Maryland updates Wynne FAQ
Provides guidance for submitting new refund claims
TAX ALERT |
On July 3, 2015, the Maryland Comptroller’s office updated its FAQ providing guidance regarding the U.S. Supreme Court’s decision in Comptroller of the Treasury of Maryland v. Wynne, et ux, covered in detail in our prior article, US Supreme Court issues Wynne ruling.
Pursuant to the FAQ, taxpayers who previously filed protective refund claims to utilize their credit for income taxes paid to other states to offset their Maryland local income tax, and who do not need to amend those claims, are not required to take any further action to receive their refunds. Individual taxpayers who need to amend protective refund claims or file amended returns claiming Wynne-related refunds are required to file Forms 502X, 502CR and 502LC. Individual taxpayers filing original returns claiming additional credit for taxes paid to other states as allowed under the Wynne decision are required to file Forms 502, 502CR and 502LC. Fiduciary taxpayers are required to file Form 504 in lieu of Form 502 or 502X, along with Forms 502CR and 502LC.
Please note that Form 502LC that was released on July 2, is a new form that was specifically created for taxpayers to claim Wynne-related refunds. Interestingly, Form 502LC specifically provides that a credit is allowed for local income taxes paid‒a credit that was not allowed under the pre-Wynne regime.
Individual and fiduciary taxpayers that have filed Wynne-related protective refund claims should review their claims to determine whether additional credit is available, particularly in relation to individual-level local and entity-level state, and local income taxes paid, and, if so, consider filing an amended claim including Form 502LC. Individual and fiduciary taxpayers that have either not filed Wynne-related refund claims or their original returns for 2014, and can benefit from the Wynne decision, should review the FAQ and Form 502LC to understand the applicable procedure