The long-awaited Maryland Form 511 has finally arrived. On June 29th, the Maryland Comptroller released the Pass-Through Entity Election Income Tax Return—along with its instructions—for filing pass-through entity returns for 2020 for those filers which elect to pay Maryland tax at the entity level. The form is used by an electing pass-through entity to both report the current year income and remit the entity tax related to the members’ distributive Maryland source income.
With the July 15th deadline looming, Maryland also announced that the pass-through entity filing deadline is automatically extended until September 15th. Without an additional extension taxpayers and preparers would have had just two weeks to complete all the returns currently on hold due to the State’s delay. No interest or penalties for late filing or payment will be assessed if returns are filed, and all taxes are paid by the updated September 15th deadline.
With Form 511 now available and the deadline extended, one final hurdle remains. The State of Maryland must work quickly with tax software developers to ensure that returns can be processed and filed electronically. Once available we will work as quickly as we can to work through the volume of partnerships and S corporation returns that have been waiting on until the new Maryland form was made available.
If you have any questions regarding the status of your return or the State’s extension noted above, please contact your E. Cohen advisor.