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Maryland Free Printable 2023 Pass-Through Entity Booklet for 2024 Maryland Maryland Income Tax Form Instructions for Pass-Through Entities

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Maryland Income Tax Form Instructions for Pass-Through Entities
2023 Pass-Through Entity Booklet

MARYLAND 2023 FORM 510 - PASS-THROUGH ENTITY INCOME TAX RETURN INSTRUCTIONS For filing calendar year or any other tax year or period beginning in 2023 Brooke E. Lierman, Comptroller Maryland Pass-Through Entity Taxpayers • Community Investment Tax Credit** This booklet contains the instructions necessary for a passthrough entity (PTE) to file a 2023 Maryland tax return. Read the instructions carefully. • Commuter Tax Credit** • Cybersecurity Incentive Tax Credits** Use blue or black ink when completing your forms and checks. • Electing Pass-Through Entity Member Credit To avoid delays in the processing of your return: do not use pencil or ink in any other color; do not print returns on colored paper; do not write on, staple or punch holes in the barcode. • Employer-Provided Long-Term Care Insurance Tax Credit • Endow Maryland Tax Credit** • Endowments of Maryland Historically Black Colleges and Universities Tax Credit** Form 510 and its related forms are to be used by partnerships, S corporations, limited liability companies and business trusts. • Energy Storage Systems Tax Credit** • Enterprise Zone Tax Credit** A business trust shall be classified as a corporation, a partnership, a trust or otherwise, as determined under the United States Internal Revenue Code. • Film Production Activity Tax Credit** • Federal Employer Security Clearance Costs Tax Credit** New for 2023 • Heritage Structure Rehabilitation Tax Credit from Form 502S Election to Pay Tax on All Members' Shares at the Entity Level or to Pay Mandatory Tax Only on Behalf of Nonresident Members: An entity may file Form 510 as its year-end return only if it did not elect to pay tax at the entity level with respect to all members' shares on its first filing of the tax year (Form 510/511D or Form 510/511E). An entity that made such an election must file Form 511 as its year-end return. If the year-end return is the entity's first filing of the tax year, filing Form 510 will be deemed to be an irrevocable decision to pay tax only on behalf of nonresident members. The entity will not be permitted to file an amended return using Form 511. • Job Creation Tax Credit** • Maryland Disability Employment Tax Credit** • More Jobs for Marylanders Tax Credit** • One Maryland Economic Development Tax Credit** • Preservation and Conservation Easements Tax Credit** • Qualified Farms Tax Credit** • Research and Development Tax Credits** Changes to Form 510: Several changes have been made to Form 510. • Small Business Relief Tax Credit** • Theatrical Production Tax Credit** New language has been added to Line 16d to clarify instructions for a nonresident PTE that is claiming a credit for tax paid by another PTE of which it is a member. New Line 16e has been added for a resident PTE to claim a credit for tax paid by another PTE of which it is a member. The total payments and credits will now be reported on new Line 16f. • Work Opportunity Tax Credit **Required Certification must be included with Form 500CR REMINDER • The Maryland Form 510 A Pass-Through Entity Income Tax Return must be filed electronically if the pass-through entity has generated a business tax credit from Form 500CR or a Heritage Structure Rehabilitation Tax Credit from Form 502S to pass on to its members. Due to the decision by the Supreme Court of Maryland in Comptroller of Maryland v. FC-GEN Operations Investments LLC, the Comptroller will issue refunds at the entity level for PTEs that report overpayments on Form 510. Accordingly, new lines have been added to allow a PTE to calculate the refund it may claim. Credit for overpayments will no longer be passed through to a PTE's members. Accordingly, Line 3, Part D on Schedule K-1 (510/511) has been removed. Forms and help For online business registration, tax forms, instructions, publications, and Maryland Tax Regulations, visit marylandtaxes.gov Legislative Updates: The General Assembly enacted laws establishing one new credit and making changes to existing income tax modifications and credits. See the Maryland Income Tax Form Instructions for Corporations and Form 500CR for additional information. E-mail your tax questions to [email protected]. For assistance, call: 410-260-7980 in Central Maryland or 1-800-MDTAXES (638-2937) from elsewhere Form 500CR Maryland Form 500CR is used to claim the following business tax credits against corporation and individual income tax. Filing electronically Electronic Format In accordance with SB 36 of the Acts of 2017 of the Maryland General Assembly, the Comptroller of Maryland may grant a taxpayer a waiver of the requirement to file for certain tax credit(s) by electronic means. Form 500CRW, Request for a Waiver, must be submitted with the Form 500CR that establishes a reasonable cause for not filing by electronic means or that there is no feasible means of filing electronically creating an undue hardship. • Apprentice Employee Tax Credit** The State of Maryland participates in the Federal/State Modernized e-File program to file Maryland Corporation and Pass-Through Entity returns electronically. For the list of Software Vendors approved for e-filing Maryland returns or for additional program information, visit marylandtaxes.gov. You may also contact our e-File Helpdesk by emailing efil@ marylandtaxes.gov or calling 410-260-7753. • Automated External Defibrillator For Restaurants Tax Credit • Biotechnology Investment Incentive Tax Credit** • Businesses That Create New Jobs Tax Credit • Catalytic Revitalization Projects and Historic Revitalization Tax Credit** i MARYLAND FORM 510 3 GENERAL INSTRUCTIONS FILING FORM 510 The Maryland Form 510 must be filed electronically if the passthrough entity has generated a business tax credit from Form 500CR or a Heritage Structure Rehabilitation Tax Credit from Form 502S to pass on to its members. 4 GENERAL INFORMATION FOR FORM 510 Accounting Periods   The tax year or period used for the federal return must be used for the Maryland return. Accordingly, calendar tax years, fiscal tax years, and short tax periods may be necessary for Maryland filing purposes. If a federal return is filed or required, a corresponding Maryland return must be filed. The form used for filing must reflect the preprinted tax year in which the PTE’s tax year begins. Use of Federal Figures   In preparing Form 510, all items that are reported for federal purposes must be reported on the Maryland return in the same manner. The character of an item cannot be changed from that required or elected for federal purposes. A LLC is treated as a partnership for Maryland income tax purposes, unless it is treated as a corporation at the federal level. A business trust shall be classified as a corporation, a partnership, a trust or otherwise, as shall be determined at the federal level. Taxability  Form 510 generally is an infor­mation return. The items of income or loss of the PTE are passed through to the members and subject to tax on the members’ Maryland income tax return. Unincorporated pass-through entities should follow the rules for partnerships throughout these instructions. Incorporated pass-through entities should follow the rules for S corporations. If there are nonresident members, the pass-through entity nonresident tax applies and must be paid by the PTE on behalf of these members. The term member is used in these instructions to include partners of partnerships, shareholders of S corporations, members of LLCs, and beneficiaries of business trusts. PTEs must pay a tax consisting of 5.75%, in addition to a special nonresident tax of 2.25%, of the nonresident individual and nonresident fiduciary members’ distributive or pro rata shares of income allocable to Maryland. WHO MUST FILE? Entities Required to File PTEs also are required to pay a tax at the rate of 8.25% of income allocable to Maryland on behalf of all members who are nonresident entities. A nonresident entity is an entity that is not formed under the laws of Maryland; and is not qualified by, or registered with, the Department of Assessments and Taxation to do business in Maryland. See Administrative Release 6. Every Maryland PTE must file a return, even if it has no income or the entity is inactive. An entity may file Form 510 as its year-end return only if it did not elect to pay tax at the entity level with respect to all members' shares on its first filing of the tax year (Form 510/511D or Form 510/511E). An entity that made such an election must file Form 511 as its year-end return. If the year-end return is the entity's first filing of the tax year, filing Form 510 will be deemed to be an irrevocable decision to pay tax only on behalf of nonresident members. The PTE nonresident tax does not apply to a member that is a Real Estate Investment Trust (REIT) or to a member that is tax-exempt under IRC Sections 408(e) or 501, unless the taxexempt member is subject to the federal