Except as otherwise provided in this subtitle, if a person or governmental unit fails to pay a tax when due under this article, the tax collector shall assess a penalty not exceeding 10% of the unpaid tax. If a person fails to pay alcoholic beverage tax, financial institution franchise tax, or tobacco tax when required under this article, the tax collector shall assess a penalty not exceeding 25% of the unpaid tax. If a person fails to file a motor carrier tax return or motor fuel tax return when required under this article, the Comptroller shall assess a penalty not exceeding $25. The penalty under subsection (a) of this section may be assessed for unpaid inheritance tax at or after the time allowed for the assessment of interest under § 13-601(c) of this title.

Except as provided in subsections (b) and (c) of this section, a tax collector shall assess a penalty not exceeding 25% of the amount underestimated, if a person who is required to estimate and pay digital advertising gross revenues tax, financial institution franchise tax, public service company franchise tax, or income tax under § 7.5–301, § 8–210(b), § 8–405(b), or § 10–902 of this article: fails to pay an installment when due; or estimates a tax that is: less than 90% of the tax required to be shown on the return for the current taxable year; and less than 110% of the tax paid for the prior taxable year, reduced by the credit allowed under § 10–703 of this article. A penalty may not be assessed on the underestimation of individual income tax if: at least 90% of the individual’s taxable income is also taxable by another state; and the underestimation is of the county income tax only. A tax collector may not assess a penalty on unpaid individual income tax under subsection (a) of this section if the amount of unpaid income tax is less than one-half the amount specified in § 6654(e)(1) of the Internal Revenue Code.

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 tax return, the tax collector shall assess a penalty not exceeding 100% of the tax due. If, with the intent to evade the payment of tax, a person hired to prepare a tax return makes a false tax return, the tax collector shall assess the hired preparer a penalty not exceeding 100% of the tax due.

If, with the intent to evade the payment of tax, a person or governmental unit fails to file a tax return when required under this article, the tax collector shall assess a penalty not exceeding 100% of the underpayment of tax.

The Comptroller shall assess a penalty not exceeding $500 if: an individual, as defined under § 10–101 of this article, files what purports to be an income tax return, but which: does not contain information on which the substantial correctness of the tax may be determined; or contains information that, on its face, indicates the tax reported on the return is substantially incorrect; and the conduct of the individual is due to: a desire, apparent on the face of the return, to delay or impede the administration of the provisions of Title 10 of this article; or a position that is frivolous because the position: has no basis in law or fact; is patently unlawful; and does not involve a legitimate dispute or reflect an inadvertent mathematical or clerical error. The penalty under subsection (a) of this section is in addition to any penalty assessed under § 13–701 of this subtitle.

If a person is required to provide an income tax withholding statement under § 10-911 of this article, the Comptroller shall assess a penalty of $50 for each violation, if the person willfully: fails to provide a required withholding statement; or provides a false withholding statement.

If a person is required to provide an annual withholding reconciliation report under § 10–911 of this article, the Comptroller shall assess a penalty of $100 for each violation if the person willfully: fails to provide a required annual withholding reconciliation report; or provides a false annual withholding reconciliation report.

If an employer or payor, as defined in § 10-905 of this article, willfully fails to withhold or pay over the income tax as required in Title 10 of this article, the Comptroller may suspend or revoke any business license issued by the State to the employer or payor. If a motor carrier fails to file a motor carrier tax return or pay the motor carrier tax when required under Title 9, Subtitle 2 of this article, the Comptroller may suspend or revoke any identification marker, permit, or temporary authorization issued to the motor carrier under Title 9, Subtitle 2 of this article. If a motor carrier fails to pay a tax, a fee, a penalty, or an interest assessment owed to the Maryland Motor Vehicle Administration, the Comptroller shall, upon receipt of notification from the Motor Vehicle Administration, suspend or revoke the appropriate identification marker, permit, or temporary authorization issued to the motor carrier under Title 9, Subtitle 2 of this article.

If, within the period required in a notice and demand for a return, a person or governmental unit fails to file the return and pay the tax due, the tax collector shall assess a penalty of 25% of the tax assessed under § 13-402 of this title. A penalty under this section is in addition to the penalty provided under § 13-701 of this subtitle.

