If you refuse to make payment arrangements, or you fail to follow through on arrangements that you have made, the Comptroller's Office may enforce any combination of the following actions against you. For information about each enforcement action, follow the links below.
MVA License/Registration Nonrenewal Salary LienIf you do not make payment arrangements on a tax debt, under Maryland law, the Comptroller is authorized to garnish a portion of your disposable wages to satisfy the liability. If you have any questions, please contact our Collection Section at 410-974-2432.
File a Tax Lien
A notice of tax lien may be filed with the clerk of the circuit court where your business or residence is located. The lien has the same force and effect as a court issued judgment lien. A lien may affect your ability to maintain existing credit, secure new credit, or obtain a security clearance. The recorded lien serves as notice that the state may have a claim against your assets. If you pay your tax lien, a certified copy of your release of lien must be submitted to the credit reporting agencies to have your credit report promptly updated to reflect your lien release. You may obtain a certified copy of your release from the circuit court where your tax lien was filed. The Comptroller does report lien releases to the credit agencies but if you need expedited service, it is your responsibility to obtain the required certified copy and contact the credit agency to update your credit report.
Professional Business License Hold External Collection Agency ReferralWe may assign your case to one or more of the following collection agencies. Additional fees may apply. Once your case has been assigned, arrangements for payment must be made through that agency. IC System 444 Highway 96 East
St. Paul, MN 55127
Phone: 1-888-255-5745 Penn Credit 2800 Commerce Drive
Harrisburg, PA 17110
Phone: 1-800-900-1360
Liabilities due to various state agencies, including the Comptroller, are matched against state and federal tax refunds, federal vendor payments and state vendor payments. When a liability is matched to a payment, a letter is mailed to the taxpayer or vendor listing the billing agency, the invoice date, and amount. This letter also identifies the type of tax or liability due and the appropriate state agency telephone number needed to resolve the issue. If the liability is not satisfied, the intercepted funds will be applied to your account and the taxpayer or vendor will receive notification of same.
Penalty & Interest ChargesIf you do not respond to the first notice, you will receive an assessment notice that will include substantial penalty and interest charges. Under Maryland law, the assessment notice is presumed correct, and you would be required to file an appeal and request a hearing within 30 days of the assessment in order to dispute the amount due. Collection procedures will begin after the expiration of the 30-day period to appeal the assessment. Your assessment will depend on the amount of taxes that we believe you owe. Maryland law requires us to charge interest at the annual rate of 10% during calendar year 2021, 9.5% during calendar year 2022, 9% during calendar year 2023 and 10.0075% in calendar year 2024. Interest will be calculated from the date the return was originally due. Penalty charges for late payments can be up to 25 percent of the amount of tax you owe. You can file an appeal within 30 days of an assessment by sending an email to: cdcprograms@marylandtaxes.gov For assistance in calculating interest for unpaid taxes, use the Maryland Unpaid Tax Interest Calculator.
Attach Your Assets
The Comptroller of Maryland regularly requests the seizure of bank accounts and also has the ability to seize liquor licenses, cash on the premises, equipment, vehicles, inventory and real property.