income tax on its federal return on that share of PTE income. See Administrative Release 6 for other members and certain PTEs that are considered exempt. Entities Not Required To File A multistate PTE that operates in Maryland but is not subject to the Maryland income tax law is not required to file, although a return reflecting no income allocable to Maryland may be filed for record purposes. Letters in lieu of filing will not be accepted. Nonresident members must report their distributive or pro rata shares of income or loss allocable to Maryland on their Maryland income tax return. Such income must be reported in the member’s tax year in which the PTE’s tax year ends. Credit for taxes paid by the PTE must be claimed on the same return on which the nonresident member reports the income subject to that tax. Qualified Sub-S Subsidiaries are treated as divisions under the IRC and are not considered as separate entities for Maryland purposes. These divisions will be included on the parent company’s annual Maryland return. The distributive share of income for partnerships is the net amount of lines 1 through 11 of federal Form 1065 Schedule K. The distributive share of income for a partnership electing to file as a “large partnership” is the net amount derived from adding lines 1a, 2 through 4b, 7, and 8 of federal Form 1065 Schedule K. The pro rata share of income for S corporations is the net amount of lines 1 through 10 of federal Form 1120S Schedule K. Maryland will follow the Internal Revenue Service (IRS) rules for certain partnerships that do not actively conduct a business that have elected not to be treated as partnerships. Maryland also will follow the IRS rules for a single member LLC that is disregarded as a separate entity and the income (loss) will be included on the member(s) annual Maryland returns. 2 SIGNATURES REQUIRED Form 510 must be signed by a duly authorized official of the PTE. Preparers, other than PTE employees, also must sign the return. Purpose of Form  Form 510 is used by a pass-through entity (PTE) to file an information income tax return for a specific tax year or period and to remit PTE nonresident taxes. The term “pass-through entity” includes partnerships as defined in Internal Revenue Code (IRC) Section 761, S corporations as defined in IRC Sections 1361 and 1362, limited liability companies (LLC) as defined in Maryland Corporations and Associations Article, Section 4A-101 and business trusts as defined in Maryland Corporations and Associations Article, Section 12-101. 1 2023 PASS-THROUGH ENTITY INCOME TAX RETURN INSTRUCTIONS WHEN AND WHERE TO FILE?  The amount of tax payable by the PTE may be limited based on the distributable cash flow. For additional information, see the instructions for distributable cash flow limitation. File Form 510 by the 15th day of the 4th month following the close of the tax year or period. The return must be filed with the Comptroller of Maryland, Revenue Administration Division, 110 Carroll Street, Annapolis, Maryland 214110001. A PTE may elect to file a composite Maryland income tax return Form 510C on behalf of qualified nonresident individual members. Fiduciary and nonresident entity members may not participate in composite returns. All members who qualify and elect to be included on the composite return must agree that 1 MARYLAND FORM 510 PASS-THROUGH ENTITY INCOME TAX RETURN INSTRUCTIONS the PTE is their agent for the receipt of any refund or for payment of any tax due. Additionally, a PTE with only one member may not file a composite return. See Administrative Release 6. Schedule K-1 (510/511). Members then may claim their shares of the Maryland credit. Maryland follows the federal income tax rules as to the allocation of Maryland credits for partners of a partnership (includes LLC and business trust) and for shareholders of an S corporation, unless the terms of the Maryland tax credit permit special allocation. Allocations of credits at the federal level generally must be made in accordance with the partners’ respective interests in the partnership at the time the tax credit arises and in accordance with the shareholders’ pro rata shares of the S corporation’s credits. Form 502S must be included with Form 500CR if claiming the Heritage Structure Rehabilitation Tax Credit. You must file Form 510 electronically to claim or pass on any business tax credits. Publicly-traded pass-through entities (PTPs) as defined in IRC Section 7704 are exempt from the requirement to pay a nonresident tax on behalf of their nonresident members if they file Form 510 annually, and report the name, address, taxpayer identification number (SSN or FEIN) and other information requested for each nonresident member whose share of the PTPs' nonresident taxable income exceeds $500 for the tax year. PTPs supplying the above information are also excluded from the definition of nonresident entities. These PTPs should enter code number “704” on one of the lines marked “code number” on the front of Form 510. Statements to Members   The PTE should provide to its members a Maryland Schedule K-1 (510/511) showing the allocable share of income, additions and subtractions, and/or credit information, and nonresident tax paid by the PTE on behalf of its members. S corporations subject to federal corporation income tax, such as for excess net passive income or built-in gains, also are subject to Maryland corporation income tax. Use Form 500 to calculate the amount of Maryland corporation income tax. Audits and Appeals   All items reported on Form 510 are subject to audit, verification and revision. Returns and amendments are subject to audit and adjustment for a period of 3 years from the date the return was due (including extensions) or the date the return was filed, whichever is later. On the Form 500: (1) Enter the corporation name, Federal Employer Identification Number and tax year; (2) Enter the total taxable income on line 1, check the applicable box labeled “Other” and enter “1120S”; In the event of revision and assessment or reduced refund, the Comptroller will notify the corporation. If in disagreement with the assessment or denial of the refund, the corporation may file with the Compliance Division a written request for revision of the assessment or reconsideration of the refund denial. The request, in either case, must be made by submitting an application for an informal hearing with the Compliance Division within 30 days of the assessment or denial of the refund. (3) Report additions and subtractions to the extent applicable to the income subject to federal income tax; and, (4) Complete all other lines as necessary to calculate the amount due (including the lines for modification and/or adjustments to income, apportionment of income and payments and credits, if appli­cable). Attach payment to the front of Form 500. Failure to file a written request or attend the informal hearing will result in the assessment or denial of refund becoming final and non-appealable. In addition to filing Form 500 to calculate and pay the corporation income tax, also file Form 510. 5 2023 OTHER MATTERS You may file an appeal with the Maryland Tax Court within 30 days of a final determination by the Compliance Division hearing office. Extension of Time to File  If unable to file Form 510 by the due date, the PTE must submit Form 510/511E – Maryland Application for Extension to File Pass-Through Entity Income Tax Return. NOTE: Changes made as part of an amended return are subject to audit for up to three years from the date the amended return is filed. See Instruction 8 for completing an amended return. The request for extension of time to file will be granted provided that: Adjustments   If the items on the federal return are adjusted by the IRS, a copy of the final IRS adjustment report must be submitted within 90 days. Copies of the IRS adjustment report must be submitted for each member’s income tax return. 1) The application is properly filed and submitted by the 15th day of the 4th month following close of the tax year or period; Taxpayer Identification Required for Returns and Other Documents   All returns, correspondence, payments or other documents must indicate the PTE name, FEIN, type of tax and tax year(s) to which the document relates. 