From the Desk Of the Comptroller

With the filing deadline passed, my office is hard at work processing the millions of tax returns we recently received. So far, we have processed more than 2.5 million returns and given back nearly $1.9 billion in refunds to hard-working Marylanders.

Even though the stress of tax season is now gone for another year, families and businesses across the state are still tightening their belts as they continue to deal with the effects of the national economic recession. That is why I am so proud that, along with returning refunds, my office is providing additional tax relief to those who are eligible to receive it.

Recently, I announced a new partnership with the Internal Revenue Service (IRS) to ensure that more than 5,300 Marylanders who qualify for the Earned Income Tax Credit (EITC) get the more than $466,000 in total benefits that have remained unclaimed. It is no stretch to say that the Earned Income Tax Credit is the most effective anti-poverty tool we have. Not only does it provide much needed tax relief and, in many cases, extra cash back for people-it encourages folks to work hard and to keep working to improve their lives.

Over the past several months, my agency has been working with the IRS to review eligible taxpayers that filed a Tax Year 2006 federal return but failed to claim the EITC, based on their reported information. The IRS provided the Comptroller's Office with a file of taxpayers with a Maryland address, number of dependents, and income, in order to calculate the individuals' federal EITC, Maryland EITC, and Maryland Refundable EITC, if applicable. Through this process, officials identified more than 5,300 Maryland taxpayers who stand to benefit.

We recently mailed packets to eligible taxpayers explaining the program and what they have to complete to receive both the federal and state credits. The packets include an amended federal and state tax return with all the calculations completed and pre-addressed envelopes to send the completed returns to the IRS and Comptroller's Office. All that is required of the taxpayers is for them to fill in their Social Security number, sign and mail back the returns. Based on the new amended returns, any federal and state money that is owed will be sent. My office projects that the Maryland Refundable EITC available to be claimed totals $466,578.

Since becoming Comptroller, I have worked with the IRS to explore new avenues for making the tax process more user friendly as well as ensuring greater compliance with existing state and federal tax laws. Last year, for example, Maryland became the first state in the nation to partner with the IRS to join in the Federal Vendor Offset Program, which brought in $21 million in previously uncollected taxes to the state in just its first year. Innovative partnerships like these can go a long way to help us provide greater relief to hard-working Marylanders who play by the rules and deserve a level playing field in these tough economic times.

Additional Information

About Peter Franchot

From the desk of... Archive

Comptroller's Duties

History of the Comptroller of Maryland