Filing using a Pass-Through Entity in Maryland

PTEs are required to pay tax on behalf of nonresident members. In 2020 and 2021, the Maryland General Assembly passed Senate Bill 523 (2020), Senate Bill 496 (2021), and Senate Bill 787 (2021), authorizing a pass-through entity to elect to pay tax at the entity-level in lieu of paying the mandatory tax on behalf of nonresident members. The number of PTEs using this method has increased significantly every year since passage. Because of the lack of staff and outdated systems, the Office of the Comptroller has been challenged to keep up with these payments.

Thank you for your help to ensure timely collection and processing of revenues in Maryland!