Ch. 556                                    2004 LAWS OF MARYLAND

2. the amount of payments made and the income tax
withheld; [and]

(ii) a copy of the federal income tax return:

1.       for a corporation; and

2.       if the Comptroller requests, for an individual; AND

(III) IF THE COMPTROLLER REQUESTS, FOR A CORPORATION THAT
IS A MEMBER OF AN AFFILIATED GROUP OR CONTROLLED GROUP UNDER § 1504 OR §
1563 OF THE INTERNAL REVENUE CODE, A STATEMENT OF ALL INTERMEMBER COSTS
OR EXPENSES AND ALL INTERMEMBER SALES, EXCHANGES, OR OTHER
TRANSACTIONS INVOLVING TANGIBLE OR INTANGIBLE PROPERTY FOR THE TAXABLE
YEAR.

SECTION 2. AND BE IT FURTHER ENACTED, That:

(a)     all corporations required to make the addition to federal taxable income set
forth in § 10-306.1 of the Tax - General Article shall make estimated tax payments
under § 10-821 of the Tax - General Article that reflect any increased Maryland
corporation income tax liability resulting from the addition; and

(b)     notwithstanding the provisions of §§ 13-602 and 13-702 of the Tax -
General Article, with respect to those corporations required to make the addition to
federal taxable income set forth in § 10-306.1 of the Tax - General Article, for all
taxable years beginning in calendar year 2004 only, the payment of 110% or more of
the tax paid for the prior taxable year, reduced by the credit allowed under § 10-703
of the Tax - General Article, does not preclude the Comptroller from assessing:

(1)     interest, under § 13-602 of the Tax - General Article, on unpaid tax;
and

(2)     penalty, under § 13-702 of the Tax - General Article, on
underestimated tax.

SECTION 3. AND BE IT FURTHER ENACTED, That if any provision of this
Act or the application thereof to any person or circumstance is held invalid for any
reason in a court of competent jurisdiction, the invalidity does not affect other
provisions or any other application of this Act which can be given effect without the
invalid provision or application, and for this purpose the provisions of this Act are
declared severable.

SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take
effect July 1, 2004, and shall be applicable to all taxable years beginning after
December 31, 2003.

Enacted May 29, 2004.

- 2640 -