Has the Comptroller of Maryland audited your individual or business tax returns and adjusted the amount of tax? You have the right to appeal the assessment to a hearing officer. Having a professional tax attorney can help you navigate the Comptroller of Maryland complex appeals process. Call today to request a free consultation and learn more.
What is a Comptroller of Maryland Audit?
The Comptroller of Maryland has various procedures in making sure that taxpayers are in compliance with their tax liability. Audits are conducted in order to determine that taxpayers are providing accurate information and paying the correct tax on their tax return or on unfiled returns. During the audit, the Comptroller of Maryland will request for various documents including bills, expenses, bank statements, and more. Being organized with your supporting documents will lead to a more efficient audit. However, if the taxpayer is lacking documents or has unreported income that has not been reported, it may be in the taxpayer best interest to hire a tax professional.
Once the audit has been concluded, either the taxpayer will have a tax liability, a refund, or no changes. The taxpayer can agree to make changes or contest the audit changes by filing an appeal.
When to File An Appeal of a Maryland Tax Assessment
For the Comptroller of Maryland, taxpayers have 30 days of the mailing of the notice of assessment to file an appeal for an informal hearing.
What Is An Informal Hearing?
An informal hearing is a meeting between the taxpayer or the taxpayer's representative and a hearing officer assigned by the Comptroller of Maryland. The taxpayer has the burden to show to the hearing officer that the tax assessment is incorrect. The taxpayer can introduce documents and witnesses at the informal hearing. The taxpayer can request that the hearing officer issue subpoenas for records or other witnesses. The hearing officer will review all provided documentation and evidence in regards to the disputed amount. An informal hearing is recorded and generally will last anywhere between 1-3 hours. It is best that once a hearing officer is assigned to the case to try to provide documentation before the date of the hearing. In some cases, there may be no need to have a hearing because enough substantiation was provided prior to the hearing date. In some instances, the taxpayer's representative and the hearing officer can come to an amicable settlement.
What Happens After the Hearing?
If a settlement has not been reached with the hearing officer, then the hearing officer will submit a notice of final determination. The notice of final determination is a summary of the adjustments made to your taxes and will explain the Comptroller's decision and the issues raised by the taxpayer. If the taxpayer is not satisfied with the hearing officer's outcome, the taxpayer can appeal to Maryland Tax Court for a de novo review. An appeal to Maryland Tax Court must be done within 30 days of the mailing of the notice of final determination.
Who Can the Comptroller of Maryland Audit?
There are a number of ways for a Maryland Audit or adjustment to a tax return. Here are a couple of them:
- CP2000- is a notice received from the IRS that changes have been made to your tax return because of unreported income. The Comptroller of Maryland will be notified by the IRS because there will be an adjustment to your adjusted gross income.
- IRS Audit- if a taxpayer has been audited by the IRS and adjustments were made by the IRS, the Comptroller of Maryland will be notified of those adjustments.
- General Audit- The Comptroller of Maryland is allowed by state tax law to independently audit Maryland income taxes. This can apply to individuals or businesses.
The Comptroller of Maryland is set by a statute of limitations to perform audits within a certain time period. In most cases, the Comptroller of Maryland has 3 years to perform an audit from the due date of the tax return or when the return is filed, whichever is later.
Hiring an experienced tax attorney to help you navigate this complex process will increase the chances of a successful outcome.
Contact the tax attorneys at Gabaie & Associates, LLC today to request a free consultation. We will review your tax documents, analyze the adjustments, and outline a strategy to minimize your tax liability. You have a limited amount of time to act, so do not hesitate to call us today.