2) An application for extension of time has been filed with the IRS; and, 3) Full payment of any balance due is submitted with the application. All PTEs are required to secure a FEIN from the IRS. The FEIN is the only number used by the IRS for processing purposes and also is the primary number used by the Revenue Administration Division. Properly and timely filed requests for an automatic extension of time will be granted for seven months for S corporations and six months for other PTEs. The type of tax and tax year(s) are necessary to identify the subject of the document and the intention of payments. This information ensures that documents are directed to the correct area and that payments are applied to the correct account. Estimated Income Tax   Every PTE that reasonably expects Maryland taxable income to develop a tax in excess of $1,000 for the tax year or period must make quarterly estimated payments with Form 510/511D - Declaration of Estimated PassThrough Entity Income Tax. If the PTE is required to make multiple payments, it will use a Form 510/511D for each of the additional payments. This form is available at marylandtaxes. gov. Use of Paid Preparers  The PTE is responsible for the timely filing of returns, payment of tax, responding to requests and all other requirements, even though a paid preparer is used. Substitute Forms   You may file your Maryland income tax return on a computer-prepared or computer-generated substitute form provided the form is approved in advance by the Revenue Administration Division. The fact that a software package is available for retail purchase does not guarantee that it has been approved for use. Business Tax Credits   To claim or pass on business tax credits from Form 500CR, the PTE must file Form 510 electronically if the PTE has generated a business tax credit. Form 500CR Instructions are available on our website at marylandtaxes.gov. Business credits are not taken on Form 510, but are allocated to the members of the PTE on Maryland For additional information or to see a list of Approved Software 2 MARYLAND FORM 510 2023 PASS-THROUGH ENTITY INCOME TAX RETURN INSTRUCTIONS Vendors for Maryland marylandtaxes.gov. Substitute Tax Forms, visit federal business code is a six-digit number available from the federal return which identifies the principal business activity. Employer Withholding of Income Tax   Employers that make payments to individuals of salaries, wages or compensation for personal services must withhold an income tax as prescribed in published tables and remit the withholdings to the Revenue Administration Division with Form MW506 or MW506M – Employer’s Return of Income Tax Withheld. Be sure to check the applicable box to indicate the type of PTE: partnership, S corporation, limited liability company or business trust. Check the applicable box if: (1) The name or address has changed; (2) This is the first filing of the PTE; An annual reconciliation is required to be filed on Form MW508 – Annual Employer Withholding Reconciliation Return and submitted with the state copy of the wage and tax statements issued to employees as required by law. (3) This is an inactive PTE (in Maryland and elsewhere); (4) This is the final return of a PTE that has dissolved, liquidated or withdrawn from Maryland; For additional information regarding employer withholding tax, address, and phone number, visit marylandtaxes.gov. (5) This tax year’s beginning or ending dates are different from last year’s because of an acquisition or consolidation. Do not check the box for inactive or final if the PTE is inactive in Maryland but active elsewhere: or, Privacy Notice   The Revenue Admin­istration Division requests tax return information to administer the income tax laws of Maryland, including the determination and collection of the correct taxes and other amounts. Failure to provide all or part of the requested information may result in the disallowance of claimed amounts and an increased tax liability. The law also makes provision for securing information from taxpayers that fail to supply required information, and a penalty may apply. (6) The 510C has been filed. 8 To correct an error in a previously filed return, complete and submit a revised Form 510. Check the “AMENDED RETURN” box and draw a line through the barcode on the return. A separate page should be attached containing a detailed explanation of the changes being made, and if the federal return has been amended, a copy of the federal amended form must be attached to Form 510. If additional tax was paid with the original return, include the amount paid on line 16b of Form 510. The PTE must give a revised statement to the members advising them of the amendment. Members may also be required to file amended income tax returns. Taxpayers have a right to access their tax records maintained by the Revenue Administration Division, and may inspect, amend or other­wise correct them. To obtain a copy, submit a written request containing the PTE name, address and identification numbers and specifying the information needed. The request must be signed by an authorized member. As authorized by law, information furnished to the Revenue Administration Division may be given to the IRS, a proper official of any state that exchanges tax information with Maryland and to an officer of this State having a right to the information in that officer’s capacity. Also, the information may be obtained in accordance with a proper judicial or legislative order. 6 A PTE may not file an amended return to change the PTE's election or non-election for the tax year. 9 TAX YEAR OR PERIOD SPECIFIC INSTRUCTIONS Line 1 - Number of members   Enter the number of members that are individual residents of Maryland (including resident fiduciaries), the number that are individual nonresidents of Maryland (including nonresident fiduciaries), the number of nonresident entities, the number of other entities, including resident entities, and the total number of all members. The tax year is shown at the top of Form 510. The form used for filing must reflect the preprinted tax year in which the PTE’s tax year begins. The same tax year or period used for the federal return must be used for Form 510. Include in “Others”, resident entities and entities that are taxexempt under IRC Sections 408(e) or 501. If the tax year of the PTE is other than a calendar year, enter the beginning and ending dates of the fiscal year in the space provided at the top of Form 510. 7 AMENDED RETURNS A single member LLC that is a disregarded entity for federal purposes is treated as an individual or corporation depending upon whether the single member is an individual or corporation for purposes of computing the nonresident tax. ASSEMBLING AND COMPLETING YOUR RETURN Complete the federal income tax return first and use it in preparation of the Maryland return. Use a minus sign (-) in front of a number to indicate a negative amount. After completing the Maryland return, assemble your return in the following order: Maryland Pass-Through Entity Form 510 including all Form 510 Schedules B, any required Maryland forms and their related attachments, any K-1 forms showing credits earned by the PTE and for S corporations a copy of the federal income tax return through Schedule M2. Note: In these instructions, the term individual includes fiduciaries, unless specifically excepted. Line 2 - Total distributive or pro rata shares of income per federal return   Enter the distributive or pro rata share of income from the federal return. Distributive or pro rata share of income is defined for this purpose as the net amount of income/loss for the PTE, less interest from federal obligations. The distributive share of income for partnerships is the net amount of lines 1 through 11 of federal Form 1065 Schedule K. Name, Address and Other Information Allocation of Income   For unistate PTEs, all income is allocable to Maryland. If the entity is unistate, meaning that business is conducted only in Maryland, do not complete this area. Type or print the required information in the designated area. Enter the exact PTE name and continue with any “Trading As” (T/A) name if applicable. Enter the FEIN. If a FEIN has not been secured, enter “APPLIED FOR” followed by the date of application. If a FEIN has not been applied for, do so immediately. Multistate PTEs, those conducting business in more than one state, must allocate income if any member is a nonresident individual or a nonresident/resident entity. If there are no nonresident members, do not complete this area. Enter the date of organization or incorporation and the federal business code number. This date must be expressed numerically, using two digits each for the month, the day and the year. The Line 3a - Non-Maryland income   Multistate partnerships with 3 MARYLAND FORM 510 PASS-THROUGH ENTITY INCOME TAX RETURN INSTRUCTIONS 2023 Line 12 - Nonresident entity tax   Multiply the amount on line 11 by 8.25%. one or more nonresident partners may use separate accounting to allocate income. Multistate S corporations with one or more nonresident shareholders may use separate account­ing if the activity of the corporation within Maryland is nonunitary. If using separate accounting, enter the amount of income or loss allocable to other states and attach a worksheet detailing the alloca­tion between or among the states. Line 13 - Total nonresident tax   Add lines 9 and 12. Line 14 - Distributable cash flow limitation   PTEs may elect to use the distributable cash flow method to limit the nonresident tax which must be paid by the PTE. See the DISTRIBUTABLE CASH FLOW LIMITATION WORKSHEET (9A). If the distributable cash flow is less than the nonresident tax, the required payment is limited to the amount determined by the distributable cash flow method. Line 3b - Multi-state PTEs using the apportionment method of allocation generally are required to use a single receipts factor. Property and payroll factors must be developed if the taxpayer has income from the sale of intangibles or is subject to another apportionment formula. If the taxpayer does not have income from the sale of