.
                                                             RETURN, GIVE THE PREPARER THE BOOKLET
used.
                                                             SO THAT THE LABEL MAY BE USED. If any of the
   For additional information, see Administrative            information on the label is incorrect, DO NOT USE          LINE 2b - DIVIDENDS AND INTEREST
Release No. 26, Procedures for Computer-                     THE LABEL.                                                 FROM ANOTHER STATE, LOCAL OR
Printed Substitute Forms, which can be obtained                                                                         FEDERAL TAX EXEMPT OBLIGATION
                                                                If you do not have a label, type or print the correct
from any office of the Maryland Revenue Adminis-
                                                             name and address in the designated area. Enter the             Enter dividends and interest (less related expens-
tration Division. (See back cover of tax booklet for
                                                             corporate name exactly as specified in the Articles        es) attributable to any obligation or security of
address and phone number for substitute forms
                                                             of Incorporation, or as amended, and continue with         another state, a political subdivision or authority of
information.)
                                                             any “Trading As” (T/A) name if applicable.                 another state. Also include interest and dividends
Employer Withholding of Income Tax Employers                                                                            that are exempted by federal law or treaty from fed-
                                                                Enter the Federal Employer Identification Num-
that make payments to individuals of salaries,                                                                          eral but not state income tax, and attributable to the
                                                             ber (FEIN). If a FEIN has not been secured, enter
wages, or compensation for personal services must                                                                       United States or a foreign government or an author-
                                                             “APPLIED FOR” followed by the date of application.
withhold income tax as prescribed in published                                                                          ity, commission, instrumentality or territory.
                                                             If a FEIN has not been applied for, do so immedi-
tables and remit the withholding to the Maryland
                                                             ately.                                                        Attach a schedule listing the source and amount
Revenue Administration Division.
                                                                Enter the date of incorporation and the Federal         of all dividends and interest reported on line 2b and
    The tax withheld must be remitted with Form                                                                         any related expenses. Also include in the schedule
                                                             Business Activity Code Number. The date of incor-
MW506 - Employer’s Return of Income Tax Withheld                                                                        any interest and dividends exempt by federal law or
                                                             poration must be expressed numerically, using two
on a monthly basis if the quarterly withholding is                                                                      treaty from federal but not state income tax.
                                                             digits each for the month, the day and the year. The
$700 or more. If the quarterly withholding is less
                                                             Business Activity Code is a six-digit number avail-
than $700 the tax withheld is to be remitted quarter-
                                                             able from the federal return which identifies the prin-    LINE 2c - NET OPERATING LOSS
ly. Employers may not change from monthly to quar-
                                                             cipal business activity.                                   MODIFICATION
terly withholding without approval of the Revenue
Administration Division.                                        Check the applicable box if: (1) the name or               If a net operating loss deduction is allowed for
                                                             address has changed; (2) this is the first filing of       this taxable year, and if, in the taxable year of the
   An annual reconciliation is required to be filed on
                                                             the corporation; (3) this is an inactive corporation       corresponding net operating loss, total addition
Form MW508 - Annual Employer Withholding Rec-
                                                             (in Maryland and elsewhere – Do not check the box          modifications exceed total subtraction modifications,
onciliation Report and submitted with the state copy
                                                             for inactive if the corporation is inactive in Maryland    enter the smaller of:
of the wage and tax statements issued to the
                                                             but active elsewhere.); (4) this is the final return of
employees. If the employer is required to submit                                                                        Net operating loss deduction attributable to the loss
                                                             a corporation that has dissolved, liquidated or
wage and tax statement information on magnetic                                                                          year (tax year in which the net operating loss
                                                             withdrawn from Maryland; (5) you use a paid
media for federal reporting purposes, it is required                                                                    occurred)
                                                             preparer and do not want Maryland forms mailed
to submit magnetic media for state reporting pur-                                                                         OR
                                                             to you next year; or, (6) this is a manufacturing
poses. A separate Form MW 508 is not required for
                                                             corporation.                                               Cumulative net operating loss deductions attribut-
magnetic media filers.
                                                                                                                        able to the loss year that are allowed for this taxable
   For additional information regarding employer                                                                        year and all prior taxable years
withholding tax, contact the Maryland Revenue                TAXABLE YEAR OR PERIOD
Administration Division. (See back cover of tax                                                                         + net addition modification (amount that addition
                                                               ENTER THE BEGINNING AND ENDING DATES
booklet for address and phone number.)                                                                                    modifications exceed subtraction modifications)
                                                             IN THE SPACE PROVIDED AT THE TOP OF FORM
                                                                                                                          for the loss year
Privacy Notice The Maryland Revenue Adminis-                 500. The form used in filing must reflect the preprint-
tration Division requests tax return information to          ed tax year in which the corporation’s tax year            – total net operating loss for the loss year.
administer the income tax laws of Maryland, includ-          begins.                                                        The above items are each considered to be a
ing the determination and collection of the correct             The same taxable year or period used for the            positive amount for purposes of this calculation.
taxes and other amounts. Failure to provide all or           federal return must be used for Form 500.                  If the result of combining amounts is negative, use
part of the requested information may result in the                                                                     zero.
disallowance of claimed amounts and an increased             LINE 1 - TAXABLE INCOME PER FEDERAL                           If the total net operating loss deduction for this
tax liability. In addition, the law makes provision for      RETURN                                                     taxable year consists of net operating losses from
securing information from taxpayers that fail to sup-                                                                   more than one taxable year, calculate the modifica-
ply required information, and a penalty may apply.              Enter the taxable income (after net operating loss
                                                                                                                        tion separately for each loss and enter the total.
                                                             and special deductions) as it appears on the federal
  Taxpayers have a right to access their tax records         income tax return filed with the Internal Revenue             Attach a schedule of the calculation if, in the
maintained by the Revenue Administration Division,           Service.                                                   taxable year of the net operating loss, total addition
and may inspect, amend or otherwise correct them.                                                                       modifications exceed total subtraction modifications.
To obtain a copy of such tax records, submit a writ-            Only in the instance of a current net operating
                                                             loss may line 1 be reported at less than zero. Use a       NOTE: This entry is a modification and not the net
ten request containing the corporate name, address
                                                             minus sign (-) in front of the number to indicate a        operating loss. The net operating loss is shown only
and identification numbers and specifying the infor-
                                                             loss. In the case of a net operating loss deduction,       on line 1. For more information see Administrative
mation needed. The request must be signed by an
                                                             taxable income cannot be reported at less than             Release No. 18.
authorized corporate officer.
                                                             zero.
   As authorized by law, information furnished to the                                                                   LINE 2d - OTHER ADDITIONS
Revenue Administration Division may be given to                 A corporation included in a consolidated filing for
                                                             federal income tax purposes must enter its separate          If one or more of these apply, enter the total
the Internal Revenue Service, a proper official of
                                                             federal taxable income. Attach a copy of pages one         amount on line 2d and identify each item using the
any state that exchanges tax information with Mary-
                                                             through four of the actual consolidated federal            code letter.
land, and to an officer of this State having a right to
the information in that officer’s official capacity. Also,   income tax return and a schedule reconciling the           a. The oil percentage depletion allowance as
the information may be obtained in accordance with           income and expenses of each member of the con-                deducted on the federal return, under Internal
a proper judicial or legislative order.                      solidated filing.                                             Revenue Code Section 613 or 613A. Other

