Are There Any Penalty-Free Grace Periods or Extensions Available for the 2025 Tax Return?

It is essential for businesses based in Maryland to submit their Maryland Personal Property Return on an annual basis. As the 2025 tax season approaches, business owners are hesitant on making sure that they are filing their taxes correctly. Are there any penalty free grace periods or extensions for filing the 2025 Maryland Personal Property Return? This is everything business owners need to know.

Deadline for 2025 Submission

As stated on the SDAT website, all Maryland incorporated corporations, LLCs, LLPs and Limited Partnerships must submit an Annual Personal Property Return by 15th of April 2025. This is the standard deadline for all entities based in Maryland. Even for businesses that were not operational in a given financial year, the threshold for not having any business or personal property is 0.

Are There Grace Periods?

Unfortunately, there are no grace periods in Maryland that go beyond the 15th of April. As per the Maryland state tax law, businesses that do not comply on time are subjected to:

• Late filing penalties that vary from $30 to $500, contingent on the assessed value of the business’s personal property.
• Potential loss of status for good standing, which prevents the business from renewing licenses, securing loans, or bidding on contracts.
• More fees for unpaid taxes may apply on declared property.

Can You Request An Extension?

Yes. An extension to June 15, 2025 is possible since the SDAT permits businesses to submit a filing extension request for two months.

This is the process to request an extension:

• Complete the extension request form using the Maryland Business Express portal of SDAT.
• Submission is bound to the April 15, 2025 deadline too. As such, the request must be made prior to this date.
• It is worth noting that no justification is required for the extension, and if the request is sent in correctly and on time, it will be granted without the need for further action.

Important Note: While the payment filing is shifted, the payment of any applicable due taxes is not suspended. Tax penalties for late payment may still be applicable.

Recommendations for Maryland Businesses

• Mark Your Calendar: Treat April 15 like an exam date and start your prep well ahead of time.
• Use Maryland Business Express: The portal is your quickest and safest way to file returns or ask for an extension.
• File Early: Whether you’re filing a return or an extension, do it sooner rather than later to dodge any last-minute surprises.
• Stay in Good Standing: Keep your Maryland business in good health by staying on top of every filing and payment obligation.

Conclusion

There’s no built-in grace period for the 2025 Maryland Personal Property Return, but you can dodge trouble by filing the two-month extension by April 15, 2025. The extra time is helpful, but you still have to meet the final deadlines to avoid extra costs. Take action early—that’s your best defense against penalties.

Contact Watter CPA today for expert support in the filing process of your 2025 Maryland Personal Property Return.

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