intangibles and is not subject to another apportionment formula, property and payroll factors are not required to be developed. See instructions below under OTHER APPORTIONMENT FORMULAS and SPECIAL RULES. DISTRIBUTABLE CASH FLOW LIMITATION WORKSHEET (9A) (Complete this worksheet only if using the distributable cash flow limitation.) Line 4 - Distributive or pro rata share of income allocable to Maryland   For unistate PTEs, or multistate PTEs without nonresident members, enter the amount shown on line 2. A. Total distributive or pro rata share of income. (Enter amount from Form 510, line 2.) . . . . . . . . . . . . . . . . . . . . . . . . . ________________ B. Line A adjusted, in the case of a PTE using the accrual method of accounting to report federal taxable income, to reflect the amount of taxable income that would have been reported under the cash method of accounting (if the PTE is not using the accrual method of accounting to report federal taxable income, enter amount from Line A).. . . . . . ________________ C. Cash receipts for the tax year that are not includable in the gross income of the PTE including capital contributions and loan proceeds. (Enter any cash receipts received by the PTE that were not included in gross income including capital contributions and loan proceeds.). . . . . . . . . . . . . . . . . . . . ________________ D. Amounts allowable to the PTE for the tax year as deductions for depreciation, amortization and depletion. (Enter the allowable depreciation, amortization and/or depletion used as a deduction from federal taxable income.) ________________ E. The decrease, if any, in the PTE’s liability reserve as of the end of the tax year. (If the PTE has established a liability reserve, enter the amount that represents the decrease, if any, in this reserve account. Liability reserve means accrued unpaid liabilities that are not deductible in computing taxable income.) . . . . . . . . . . . . ________________ F. Total. (Add lines B through E.) . . . . . . . . . . . . ________________ G. Cash expenditures for the tax year that are not deductible in computing the taxable income of the PTE. (Do not include distributions to members. Enter any cash expenditures that are not deducted when computing taxable income for the PTE. Items such as distributions to members are not included in this amount.). . ________________ H. The increase, if any, in the PTE’s liability reserve as of the end of the tax year. (If the PTE has established a liability reserve, enter the amount that represents the increase, if any, in this reserve account. Liability reserve means accrued unpaid liabilities that are not deductible in computing taxable income.). . . . . ________________ I. Total distributable cash flow. (Add lines G and H, and subtract the total from line F.) . . . . . . . ________________ J. Total percentage of ownership (or profit/ loss sharing if applicable) by nonresident. (Enter the sum of the percentages from Form 510, lines 5 and 10. . . . . . . . . . . . . ________________ K. Distributable cash flow. (Multiply line I by line J.). . . . . . . . . . . . . . . . . . . . . . . . . . . ________________ L. Nonresident tax previously paid. (Enter all nonresident estimated tax paid with Forms 510/511D or 510/511E.). . . . . . . . . . . . . . . . . ________________ For multistate PTEs using separate accounting, subtract line 3a from line 2 and enter the difference. For multistate PTEs using the apportionment method of allocation, multiply line 2 by the factor on line 3b and enter the result. NOTE: Do not complete lines 5 through 19: 1. Unless the PTE has members that are nonresidents of Maryland (there is an entry on 1b or 1d), or, 2. If the PTE is a partnership whose activities and assets are limited to investment in stocks, bonds, futures, options or debt obligations other than debt instruments directly secured by real or tangible personal property, it is not subject to the nonresident tax merely because the investment decisions, trading orders, research and the like are conducted by a general partner from a Maryland location. Enter code number “705” on one of the lines marked “code number” on page 3 of Form 510. Partnerships, however, such as brokerage firms that deal with the general public, are not exempt if the business is conducted within Maryland and should complete lines 5-19. See Administrative Release 6. Line 5 - Percentage of ownership by nonresident individual members  Enter the total percentage of ownership by nonresident individual members. If the profit/loss allocation is different from the ownership percentage, use the profit/loss allocation to complete this line. If 100%, leave blank. Line 6 - Distributive or pro rata share of income for nonresident individual members   Multiply line 4 by the percentage on line 5 and enter the result. If line 5 is blank because the percentage of ownership equals 100%, enter the amount from line 4. Line 7 - Nonresident individual tax   Multiply the amount on line 6 by 5.75%. Line 8 - Special nonresident tax   Multiply the amount on line 6 by 2.25%. All nonresident individuals are liable for an additional state tax on income allocable to Maryland calculated at the lowest local income tax rate in place for the tax year. Line 9 - Total Maryland tax on individual members   Add lines 7 and 8. Line 10 - Percentage of ownership by nonresident entity members Enter the total percentage of ownership by nonresident entity members. If the profit/loss allocation is different from the ownership percentage, use the profit/loss allocation to complete this line. If 100%, leave blank. Line 11 - Distributive or pro rata share of income for nonresident entity members   Multiply line 4 by the percentage on line 10 and enter the result. If line 10 is blank because the percentage of ownership equals 100%, enter the amount from line 4. 4 MARYLAND FORM 510 of the 2023 return but before January 1, 2025. Assistance in calculating interest is available through our website at marylandtaxes.gov or email your question to TAXHELP@ marylandtaxes.gov. You may also call 1-800-638-2937 or from central Maryland 410-260-7980. M. Distributable cash flow limitation. (Subtract line L from line K. If less than 0, enter 0.) . . . . ________________ Election of the distributable cash flow limitation will not reduce the tax liability of the nonresident members. If the distributable cash flow limitation is used, check the box and enter the result on line 14. If less than zero, enter zero. If the distributable cash flow limitation is not used, do not complete this line. A penalty may be imposed if any tax is not paid when due. Any penalty due will be calculated and assessed after filing of Form 510. Line 20 - Total Nonresident Balance Due  Add nonresident tax due (Line 15), any prior overpayment (Line 18a), and any interest and/or penalty (Line 19). Then subtract the total payments and credits (line 16f Line 15 - Nonresident tax due   If the distributable cash flow limitation is not used, enter the amount shown on line 13. If the distributable cash flow method is used, enter the lesser of line 13 or line 14. Line 21 - Amount of overpayment from original return to be applied to estimated tax for 2024. Overpayment may be applied to estimated taxes for the following year. Amount may not exceed 2023 overpayment, less any prior year overpayment, less interest and/or penalty. Line 16 - Payments and Credits 16a. Enter the total of amounts paid during the tax year with Form 510/511D - Maryland Pass-Through Entity Declaration of Estimated Income Tax. Also include amounts paid by the PTE using Form MW506NRS - Return of Income Tax Withheld For Nonresident Sale of Real Property. Line 22 - Amount of overpayment TO BE REFUNDED to the PTE. Add lines 19 and 21, and subtract the total from line 18. (If amending, subtract lines 18a and 19 from line 18.) 16b. Enter the amount paid with Form 510/511E - Maryland Application for Extension to File Pass-Through Entity Income Tax Return. LINE 23 - Direct Deposit of Refund To comply with banking and National Automated Clearing House Association (NACHA) rules, we ask you to indicate by checking the appropriate box on your return if the state refund is going to an account outside the United States. If you indicate that this is the case, STOP! do not enter your routing and account numbers, as the direct deposit option is not available to you. We will send you a paper check. 16c. Enter the amount of tax paid on the PTE’s behalf by another PTE. Attach the Maryland Schedule K-1 (510/511) or statement supplied by the other PTE to support this credit. 