Maryland Tax Issues
Tax issues that may arise at the state level may include but are not limited to:
- Income Tax
- Sales and Use Tax
- Employer Withholding Tax
- Unemployment Tax
- Property Tax
- Resident v. Non-Resident
Each state has a different system for administering and collecting tax, and it is important to have an attorney familiar with the Maryland system if you are a Maryland taxpayer. State taxing authorities are often difficult to deal with because they have a less formal system than the IRS.
I am frequently interact with the following divisions at the Comptroller of Maryland and State of Maryland:
- Collection Division or Compliance Division
- Office of Hearings and Appeals
- Maryland Tax Court
- Business Tax Audit
State taxing agencies are in direct competition with the IRS for your tax dollars, and this can make them especially intrusive when it comes to assessing tax. Maryland prevents the renewal of professional licenses, business licenses, vehicle registrations, or drivers licenses when a taxpayer owes Maryland tax. Maryland’s Motor Vehicle Administration will hold a drivers license until after arrangements have been made to pay outstanding state tax obligations. This seems counter-intuitive to most of us – how can you make money to pay your tax if you cannot drive to work – but this is Maryland policy and any deviation from it requires a well-thought-out strategy.