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Form 870 for Maryland: What You Should Know
Taxpayer Protection — An overview of the provisions of Taxpayer Bill of Rights, or TAR, and its application to federal tax matters is available online. TAR applies federal tax law to Maryland and its possessions. The IRS has made several major changes to the tax law under the leadership of President Trump (see here for an explanation of some of them). TAR also applies to the Maryland taxpayer, though it does not provide the same level of protection as federal law. Taxpayer Bill of Rights — The Maryland Taxpayer Bill of Rights (TAR) includes certain protections, which are essential for Maryland taxpayers. These include: • A right to not be deprived of income, and to pay it where due, on account of a tax or assessment. • A right to a prompt refund when a refund provision or deadline is violated. • A right to an attorney if there is a dispute over the amount owing. • A right to be notified concerning the amount and source of taxes or assessment. • An “independent audit” and an “independent counsel” are available, if necessary, to provide assistance. Taxpayer Bill of Rights, or TAR, Overview As you will see from the TAR overview, one of the most important of these rights is the right to a refund when a tax or assessment is made without a taxpayer's consent. In addition, notice will be given to taxpayers if the IRS has made a determination under section 6662 of the Internal Revenue Code, which has the effect of excluding certain income from refund or refundable credit calculations. A taxpayer may not, without authorization, consent to the withholding of information described in section 6662. Section 6652(f) of the Internal Revenue Code authorizes the IRS to withhold information, and only certain amounts, from the refund due to persons who are required to file individual income tax returns under sections 6012, 6018, 6012A, 6018E, and 6018F. See the sections that follow. In addition, under the TAR, a taxpayer is protected against certain unjustified withholding of information regarding his or her source of wages. It does not, however, provide for additional or different withholding based upon the taxpayer's source of income. What the Taxpayer Must Do under the TAR Under the TAR, the Maryland taxpayer must complete Form 2848, “A Petition to Quash or Vacate an Assessment,” and provide his or her full address when filing the form.
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