The MACPA’s thriving partnership with Maryland Comptroller Brooke Lierman and her management team continues to pay dividends for the state’s CPAs and taxpayers alike.
Less than a month after MACPA staff and legislative volunteers joined her in testifying in support of two key bills in Annapolis, Comptroller Lierman and her staff found themselves working side by side with Maryland's CPAs once again this week when she announced that taxpayers who wish to make a pass-through entity election on Form 511 will receive a one-time waiver for tax year 2023.
The waiver is a direct result of the MACPA's outreach to comptroller's officials on behalf of members who had expressed concerns about the pass-through entity election, and of the MACPA's productive partnership with Comptroller Lierman and her staff. The agreement comes "(t)hanks to the invaluable work by members of the MACPA's State Tax Committee and through collaboration and partnership with Comptroller Lierman and her management team," MACPA President and CEO Rebekah Olson said.
Complete details about the waiver — which is allowed for tax year 2023 only — are available in this letter from Chief Deputy Comptroller Andy Schaufele.
Because this is a one-time exception, Olson offers MACPAs a reminder: Maryland election for a pass-through entity to pay the entity-level tax (the "SALT cap workaround"), versus just the "withholding" tax for non-residents, must be made annually and with the first payment / filing filed for the 2024 tax year. For many taxpayers that means "checking the box" for the election on the first estimated tax payment form, whenever that is filed and paid, whether timely on April 15, 2024 or earlier.
Stay up to date in the MACPA's Tax Community
News of the waiver was first posted in the MACPA's online Connect Tax Community, where members ask and answer questions, share resources, and keep each other informed of tax-related developments.
If you're not part of the Tax Community, join today and get started by visiting MACPA.org/connect-communities.
