Chapter 02. Tax Payments — Immediately Available Funds

“ACH credit” means a transaction in which a taxpayer, through the taxpayer's bank and an automated clearing house, originates an entry crediting the State of Maryland's bank account and debiting the taxpayer's bank account for the amount of the payment due.

“ACH debit” means a transaction in which the Treasurer, through a designated depository bank and an automated clearing house, originates an entry debiting the taxpayer's bank account and crediting Maryland's bank account for the amount of the payment due.

“Automated clearing house (ACH)” means a central clearing facility operated by:

“Business day” means the hours between 8 a.m. and 8 p.m. prevailing Eastern time, on a day other than a Saturday, Sunday, or any holiday as defined in Tax-General Article, §1-201(a), Annotated Code of Maryland.

“Comptroller” means the Comptroller of Maryland or the Comptroller's designee.

“Direct debit” means an electronic transfer of an authorized payment from a taxpayer's checking or savings account into the State's bank account.

“Immediately available funds” means an ACH credit, an ACH debit, direct debit, or wire transfer.

“Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind, including an agent of a taxpayer, and any partnership, firm, association, corporation, or other entity.

“Tax” means tax, interest, penalty, and fees.

“Taxpayer” means any person required to pay a tax or file a return or a report.

“TXP” means the tax payment addendum convention for use with the National Automated Clearing House Association's CCD+ application.

“Wire transfer” means a transaction in which a taxpayer, through the taxpayer's bank, originates an entry crediting the State of Maryland's bank account and debiting the taxpayer's bank account on the same day the transaction is initiated.

Except as provided for in §A(2) of this regulation, payment shall be made by using:

Payment by wire transfer may be used if the taxpayer:

Income tax withheld by an employer;

Corporation income tax;

Except as provided for in §H of this regulation, sales and use tax;

Motor fuel tax;

Motor carrier tax;

Alcoholic beverage tax; or

Tobacco tax.

The taxpayer's Maryland tax account number; and

A statement of the type of tax and the tax period for which the payment is being made.

The taxpayer's federal employer identification number;

The taxpayer's Maryland tax account number;

The tax type and tax period for which the payment is being made; and

Any additional information required to accurately report the tax due.

A taxpayer using the ACH debit payment method shall make the appropriate arrangements to initiate the payment by 2 p.m. on the last banking day before the due date.

The taxpayer shall furnish to the Comptroller the banking information necessary to generate ACH debits against the taxpayer's designated account.

If a taxpayer elects the ACH debit payment method and the banking information necessary to generate the ACH debit against the taxpayer's account changes, the taxpayer shall provide the new banking information to the Comptroller 30 days before initiating an ACH transaction.

The taxpayer, to initiate payment of a tax, shall contact the Comptroller and report the tax information in accordance with Regulation .02D of this chapter.

A taxpayer electing the ACH credit payment method shall initiate each payment of tax by contacting the taxpayer's own financial institution and requesting the institution to transfer both the appropriate identifying information and payment to the State of Maryland's depository bank by an ACH credit.

The taxpayer shall remit an ACH credit transaction with an addendum record formatted in accordance with the appropriate TXP convention.

The direct debit method is only available for:

The taxpayer shall furnish to the Comptroller the banking information necessary to generate the direct debit against the taxpayer's designated account.

The taxpayer, to initiate payment of a tax, shall log on to the bFile (business online filing) program on the Comptroller's website or onto an approved third-party website and provide the tax information in accordance with the prompts and instructions and with Regulation .02E of this chapter.

For Maryland individual income tax withholding:

Maryland Corporation Income Tax Return Form 500; or

For Maryland motor fuel-related taxes:

Employer’s Return of Income Tax Withheld Form MW506 or for accelerated filers Form MW506M;

The Declaration of Estimated Corporation Income Tax Form 500D;

Maryland Application for Extension of Time to File Corporation Income Tax Return Form 500E; or

Sales and Use Tax Return Form 202 or Form 202F.