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Maryland sales tax notices

Got a letter from the Comptroller of Maryland? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

Comptroller of Maryland (opens in a new tab)

Disagree with a notice?

If you dispute a notice of assessment, file an appeal with the Comptroller's Hearings and Appeals Division, preferably online through MyCOMConnect ('Appeal a Refund Denial or Assessment') or by mail to 7 St. Paul Street, Room 210, Baltimore, MD 21202. A hearing officer is assigned and a telephone hearing may be scheduled. A timely appeal generally prevents further collection action for the period under appeal. Interest keeps accruing, but you can pay under protest to stop it.

Deadline: 30 days from the mailing of the notice of assessment. A late appeal is not entitled to a hearing.

Source: Comptroller of Maryland (opens in a new tab)

Failure to file

The authority has no return on record for a period it expects one, often because an account is open but filings stopped.

Failure to file

Notice of delinquency (missing sales and use tax return)

Sent when a required sales and use tax return, including a zero-tax return, was not filed by the due date. If the return is still not filed, the Comptroller may issue an estimated assessment with additional penalty.

Why you got it

  • A sales and use tax return was not filed for a period
  • A zero return was not filed by phone (410-260-7225) by the due date

What to do

  1. Check which period the notice covers and whether you already filed it
  2. File the missing return right away (bFile or other online options may be available). For periods with no tax, file by phone at 410-260-7225
  3. Pay the tax due, or contact Business Tax Collections (410-649-0633 or cdcollectionbizz@marylandtaxes.gov) about a payment plan
  4. If a penalty and interest follow and you had reasonable cause, ask Business Tax Collections for a waiver once all your returns are filed

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Business Tax Tip No. 2: Sales and Use Tax Records (opens in a new tab)

Balance due

A bill for tax, penalty, or interest the authority says is unpaid.

Balance due

Notice of past due taxes (balance due)

Mailed to businesses that owe past-due tax, interest, and penalties. A late sales and use tax return carries a 10% penalty plus interest at the annual rate the Comptroller sets each year (10.8133% for 2026), and the collection discount is lost.

Why you got it

  • A sales and use tax return was filed late or not paid in full
  • A payment was dishonored (a $30 fee applies)

What to do

  1. Check the periods and amounts against your records. Do not use a statement of account payment stub as a return
  2. Pay the tax as soon as possible, or contact Business Tax Collections (410-649-0633) about a payment plan
  3. If the late filing or payment had reasonable cause, ask Business Tax Collections to waive the penalty and interest. Waivers are not automatic and require all returns to be filed

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Pay immediately

Source: Business Tax Tip #10: Tax Collections and You (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

Assessment

Notice of Assessment (estimated or audit assessment)

An assessment of sales and use tax, either estimated for missing returns or resulting from an audit. It becomes final if it is not appealed.

Why you got it

  • Missing returns were not filed after a notice of delinquency
  • An audit found additional tax due

What to do

  1. Check whether it is an estimated assessment for missing returns or an audit assessment
  2. If you disagree, appeal within 30 days through MyCOMConnect or by mail. For an estimated assessment, be ready to provide the missing returns or explain why they were not required
  3. If you agree, pay the tax or contact Business Tax Collections about a payment plan. You do not need a hearing
  4. If you had reasonable cause, ask about a penalty and interest waiver once all returns are filed

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 30 days from the date on the notice to appeal

Source: Business Tax Tip #10: Tax Collections and You (opens in a new tab)

Registration

Changes to your permit or account: required registration, filing-frequency changes, revocation, or closure.

Registration

Summons for sales and use tax license revocation hearing

A summons to a hearing to show cause why your sales and use tax license should not be revoked. It is typically sent when a business collects sales tax from customers but does not pay it to the Comptroller.

Why you got it

  • Sales tax was collected but not remitted
  • Defaulting on a payment plan

What to do

  1. Attend the hearing. If you do not appear, your license will be revoked
  2. Pay the past-due tax or agree to a payment plan
  3. Keep up with any payment plan you set up. Defaulting leads to revocation

Source: Business Tax Tip #10: Tax Collections and You (opens in a new tab)

Collections

Enforcement on unpaid balances, such as liens, levies, warrants, or referral to a collection agency.

Collections

Notice of tax lien

A lien filed in the circuit court where the business operates or owns property. It has the effect of a court judgment, hurts credit, and can prevent selling or buying property. After it is filed, the sheriff may be asked to seize assets.

Why you got it

  • Past-due taxes remain unpaid after notices and contact from Collections

What to do

  1. Contact Business Tax Collections at 410-649-0633 or cdcollectionbizz@marylandtaxes.gov
  2. Pay the liability or set up a payment plan
  3. Be aware that the Comptroller may also levy bank accounts or wages, intercept refunds and vendor payments, and block renewal of state licenses

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Business Tax Tip #10: Tax Collections and You (opens in a new tab)

Ask for penalty relief

Penalties on a Maryland notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Penalty and interest waiver (abatement)

  1. File all missing returns first. The Comptroller will not consider an abatement if your filings are not current
  2. Pay the tax, or contact Business Tax Collections about a payment plan
  3. Ask Business Tax Collections (410-649-0633 or cdcollectionbizz@marylandtaxes.gov) to waive the penalty and interest, explaining the reasonable cause

What qualifies: Reasonable cause. Waivers are not automatic, and each account is reviewed to check that all criteria are met

Interest: In certain instances, penalties and interest may be waived for reasonable cause (also Md. Code, Tax-General § 13-606)

Source: Tax Guidance - Business Collections FAQs - Taxpayer Services (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the Maryland sales tax guide.

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