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Maryland Offers New Tool for Estimated Payments for Pass-Through Entities

Maryland Offers New Tool for Estimated Payments for Pass-Through Entities

On November 1, 2024, the State of Maryland introduced an optional tool for managing estimated payments for pass-through entities (PTEs). This new payment tool is designed to support tax professionals and businesses with a convenient and efficient way to manage tax payments, with user-friendly features to simplify the estimated payment process.

This tool will:

  • Provide an additional and efficient way to make payments online
  • Be safe and secure
  • Allow users to schedule and manage payments
  • Provide greater efficiency and transparency for payments

Registration Requirements

The new PTE estimated payments system will require a tax preparer to register a unique account for each taxpayer. The following information is required to register for an account:

  • Federal Employer Identification Number (FEIN)
  • Current Mailing Address (including city, state and zip code)
  • Payment Amount
  • Payment Date (today or future date)
  • Bank Name
  • Bank Routing Number
  • Bank Account Number

Processing of Form 511

The new PTE tool will enhance the process of filing Form 511, Pass-Through Entity Election Income Tax Return, by implementing a more efficient categorization to avoid unnecessary notices and delays. The incoming Form 511 returns will now be classified as follows:

  • Approved – Returnsmet all the necessary criteria for immediate approval.
  • Parked – Returnsneed additional verification to process.
  • Denied – Returns will be denied fully or partially, due to discrepancies or underfunded credits.

The Comptroller of Maryland’s Office will expedite returns for any outstanding Form 511s from previous years that are still under review to clear the backlog and focus on the current tax year. For the 2025 filing season, the Comptroller’s Office will establish a notification system for parked returns, allowing taxpayers to correct issues at the source for any PTE deficiencies while keeping them informed about their status.

Question About the PTE Tax Process?

The Comptroller of Maryland has set up a dedicated email for all PTE inquiries at TaxCorporate@marylandtaxes.gov. Also, the Maryland Comptroller’s Office website features a PTE guide, along with an FAQ page that covers common questions related to the process.

If you have any questions regarding pass-through entities or filing Form 511, please contact a Brown Plus advisor.

Posted In: Tax | Business Tax Services | Insights

About the Author - Sherry Cracium-Bolin, CPA

Sherry is a Tax Principal and Shareholder of Brown Plus. Having over 20 years of progressive public accounting experience, Sherry assists small and mid-sized businesses through tax planning, management advisory services and compliance services. She also specializes in tax planning and compliance for individuals, estates and trusts.

Sherry received her Bachelor of Science degree in Accounting from York College of Pennsylvania.

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