Penalty and Interest Charges

If you do not respond to the first notice, you will receive an assessment notice that will include substantial penalty and interest charges. Under Maryland law, the assessment notice is a legal assessment. Collection procedures may begin after you are given a 30-day period to appeal the assessment.

Your assessment will depend on the amount of taxes that we believe you owe. Maryland law requires us to charge interest at the annual rate of 13 percent and it will be calculated from the date the return was originally due. Penalty charges for late payments can be up to 25 percent of the amount of tax you owe.

If you do not settle your account promptly after you receive an assessment notice, a representative of our collection section may contact you by telephone to set up a payment plan agreement. If we do not reach a payment agreement, or if you do not adhere to one we have agreed upon, legal action may include filing a property lien or attaching your bank accounts and salary.

Your account may also be referred to an outside collection agency. You can file an appeal and request a hearing within 30 days of an assessment.