                                                                                                                                                                              3
    depletion allowances that are provided for in Sec-       that invest in U.S. government obligations. Only that          allowance under the Job Creation and Worker
    tion 613 or 613A are not required as an addition         portion of dividends attributable to interest from U.S.        Assistance Act (JCWAA) of 2002 compared to
    modification.                                            obligations can be subtracted. Income from Govern-             Maryland taxable income without regard to
b. The total amount of additions associated with             ment National Mortgage Association securities may              JCWAA provisions. Complete and attach Form
   business tax credits. Enter the total of lines 1, 2,      not be subtracted.)                                            500DM. See Administrative Release 38.
   3, 7, 11, 12 and 13 from Form 500CR, Part R,                                                                          k. Net subtraction modification to Maryland taxable
   Business Tax Credit Summary.                              LINE 4d - GAIN OR LOSS ON THE DISPOSITION                      income when the federal special 5-year carry-
c. The amount allowed in a prior taxable year for            BY A PUBLIC SERVICE COMPANY OF CERTAIN                         back period was used for a net operating loss
   reforestation or timber stand improvement if the          ASSETS                                                         under the Job Creation and Worker Assistance
   commercial forest land was decertified in the previ-         Enter the difference between the adjusted basis             Act (JCWAA) of 2002 compared to Maryland tax-
   ous year. See the corresponding subtraction modi-         of the disposed or transferred assets as recorded in           able income without regard to JCWAA provisions.
   fication listed under line 4e for more information.       the books of the public service company and the                Complete and attach Form 500DM. See Adminis-
                                                             adjusted basis of the assets for federal purposes              trative Release 38.
d. The amount of federal income tax expenses
   attributable to a child care center or family day         calculated as of January 1, 2000. Add to this the           l. The amount of wages for which a deduction is not
   care home, if the center or home is not licensed          amount of any carryover from a previous year. Com-             allowed under Internal Revenue Code Section
   or registered as required by Maryland law.                plete the worksheet below to determine the amount              280C(a), not exceeding the credit allowed for tar-
                                                             of any carryover of this subtraction.                          geted jobs (Work Opportunity Tax Credit) under
e. Net addition modification to Maryland taxable
                                                             LINE 4e - OTHER SUBTRACTIONS                                   Internal Revenue Code Section 51.
   income when using the federal bonus depreciation
   allowance under the Job Creation and Worker                 If one or more of these apply, enter the total               Attach a schedule identifying all items and
   Assistance Act (JCWAA) of 2002 compared to                amount on line 4e and identify each item using the          amounts claimed on line 4e in the same categories
   Maryland taxable income without regard to                 code letter.                                                as specified above. Additionally, (1) list by source
   JCWAA provisions. Complete and attach Form                                                                            and amount the interest attributable to U.S. obliga-
                                                             a. The percentage of the dividends received from            tions and profit from the sale or exchange of bonds
   500DM. See Administrative Release 38.                        an affiliated domestic international sales corpora-      issued by Maryland or its political subdivisions, and
f. Net addition modification to Maryland taxable                tion equal to the percentage that would be               (2) reconcile the income tax refunds to the federal
   income when the federal special 5-year carry-                excluded if the corporation did not qualify under        return.
   back period was used for a net operating loss                Internal Revenue Code Section 992(a).
   under the Job Creation and Worker Assistance                                                                          LINE 5 - MARYLAND MODIFIED INCOME
                                                             b. Profit (without regard to losses) realized from the
   Act (JCWAA) of 2002 compared to Maryland tax-                sale or exchange of bonds issued by Maryland or            Subtract line 4f from line 3 and enter the result.
   able income without regard to JCWAA provisions.              a political subdivision of Maryland.                     THIS LINE MUST BE COMPLETED.
   Complete and attach Form 500DM. See Adminis-
   trative Release 38.                                       c. The amount of payment for relocation and assis-
    Attach a schedule of all items and amounts
                                                                tance under the Maryland Real Property Article,            APPORTIONMENT OF INCOME
                                                                Title 12, Subtitle 2.                                     NOTE: To be completed by multistate corpor-
reported on line 2d in the same categories as spec-
ified above.                                                 d. Refunds of income tax received from a state or a          ations — unistate corporations skip to line 8.
                                                                political subdivision of a state.
LINE 3 - TOTAL                                                                                                            LINE 6 - MARYLAND
                                                             e. Expenses incurred to buy and install conservation
   Add the amounts on lines 1 and 2e and enter the              tillage equipment (no-till planters, no-till drills,      APPORTIONMENT FACTOR
total.                                                          deep no-till ripper, and liquid manure soil injection       Enter the apportionment factor as calculated
                                                                apparatus), as certified by the Maryland Depart-          on Page 2 of Form 500. (The factor must be
SUBTRACTION MODIFICATIONS:                                      ment of Agriculture. (See back cover of tax book-         rounded to six decimal places.)
All entries must be positive amounts.                           let for address and phone number.) Attach a copy
                                                                                                                            For detailed instructions, see instructions for
LINE 4a - DIVIDENDS FOR DOMESTIC                                of the certification.
                                                                                                                          Computation of Apportionment Factor on page 6.
CORPORATIONS CLAIMING FOREIGN TAX                            f. Twice the amount of expenses for reforestation or
CREDITS                                                         timber stand improvement activity on 10 to 100            LINE 7 - MARYLAND APPORTIONED
   Enter the amount included in the income of a                 acres of commercial forest land, exclusive of fed-        INCOME
domestic corporation claiming a foreign tax                     eral funds. For information regarding qualification
                                                                                                                            Multiply the amount on line 5 by the factor
credit as dividends under Internal Revenue Code                 and a computation of expenses, contact the
                                                                Maryland Department of Natural Resources.                 shown on line 6 and enter the result.
Section 78 (foreign dividend gross-up).
                                                                (See back cover of tax booklet for address and
LINE 4b - DIVIDENDS FROM RELATED
                                                                phone number.)                                           LINE 8 - MARYLAND TAXABLE INCOME
FOREIGN CORPORATIONS
                                                             g. For a Regulated Investment Company, the                     Enter the amount from line 5 or line 7, whichever
   Enter dividends received from a corporation if the
                                                                amount of the addition for interest and dividends        is applicable.
receiving corporation owns, directly or indirectly,
                                                                from state or local obligations of another state.
50% or more of the paying corporation’s outstand-                                                                        LINE 9 - TAX
ing shares of capital stock and the paying corpora-          h. Purchase cost of certain poultry or livestock
tion is organized under the laws of a foreign govern-           manure spreading equipment as certified by the              Multiply the amount on line 8 by 7%. Enter the result.
ment.                                                           Maryland Department of Agriculture. Attach a             LINE 10 - PAYMENTS AND CREDITS
                                                                copy of the certification.                               10a. Enter the total of amounts paid during
  This subtraction is limited to the amount of divi-
dends included in federal taxable income.                    i. Expenses incurred to buy and install handrails in        the taxable year with Form 500DP or 500D - Decla-
                                                                an existing elevator in a healthcare facility (as        ration of Estimated Corporation Income Tax. Also
LINE 4c - INCOME FROM UNITED STATES                             defined in Section 19-114 of the Health General          include any overpayment carried forward from the
OBLIGATIONS                                                     Article) or other building in which at least 50% of      prior year Form 500.
                                                                the space is used for medical purposes.                  10b. Enter any amount paid with Form 500E - Appli-
  Income attributable to an obligation of the
United States or an instrumentality of the United            j. Net subtraction modification to Maryland taxable         cation for Extension of Time to File Corporation
States. (This includes dividends from mutual funds              income when using the federal bonus depreciation         Income Tax Return.

