Alternative Payment Schedule

The request for an alternative payment schedule must be made in writing by the person responsible for filing the Maryland estate tax return and paying the tax or an authorized agent of the estate.

The request must include the following information:

• The Maryland estate tax return (in the case of an extension, the alternative payment schedule must be based on the amount that is estimated to be due).
• The proposed alternative payment schedule, based on one of the following options:
  • A deferral of payment for up to one year. Additional deferrals may be considered on a year-by-year basis. If there is an agreement to defer the payment, then at the end of the deferral period, unless the applicant reapplies for and is granted an additional deferral, payment in full is due.
  • An installment schedule for periodic payments. If a payment installment schedule is for more than one year, the applicant is required to certify annually that the conditions and circumstances that existed at the time the alternate payment schedule was requested have not materially or significantly changed. Any significant change in the conditions and/or circumstances may result in a re-evaluation and the terms of the installment schedule may be changed by the Comptroller of Maryland.
• A reasonable estimate of the Maryland estate tax liability, if the Maryland estate tax return is not included with the application for an alternative payment schedule. The estimate must include any information that supports the amount of the Maryland estate tax liability.
• An inventory of the assets comprising the gross estate. The inventory should be itemized by the type of asset, valuation, and location.
• The names and addresses of all persons responsible for filing the return and paying the tax and the authorized agent.
• A description of all sources and amounts of income to the estate.
• Evidence that shows the real estate is being actively marketed where the real estate comprises a majority of the assets of the estate. This must include a realtor listing agreement, a letter from the realtor, etc. The request should include an explanation with evidence supporting a decision not to sell real property in order to pay the tax liability. For example, evidence of income to pay the liability from mortgages, loans, business income, etc.
• For those estates subject to filing a federal estate tax return, the status and balance of the federal estate tax liability and whether the IRS has allowed an alternative payment.
• Certification that no distributions have been made or will be made before taxes are paid.

Any request for an alternative payment schedule which is approved by the Comptroller of Maryland shall be deemed to include consent on behalf of the applicant to the filing of a tax lien against the estate in any Maryland jurisdiction where there may be real or personal property and where the decedent resided. Requests for alternative payment schedules should be sent to:

Comptroller of Maryland
Revenue Administration Division
Estate Tax Section
P.O. Box 828
Annapolis, Maryland 21404-0828