Filing the Maryland Annual Personal Property Return is an important compliance step for businesses registered with the Department of Assessments and Taxation (SDAT). While tax software like UltraTax CS can simplify the process, errors often occur when preparing the return or following an internal checklist. Even small mistakes can delay processing, result in penalties, or jeopardize a company’s good standing with the state.
Below are the most common mistakes to avoid when completing the Maryland Personal Property Return checklist.
A frequent error is leaving out basic but required business details such as the legal business name, trade name, Department ID, or FEIN. Incorrect addresses, missing resident agent information, or failing to specify the correct entity type (LLC, corporation, partnership, etc.) can all cause filing issues. Always verify this information matches what is on record with SDAT.
Every reportable asset must include a valid depreciation treatment (Book or Maryland). If assets are entered only under the Tax treatment in UltraTax CS and not copied to Book or MD, they may not transfer correctly to the return. Similarly, leaving fields blank or failing to select the proper treatment option can create errors in the filing.
For each asset, the situs (Maryland) must be designated, and the physical location address must be entered. Each property location generates its own return, and incomplete address details can result in rejected filings. Businesses sometimes forget that only 25 characters transfer to certain fields on Form 1 and AT3-51, which means addresses must be entered carefully.
Assets must be assigned to the correct PPT type – MD category (Sections A–G, exempt, vehicles, manufacturing equipment, etc.). Misclassification—such as failing to identify exempt property or leaving categories blank—may lead to incorrect assessments or assets being excluded from the return in error.
Assets must also be categorized by balance sheet type (buildings, land, machinery, leasehold improvements, etc.). Many businesses skip this step, which can cause inconsistencies between the return and supporting schedules.
The Maryland Personal Property Return is due on April 15 each year. Failing to request an extension when needed or submitting after the deadline can result in late fees and forfeiture of good standing with SDAT.
While Maryland does not require an official checklist format, creating and following an internal one is crucial. To avoid mistakes, double-check entity details, depreciation treatments, situs and location data, property type classifications, and deadlines. Careful review before submission not only prevents penalties but also ensures smoother compliance with Maryland’s personal property tax requirements.
Ensure accuracy in your Maryland Personal Property Return—contact Watter CPA today for expert guidance and to avoid costly checklist mistakes.
