2390

LAWS OF MARYLAND

Ch. 387

(II) CONTAINS INFORMATION THAT ON ITS FACE
INDICATES THAT THE TAX REPORTED IS SUBSTANTIALLY INCORRECT; AND

(2) THE CONDUCT REFERRED TO IN PARAGRAPH (1) IS DUE
TO

(I)  A POSITION WHICH IS FRIVOLOUS, OR

(II)  A DESIRE (WHICH APPEARS ON THE PURPORTED
RETURN) TO DELAY OR IMPEDE THE ADMINISTRATION OF MARYLAND INCOME
TAX LAWS,

THEN SUCH INDIVIDUAL SHALL PAY A PENALTY AS DETERMINED BY THE
COMPTROLLER, BUT NOT TO EXCEED $500.

(C) FOR PURPOSES OF SUBSECTION (B)(2) OF THIS SECTION, THE
TERM "FRIVOLOUS" MEANS HAVING NO BASIS IN LAW OR FACT AND APPLIES
ONLY TO RETURNS SETTING FORTH POSITIONS WHICH ARE PATENTLY
UNLAWFUL AND NOT TO THOSE SETTING FORTH VALID DISPUTES OR
CONTAINING PURELY INADVERTENT MATHEMATICAL OR CLERICAL ERRORS.

(C) IN DETERMINING WHETHER TO IMPOSE THE PENALTY PROVIDED
FOR IN SUBSECTION (B) OF THIS SECTION, THE COMPTROLLER SHALL, AS
FAR AS PRACTICABLE, APPLY THE ADMINISTRATIVE AND JUDICIAL
INTERPRETATIONS OF THE FEDERAL INCOME TAX LAW.

(D) IF THE INDIVIDUAL IS DISSATISFIED WITH THE PENALTY, THE
INDIVIDUAL MAY APPEAL TO THE MARYLAND TAX COURT WITHIN 30 DAYS
FROM THE DATE OF NOTICE OF THE IMPOSITION OF THE PENALTY.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1984.

Approved May 15, 1984.

CHAPTER 388

(House Bill 109)

AN ACT concerning

Comptroller of the Treasury - Secrecy of Returns

FOR the purpose of permitting the disclosure of certain taxpayer
identity information in certain circumstances and defining a
term.

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes