Maryland State Tax Enforcement Decision Checklist
What This Issue Means
State tax enforcement is an official action taken by the Comptroller of Maryland to collect taxes owed or address unfiled tax returns. When the Comptroller issues an enforcement notice, it means Maryland’s tax system has identified a tax liability that requires resolution. Enforcement can range from initial collection notices to more serious actions such as tax liens or wage garnishment, though most enforcement is civil and administrative.
Why the Comptroller Issued This Notice
The Comptroller of Maryland issues enforcement notices when tax accounts show outstanding balances or missing filings. If you do not respond to the first tax computation notice, the
Comptroller will send you a notice of assessment that includes penalties for late payment in addition to interest. Maryland law requires the Comptroller to pursue collection of owed taxes through enforcement and collection actions as a formal step to notify taxpayers of their obligations.
What Happens If This Is Ignored
If an enforcement notice is ignored, Maryland escalates collection efforts through additional notices, increased penalties, and more serious measures. The Comptroller may place a lien on personal or real property to secure the tax debt, which damages your credit score and ability to borrow money. The Comptroller can place holds on driver’s license renewal, vehicle registration, or professional licenses for unpaid tax liabilities. Wage garnishment and bank levy actions are possible escalation steps if the notice goes unaddressed.
What This Does Not Mean
Receiving an enforcement notice does not automatically mean a lien has been filed or that wage garnishment is currently happening. Enforcement notices are issued before these more serious actions are taken, though the possibility exists that more serious actions will be taken if the notice is ignored. This does not mean you are being criminally prosecuted, as most enforcement is civil collection activity. An enforcement notice is not a final court order or judgment, and there are opportunities to address the issue before Maryland courts become involved.
Step-by-Step Checklist
Step 1: Review the Notice Details
Read the entire enforcement notice carefully and identify the specific tax type, tax year, and amount owed listed on the document. Locate the notice date and any deadline mentioned in the letter for responding or making payment.
Step 2: Verify the Information
Review your own tax records, returns, or payment history for that tax year to confirm whether the information stated in the notice is correct. Gather documentation, including prior tax returns filed, proof of payment if made, and any supporting records related to the tax liability.
Step 3: Contact the Comptroller
Contact the Comptroller of Maryland using the phone number or address provided in the notice to discuss the enforcement action. Ask specific questions about the basis for the enforcement, whether a payment agreement is available, and what options exist to resolve the issue.
Step 4: Request Written Clarification
Request written clarification if you dispute the amount owed, do not believe you owe taxes, or think you already paid. Document all conversations with the Comptroller, including the date, time, person’s name, and what was discussed during each call.
Step 5: Submit Your Response
Respond to the notice within the timeframe specified by providing payment, requesting a payment plan, or submitting a written response if you dispute the liability. Send any response by certified mail with a return receipt requested to create proof that the Comptroller received your correspondence.
- Maryland personal income tax: This includes unpaid state income taxes, county tax
- Business tax obligations: These encompass sales and use tax, withholding taxes,
- Property tax enforcement: While primarily collected at the county level through
- Ignoring the notice entirely: Not responding to an enforcement notice allows the
- Missing the deadline in the notice: Enforcement notices include response deadlines,
- Sending payment without identifying the tax year: Payments without clear
- Using the wrong mailing address: Sending responses or payments to an incorrect
- Not keeping copies of correspondence: Proof of mailed documents and
- Failing to respond in writing: Phone conversations are useful for immediate questions,
- State tax notice review and response
- Penalty and interest reduction options
- Payroll and trust fund tax assistance
- Payment plan and relief eligibility review
- Representation with state tax agencies
Step 6: Keep Complete Records
Keep copies of all documents sent to the Comptroller, including emails, letters, and payment records. Follow up in writing if you do not receive a response from the Comptroller within a reasonable timeframe after your initial contact.
What Happens After Responding
After responding to an enforcement notice, the Comptroller processes the information and sends a follow-up notice confirming receipt. If a payment was made, the Comptroller applies it to the tax account and sends a receipt or updated account statement. If a payment agreement was requested, the Comptroller reviews eligibility and either approves the arrangement or requests additional information, as taxpayers must be current on all required returns to qualify.
Types of Tax Liabilities Subject to Enforcement
The Comptroller of Maryland enforces the collection of various tax obligations owed by
Maryland residents and businesses. Understanding which taxes are subject to enforcement helps clarify the scope of potential collection actions. obligations, and special nonresident tax liabilities that remain outstanding after the filing deadlines have passed. corporate income taxes, and S-corporation income tax liabilities that businesses failed to remit or report properly. jurisdictions such as the Baltimore City Department of Finance or Howard County, certain property tax liens may involve state coordination for collection.
Administrative Remedies and Appeal Options
Maryland provides administrative remedies for taxpayers who disagree with enforcement actions or tax assessments before matters escalate to Maryland courts. Exhausting these administrative remedies is typically required before pursuing judicial review.
You can file an appeal and request a hearing within 30 days of an assessment or refund denial by contacting the Comptroller’s Hearings and Appeals unit. If you remain dissatisfied with the
Comptroller’s final determination, you may appeal to the Maryland Tax Court for a de novo review within 30 days of the notice. The Maryland Tax Court provides an independent judicial forum for resolving disputes without requiring full circuit court litigation at the outset.
Common Mistakes to Avoid
Comptroller to continue escalating collection activity without your input or the chance to resolve the issue. and missing them may limit the options available to address the issue or result in additional penalties. identification may be applied to the wrong tax year, leaving the original liability unresolved and subject to continued collection actions. address can delay processing or result in lost documentation, which can affect your account status. communications with the Comptroller is important if disputes arise later or if payment application errors occur. but follow-up written communication creates a documented record of your response and protects your rights.
Frequently Asked Questions
Does receiving an enforcement notice mean I will face tax liens or wage garnishment?
An enforcement notice is issued before tax liens or garnishment occur, as a formal notification.
However, if the enforcement action is ignored and the debt remains unresolved, the Comptroller may pursue these more serious collection methods as authorized under Maryland law.
Can I request a payment agreement if I cannot pay immediately?
The Comptroller of Maryland offers payment plans on all taxes collected by that office, and taxpayers must be current on all required returns to qualify. Contact the Comptroller directly using the information in the notice to discuss payment arrangement options and online payments setup for your specific account.
We believe the enforcement notice was issued in error.
Contact the Comptroller of Maryland using the information in the notice and request a detailed explanation of how the amount was calculated. Provide documentation supporting your position, and the Comptroller will review your dispute and respond with a determination.
Can I appeal if I disagree with an enforcement action?
You can file an appeal and request a hearing within 30 days of an assessment or refund denial by email to cdhearings@marylandtaxes.gov, online through Maryland Tax Connect, or by mail to
Hearings and Appeals at 301 West Preston Street, Room 315, Baltimore, Maryland 21201.
Should I consult a tax attorney for enforcement issues?
Consulting a tax attorney may be beneficial if you face complex tax liabilities, disagree with the
Comptroller’s assessment, or need representation during appeals to the Maryland Tax Court. A tax attorney can help navigate Maryland’s legal system and protect your rights throughout enforcement proceedings.
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.
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