16d. 16e. 2023 PASS-THROUGH ENTITY INCOME TAX RETURN INSTRUCTIONS If the PTE filing this return is a nonresident member of a PTE paying tax at the entity level, report the amount of credit for tax paid by the PTE paying tax at the entity level with regard to this entity's nonresident shares of income. Attach the Maryland Schedule K-1 (510/511) or statement supplied by the other PTE to support this credit. By choosing direct deposit of your refund and checking the appropriate box, you authorize the State of Maryland to disclose to your bank to the State’s depository bank and their financial partners, and NACHA any tax return information necessary to make the deposit, such as your refund amount, the name, as it appears on the bank account. Complete lines 23a, b, c, and d of Form 510 if you want us to deposit your refund directly into your account at a bank or other financial institution (such as a mutual fund, brokerage firm or credit union) in the United States. If the PTE filing this return is a resident member of a PTE paying tax at the entity level, report the amount of credit for tax paid by the PTE paying tax at the entity level with regard to this entity's resident shares of income. Attach the Maryland Schedule K-1 (510/511) or statement supplied by the other PTE to support this credit. 10 SIGNATURE, VERIFICATION AND MAILING INSTRUCTIONS An authorized general partner, officer or member of the PTE must sign and date Form 510 and enter his or her title. If a preparer is used, the preparer also must print name, sign the return and enter the firm name, address and Preparer's Tax Identification Number (PTIN). Penalties may be imposed for tax preparers who fail to sign the tax return and provide their PTIN. 16f. Total payments and credits. Enter the sum of lines 16a through 16e. Line 17 - Balance of Tax Due Enter the difference if line 15 exceeds 16f. Line 18 - Overpayment If total payments and credits from line 16f exceeds nonresident tax due from line 15, enter the difference. Make check or money order payable to Comptroller of Maryland. On your check or money order, in blue or black ink only, you must include the Federal Employer Identification Number, tax year, and tax type. Failure to include this information will delay the processing of your payment. Mail the completed return and all required attachments to: Line 18a - For PTEs using this form to amend a prior return. Enter the prior overpayment. (Total all refunds previously issued.) Comptroller of Maryland Revenue Administration Division 110 Carroll Street Annapolis, MD 21411-0001 Line 19 - Interest and/or Penalty Calculate the amount of interest and/or penalty due as a result of the underpayment of estimated tax. Use Form 500UP, available at marylandtaxes. gov. For more information, visit marylandtaxes.gov or email your question to: [email protected]. You may also call 1-800-638-2937 or from Central Maryland 410-260-7980. Partnerships and LLCs with income received unevenly throughout the year, and that choose to annualize on Form 500UP, must enter code number “301” on one of the lines marked “code numbers” on the front of Form 510. S corporations may not use the annualization method on Form 500UP. If Form 510 is filed late, calculate interest on the amount of tax that was not paid by the original due date. Interest is due at the rate of 10.0075% annually or 0.8339% per month for any month or part of a month that a tax is paid after the original due date 5 MARYLAND FORM 2023 SCHEDULES A AND B INSTRUCTIONS 510 SCHEDULE A - COMPUTATION OF APPORTIONMENT FACTOR INSTRUCTIONS 1 personal property is located in this State for a portion of the tax year, only the income received for that portion is included in the numerator. PURPOSE OF SCHEDULE A Capital gains from the sale of real and tangible personal property are included in the numerator if the property is located in Maryland. Ordinary net gain or loss derived from the sale of depreciable assets is excluded from the factor. Pass-through entities (PTEs) that conduct business in more than one state must allocate income if one or more of the members are nonresident individuals or nonresident entities of Maryland. Partnerships may use separate accounting or the apportionment method of alloca­tion. S corporations must use the apportionment method unless the activity in Maryland is nonunitary. If the activity within Maryland is nonunitary, S corporations may use separate accounting. 2 Other income items are included in accordance with the provisions previously stated depending on the nature and type of each item. • The property factor includes owned as well as rented tangible personal property used in the trade or business during the tax year. Such properties are inventory, machinery and equipment, buildings and land, and other tangible assets. Property is included in the numerator if it has a situs within Maryland. APPORTIONMENT FORMULA All factors of the apportionment formula are developed as fractions, the numerator of which is the total of Maryland items and the denominator is the total of items everywhere during the tax year. Each factor is calculated to six decimal places and used to arrive at the final apportionment factor. The items of both numerator and denominator should reconcile to the items as categorized and reported on the federal income tax return. 3 Property owned by the PTE is valued at its original cost at the average of the tax year beginning and ending amounts. If there are material changes during the tax year and the yearly average is not a fair representation, the average must be calculated on a monthly or daily basis. SINGLE SALES FACTOR APPORTIONMENT Property in transit is considered to be at its destination for purposes of the factor. Property under construction during the tax year is excluded from the factor until actually placed in service. For tax years beginning after December 31, 2021, multi-state businesses using the apportionment method of allocation generally are required to use a single receipts factor. Rental/ leasing companies, financial institutions, transportation companies, and worldwide headquartered companies must use a Special Apportionment Formula (see instruction 4 below), unless the Comptroller has accepted an Alternative Apportionment Formula (see instruction 5 below). Property and payroll factors must be developed if the taxpayer has income from the sale of intangibles or is subject to another apportionment formula. If the taxpayer does not have income from the sale of intangibles and is not subject to a special apportionment formula or alternative apportionment formula property and payroll factors are not required to be developed. Property leased or rented by the PTE is included in the factor at a capitalized value. To arrive at the capitalized value, expenses associated with the privilege of occupying or using the property, including such items as fixed rent, percentage rent, real estate taxes, insurance and maintenance, are multiplied by eight. Expenses for gas, electricity, oil, water or other items normally consumed are excluded. Lease or rental expense below the market rate must be adjusted to reflect a reasonable market rate and then capitalized. Sublease income cannot be used to arrive at the capitalized value of leased or rented property, but must be included in the receipts factor. Specific require­ments regarding each factor are set forth as follows: • Property Factor Improvements to the leased or rented property that revert to the owner at expiration of the lease or rental term are amortized and not capitalized. The actual cost of the improvements is divided by the number of years remaining for the lease or rental term and the result is included in the factor for each tax year. Receipts Factor The receipts factor includes the amount of income reported during the tax year as gross receipts or sales (less returns and allowances), dividends, interest, gross rents, royalties, capital gains and other income on the federal return. Property that has remained idle and has not produced any revenue for a period of five or more years is not included in the factor. Gross receipts from sales of tangible personal property are included in the numerator if the property is delivered or shipped to a purchaser that takes possession in Maryland, regardless of f.o.b. point or other conditions of sale. Sales of tangible personal property to an out-of-state purchaser are also included in the numerator if the purchaser takes possession in Maryland. Sales of property in transit that are destined for Maryland are included in the numerator. • Payroll Factor All compensation is to be included in the numerator, both when the individual’s service is performed entirely within Maryland, and when the individual’s service is performed both within and without Maryland but the service performed outside Maryland is incidental to the individual's service within. Gross receipts from service-related activities are included in the numerator if the receipts are derived from customers within this State. There are specific rules to determine “Customers Within this State.” To review these rules, see Maryland Regulation 03.04.03.08D. Gross income from intangible items such as dividends, interest, royalties and capital gains from the sale of intangible property are included in the numerator based upon the average of the property and payroll factors. 