If, within 10 days after receipt of a notice and demand for payment of a sales and use tax assessment that is final, a person or governmental unit fails to comply with the demand, the Comptroller shall assess a penalty of 25% of the unpaid assessment. The penalty under subsection (a) of this section is in addition to the penalty provided under § 13-701 of this subtitle.

If the Comptroller, the Executive Director, or any police officer seizes distilled spirits or mash in connection with an arrest of a person for the unlawful manufacture of distilled spirits in the State, on conviction of the person, the Comptroller shall assess a penalty of $5 for each 100 proof gallon on: all distilled spirits seized; or the potential quantity of distilled spirits that may be manufactured from the quantity of mash seized.

If a person willfully fails to keep any record required under § 12-203 of this article, the Comptroller may assess a penalty not exceeding 25% of the unpaid tobacco tax.

If, with the intent to evade the boxing and wrestling tax, a person sells a program or other item instead of an admission ticket, the person shall forfeit any license granted to the person under Title 4, Subtitle 3 of the Business Regulation Article.

If a person pays a tax, interest, or penalties under this article by a check that is not honored by the bank on which it is drawn, the tax collector shall assess a service charge of $30 against the person. An assessment under subsection (a) of this section that is not paid within 25 days after the date on which the notice of assessment is mailed is a lien, in favor of the State, that: extends to all property and rights to property belonging to the person against whom the assessment is made; and may be collected under Subtitle 8, Part II of this title.

For reasonable cause, a tax collector may waive a penalty under this subtitle. The Comptroller shall waive any penalty under this subtitle for a person’s failure to pay income tax when due under this article if: the unpaid income tax is due for a taxable year during which the person owing is incarcerated; and the person applies for and is placed on an installment payment plan under the Income Tax Reconciliation Program established under § 2–120 of this article.

Subject to the provisions of paragraph (2) of this subsection, any person who is an income tax return preparer with respect to any return or claim for refund, who is required under § 10-804(b)(2) of this article to sign the return or claim for refund, and who fails to comply with that requirement with respect to the return or claim for refund shall pay a penalty of $50 for that failure, unless it is shown that the failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year may not exceed $25,000. Subject to the provisions of paragraph (2) of this subsection, any person who is an income tax return preparer with respect to any return or claim for refund and who fails to comply with § 10-804(c)(3) of this article with respect to the return or claim for refund shall pay a penalty of $50 for that failure, unless it is shown that the failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year may not exceed $25,000. The Attorney General may bring an action in the name of the State or the Comptroller to enjoin a person from acting as an income tax return preparer as defined in § 7701 of the Internal Revenue Code. A court may enjoin a person from acting as an income tax return preparer if the court determines: that the income tax return preparer: failed to comply with § 10–804(b)(2) or (c)(3) of this article; misrepresented the income tax return preparer’s experience, education, or registration as an income tax return preparer; guaranteed the payment of a tax refund or a tax credit; or engaged in any other fraudulent or deceptive conduct that substantially interferes with the proper administration of this article; and that injunctive relief is appropriate to prevent the recurrence of the conduct specified in this paragraph. The Attorney General shall bring the action in the county where the defendant: resides; or engages in the practice of income tax return preparation.

The Comptroller shall assess a penalty of 25% of the amount of the underpayment of tax which is attributable to any substantial estate tax valuation understatement. For purposes of this section, there is a substantial estate tax valuation understatement if the value of any property claimed, or that should have been claimed, on any return of tax imposed by Title 7, Subtitle 3 of this article is 60% or less of the amount determined to be the correct amount of that valuation. A penalty may not be imposed under subsection (a) of this section unless the portion of the underpayment attributable to substantial estate tax valuation understatement is greater than $5,000.

An income tax return preparer who is subject to § 10–824 of this article and who fails to file a return as required in § 10–824 of this article shall pay a penalty of $50 for that failure, unless it is shown that the failure is due to reasonable cause and is not due to willful neglect. The total amount of the penalties assessed under subsection (a) of this section may not exceed $500 for all returns filed by an income tax return preparer for any taxable year.