Common mistakes regarding the AT3-51 relate to who must file this return. The instructions specify that all sole proprietorships and general partnerships must file. However, an LLC may be taxed as a partnership, leading the business owner to assume that they must file this return.
That is not the case: the filing status at a federal level does not influence how the business is incorporated in Maryland. If the business is an LLC, it must file Form 1 of the Maryland Department of Assessments and Taxation, even if the company’s federal tax return was completed on form 1065.
If the business is in fact registered as a partnership in the state of Maryland, form AT3-51 must be filed. If the business also owns rental properties that contain tangible personal property, form AT3-53 must be filed.
Regarding Form 1 for LLCs, there is a requirement to complete a balance sheet and depreciation schedule along with the form. This requirement is waived if no tangible property is claimed. All forms must include the company’s Maryland Department ID number. This number can be obtained here.
Form one typically must include a filing fee of $300, which must be attached to the form. The Department ID Number of the business must be written on the check. The check must be made payable to the “Department of Assessments and Taxation.”
George Dimov, CPA has experience filing these returns for Maryland and holds a valid CPA license, authorizing him to complete these types of filings in the State of Maryland. Feel free to contact using the form below to get professional tax compliance expertise on your Tangible Personal Property.