                                            CARRYOVER WORKSHEET FOR LINE 4d

       1.   Enter the amount from Form 500, line 4d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________
       2.   Enter the amount from Form 500, line 3. . . . . . . . . . . . . . . . . . . . .$_____________
       3.   Enter the total of lines 4a, b, c and e from Form 500 . . . . . . . . . . . . . . .$_____________
       4.   Subtract line 3 from line 2. If less than 0, enter 0. . . . . . . . . . . . . . .$_____________
       5.   Subtract line 4 from line 1. If less than 0, enter 0. This is your
            carryover amount for future periods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________

4
10c. Enter the total of your business tax credits as        m. WORK-BASED LEARNING PROGRAM                           LINE 16 - AMOUNT OF OVERPAYMENT TO BE
listed below. Complete and submit Form 500CR              CREDIT. A credit may be claimed for a percent-             REFUNDED
with Form 500.                                            age of wages paid to students employed as part of             Add the amounts on lines 13 and 15 and subtract
  a. ENTERPRISE ZONE TAX CREDIT. Business-                a work-based learning program.                             the total from line 12. This is the amount requested
es located in an enterprise zone may be eligible for        n. CREDIT FOR MARYLAND-MINED COAL. A                     to be refunded to the corporation.
tax credits based upon wages paid to qualifying           credit is allowed for a qualifying electricity supplier    LINE 17 - DIRECT DEPOSIT OF REFUND
employees.                                                or cogenerator, as defined under the Public Utility
                                                                                                                        Complete lines 17a, b, and c of Form 500 if you
   b. EMPLOYMENT OPPORTUNITY TAX CREDIT.                  Regulatory Policies Act of 1978, for the purchase of
                                                                                                                     want us to deposit the refund directly into the cor-
Businesses that employ persons receiving “Aid to          Maryland-mined coal.
                                                                                                                     poration’s account at a bank or other financial insti-
Families With Dependent Children” (AFDC) may be              o. ONE MARYLAND ECONOMIC DEVELOP-                       tution instead of sending a check.
eligible for tax credits based upon wages paid to         MENT TAX CREDIT. Businesses may claim a credit
                                                                                                                     17a. TYPE OF ACCOUNT. Check the appropriate
qualified employees, child care expenses and trans-       for the project cost and startup cost of relocating or
                                                                                                                     box to identify the type of account that will be used
portation expenses paid on behalf of the qualified        expanding a business in a distressed county in
                                                                                                                     (checking or savings). You must check one box only
employees.                                                Maryland.                                                  or a refund check will be mailed.
  c. MARYLAND DISABILITY EMPLOYMENT TAX                      p. COMMUTER TAX CREDIT. Businesses may                  17b. ROUTING NUMBER.The routing number must
CREDIT. Businesses that employ persons with dis-          claim a credit for the cost of providing qualifying com-   be nine digits. If the first two digits are not 01
abilities as certified by the State Department of Edu-    muter benefits to the business entities’ employees.        through 12 or 21 through 32, the direct deposit will
cation may be eligible for tax credits based upon
                                                             q. MARYLAND CLEAN ENERGY INCENTIVE                      be rejected and a check sent instead. If you are not
wages paid to the qualified employees, child care
                                                          ACT. A credit may be claimed for the cost incurred         sure of the correct routing number, contact your
expenses and transportation expenses paid on
                                                          to install solar energy property or photovoltaic prop-     financial institution.
behalf of the qualified employees.
                                                          erty. A credit is also allowed for electricity produced    17c. ACCOUNT NUMBER. The account number
   d. ELECTRIC AND GAS UTILITY CREDITS. A                 using certain alternative energy sources.                  can be up to 17 characters (both numbers and let-
public utility may claim a credit against the State            For additional information regarding any of           ters). Include hyphens but omit spaces and special
income tax in an amount equal to 60% of the total         the above income tax credits, see the instruc-             symbols. Enter the number from left to right and
property taxes paid by the public utility on its oper-    tions provided on Form 500CR, Business Tax                 leave any unused boxes blank.
ating real property in the State, other than operating    Credits. This form is available from any office of
land, that is used to generate electricity or steam for   the Comptroller.                                               If we are notified by the financial institution that
sale. A credit is also available for wages paid to                                                                   the direct deposit is not successful, a refund check
                                                          10d. HERITAGE STRUCTURE REHABILITATION
qualified employees at a multi-jurisdictional electric                                                               will be mailed.
                                                          TAX CREDIT. A credit is allowed for 20% of qualified
company’s qualified corporate headquarters in             rehabilitation expenditures as certified by the Mary-          Please have a bank statement for the deposit
Maryland.                                                 land Historical Trust. Complete and submit Form            account available if you contact us concerning the
    e. TELECOMMUNICATIONS PROPERTY TAX                    502H with Form 500.                                        direct deposit of the refund.
CREDIT. A credit is allowed for a public                  10e. Add the amounts on lines 10a,10b,10c and 10d                              DISCLOSURE
utility that is a telecommunications company in an        and enter the total.                                            Entering the bank account routing number,
amount limited to 60% of the total state, county and      LINE 11 - BALANCE OF TAX DUE                               account number and account type in the area pro-
municipal corporation property taxes paid on certain                                                                 vided on the Maryland income tax return to effect a
                                                            If the amount on line 9 is greater than the amount
Maryland property.                                                                                                   direct deposit of the income tax refund authorizes
                                                          on line 10e, subtract line 10e from line 9 and enter
   f. MARYLAND RESEARCH AND DEVELOP-                      the result.                                                the Comptroller’s Office to disclose this information
MENT TAX CREDIT. Businesses may claim a cred-             LINE 12 - OVERPAYMENT                                      and the refund amount to the Maryland State Trea-
it against the state income tax for certain qualified                                                                surer’s Office who performs banking services for the
                                                            If the amount on line 10e is greater than the
research and development expenses.                                                                                   Comptroller’s Office.
                                                          amount on line 9, subtract line 9 from line 10e and
  g. LONG-TERM EMPLOYMENT OF QUALIFIED                    enter the result.                                          ADDITIONAL INFORMATION AND STATEMENTS
EX-FELONS. Businesses that employ ex-felons                                                                          REQUIRED
                                                          LINE 13 - INTEREST AND/OR PENALTY
under a program certified by the Department of                                                                         Enter all information requested in these areas on
Labor, Licensing and Regulation may be eligible for          Interest and/or penalty may be due as a result of
                                                                                                                     Page 2 of Form 500.
a credit based upon wages paid to the qualified           the underpayment of estimated tax and as a result
                                                          of late filing of Form 500 and payment of the tax. If      SIGNATURE AND VERIFICATION
employee.
                                                          applicable, enter each amount in the space provid-           An authorized officer must sign and date Form
   NOTE: If you claim a business tax credit for items
                                                          ed and enter total.                                        500 at the bottom of Page 2 and enter his or her
a through g, an addition to income must be included
                                                             If the estimated tax was underpaid, use Form            corporate title. If a paid preparer is used, the pre-
on line 2d.
                                                          500UP - Underpayment of Estimated Corporation              parer must also sign the return and enter the firm
   h. JOB CREATION TAX CREDIT. Certain busi-              Income Tax to calculate any interest and/or penalty        name, address and Preparer’s Tax Identification
nesses that create new qualified positions in Mary-       due.                                                       Number (PTIN).
land may be eligible for tax credits based on the
                                                          NOTE: If Form 500UP is not submitted with the              PAYMENT INSTRUCTIONS
number of qualified positions created or wages paid
for these positions.                                      return, the Maryland Revenue Administration Divi-             Include a check or money order made payable to
                                                          sion will calculate the interest and penalty for failure   the Comptroller of Maryland for the full amount of
   i. NEIGHBORHOOD PARTNERSHIP PROGRAM                    to pay the required amount of estimated income tax         any balance due. All payments must indicate the
TAX CREDIT. Businesses that contribute $500 or            and notify the corporation of any balance due.             Federal Employer Identification Number, type of tax
more to approved Neighborhood and Community
                                                             If Form 500 is filed late, calculate interest on the    and tax year beginning and ending dates. DO NOT
Assistance Programs may be eligible for a tax cred-
                                                          amount of tax that was not paid by the original due        SEND CASH. Taxpayers making payments of
it equal to 50% of approved contributions with a
                                                          date. Interest is due at an annual rate of 13% or          $20,000 or more must pay by electronic funds trans-
maximum credit of $125,000.
                                                          1.08% per month or part of a month that tax is paid        fer. Others may elect this method. Taxpayers must
   j. BUSINESSES THAT CREATE NEW JOBS TAX                 after the due date of the return.                          register prior to making electronic payments. For
CREDIT. Certain businesses located in Maryland                                                                       registration information call 410-260-7601.
that create new positions or establish or expand            A penalty may be imposed if any tax is not paid
                                                          when due. Any penalty due will be calculated and           MAILING INSTRUCTIONS
business facilities in the state may be entitled to an
income tax credit if a property tax credit is granted     assessed after filing of Form 500.                            Use the envelope provided in the tax booklet and
by Baltimore City or any county or municipal corpo-       LINE 14 - TOTAL BALANCE DUE                                place an “X” in the appropriate box in the lower left
ration of Maryland.                                                                                                  corner to indicate the type of return enclosed. Also,
                                                             Add the amounts on lines 11 and 13 and enter
                                                                                                                     be sure to read and follow the reminders listed on
    k. WATER QUALITY IMPROVEMENT CREDIT. A                the result, or if the amount on line 13 exceeds line
                                                                                                                     the back of the envelope.
credit may be claimed for additional commercial fer-      12, enter the difference. The total amount due must
tilizer costs necessary to convert agricultural pro-      be paid with the filing of Form 500.
duction to a nutrient management plan.                    LINE 15 - AMOUNT OF OVERPAYMENT TO BE
   l. EMPLOYER PROVIDED LONG-TERM CARE                    APPLIED TO ESTIMATED TAX FOR 2003
INSURANCE CREDIT. A credit may be claimed for                Enter the portion of overpayment to be applied to
costs incurred by an employer that provides long-         the estimated tax for the next tax year. For informa-
term care insurance as part of an employee benefit        tion regarding estimated income tax requirements,
package.                                                  see the General Instructions.


