Plain Text Law

Title 18 — Subtitle 11. Tax Payments

Chapter 01. Tax Payments — Immediately Available Funds

Regulation .01 Definitions.Copy Citation

A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“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's bank account and debiting the taxpayer's bank account for the amount of the payment due.
(2)
“Automated clearing house (ACH)” means a central clearing facility operated by:
(a)
A federal reserve bank; or
(b)
An organization established by agreement with the National Automated Clearing House Association (NACHA) which:
(i)
Operates as a clearing house for transmitting or receiving entries between banks and bank accounts; and
(ii)
Authorizes an electronic transfer of funds between banks or bank accounts.
(3)
“Business day” means the hours between 8 a.m. and 5 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.
(4)
“Department” means the State Department of Assessments and Taxation or its designee.
(5)
“Immediately available funds” means an ACH credit, U.S. currency, or wire transfer.
(6)
“Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind, and any partnership, firm, association, corporation, or other entity.
(7)
“Tax” means a public service company franchise tax, including any interest, penalty, or fees.
(8)
“Taxpayer” means a person required to pay a tax or file a return or a report.
(9)
“TXP” means the tax payment addendum convention for use with the National Automated Clearing House Association's “CCD Plus” format application.
(10)
“Wire transfer” means a transaction in which a taxpayer, through the taxpayer's bank, originates an entry which credits the State's bank account and debits the taxpayer's bank account on the same day the transaction is initiated.

Regulation .02 Requirements for Payment by Immediately Available Funds.Copy Citation

A.
A taxpayer whose unpaid tax liability is $10,000 or more shall remit payment by immediately available funds pursuant to the following:
(1)
Except as provided in §A(2) of this regulation, tax payment shall be made by using ACH credit; or
(2)
Tax payment by wire transfer may be used if the taxpayer:
(a)
Initiates an ACH credit or authorizes an ACH debit transaction which fails;
(b)
Receives prior approval from the Department; and
(c)
Assumes all costs associated with the wire transfer transaction.
B.
Additional instructions which may be provided by the Department shall be followed by the taxpayer.
C.
A separate ACH credit or wire transfer allowed under §A of this regulation shall be made for each type of tax and for each period for which the tax is due.
D.
A taxpayer may satisfy the obligation to remit payment in immediately available funds by physical delivery of U.S. currency, with the appropriate return, on or before 1 p.m. on the due date of the obligation, to the Department of Assessments and Taxation, 301 West Preston Street, Room 806, Baltimore, Maryland 21201.

Regulation .03 Registration.Copy Citation

A person making a payment as an agent for a taxpayer may be required to register with the Department before initiation of an ACH tax payment.

Regulation .04 Use of ACH Payments.Copy Citation

A.
General. A taxpayer using the ACH payment method shall make the appropriate arrangements to initiate the payment so that the transfer is executed on the date payment is due.
B.
ACH Credit.
(1)
A taxpayer using the ACH credit payment method shall initiate each payment of tax by contacting its own financial institution and requesting the institution to transfer both the appropriate identifying information and payment to the State's depository bank via an ACH credit.
(2)
A taxpayer shall remit an ACH credit transaction with an addendum record formatted in accordance with the appropriate TXP convention.

Regulation .05 Miscellaneous Filing and Reporting Provisions.Copy Citation

A.
The Department may require persons remitting taxes by ACH credit or wire transfer method to file an annual reconciliation report.
B.
A taxpayer who remits taxes by ACH credit or wire transfer method shall indicate that fact on all tax returns required to be filed for that period for which tax payment is being made.