Every corporation required to file a Maryland income tax return and that is a member of a corporate group must electronically file with the Maryland Comptroller by Oct. 15, a pro forma combined corporate income tax report, and disclose specific information with respect to the corporate group, including total income, intercompany eliminations, sales factor apportionment, and non-business income for all 2006 and the 2007 calendar tax years or risk significant failure-to-file penalties. These penalties may also apply for failure to respond within 30 days to a comptroller request for "accurate information" following the original disclosure filing. The electronic filing requirement is in addition to existing annual corporate income tax return filing requirements. Penalties for not filing the required information by the filing deadline, or timely responding to a comptroller request, are $5,000 per day for the first 30 days and $10,000 per day for each day thereafter. The information gleaned from these requirements, which remain in effect until the 2010 tax year, will be used to determine the potential fiscal impact of combined corporate income tax reporting. View the Maryland Association of CPAs' summary at New Corporate Reporting Guidance Available or hear a podcast at Corporate Reporting Podcast.
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