Maryland Comptroller Provides Middle East Conflict Tax Relief

By Saleem A. Shareef

Maryland Comptroller Brooke Lierman announced income tax relief for Maryland individuals and businesses affected by the conflict in the Middle East. The comptroller’s action is in line with the relief provided by the Internal Revenue Service (IRS). (News Release, Maryland Comptroller’s Office, 11/17/2023 (released January 2024).)

Extension and waivers.

Affected Maryland taxpayers have until October 7, 2024 to file returns for and pay corporate, personal, pass-through entity (PTE), and fiduciary income taxes due between October 7, 2023 and October 7, 2024, if they cannot file their returns or make timely payments. Also, they can request waivers of related interest and penalties.

Qualifications.

Specifically, the tax relief is available to: (1) any individual whose principal residence is in Israel, the West Bank, or Gaza (i.e., the covered area), or a business entity or sole proprietor whose primary place of business is in the covered area; (2) any individual, business, sole proprietor, or trust whose books, records, or tax preparer is located in the covered area; (3) anyone killed, injured, or taken hostage due to the conflict; or (4) any individual affiliated with a recognized government or philanthropic organization who is assisting in the covered area, such as a relief worker.

Requesting relief.

Maryland taxpayers seeking waivers of related interest and penalties should send an email including a brief, written explanation of why they cannot timely file or pay. The email must include the: (1) full name of the taxpayer or business as listed on the tax return; (2) last four digits of the SSN (Social Security Number) or business EIN (Employer Identification Number); (3) full mailing address of the taxpayer or business: (4) specific type of tax filing the taxpayer or business is requesting the waiver; and (5) estimated date the taxpayer or business believes the tax filings and payment can be submitted.