                                                                                                                                                                            5
INSTRUCTIONS FOR                                              Gross receipts from the rental, leasing or
                                                          licensing of real or tangible personal property
                                                                                                                    OTHER APPORTIONMENT FORMULAS
                                                                                                                    NOTE: Double-weighted receipts factor provisions
COMPUTATION OF                                            are included in the numerator if the property is
                                                          located within Maryland. If tangible personal prop-
                                                                                                                    are not applicable for corporations subject to the
APPORTIONMENT                                             erty is located in this State for a portion of the tax
                                                                                                                    following apportionment formulas:
                                                                                                                        Corporations engaged primarily in leasing or
FACTOR – 2002                                             year, only the income received for that portion is
                                                          included in the numerator.                                rental operations are required to use an equally
                                                                                                                    weighted two-factor formula of receipts and prop-
                                                              Capital gains from the sale of real and tangible      erty. The receipts and property factors are calcu-
   Multistate corporations are those that are
                                                          personal property are included in the numerator           lated in accordance with the provisions for those
operating in more than one state and beyond the
                                                          if the property is located within Maryland. Ordinary      factors of the three-factor formula, except that
protection of U.S.C.A. Title 15, Section 381 of the
                                                          net gain or loss derived from the sale of deprecia-       receipts from intangible items are excluded.
Interstate Commerce Tax Act (P.L. 86-272). Multi-
                                                          ble assets is excluded from the factor.
state corporations operating in Maryland as a uni-                                                                      Corporations engaged primarily in certain types
tary business must allocate income using an                   Other income items are included in accordance         of transportation operations are required to use a
apportionment formula.                                    with the provisions previously stated depending           one-factor formula as follows:
                                                          upon the nature and type of each item.
   Unistate corporations are those that are oper-                                                                   • Trucking operations (motor freight carriers)
ating in only one state, or are operating in more                                                                     must use total road mileage traveled in Maryland
                                                          PROPERTY FACTOR The property factor
than one state but the extent of the activity in the                                                                  divided by total road mileage traveled every-
                                                          includes owned as well as rented tangible personal
other states is within the protection of P.L. 86-                                                                     where.
                                                          property used in the trade or business during the
272. Unistate corporations subject to the Mary-                                                                     • Railroad operations must use total track
                                                          taxable year. Such properties are inventory,
land income tax law may not apportion income.                                                                         mileage traveled in Maryland divided by total
                                                          machinery and equipment, buildings and land, and
   Allocation means the assignment of income to           other tangible assets. Property is included in the          track mileage traveled everywhere.
a particular state. Apportionment means the allo-         numerator if it has a situs within Maryland.              • Shipping operations must use total voyage
cation of income among states by the use of a for-                                                                    days in Maryland divided by total voyage days
                                                             Property owned by the corporation is valued at
mula containing apportionment factors.                                                                                everywhere. Voyage days are the number of days
                                                          its original cost and is reflected in the factor at the
   All factors of the apportionment formula are           average of the tax year beginning and ending                that ships spend in ports and on waterways.
developed as fractions, the numerator of which is         amounts. If there are material changes during the         • Airline operations should see Administrative
the total of Maryland items and the denominator is        tax year and the yearly average is not a fair rep-          Release No. 22 for instructions.
the total of items everywhere during the tax year.        resentation, the average must be calculated on a
Each factor is calculated to six decimal places and                                                                     Banks and similar institutions are subject to
                                                          monthly or daily basis.                                   special apportionment rules. To review these rules,
the number of factors used is averaged to arrive at
                                                             Property in transit is considered to be at its         see Maryland Regulation 03.04.08 or contact the
the final apportionment factor. The items of both
                                                          destination for purposes of the factor. Property          Maryland Revenue Administration Division for
numerator and denominator should reconcile to
                                                          under construction during the tax year is excluded        instructions. (See back cover of booklet for
the items as categorized and reported on the fed-
                                                          from the factor until actually placed in service.         address and phone number.)
eral income tax return.
                                                             Property leased or rented by the corporation               All manufacturing corporations are subject to
   If a return is filed by a multistate corporation
                                                          is included in the factor at a capitalized value. To      a special single factor formula of receipts. The
which reflects a loss and there is no income to be
                                                          arrive at the capitalized value, expenses are asso-       rules for calculating the single factor can be found
apportioned, an apportionment factor must be cal-
                                                          ciated with the privilege of occupying or using the       in Maryland Regulation 03.04.03.10 or contact the
culated for the filing to be complete.
                                                          property, including such items as fixed rent, per-        Maryland Revenue Administration Division for
                                                          centage rent, real estate taxes, insurance and            forms and instructions. (See back cover of booklet
THREE-FACTOR FORMULA                                      maintenance, are multiplied by eight. Expenses for        for address and phone numbers.)
   Multistate corporations are generally required to      gas, electricity, oil, water or other items normally           In addition, manufacturing corporations with
use a three-factor formula of property, payroll and       consumed are excluded.                                    more than 25 employees must complete Form
double-weighted receipts. The sum of the property            Lease or rental expense below the market               500MC if apportionment is used. All three (3) fac-
factor, payroll factor and twice the receipts factor is   rate must be adjusted to reflect a reasonable mar-        tors must be completed on page 2 of Form 500 for
divided by four to arrive at the final apportionment      ket rate and then capitalized. Sublease income            the purpose of completing Form 500MC.
factor. Specific requirements regarding each factor       cannot be used to arrive at the capitalized value of
are set forth below:                                      leased or rented property, but must be included in
                                                          the receipts factor.                                      SPECIAL RULES
RECEIPTS FACTOR The receipts factor                                                                                    If the apportionment formula does not fairly rep-
                                                             Improvements to the leased or rented prop-
includes the amounts of income reported during                                                                      resent the extent of the corporation’s activity within
                                                          erty that revert to the owner at expiration of the
the taxable year as gross receipts or sales less                                                                    Maryland, the Maryland Revenue Administration
                                                          lease or rental term are amortized and not capital-
returns and allowances, dividends, interest, gross                                                                  Division may alter the formula or components
                                                          ized. The actual cost of the improvements is divid-
rents, royalties, capital gains and other income on                                                                 accordingly.
                                                          ed by the number of years remaining for the lease
the federal return.                                                                                                    The corporation’s share of receipts, property
                                                          or rental term and the result is included in the fac-
   Gross receipts from sales of tangible personal         tor for each tax year.                                    and wages of a partnership or joint venture is
property are included in the numerator if the prop-                                                                 included in the corporation’s receipts, property and
                                                             Property that has remained idle and has not
erty is delivered or shipped to a purchaser that                                                                    wage factors as if they were the direct receipts,
                                                          produced any revenue for a period of five or more
takes possession in Maryland, regardless of f.o.b.                                                                  property and wages of the corporation. The part-
                                                          years is not included in the factor.
point or other conditions of sale. Sales of tangible                                                                nership share is included only to the extent of the
personal property to an out-of-state purchaser are                                                                  factors required for the corporation.
                                                          PAYROLL FACTOR All compensation is to be
also included in the numerator if the purchaser                                                                        Income may be allocated by separate account-
                                                          included in the numerator, both when the indi-
takes possession in Maryland. Sales of property in                                                                  ing when the activity of the corporation within
                                                          vidual’s service is performed entirely within Mary-
transit which are destined to Maryland are includ-                                                                  Maryland is nonunitary. A corporation may not use
                                                          land, and when the individual’s service is per-
ed in the numerator.                                                                                                the separate accounting method without prior
                                                          formed both within and without Maryland but the
   Gross receipts from service-related activities         service performed outside Maryland is incidental          approval of the Revenue Administration Division.
are included in the numerator if the receipts are         to the individual’s service within.                          An Internal Revenue Code Section 338(h) (10)
derived from customers within this State. There are                                                                 election is also recognized by the State
                                                             Compensation is also included in the numerator
specific rules to determine “Customers Within this                                                                  of Maryland. Contact the Maryland Revenue
                                                          if some part of the service is performed within
State.” To review these rules see Maryland Regu-                                                                    Administration Division for instructions. (See back
                                                          Maryland and the base of operations or place from
lation 03.04.03.08 D.                                                                                               cover of the tax booklet for address and phone
                                                          which the service is controlled is in Maryland. If the
   Gross income from intangible items such as             base of operations or place from which the service        numbers.)
dividends, interest, royalties and capital gains from     is controlled is not in any state where the service
the sale of intangible property are included in the       is performed but the individual’s residence is in
numerator based upon the average of the property          Maryland, the compensation is also included in the
and payroll factors.                                      numerator.




