Legal Question in Tax Law in Maryland

Tax Assessment

In 2006 I received a letter from the Comptroller of Maryland, stating that I owe back taxes. Some of the taxes due were listed as from 1995. They can not show me my return from that year but state that they know I owe it. Also some of the taxes due are for years that they say I did not file. I have copies of my returns showing that I did file. I am not protesting the taxes due but I am protesting the interest and penaltys. This matter was brought to their attention when I refiled for my Maryland Automobile Sales License. I have been previously licensed for over 20 years. This renewal has been held up since Sep, 2006. Upon meeting with the States representatives, I was told that I can not get my license until all monies due are paid. They want 25% down and will only give me 12 months to repay the balance. How do I earn this money if they continue to withhold my license? What can I do to extend the repayment time and drop some of the penaltys and interest charged?

Asked on 1/25/07, 4:15 pm

2 Answers from Attorneys

Burton Haynes Burton J. Haynes, P.C.

Re: Tax Assessment

Maryland has an aggressive program to collect back taxes by withholding the renewal of licenses of all kinds. And what you have been told about paying at least 25% and then getting on a payment plan is correct.

The safest and quickest way to get your license back is to pay the 25% and then enter into a payment plan for the balance. You can then contest whatever part of the liability you want, and if the Comptroller accepts your position the balance due will be adjusted accordingly (including being refunded if appropriate).

You may find that the tax the Comptroller "estimated" for the years that are shown as unfiled is in excess of what was really owed as shown by your returns. They will accept your returns now (although they will still contend that they were not filed at the time unless you can prove differently), and they will then adjust your tax to the proper amount (with interest and penalties) based on the tax shown on the returns.

Please call us if you need further assistance on this. We specialize in federal and Maryland state tax problems, and many of my articles on dealing with tax debts (available on my website at were written for publication by the Maryland Society of Accountants.

Good luck.

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Answered on 1/26/07, 7:50 am

Sabitiyu Abou Trye, Abou and Joseph

Re: Tax Assessment

an attorney can greatly assist you in negotiating and removing some of the penalties and interest. give us a call we are a maryland law firm specializing in tax debt collection.

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Answered on 2/06/07, 10:53 am

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