A client of ours recently ran into this very issue when its payroll provider prepared an incorrect W-2 that led the Comptroller to believe that our client had underpaid its withholding taxes. As a result, our client lost its good standing with the SDAT and almost had its charter forfeited.
To correct the issue, we assisted our client with filing an amended return with the Comptroller. Our client was back in good standing and avoided forfeiture of its charter only after the Comptroller accepted the amended filing and sent a release of our client’s charter to the SDAT.
Had our client not promptly addressed the issue, the SDAT would have forfeited its charter. Upon forfeiture of its charter, our client would not have been able to transact business in Maryland.
For more information, please contact Chip Sturm at email@example.com.