Pandemic-related tax relief described as an economic stimulus package is now in place for some small businesses and self-employed people in Maryland.
Extensions for certain tax filing and payment deadlines were announced Wednesday by Maryland Comptroller Peter Franchot, who described the move as essentially a 90-day, interest free loan.
“What we’re talking about — a zero-interest loan and economic stimulus to Maryland businesses and independent contractors that total more than $1.5 billion,” Franchot said. “They can keep that money in their pockets.”
Emphasizing that the taxes still will eventually be paid, Franchot noted that similar relief offered early on in the pandemic ended up being budget neutral to the state, but enormously stabilizing to people who were struggling.
“We need to get money in people’s pockets so that they can avoid suffering, and additionally, they can use that money to lubricate the economy,” he said.
Businesses and self-employed people or independent contractors with estimated income tax returns and payments due on Jan. 15 are granted extensions until April 15, and there’s no need to file requests.
The extensions apply to taxes that include sales and use, alcohol, tobacco and motor fuel, with due dates between Jan. 1 and April 14.
A tax alert from the Comptroller’s Office provides full details on which specific tax filings and payments are receiving extensions.
The relief applies only to state taxes administered by the comptroller, which do not include, for example, unemployment insurance or personal property taxes.
Franchot said he has sent a letter to the Internal Revenue Service, requesting similar deadline extensions for federal tax payments.
People with extension-related questions can reach the Comptroller’s Office by email at taxpayerrelief@marylandtaxes.gov.
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