Maryland Tax Collection Notice Checklist
Understanding Your Notice from the Comptroller of Maryland
The Comptroller of Maryland sends collection notices to taxpayers who owe unpaid state taxes and have not responded to earlier billing attempts. Receiving such a notice means the state intends to use enforcement powers unless you take action before a specific deadline.
Wage garnishment, bank account levies, and tax liens against real estate or personal property become available enforcement options if you do not respond. This notice represents a final administrative warning before the state shifts from requesting payment to enforcing payment through legal collection methods.
Why the Comptroller Sent This Notice
Maryland’s tax collection process follows a specific sequence before enforcement begins. The Comptroller first sends a tax computation notice showing the amount you owe, then issues a notice of assessment if you do not respond or pay.
That assessment includes a late payment penalty in addition to interest on unpaid taxes, with the current interest rate for calendar year 2025 reaching approximately 11.4825 percent annually. After continued non-payment, the Comptroller may take collection actions including filing tax liens, levying bank accounts, and garnishing wages.
What Happens If You Do Not Respond
Ignoring this notice allows the Comptroller to begin enforcement without further warning. The state may garnish your wages by ordering your employer to withhold a portion of your paycheck, or the Comptroller can levy your bank account by freezing and withdrawing funds directly.
A notice of tax lien filed in circuit court damages your credit score and affects your ability to borrow money or sell property. Your Maryland income tax refund and federal tax refund can be intercepted and applied to your unpaid balance. At the same time, the Motor Vehicle Administration may place a hold on your driver’s license or vehicle registration until you resolve the debt.
Important Distinctions About Collection Actions
This notice does not mean the state has already seized your property or filed criminal charges. You still have time to respond, request a hearing, arrange a payment plan, or dispute the amount owed before enforcement legally begins.
Step-by-Step Actions You Should Take
- Review the notice carefully: Read every page to locate the total amount owed, including principal tax plus penalties and interest. Identify the tax year or tax period the debt covers and find the response deadline listed.
Write down the phone number for the collection section and any case identification number shown. Keep the notice in a safe location where you can reference it again.
- Verify the debt belongs to you: Confirm that your name, address, and social security number match the information on the notice. Determine whether you filed a tax return for the stated tax year and whether you already paid this amount.
- Mark the deadline on your calendar: The notice states a specific date by which you must pay in full, request a hearing, or contact collections to arrange a payment arrangement. Set reminders one week before this deadline to ensure you take action in time.
- Choose your response option: Contact the collection section to discuss a payment plan if you do not dispute the tax amount and simply need time to pay. Call the individual income tax collections department at 410-974-2432 or email cdcollectionind@marylandtaxes.gov for payment options.
File an appeal within thirty days if you dispute the assessment or believe the amount is wrong. Submit your request using the Comptroller’s online system at Maryland Tax Connect or mail it to the hearings and appeals division.
- Understand payment plan and relief options: The Comptroller offers payment options for taxpayers who cannot pay in full immediately. You can set up automatic payments through the Online Payment Agreement Request Service for convenience and consistency.
Maryland also provides Tax Debt Assistance through three distinct programs:
○ The Offer in Compromise program allows you to settle your liability for less than the full amount owed.
○ Hardship Relief applies to individuals whose income comes only from social security or pension payments.
○ Low-Income Taxpayer Relief accounts for income from any source and may provide waivers for interest and penalties.
Filing an Appeal: Required Information and Process
Submit your appeal online through the Maryland Tax Connect portal or mail it to the Comptroller’s hearings and appeals division. Include your name, current mailing address, email address, phone number, and the tax year or tax period you are appealing.
Provide your federal employer identification number or social security number along with a brief explanation of why you are requesting a hearing. Attach copies of supporting documents such as receipts, bank statements, or correspondence with the Comptroller.
A timely appeal filed within thirty days triggers a request to the collection section to prevent additional collection actions for that tax year while your appeal remains pending. Interest continues to accrue during this time, and the Comptroller will still apply refund offsets to your liability.
Hearings are conducted by telephone for convenience, though you may request an in-person hearing at the Comptroller’s Baltimore office. The hearing officer will review documents and testimony to determine whether your appeal can be resolved through settlement or requires a written notice of final determination.
Consequences of Late Appeals
Filing your appeal after the thirty-day deadline eliminates your right to a hearing. Assessment appeals submitted late still allow you to provide documents supporting a reduction, and a hearing officer will review them and issue a final decision that cannot be appealed. Refund denial appeals filed after the deadline result in a final denial that is not appealable under Maryland law.
After the Hearing: Your Rights
The hearing officer will issue a final determination summarizing any adjustments to your assessment. An appeal to the Maryland Tax Court for a de novo review remains available if you disagree with this determination. Still, you must file within thirty days of the date listed in the final determination notice.
Avoiding Collection Scams
The Comptroller does not demand payment by prepaid debit card or wire transfer. Official correspondence arrives on official letterhead and includes a reference number, never through suspicious messages requesting immediate payment through untraceable methods.
Received a State Tax Notice?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
We offer:
- State tax notice review and response
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- Payroll and trust fund tax assistance
- Payment plan and relief eligibility review
- Representation with state tax agencies
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