6
INSTRUCTIONS FOR
MARYLAND FORM 500E
                                  APPLICATION FOR EXTENSION OF TIME
(Revised 2002)                  TO FILE CORPORATION INCOME TAX RETURN


GENERAL INSTRUCTIONS                                                   SPECIFIC INSTRUCTIONS
Purpose of Form Form 500E is used by a corporation to                  Name, Address and Other Information Type or print the
request an extension of time to file the corporation income tax        required information in the designated area. DO NOT USE THE
return (Form 500) and to remit any balance of tax due.                 LABEL FROM THE TAX BOOKLET COVER.
   NOTE: Do not use this form for pass-through entities (includ-          Enter the name exactly as specified in the Articles of Incorpo-
ing S corporations) or to remit employer withholding tax.              ration, or as amended, and continue with any “Trading As” (T/A)
General Requirements Maryland law provides for an extension            name if applicable.
of time to file, but in no case can an extension be granted for           Enter the Federal Employer Identification Number (FEIN). If a
more than six months beyond the original due date. A request for       FEIN has not been secured, enter “APPLIED FOR” followed by
extension of time to file will be automatically granted for six        the date of application. If a FEIN has not been applied for, do so
months provided that:                                                  immediately.
1) Form 500E is properly filed and submitted by the original due          Check the applicable box if the name or address has changed
   date (15th day of the 3rd month following close of the tax year     or if this is the first filing of the corporation.
   or period, or by the original due date required for filing of the   Taxable Year or Period ENTER THE BEGINNING AND END-
   federal return);                                                    ING DATES OF THE TAXABLE YEAR IN THE SPACE PRO-
2) full payment of any balance due is submitted with Form 500E;        VIDED AT THE TOP OF FORM 500E.
   and                                                                   The same taxable year or period used for the federal return
3) an application for extension of time has been filed with the        must be used for Form 500E.
   Internal Revenue Service or an acceptable reason has been           Tentative Tax Enter the total amount of income tax liability
   provided with Form 500E.                                            expected for the tax year on line 3.
    A proper application for extension of time to file will not be     Estimated Tax Payments Enter on line 4 the total amounts
acknowledged. If the extension request is denied, the corporation      paid with Form 500DP or 500D – Declaration of Estimated
will be notified.                                                      Corporation Income Tax for the taxable year or period. Also
    Form 500E does not extend the time allowed to pay the tax.         include any amount carried forward as a credit from the prior
Maryland law provides for accrual of interest and imposition of        year Form 500 – Corporation Income Tax Return.
penalty for failure to pay any tax when due.
    Consolidated returns are not allowed under Maryland law.           Balance Due Enter the amount of tax due on line 5 and remit
Affiliated corporations that file a consolidated federal return must   full payment with this form.
file separate Maryland extension applications for each member          Signature and Verification An authorized officer or the paid
corporation.                                                           preparer must sign and date Form 500E indicating the corporate
When to File File Form 500E by the 15th day of the 3rd month           title or preparer firm name and address.
following the close of the taxable year or period, or by the origi-    Payment Instructions Include a check or money order made
nal due date required for filing the federal return.                   payable to the Comptroller of Maryland for the full amount of any
How to File                                                            balance due. All payments must indicate the Federal Employer
1) If line 5 is zero (0), you may:                                     Identification Number, type of tax and tax year beginning and
                                                                       ending dates. DO NOT SEND CASH. Taxpayers making pay-
   • request an automatic extension by calling 410-260-7829            ments of $20,000 or more must pay by electronic funds transfer.
     from Central Maryland or 1-800-260-3664 from elsewhere to         Others may elect this method. Taxpayers must register prior to
     telefile this form. Please have the form in front of you when     making electronic payments. For registration information call 410-
     you call this number.                                             260-7601. If you make payments by electronic funds transfer, do
NOTE: The telefile service is available 24 hours a day, 7 days         not mail Form 500E; retain it for your records.
a week. Calling during non-peak hours will make it easier to file.     Mailing Instructions Use the envelope provided in the tax
                                OR                                     booklet and place an “X” in the appropriate box in the lower left
   • file your extension on the Comptroller’s website at               corner to indicate the type of document enclosed. Also, be sure
     www.marylandtaxes.com                                             to read and follow the reminders listed on the back of the
                                                                       envelope.
2) If you entered an amount on line 5, mail this form and your
   payment to the Revenue Administration Division, Annapolis,
   MD 21411-0001.
INSTRUCTIONS FOR
MARYLAND FORM 500D
                                             DECLARATION OF ESTIMATED
2003                                          CORPORATION INCOME TAX


GENERAL INSTRUCTIONS                                                  SPECIFIC INSTRUCTIONS
Purpose of Form Form 500D is used by a corporation to                 Name, Address and Other Information Type or print the
declare and remit estimated income tax when the preprinted            required information in the designated area. DO NOT USE THE
Form 500DP is unavailable.                                            LABEL FROM THE TAX BOOKLET COVER.
   Corporations expected to be subject to estimated tax require-         Enter the name exactly as specified in the Articles of Incorpo-
ments should have received a Declaration of Estimated Corporation     ration, or as amended, and continue with any “Trading As” (T/A)
Income Tax Packet. The estimated tax packet includes a work-          name if applicable.
sheet, record of payments, four preprinted vouchers (Form 500DP)         Enter the Federal Employer Identification Number (FEIN). If the
and instructions. Please use the Form 500DP which contains pre-       FEIN has not been secured, enter “APPLIED FOR” followed by
printed taxpayer information and provides for prompt and accurate     the date of application. If a FEIN has not been applied for, do so
processing of the declaration payment.                                immediately.
   If the corporation does not have the estimated tax packet, use        Check the box to request replacement vouchers for the
Form 500D to remit any payment due.                                   remainder of the current taxable year. Do not check the box to
   NOTE: Do not use this form for pass-through entities (including    request vouchers for the next taxable year; a packet including
S corporations) or to remit employer withholding tax.                 vouchers will be issued automatically.

