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CCH Axcess Tax

Maryland Electronic Filing Information

Maryland Corporate returns (hereafter referred to as "MD") may be filed electronically for the current tax year by utilizing the Federal/State Electronic Filing Program. This program allows the ability to file both the federal and Maryland returns in one transmission. The state tax data is subsequently retrieved by the State of Maryland Revenue Administration (hereafter referred to as the "MRAD").

Maryland Electronic Filing Procedural Steps Return Eligibility

The following MD forms are eligible for electronic filing:

• Pass-Through Entity Income Tax Return (Form 510)
• Pass-Through Entity Income Tax Return Members' Information (Schedule B)
• Application for Extension to File Pass-Through Entity Income Tax Return (Form 510E)
• Underpayment of Estimated Income Tax by Pass-Through Entities (Form 500UP)
• Decoupling Modification (Form 500DM)
• Business Income Tax Credits (Form 500CR)
• Sustainable Communities Tax Credit (Form 502S)
• Schedule K-1 from Pass-Through, Electronic Filing (Form EF K-1)

Additional Documents to be provided:

• Signature Document (Form EL101B)
• Payment Voucher for filers with a balance due (Form EL102B)

Exclusions to MD business e-file:

• Estimated Pass-Through Entity Nonresident Tax (Form 510D)
• Composite Application for Extension of Time to File (Form 502E)
• Composite Pass-Through Entity Income Tax Return (Form 510C)
• Maryland Corporation Income Tax Return (Form 500)
• Pass-Through Entity Member's Information (Form SCH K-1)

General Information Regarding the MD E-file Program

Electronic filing Mandates

The MRAD does not mandate electronic filing of Corporation returns.

MD Electronic Filing Election

Steps to create an electronic file for a single entity return

1. Set up the E-file information in the federal Electronic Filing worksheet. To set up the MD file to be e-filed, select the option on the General section of the federal Electronic filing worksheet to file all states electronically or use the electronic filing override on the Maryland General worksheet, Basic Data section. .
2. Corporations included in a consolidated filing for federal income tax purpose must file separate returns for MD purposes and attach an XML copy of pages 1 through 5 of the actual consolidated federal return to each MD filing. Each MD filing must also include an XML or PDF copy of the columnar schedules of income & expense and balance sheet items (which are required for federal filing), reconciling the separate items of each member corporation to the consolidated totals.
3. Clear all diagnostics. It is important to clear all diagnostics, this includes both federal and MD diagnostics without using the override code. This is the only way to ensure that the return will be safely transmitted to MDDOR to be evaluated for acceptance.
4. Export the return - once the return has qualified for E-filing, go to File, Export, Electronic filing, and click return.

Creating, Releasing and Transmitting the MD Electronic File

Single Entity Return

If the MD return qualifies for electronic filing after completing the calculation, create the electronic file and print the Form EL101B by selecting File/Export/Electronic Filing from the menu in Tax Preparation. The MD electronic file is created, released and transmitted simultaneously with the federal electronic file. An MRAD-formatted file is created and Form EL101B prints. The Form EL101B must be signed by the business taxpayer, ERO, and paid preparer prior to the transmission of the e-file return. This form may retained by the preparer and business taxpayer or scanned and included as an PDF attachment to the e-file return. After exporting, the Upload Returns dialog displays. Then the option to Upload and hold the return or Upload and release to taxing authority will be available. The MD file will be transmitted to the MRAD. Therefore, no additional steps are required during this stage of processing.

Authorizing (Release) Returns to Transmit

Once the return is ready to be sent the IRS, release the return(s) through Tax Preparation using the Upload and release to tax authority feature or release the return(s) through the Electronic filing Status system. Please be logged on the Electronic Filing Status system to do this. Then select the return(s) to release, and they will automatically be transmitted to CCH to be released to the MRAD.

MD Acknowledgment

The presence of an electronically filed state return will be indicated by the code "MD" in the state (ST) column of the Electronic Filing Status system. The Electronic Filing Status system can be accessed by in tax prep by clicking on manage on the toolbar and selecting Electronic Filing Status. Once MRAD has retrieved the state tax data, an acknowledgment will be issued indicating an acceptance or rejection. The MD acknowledgment will most likely be processed in less than 2 business days.

Balance Due Returns

For the current tax year MD returns requiring payment will be eligible for e-file. There are 3 payment options:

• Electronic Funds Withdrawal (EFW). Banking information can be included in the return by entering the account number, routing transit number, and date of payment on the Basic Data worksheet, Direct Deposit/Electronic Funds Withdrawal Section
• Pay by Credit Card using MasterCard, Discover, American Express or Visa is also accepted. Credit card payments are processed by Official Payments Corporation who will charge a convenience fee on the amount of the payment. The State will not receive this fee. For more information on the on this program, go to www.marylandtaxes.com
• Paper Payment Voucher. The Payment Voucher is Form EL102B and will produce automatically in the return if Electronic Withdrawal banking information is not present on a balance due return. Mail the Payment Voucher to:
  • Comptroller of Maryland
  • Revenue Administration Division
  • PO Box 2601
  • Annapolis, MD 21404-2601

Important Information - Addresses and Phone Numbers

Electronic Filing Phone Support

Phone: 1-800-739-9998, option #3, option #1, option #3

Fax: 1-316-612-3405

Maryland Revenue Administration

e-Programs Customer Service Unit:

Available Monday through Friday, between 8 a.m. and 5 p.m. E.S.T

Phone: (410) 260-7753

Fax: (410) 974-2274

Email: efil@comp.state.md.us

Website: www.marylandtaxes.com