Ch. 2

LAWS OF MARYLAND

subtitle clearly requires that the accounting method
and period used on a federal return be used on a
Maryland return.

In subsections (a) and (b) of this section, the
defined term "person" is substituted for the former
word "taxpayer", for clarity.

Also in subsections (a) and (b) of this section, the

defined term "Maryland taxable income" is substituted

for the former word "income", for clarity and
consistency.

In the introductory language of subsection (a) of this
section, the former phrase "upon the basis of the
taxpayer's annual accounting period (fiscal year or
calendar year, as the case may be)" and the former
word "basis" are deleted as surplusage.

In subsection (a)(2) of this section, the reference to

the method that the Comptroller "requires" is

substituted for the former reference to "such manner,

as in the opinion of the Comptroller" reflects income,
for clarity.

Also in subsection (a)(2) of this section, the former
clause "if no such method of accounting has been
employed or if the method employed does not clearly
reflect the true income of the taxpayer" is deleted as
surplusage.

Subsection (b) of this section is revised to state
expressly that a person must use a calendar year basis
unless the person keeps adequate records.

Defined terms: "Comptroller" § 1-101
"Maryland taxable income" § 10-101
"Person" § 1-101

10-503. WHEN INDIVIDUAL DIES.

THE TAXABLE YEAR OF AN INDIVIDUAL TERMINATES ON THE DATE OF
DEATH.

REVISOR'S NOTE: This section is new language substituted
for the second sentence of former Art. 81, § 284(b).

This substitution avoids the ambiguity of the former
reference to "income amounts accrued up to the date of
his death", which could be read to require use of an
accrual basis, rather than a cash basis, on the death
of an individual.

Defined terms: "Individual" § 10-101
"Taxable year" § 10-101

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