4 Gross receipts from the rental, leasing or licensing of real or tangible personal property are included in the numerator if the property is located in Maryland. If tangible Compensation is also included in the numerator if some part of the service is performed within Maryland and the base of operations or place from which the service is controlled is in Maryland. If the base of operations or place from which the service is controlled is not in any state where the service is performed but the individual’s residence is in Maryland, the compensation is also included in the numerator. OTHER APPORTIONMENT FORMULAS Rental/leasing companies use an equally weighted two-factor 6 MARYLAND FORM SCHEDULES A AND B INSTRUCTIONS 510 formula of receipts and property, with receipts from intangible items excluded. and corporation members. Do not enter a credit amount for the One Maryland Economic Development Tax Credit, see the instructions for Form 500CR, Part P, at marylandtaxes.gov. Financial institutions use a single receipts factor; financial institution receipts are defined in COMAR 03.04.08.03. Transportation companies: • A trucking company or motorfreight carrier uses an apportionment formula equal to miles traveled in the State over miles traveled everywhere. • A railroad company uses an apportionment formula equal to miles traveled on tracks in-State over miles traveled on tracks everywhere. • A shipping company uses an apportionment formula equal to the number of days spent in ports and on waterways inState over number of days spent in ports and on waterways everywhere and worldwide headquartered companies required to use a Special Apportionment Formula should refer to Administrative Release 43: Corporate Apportionment of Income. https://marylandtaxes.gov/forms/Tax_ Publications/Administrative_Releases/Income_and_Estate_ Tax_Releases/ar_it43.pdf. • An airline uses an apportionment formula of equally weighted property, payroll, and sales. COMAR 03.04.03.08(G)(3)-(6) prescribe how each factor is calculated. • Transportation company can refer to Administrative Release 43 https://marylandtaxes.gov/forms/Tax_Publications/ Administrative_Releases/Income_and_Estate_Tax_Releases/ ar_it43.pdf and Administrative Release 22 (airlines) https:// marylandtaxes.gov/forms/Tax_Publications/Administrative_ Releases/Income_and_Estate_Tax_Releases/ar_it22.pdf for additional information. 5 2023 SPECIAL RULES Alternative Apportionment: If the apportionment formula does not fairly represent the extent of the PTE’s activity within Maryland, the Revenue Administration Division may alter the formula or components accordingly. The corporation may also request the Comptroller’s approval to use an Alternative Apportionment Formula. The PTE’s share of receipts, property and payroll of a partnership or joint venture is included in the entity’s factors as if they were the direct receipts, property and payroll of the entity. The partnership share is included only to the extent of the factors required for the PTE. SCHEDULE B - MEMBER'S INFORMATION INSTRUCTIONS Enter all information requested in this schedule. Enter the name, address and Social Security number or FEIN of each member. Also check the applicable box to identify the member as a resident, or nonresident or nonresident entity of Maryland. For each shareholder, the pro rata share of income/loss is a portion of the amount on line 2, page 1 of Form 510. For other members, the distributive share of income/loss is a portion of the amount on line 2, page 1 of Form 510. Enter the amount of tax paid on behalf of each nonresident/ resident member included in line 15. Enter the distributive or pro rata share of the business income tax credit being claimed by each member from Forms 500CR or 502S. For multiple credits enter the total distributive or pro rata amount for each member. See the instructions for Forms 500CR or 502S. Reminder: The PTE must file Form 510 electronically to pass on a business tax credit from Form 500CR or from Form 502S. Enter the total distributive or pro rata share of tax paid, and the total distributive or pro rata share of tax credit for individual members, fiduciary members, pass-through entity members, 7 COMPTROLLER OF MARYLAND REGISTRATION & TAXES Registration and Licensing All new businesses (corporations, S corporations, partnerships, limited liability companies, business trusts, and sole propri­e torships) can file a single application with the Central Registration Unit of the Revenue Administration Division of the Comptroller’s Office to establish accounts for employer income tax withholding, sales and use tax, admissions and amusement tax, tire recycling fee, motor fuel tax, alcohol tax and tobacco tax. The Revenue Administration Division offers assistance for filing applications and establishing accounts. The Central Registration Unit assigns a single state identification number for the taxes listed above. Register online at marylandtaxes.gov. To obtain a direct wine shipper's permit and a common carrier permit, businesses may apply with the Licensing Unit of the Alcohol and Tobacco Commission. Corporation Income Tax The corporation income tax applies to every Maryland corporation and every other corporation which has a nexus with Maryland. Nexus is the term used to indicate a taxable connection between a corporation and a taxing authority. If a corporation conducts business activity within Maryland and exceeds the provisions of U.S.C.A. Title 15, Section 381 of the Interstate Commerce Act (P.L. 86-272) it has a nexus and must file an income tax return. The tax is based on federal taxable income after state modifications. Corporations engaged in multistate operations must allocate income using an apportionment formula, generally consisting of receipts, property and payroll factors. The tax is imposed at a flat rate of 8.25% of Maryland taxable income. Employer Withholding of Income Tax Employers making payments to individuals of salaries, wages or compensation for personal services must withhold income tax and remit the withholding to the Revenue Administration Division. The amount of tax to be withheld is prescribed in published tables which are based on the individual income tax rates. Sales and Use Tax This tax applies to businesses selling in Maryland, facilitating sales into Maryland via a marketplace, or purchasing out of state for Maryland use. The general Maryland sales and use tax rate is 6%. An 8% rate is imposed on rental trucks, and peer-to-peer car sharing and a rate of 11.5% is charged on rentals of passenger cars and recreational vehicles. A 9% tax rate is also imposed on alcoholic beverages and cannabis. A rate of 12% is imposed on the sale of electronic smoking devices and tobacco pipes. A rate of 60% is imposed on the sale of vaping liquid in containers of 5ml or less. Most sales of food by substantial grocery or market businesses are not subject to tax. Specific prepared foods purchased in grocery stores are subject to tax. Other exemptions include all sales solely for resale, medicine, energy for residential use, manufacturing machinery and equipment, and cer tain agri­c ultural equipment and supplies. For exemptions not listed, visit marylandtaxes.gov. Electronic Smoking Devices and Tobacco Pipes The tax on the sale of electronic smoking devices (ESDs) and tobacco pipes is 12% of the charge for the ESD or tobacco pipe. Vaping Liquid The tax on the sale of vaping liquid in containers of 5ml or less is 60% of the charge for the vaping liquid. Truck Rentals and peer-to-peer car sharing The tax for a truck rental and peer-to-peer car sharing is 8 cents for each exact dollar; and 2 cents for each 25 cents of part of 25 cents in excess of an exact dollar. 911 Fe e S ur c har ge Seller s of pr epaid wir ele s s telecommunications services are required to report and remit to the Comptroller all Prepaid Wireless E-9-1-1 Fees collected by the seller for retail transactions of prepaid wireless telecommunications. The Prepaid Wireless E-9-1-1 Fee is 60 cents per retail transaction. The seller must report the fees collected on a Maryland Sales and Use Tax return, although the Prepaid Wireless E-9-1-1 Fee itself is not subject to Maryland sales and use tax. Motor Fuel Tax Generally, this tax applies to businesses selling or using motor fuel in Maryland. The Maryland motor fuel tax rate is currently 36.10¢ per gallon of gasoline and 36.85¢ per gallon of diesel fuel. There are other require­ments for motor carriers, dealers, special fuel users, sellers and service station operators. Maryland implemented the International Fuel Tax Agreement (IFTA) for motor carriers on 1/1/96. Alcohol and Tobacco Tax These taxes apply to businesses manufacturing, selling, distributing or storing alcoholic beverages or selling and/or distributing cigarettes and other tobacco products in Maryland. The Maryland excise tax rates on alcoholic beverages are $1.50 per gallon of distilled spirits, 40¢ per gallon of wine, and 9¢ per gallon of beer. The tobacco tax rate is $3.75 per pack of 20 cigarettes; the rate is 53% of the wholesale price for other tobacco products. Admissions and Amusement Tax This tax is imposed on a variety of activities, such as admission to any place, including motion pictures, athletic events, races, shows or exhibits. Also subject to this tax are receipts from athletic equipment rentals, bingo, coin-operated amusement devices, boat rides and excursions, amusement rides, golf green fees, golf cart rentals, skating, bowling shoe rentals, lift tickets, riding academies, horse rentals, and merchandise, refreshments, or a service sold or served in connection with entertainment. The