The regulations and other information regarding these new corporate reporting requirements will be posted on the Comptroller's website as they become available.

Proforma combined corporate income tax returns will be required from all corporations that are members of a corporate group and are subject to the Maryland income tax. A corporate group is defined as an affiliated or controlled group under §1504 or §1563 of the Internal Revenue Code, or an affiliated group of corporations engaged in a unitary business with more than 50% of the voting stock of each entity held by a common owner(s) or by one or more members of the group.

Those members of a corporate group that are not subject to the United States federal income tax, which are insurers as defined in §1-101 of the Maryland Insurance Article, or are a regulated Investment company as defined in §851 (A) of the Internal Revenue Code, are not considered as members of the group for these information reporting purposes.

The proforma combined returns for tax year 2006 are due October 15, 2008. Proforma returns for tax year 2007 are due by file extension due date for tax year 2007 corporate income tax returns (October 15, 2008 for calendar year taxpayers). For tax years 2008 through 2010, the proforma returns wlll also be due by the extension due date. These reporting requirements expire after tax year 2010.

The Comptroller's Office is currently developing a means of electronically filing these reports (required by law) as well as a penalty system to ensure that the proforma retums are filed accurately and timely. The online filing system will be available by September. If your corporation is a member of a corporate group but another member will be filing the proforma return, you will be required to report through the electronic filing system which member is filing the return for the group. Similarly, if you receive a notice but are not a member of a corporate group or otherwise not required to file the proforma return, you will be required, this year only, to affirm that fact through the electronic reporting system.

Stambaugh Ness will continue to monitor these new requirements and bring you the latest reporting requirements as they become available.

You are advised to check the Comptroller's website periodically. The corporate information reporting hotline is 410-767-3015 or toll-free 866-588-2086.

If you have questions about this topic, please contact Jolleen at 717-757-6999 or 800-745-8233 or send her an email by using the form below. You may also view our list of tax services online.