Ch. 2                                    LAWS OF MARYLAND

(1)  FAILS TO PAY AN INSTALLMENT WHEN DUE; OR

(2)  ESTIMATES A TAX THAT IS:

(I)  LESS THAN 50% OF THE TAX REQUIRED TO BE
SHOWN ON THE RETURN FOR THE CURRENT TAXABLE YEAR; AND

(II)  LESS THAN THE TAX PAID FOR THE PRIOR
TAXABLE YEAR.

(B) INCOME TAX.

A TAX COLLECTOR SHALL ASSESS A PENALTY NOT EXCEEDING 25% OF
THE AMOUNT UNDERESTIMATED, IF A PERSON WHO IS REQUIRED TO
ESTIMATE AND PAY INCOME TAX UNDER § 10-803 OF THIS ARTICLE:

(1)  FAILS TO PAY AN INSTALLMENT WHEN DUE; OR

(2)  ESTIMATES A TAX THAT IS:

(I) LESS THAN 90% OF THE TAX REQUIRED TO BE
SHOWN ON THE RETURN FOR THE CURRENT TAXABLE YEAR; AND

TAXABLE YEAR.

(II) LESS THAN THE TAX PAID FOR THE PRIOR

REVISOR'S NOTE: Subsection (a) of this section is new
language added to state expressly that which only was
implied by former Art. 81, §§ 128(h)(1) and
128A(f)(l), which made a financial institution failing
to "pay ... any portion of a tax ... subject to the
... penalties ... in the subtitle 'Income Tax'".

Subsection (b) of this section is new language derived
without substantive change from former Art. 81, §
312(o), as it related to penalties.

The Tax - General Article Review Committee notes, for
consideration by the General Assembly, that only
interest is assessed for underpayment of estimated
public service company franchise tax. There is no
provision for the assessment of a penalty.

Defined terms:     "Financial institution

franchise   tax" § 1-101

"Income tax" §   1-101 "Person" § 1-101
"Tax collector" § 13-101

13-703. FALSE RETURNS.

IF, WITH THE INTENT TO EVADE THE PAYMENT OF TAX, A PERSON,
INCLUDING AN OFFICER OF A CORPORATION, OR A GOVERNMENTAL UNIT
MAKES A FALSE FINANCIAL INSTITUTION FRANCHISE TAX, INCOME TAX, OR
SALES AND USE TAX RETURN, THE TAX COLLECTOR SHALL ASSESS A
PENALTY NOT EXCEEDING:

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