admissions and amusement tax is a local tax collected by the Comptroller’s Office on behalf of Maryland’s counties, Baltimore City, other incorporated cities and towns. The tax is set by the localities at rates varying from one-half of 1% to 10% of the admissions and amusement receipts. When the gross receipts are also subject to the sales and use tax, the combined tax rate may not exceed 11%. A separate State admissions and amusement tax is imposed on the net proceeds from electronic bingo or electronic tip jars. When the net proceeds are also subject to a local tax, the combined tax rate may not exceed 35%. Digital Advertising Gross Revenues Tax Quarterly estimated tax returns for this tax type must be filed by every person that reasonably expects its Maryland gross revenues attributable to digital advertising services, including banner advertising, search engine advertising, interstitial advertising, and other comparable advertising services, to exceed $1,000,000 for the calendar year. The applicable tax rate depends on the person’s global annual gross revenues and ranges from 2.5% to 10% of annual gross revenues derived from digital advertising services in Maryland. Annual returns are due by April 15 of the next calendar year. Tire Recycling Fee This fee applies to tire wholesalers or a tire retailer who buys tires from out-of-state sources. Registration and payment of the fee is handled by the Revenue Administration Division. Utility Surcharges These surcharges are collected by electric companies that deliver electricity in Maryland and by telephone companies doing business in Mar yland. The electricity surcharges are then paid to the Comptroller for deposit in the Environmental Trust and Universal Service Program Funds. The telecommunications surcharges are paid to the Comptroller for deposit in the 911 Emergency Telephone System and Communications Access of Maryland Funds. The utilit y surcharges are collected by the Revenue Administration Division. Direct Wine Shipper's Permit This permit is required for all in-state and out-of-state wine manufacturers that ship wine, including pomace brandy, directly to a Maryland consumer through a common carrier, such as Federal Express or UPS. Common Carrier Permit This permit is required for a common carrier to deliver wine to a Maryland consumer. OTHER REGISTRATIONS & TAXES New Corporations In addition to registering with the Central Registration Unit of the Comptroller’s Office, all corporations doing business in Maryland must register with the Department of Assessments and Taxation. This is also the office to contact to form a new corporation. Bay Restoration Fee This fee is collected by all non-exempt local governmental entities, billing authorities, drinking water and sewage water treatment plant owners, who provide water or sewage services to residential, multi-residential, and nonresidential users. County governments are responsible for collecting a septic fee from owners of private wells and septic systems. The fees are remitted by these entities quarterly to the Comptroller for deposit to the Bay Restoration Fund. Public Service Company Franchise Tax In addition to corporation income tax, public service companies are subject to the franchise tax on gross receipts. This tax is administered by the Department of Assessments and Taxation. Insurance Company Premium Tax Insurance companies are exempt from the corpora­tion income tax but are subject to the premium tax that is administered by the Maryland Insurance Administration. Unemployment Insurance Employers are subject to the Maryland Department of Labor’s unemployment insurance requirements and must visit the Maryland Department of Labor website at: employer.beacon.labor.md.gov/ to establish an account. Workers’ Compensation Employers in Maryland must provide Workers’ Compensation Insurance for all employees. Employers may obtain coverage from a private insurance company, by becoming self-insured or by contacting the State Injured Workers’ Insurance Fund. Employers believing they are not required to obtain this insurance may contact the Workers’ Compensation Commission for certification of compliance. Business Licenses Licenses are required for certain businesses to operate in Maryland. To determine if a license is necessary, contact the clerk of the circuit court in the Maryland county (or Baltimore City) where the business operates. A circuit court is located in each of those jurisdictions. OTHER REQUIREMENTS Bulk Sales When an existing business is bought, the purchaser must pay a 6% bulk sales and use tax on the price of tangible personal property, such as furniture and fixtures, that is part of the business. This tax is collected by the Compliance Division of the Comptroller’s Office. Dissolution of Corporation Articles of Dissolution must be filed with the Department of Assessments and Taxation for the dissolution of a corporation. A tax clearance certificate is no longer required for the dissolution of a corporation. Unclaimed Property Unclaimed funds such as wages, insurance benefits, bank accounts or security deposits must be reported if they remain unclaimed for three years. This property must be reported to the Unclaimed Property Division. NOTE: The information provided on this page is a brief summary of the various Maryland business requirements and is based on the law in effect as of 7/1/2023. For additional information, see the next page for the addresses and phone numbers of the Maryland agencies most frequently contacted by businesses. MARYLAND STATE AGENCIES MOST FREQUENTLY CONTACTED BY BUSINESSES COMPTROLLER OF MARYLAND. . . . . .marylandtaxes.gov Online business registration . . . . . . . marylandtaxes.gov New businesses can register online and set up tax accounts any time 24 hours a day. For other new business information, visit the Business License Information System at choosemaryland.org/blis OTHER AGENCIES Department of Agriculture 50 Harry S. Truman Parkway . . . . . . . . . 410-841-5700 Annapolis, MD 21401 . . . . . . . . . . . . or 800-492-5590 . . . . . . . . . . . . . . . . . . . . . mda.maryland.gov Conservation tillage equipment certification. . . 410-841-5866 410-767-1579 410-649-0633 888-614-6337 410-767-1530 800-492-1752 410-767-1700 800-782-7383 Department of Assessments & Taxation 301 W. Preston Street, Room 801 Baltimore, MD 21201-2395 . . . . . . . . . . . . . . . . . . . . . dat.maryland.gov Charter/incorporation information. . . . . . . . 410-767-1350 Public service company franchise tax. . . . . . 410-767-1940 New corporation information. . . . . . . . . . 410-767-1350 Resident agent information. . . . . . . . . . . 410-767-1330 Personal property tax assessments. . . . . . . 410-767-1170 . . . . . . . . . . . . . . . . . . . . . . or 888-246-5941 Property tax credits . . . . . . . . . . . . . . 410-767-4433 Good Standings . . . . . . . . . . . . . . . . 410-260-7352 . . . . . . . . . . . . . . . . . . . . . . or 888-784-0144 Department of Commerce 401 E. Pratt St. . . . . . . . . . . . . . . . . 410-767-6300 Baltimore, MD 21202 . . . . . . . . . . . . or 888-246-6736 . . . . . . . . . . . . . . . . . . commerce.maryland.gov Tax Incentives. . . . . . . . . . . . . . . . . 410-767-6438 Compliance Division 301 W. Preston Street Baltimore, MD 21201-2383 Bulk sales. . . . . . . . . . . . . . . . . . . Business tax collections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or Sales & use tax and tire fee refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . or Unclaimed property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or General Accounting Division Goldstein Treasury Building, Room 200 Annapolis, MD 21404-0746 Field Enforcement Division Goldstein Treasury Building, Room 310 Annapolis, MD 21404-2397 Enforcement & Inspections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or State License Bureau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or Motor Fuel Testing Laboratory. . . . . . . . . 410-260-7388 888-674-0017 410-260-6240 866-239-9359 410-799-7777 Revenue Administration Division Revenue Administration Center Annapolis, MD 21411-0001 Forms (all income tax and employer withholding) . . . . . . . . . . . . . . . . . . . . . . 410-260-7951 Facsimile transmittal. . . . . . . . . . . . . . 410-974-2967 Taxpayer Services Division Income tax information . . . . . . . . . . . . (Corporation, Individual, Fiduciary, Pass-Through Entity).or Income tax refund inquiries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or Tax-exempt organization registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . or 410-260-7980 800-638-2937 410-260-7701 800-218-8160 410-260-7980 800-638-2937 Motor-fuel, Alcohol & Tobacco Tax Unit P.O. Box 2999 Annapolis, MD 21404-2999 Motor-fuel Licensing & Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . or Motor Carrier & IFTA Licensing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or Alcohol & Tobacco Licenses & Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . or 410-260-7980 800-638-2937 410-260-7980 800-638-2937 410-260-7980 800-638-2937 Annapolis area office (by appointment only)
Extracted from PDF file 2023-maryland-pass-through-booklet.pdf, last modified December 2023

