Maryland: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Maryland
In Maryland, the Comptroller will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Maryland Comptroller, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Comptroller, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Maryland
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Maryland sales tax return in the event of underpayment, incorrect reportings, etc. The Comptroller cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Maryland is four years from the tax due date. There is no limitations period provided to you if proof is discovered of gross negligence or fraud.
Appealing to the Comptroller in Maryland
If you do not agree with a penalty or decision made by the Maryland Comptroller, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Comptroller within 30 days after mailing notice of Comptroller's action
TopAdministrative Sales Tax Appeals in Maryland
In the case of administrative appeal, a petition must be filed with the Tax Court within thirty days after mailing the notice of decision
TopJudicial Sales Tax Appeals in Maryland
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the Circuit Court within thirty days after the latest date provided by any of the following: the date of action, the date of the agency's notice of action, or the date in which taxpayer received the notice
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