WILLIAM DONALD SCHAEFER, Governor

Ch. 2

10-504. CHANGING ACCOUNTING PERIOD.

(A)  IN GENERAL.

A PERSON MAY CHANGE THE ACCOUNTING PERIOD USED TO COMPUTE
MARYLAND TAXABLE INCOME TO ANY OTHER PERIOD THAT THE COMPTROLLER
APPROVES.

(B)  SHORT-PERIOD RETURN REQUIRED.

IF A PERSON CHANGES ACCOUNTING PERIODS, THE PERSON SHALL
FILE A SEPARATE RETURN FOR THE PERIOD BETWEEN THE CLOSE OF THE
PREVIOUS ACCOUNTING PERIOD AND THE BEGINNING OF THE NEWLY ADOPTED
ACCOUNTING PERIOD.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
284(e) and the first clause of (d).

In subsection (a) of this section, the reference to
computation of "Maryland taxable income" is added to
clarify the purpose of the accounting period.

Also in subsection (a) of this section, the defined
term "person" is substituted for the former word "he",
for clarity.

Also in subsection (a) of this section, the general
reference to a "change ... to any other period" is
substituted for the former enumeration of the
different changes in accounting periods that could be
made.

Also in subsection (a) of this section, the former
clause "[i]f the taxpayer does not file a federal
income tax return" is deleted to avoid the inaccurate
inference that a person who files a federal return is
precluded from changing accounting periods even with
the approval of the Comptroller.

Subsection (b) of this section is revised in the
active voice to state expressly that the person must
file the short-period return.

In subsection (b) of this section, the term "annual
accounting periods" is substituted for the former
references to "the period of computing income" and
"the change", for clarity.

Also in subsection (b) of this section, the general
references to "the previous accounting period" and
"the newly adopted accounting period" are substituted
for the former enumeration of the different periods
and dates that could be applied.

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