More about the Maryland Pass-Through Booklet Corporate Income Tax TY 2023

Instructions for filing pass-through entity income tax returns.

We last updated the Maryland Income Tax Form Instructions for Pass-Through Entities in February 2024, so this is the latest version of Pass-Through Booklet, fully updated for tax year 2023. You can download or print current or past-year PDFs of Pass-Through Booklet directly from TaxFormFinder. You can print other Maryland tax forms here.


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Other Maryland Corporate Income Tax Forms:

TaxFormFinder has an additional 41 Maryland income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 510 Pass-Through Entity Tax Return
Form 500E Application for an Extension to File Corporation Income Tax Return
Fiduciary Booklet Maryland Instructions for Fiduciaries
510 Schedule K-1 Maryland Pass-Through Entity Members Information
500CR-Instructions Business Income Tax Credits

Download all MD tax forms View all 42 Maryland Income Tax Forms


Form Sources:

Maryland usually releases forms for the current tax year between January and April. We last updated Maryland Pass-Through Booklet from the Comptroller of Maryland in February 2024.

Show Sources >

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Maryland Pass-Through Booklet

We have a total of seven past-year versions of Pass-Through Booklet in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2023 Pass-Through Booklet

2023 Pass-Through Entity Booklet

2022 Pass-Through Booklet

2022 Pass-Through Entity Income Tax Return Instructions

2021 Pass-Through Booklet

2021 PTE 510 Booklet

2020 Pass-Through Booklet

Pass-Through Entity Income Tax Return Instructions

2019 Pass-Through Booklet

Tax Year 2019 - Maryland 2019 Pass-Through Entity Income Tax Return Instructions

2017 Pass-Through Booklet

TY-2017-PTE_Booklet.pdf


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