PARRIS N. GLENDENING, Governor

Ch. 406

(II) ANY AMOUNTS FOR WHICH AN AGENT HAS NOT RECEIVED TIMELY
PAYMENT FROM AN EMPLOYER OR PAYOR:

1. SHALL BE EXCLUDED FOR PURPOSES OF DETERMINING
WHETHER THE TOTAL AMOUNT OF PAYMENTS TO BE MADE BY AN AGENT FOR A PAY
PERIOD EXCEEDS $20,000 IN THE AGGREGATE; AND

2. MAY NOT BE REQUIRED TO BE PAID IN IMMEDIATELY
AVAILABLE FUNDS UNDER THIS PARAGRAPH.

(III) THIS PARAGRAPH DOES NOT IMPOSE OR AFFECT LIABILITY FOR
THE PAYMENT OF ANY TAX.

(b) Any regulations adopted by the Comptroller or the Department under this
section shall establish a suitable means for payment in immediately available funds so as
to insure the availability of those funds to the State on the date of payment.

(c) (1) Subject to paragraph (2) PARAGRAPHS (2) AND (3) of this subsection, if a
person fails to pay a tax imposed under this article on or before the date the tax is due in
immediately available funds as required by the regulations of the Comptroller or the
Department, the Comptroller or the Department shall assess interest and a penalty on
the unpaid tax from the date the tax is due to the date on which the funds from the tax
payment become available to the State.

(2) The Comptroller or the Department may waive interest and penalties on
late payments if the person required to pay the tax proves that:

(i) the person made a good faith effort to comply with the
requirements of this section; and

(ii) the person exercised due diligence to initiate payment correctly
and on a timely basis.

(3) (I) ANY INTEREST OR PENALTY ASSESSED UNDER THIS SECTION DUEL
TO AN AGENT'S FAILURE TO MAKE PAYMENT IN IMMEDIATELY AVAILABLE FUNDS AS
REQUIRED UNDER SUBSECTION (A)(3) OF THIS SECTION:

1. SHALL BE ASSESSED AGAINST AND PAID BY THE AGENT;

AND

2. IS NOT THE RESPONSIBILITY OF THE PAYOR OR EMPLOYER.

(II) THIS PARAGRAPH DOES NOT PREVENT ASSESSMENT OF INTEREST
AND PENALTY AGAINST A PAYOR OR EMPLOYER THAT IS REQUIRED TO MAKE PAYMENT
IN IMMEDIATELY AVAILABLE FUNDS WITHOUT REGARD TO SUBSECTION(A)(3) OF THIS
SECTION

(d) This section does not affect any requirement otherwise established by law for
the filing of any return, report, or other document.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 3, 1997.

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