General Requirements Every corporation that reasonably                Taxable Year or Period ENTER THE BEGINNING AND END-
expects its Maryland taxable income to develop a tax in excess        ING DATES OF THE TAXABLE YEAR IN THE SPACE PROVIDED.
of $1,000 for the taxable year or period must make estimated            The same taxable year or period used for the federal return
income tax payments. The total estimated tax payments for the         must be used for Form 500D.
year must be at least 90% of the tax developed for the current
taxable year or 100% of the tax developed for the prior tax year      Amount of Tax Enclosed       Enter the amount of tax due in the
to avoid interest and/or penalty. At least 25% of the total esti-     space provided and remit full payment with this form.
mated tax must be remitted by each of the four installment due        Signature and Verification An authorized officer or the paid
dates.                                                                preparer must sign and date Form 500D indicating the corporate
   In the case of a short tax period the total estimated tax          title or preparer firm name and address.
required is the same as for a regular taxable year: 90% of the tax
developed for the current (short) taxable year or 100% of the tax     Payment Instructions Include a check or money order made
developed for the prior tax year. The minimum estimated tax for       payable to the Comptroller of Maryland for the full amount due. All
each of the installment due dates is the total estimated tax          payments must indicate the Federal Employer Identification Num-
required divided by the number of installment due dates occur-        ber, type of tax and tax year beginning and ending dates. DO
ring during the short tax year.                                       NOT SEND CASH. Taxpayers making payments of $20,000 or
   Maryland law provides for the accrual of interest and imposition   more must pay by electronic funds transfer. Others may elect this
of penalty for failure to pay any tax when due.                       method. Taxpayers must register prior to making electronic pay-
   If it is necessary to amend the estimate, recalculate the amount   ments. For registration information call 410-260-7601. If you make
of estimated tax required using the estimated tax worksheet           payments by electronic funds transfer, do not mail Form 500D;
provided on this form. Adjust the amount of the next installment      retain it for your records.
to reflect any previous underpayment or overpayment. The
                                                                      Mailing Instructions Use the envelope provided in the tax
remaining installments must be at least 25% of the amended
                                                                      booklet and place an “X” in the appropriate box in the lower left
estimated tax due for the year.
                                                                      corner to indicate the type of document enclosed. Also, be sure to
   Consolidated returns are not allowed under Maryland law.
                                                                      read and follow the reminders listed on the back of the envelope.
Affiliated corporations which file a consolidated federal return
must file separate Maryland declarations for each member cor-
poration.

When and Where to File File Form 500D on or before the 15th
day of the 4th, 6th, 9th and 12th months following the beginning
of the taxable year or period. In addition to payment with Form
500DP or 500D, the corporation may partially or fully apply any
overpayment from the prior year Form 500 – Corporation Income
Tax Return to the estimated tax obligation for this year.
   The estimated tax must be filed with the Comptroller of Mary-
land, Revenue Administration Division, Annapolis, Maryland
21411-0001.
INSTRUCTIONS FOR
MARYLAND FORM 500UP
                                   UNDERPAYMENT OF ESTIMATED INCOME TAX
2002                             BY CORPORATIONS AND PASS-THROUGH ENTITIES


GENERAL INSTRUCTIONS                                                     month. The second period extends from the beginning of the fiscal
                                                                         year to the last day of the sixth month. The third period extends
Purpose of Form Form 500UP is used by a corporation or a                 from the beginning of the fiscal year to the last day of the ninth
pass-through entity to calculate the amount of interest and              month. The fourth period extends from the beginning of the fiscal
penalty for failure to pay the required amount of estimated              year to the last day of the twelfth month. Therefore, enter one-
income tax when due.                                                     quarter of the estimated tax required on line 4 in the first column
   NOTE: Form 500UP is not required. The Maryland Revenue                of line 6, one-half in the second column, three-quarters in the
Administration Division will calculate the interest and penalty and      third column and an amount equal to line 4 in the fourth column.
notify the entity of any balance due.                                    For Pass-Through Entities, see specific instructions below.

General Requirements Every corporation or pass-through                   Instructions for Line 7: Enter all payments made prior to the
entity that reasonably expects its Maryland taxable income to            due date of the fourth quarterly estimated tax payment in the
develop a tax in excess of $1,000 for the taxable year or period         appropriate column according to the instructions for line 6. That
must make estimated income tax payments. The total estimated             is, all payments made prior to the 15th day of the fourth month
tax payments for the year must be at least 90% of the tax devel-         of the entity’s fiscal year should be entered in the first column.
oped for the current taxable year or 100% of the tax developed           All payments made prior to the 15th day of the sixth month
for the prior tax year. At least 25% of the total estimated tax must     (including those shown in the first column) should be entered in
be remitted by each of the four installment due dates. Corpora-          the second column. All payments made prior to the 15th day of
tions may not use the annualization method.                              the ninth month should be entered in the third column and all
   In the case of a short tax period, the total estimated tax required   payments made by the fourth quarter due date should be entered
is the same as for a regular taxable year: 90% of the tax developed      in the fourth column.
for the current (short) taxable year or 100% of the tax developed
                                                                         Instructions for Line 9: The interest factors for calendar year
for the prior tax year. The minimum estimated tax for each of the
                                                                         cor porations or S corporations are: 1st period – .0217;
installment due dates is the total estimated tax required divided
                                                                         2nd period – .0328; 3rd period – .0324; 4th period – .0321. The
by the number of installment due dates occurring during the short
                                                                         interest factors for calendar year partnerships or limited liability
tax year.
                                                                         companies are 1st period – .0217; 2nd period – .0328; 3rd period
   Maryland law provides for the accrual of interest and imposition
                                                                         – .0435; 4th period – .0321.
of penalty for failure to pay the required amount of estimated tax
when due.                                                                   The factors represent the interest rate for the portion of the
                                                                         year between the due date of each quarter and the due date of
When and Where to File File Form 500UP by the original or
                                                                         the next quarter. The rate is 1/12 of 13% for each month or part
extended due date for filing the Form 500 – Corporation Income
                                                                         of a month from the due date. If your estimated tax payment was
Tax Return or Form 510 – Pass-Through Entity Income Tax
                                                                         not timely, but was paid earlier than the due date of the next
Return. If used, Form 500UP must be attached to Form 500 or
                                                                         quarter, adjust the factor as follows: count the number of months
Form 510 and filed with the Comptroller of Maryland, Revenue
                                                                         from the due date that the payment was late. Treat a partial
Administration Division, Annapolis, Maryland 21411-0001.
                                                                         month as one month. Divide that number by twelve and multiply
                                                                         it by the 13% annual rate. Apply this adjusted factor to the under-
                                                                         paid amount on line 8.
SPECIFIC INSTRUCTIONS
                                                                         Pass-Through Entities The due dates of estimated payments
Name and Other Information Type or print the name as                     and annual returns for S corporations are the same as the due
shown on Form 500 or Form 510 in the designated area. Enter              dates for corporations. If the entity is a partnership or limited lia-
the Federal Employer Identification Number (FEIN). If a FEIN has         bility company, the due date for the fourth quarterly payment is
not been secured, enter “APPLIED FOR” followed by the date of            the 15th day of the month following the close of the tax year
application. If a FEIN has not been applied for, do so immediately.      (January 15 for calendar year filers) and the due date for the
                                                                         annual return is the 15th day of the fourth month following the
Taxable Year or Period Enter the beginning and ending dates
                                                                         close of the tax year (April 15 for calendar year filers). These dif-
in the space provided at the top of Form 500UP. The form used
                                                                         ferences will cause variations in the interest factors.
for filing must reflect the preprinted tax year in which the corpo-
                                                                           Partnerships and limited liability companies electing to annual-
ration’s tax year begins.
                                                                         ize must allocate to each period (and enter on line 6) a payment
Calculation of Interest and Penalty          Enter the amounts as        amount based on the income received between the dates for
required for lines 1 through 13.                                         each installment period. If the interest calculated on line 11 is
                                                                         zero because the income was not received evenly throughout the
Instructions for Line 6: The first period extends from the               year, enter code number “301” in the box marked “code number”
beginning of the entity’s fiscal year to the last day of the third       under the signature area of Form 510, and attach this form to the
                                                                         return.
               MARYLAND BUSINESS REGISTRATION & TAXATION

    COMPTROLLER OF MARYLAND                            ments for motor carriers, dealers, special fuel         Public Service Company Franchise Tax In
      REGISTRATION & TAXES                             users, sellers, and service station operators.          addition to corporation income tax, public ser-
                                                            Maryland implemented the International             vice companies are subject to the franchise tax
Registration and Licensing All new busi-
                                                       Fuel Tax Agreement (IFTA) for motor carriers on         on gross receipts. This tax is administered by
nesses (corporations, S corporations, partner-
                                                       1/1/96.                                                 the Department of Assessments and Taxation.
ships, limited liability companies, business
trusts, and sole proprietorships) can file a single
                                                       Alcohol and Tobacco Tax These taxes apply to            Insurance Company Premium Tax Insurance
application with the Central Registration Unit of
                                                       businesses manufacturing, selling, distributing or      companies are exempt from the corporation
the Revenue Administration Division of the
                                                       storing alcoholic beverages or selling and/or           income tax but are subject to the premium tax
Comptroller’s Office to establish accounts for
                                                       distributing cigarettes in Maryland.                    that is administered by the Maryland Insurance
employer income tax withholding, sales and use
                                                             The Maryland excise tax rates on alcoholic        Administration.
tax, admissions and amusement tax, tire recy-
                                                       beverages are $1.50 per gallon of distilled spirits,
cling fee, motor fuel tax, alcohol and tobacco
                                                       40¢ per gallon of wine, and 9¢ per gallon of            Unemployment Insurance Employers are
tax and unemployment insurance. The Revenue
                                                       beer. The tobacco tax rate is $1.00 per pack of         subject to the Department of Labor, Licensing
Administration Division offers assistance for fil-
                                                       20 cigarettes.                                          and Regulation unemployment insurance
ing applications and establishing accounts.
                                                                                                               requirements and must file a combined regis-
      The Central Registration Unit assigns
                                                       Admissions & Amusement Tax This tax is                  tration application to establish an account.
a single state identification number for the
                                                       imposed on a variety of activities, such as
taxes listed above. Register online at
                                                       admission to any place, including motion pic-           Workers’ Compensation Employers in Mary-
www.marylandtaxes.com
                                                       tures, athletic events, races, shows or exhibits.       land must provide workers’ compensation insur-
Corporation Income Tax The corporation                 Also subject to this tax are receipts from athletic     ance for all employees. Employers may obtain
income tax applies to every Maryland corpora-          equipment rentals, bingo, coin-operated amuse-          coverage from a private insurance company,
tion and every other corporation which has a           ment devices, boat rides and excursions,                by becoming self-insured or by contacting
nexus with Maryland. Nexus is the term used to         amusement rides, golf green fees, golf cart             the State Injured Workers’ Insurance Fund.
indicate a taxable connection between a corpo-         rentals, skating, bowling shoe rentals, lift tickets,   Employers believing they are not required to
ration and a taxing authority. If a corporation        riding academies, horse rentals, and merchan-           obtain this insurance may contact the Workers’
conducts business activity within Maryland and         dise, refreshments, or a service sold or served         Compensation Commission for certification of
exceeds the provisions of U.S.C.A. Title 15,           in connection with entertainment.                       compliance.
Section 381 of the Interstate Commerce Act                   The admissions and amusement tax is a
(P.L. 86-272) it has a nexus and must file an          local tax collected by the Comptroller’s Office on      Business Licenses Licenses are required for
income tax return.                                     behalf of Maryland’s counties, Baltimore City,          certain businesses to operate in Maryland. To
      The tax is based on federal taxable              other incorporated cities and towns. The tax is         determine if a license is necessary, contact the
income after state modifications. Corporations         set by the localities at rates varying from one-        clerk of the circuit court in the Maryland county
engaged in multistate operations must allocate         half of 1% to 10% of the admissions and                 (or Baltimore City) where the business operates.
income using an apportionment formula, gener-          amusement receipts.                                     A circuit court is located in each of those juris-
ally consisting of receipts, property and payroll                                                              dictions.
factors. The tax is imposed at a flat rate of 7%       Tire Recycling Fee This fee applies to tire
of Maryland taxable income.                            wholesalers or a tire retailer who buys tires from
                                                       out-of-state sources. Registration and payment                   OTHER REQUIREMENTS
Employer Withholding of Income Tax                     of the fee is handled by the Revenue Adminis-
Employers making payments to individuals of            tration Division.                                       Bulk Sales When an existing business is
salaries, wages or compensation for personal                                                                   bought, the purchaser must pay a 5% bulk
services must withhold income tax and remit the        Utility Surcharges These surcharges are col-            sales and use tax on the price of tangible per-
withholding to the Maryland Revenue Adminis-           lected by electric companies that deliver elec-         sonal property, such as furniture and fixtures,
tration Division. The amount of tax to be withheld     tricity in Maryland and by telephone companies          that is part of the business. This tax is collected
is prescribed in published tables which are based      doing business in Maryland. The electricity sur-        by the Compliance Division of the Comptroller’s
on the individual income tax rates. See the Gen-       charges are then paid to the Comptroller for            Office.
eral Instructions for Form 500 for additional infor-   deposit in the Environmental Trust and Univer-
mation on employer withholding requirements.           sal Service Program Funds. The telecommuni-             Dissolution of Corporation Articles of Dissolu-
                                                       cations surcharges are paid to the Comptroller          tion must be filed with the Department of
Sales and Use Tax This tax applies to busi-
                                                       for deposit in the 911 Emergency Telephone              Assessments and Taxation for the dissolution of
nesses selling in Maryland or purchasing out of
                                                       System and Communications Access of Mary-               a corporation. As of 10/1/99, a tax clearance
state for Maryland use.
                                                       land Funds.                                             certificate is no longer required for the dissolu-
     The general Maryland sales and use tax
                                                              The utility surcharges are collected by the      tion of a corporation.
rate is 5% (1¢ tax on each 20¢ or fraction of
                                                       Revenue Administration Division.
price). A special 8% rate is imposed on rental
trucks, and a special rate of 111/2% is charged                                                                Unclaimed Property Unclaimed funds such as
on rentals of passenger cars and recreational                                                                  wages, insurance benefits, bank accounts or
vehicles. Most sales of food by substantial               OTHER REGISTRATIONS & TAXES                          security deposits must be reported if they
grocery or market businesses are not subject                                                                   remain unclaimed for five years (four years for
to tax. Specific prepared foods purchased in           New Corporations In addition to registering             reporting periods ending on or after 6/30/02 and
grocery stores are subject to tax. Other exemp-        with the Central Registration Unit of the Comp-         three years for reporting periods ending on or
tions include all sales solely for resale, medi-       troller’s Office, all corporations doing business       after 6/30/03). This property must be reported
cine, energy for residential use, manufacturing        in Maryland must register with the Department           to the Compliance Division.
machinery and equipment, and certain agri-             of Assessments and Taxation. This is also the
cultural equipment and supplies.                       office to contact to form a new corporation.            NOTE: The information provided above is a
                                                                                                               brief summary of the various Maryland busi-
Motor Fuel Tax Generally, this tax applies to          Financial Institution Franchise Tax The fran-           ness requirements and is based on the law in
businesses selling or using motor fuel in Mary-        chise tax has been replaced with the corpora-           effect as of 7/1/02. For additional information,
land.                                                  tion income tax for commercial banks (effective         see the reverse side for the addresses and
      The Maryland motor fuel tax rate is cur-         1/1/98) and all other financial institutions (effec-    phone numbers of the Maryland agencies most
rently 231/2¢ per gallon of gasoline and 241/4¢        tive 1/1/01).                                           frequently contacted by businesses.
per gallon of diesel fuel. There are other require-
                                            MARYLAND STATE AGENCIES
                                 (MOST FREQUENTLY CONTACTED BY BUSINESSES)
COMPTROLLER OF MARYLAND                                                           OTHER AGENCIES
www.marylandtaxes.com
                                                                                  Department of Agriculture . . . . . . . . . . . . . . . .410-841-5700
          Online business registration                                            50 Harry S. Truman Parkway
                                                                                  Annapolis, MD 21401
                                                                                                                                                or 800-492-5590

            www.marylandtaxes.com                                                     Conservation tillage equipment
    New businesses can register online and set up                                        certification . . . . . . . . . . . . . . . . . . . . . . .410-841-5863
       tax accounts any time 24 hours a day.                                          www.mda.state.md.us
         For other new business information, visit the
Business License Information System at www.blis.state.md.us.                      Department of Assessments & Taxation
                                                                                  301 W. Preston Street — Room 806
Alcohol & Tobacco Tax Unit . . . . . . . . . . . . . . .410-260-7314              Baltimore, MD 21201-2395
Goldstein Treasury Building — Room 310              or 888-784-0145                    Charter/ incorporation information . . .        . . . . . .410-767-1350
Annapolis, MD 21404-2999                                                               Financial institution & public service
Compliance Division                                                                       company franchise tax . . . . . . . . .      .   .  . .410-767-1940
                                                                                                                                               .   .
301 W. Preston Street                                                                  New corporation information . . . . . . .       .   .  . .410-767-1350
                                                                                                                                               .   .
Baltimore, MD 21201-2383                                                               Resident agent information . . . . . . . .      .   .  . .410-767-1330
                                                                                                                                               .   .
                                                                                       Personal property tax assessments .             .   .  . .410-767-1170
                                                                                                                                               .   .
     Bulk sales . . . . . . . . . . . . . . . . . . . . . . . . . .410-767-1540
                                                                                                                                             or 888-246-5941
                                                                   410-767-1579
                                                                                       Property tax credits . . . . . . . . . . . . . . . . . . .410-767-4433
                                                               or 800-492-1791
                                                                                       www.dat.state.md.us                                   or 800-944-7403
     Business tax collections . . . . . . . . . . . . . . . .410-649-0633
                                                               or 888-614-6337    Office of Business and Economic Research . . . .410-767-6399
     Sales & use, admissions & amusement                                          217 E. Redwood Street — 23rd Floor                  or 800-541-8549
       tax and tire fee refunds . . . . . . . . . . . . . .410-767-1538           Baltimore, MD 21202
     State License Bureau . . . . . . . . . . . . . . . . .410-260-6244                Office of Regional Response . . . . . . . . . . . .410-767-0523
     Unclaimed property                                            410-767-1700        Enterprise Zones — Economically
                                                               or 800-782-7383            disadvantaged employee certification . . . . .410-767-6438
     Utility surcharges                                                                www.dbed.state.md.us
       911 Telephone System Trust Fund . . . . . .410-585-3015
       Environmental Surcharge . . . . . . . . . . . . .410-767-8025              Department of Labor, Licensing
       Universal Service Fee . . . . . . . . . . . . . . .410-767-4204             & Regulation . . . . . . . . . . . . . . . . . . . . . . . . . .410-767-2000
       Universal Electricity Deregulation                                         1100 N. Eutaw Street — Room 214
             Surcharge . . . . . . . . . . . . . . . . . . . . .410-767-7285      Baltimore, MD 21201
General Accounting Division                                                            Unemployment insurance . . . . . . . . . . . . . . .410-767-2000
Goldstein Treasury Building — Room 200                                                                                                         or 800-492-5524
Annapolis, MD 21404-0746                                                               Job services . . . . . . . . . . . . . . . . . . . . . . . .410-767-2148
                                                                                       www.dllr.state.md.us
    Tax clearances . . . . . . . . . . . . . . . . . . . . . .410-260-7813
                                                                                  Department of the Environment . . . . . . . . . . . .410-537-3000
Motor Fuel Tax Unit                                                               1800 Washington Blvd.                                          or 800-633-6101
Goldstein Treasury Building — Room 315                                            Baltimore, MD 21230
Annapolis, MD 21404-1751                                                               Air management and radiation
    Motor Fuel Licensing & Registration . . . . . . .410-260-7126                         (oil furnace conversion) . . . . . . . . . . . . . .410-537-3265
       Room 317                                     or 888-784-0142                    Asbestos . . . . . . . . . . . . . . . . . . . . . . . . . . .410-537-3801
    Motor Carrier & IFTA Licensing . . . . . . . . . . .410-260-7215                   www.mde.state.md.us
       Room 317                                     or 888-784-0141
                                                                                  Injured Workers’ Insurance Fund . . . . . . . . . . .410-494-2000
Revenue Administration Division                                                   8722 Loch Raven Boulevard                        or 800-264-4943
Revenue Administration Center                                                     Towson, MD 21286-2235
Annapolis, MD 21411-0001                                                               www.iwif.state.md.us
    Facsimile transmittal . . . . . . . . . .    . . . . . . . .410-974-2967
    Forms (all income tax and                                                     Maryland Insurance Administration
       employer withholding) . . . . . . . .     . . . . . . . .410-260-7951      525 St. Paul Place
       Substitute/computer-generated .           . . . . . . . .410-260-7424      Baltimore, MD 21202
    Income tax information . . . . . . . . .     . . . . . . . .410-260-7980           Insurance company premium tax . . . . . . . . .410-468-2000
       (corporation, individual, fiduciary,                 or 800-638-2937            www.mdinsurance.state.md.us                or 800-492-6116
       pass-through entity)                                                       Department of Natural Resources
    Income tax refund inquiries . . . . . . . . . . . . .410-260-7701             Tawes State Office Building — 580 Taylor Avenue
                                                     or 800-218-8160              Annapolis, MD 21401-2397
      Tax-exempt organization registration               410-260-7980
                                                     or 800-638-2937                  Reforestation & timber stand
                                                                                        improvement information . . . . . . . . . . . . .410-260-8531
Baltimore area office . . . . . . . . . . . . . . . . . . . . .410-767-1300           www.dnr.state.md.us
301 W. Preston Street — Room 206                           or 800-492-1751
Baltimore, MD 21201-2383                                                          Workers’ Compensation Commission . . . . . . . .410-864-5100
                                                                                  6 N. Liberty Street — Room 940              or 800-492-0479
     Admissions and amusement tax                                                 Baltimore, MD 21201-3785
     Central registration                                                              www.charm.net/~wcc
     Employer withholding tax
     Sales and use tax information
     Sales tax exemptions
     Tire recycling fee

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:10
posted:11/8/2011
language:English
pages:13