Welcome back! Ask questions, get answers, and join our large community of tax professionals.
Showing results for 
Search instead for 
Did you mean: 

Maryland Form 510 Line D-1-Attachment Not Received

Level 1

In regards to filing MD Form 505-Nonresident Income Tax Return, I have been experiencing an issue with Line 45-Nonresident Tax Paid by Pass-Through's.  MD partnerships that withhold nonresident tax from partners distributions are reported on Form 510, Line D-1. Non Resident Tax paid by PTE.  For the past two years, I have been having issues submitting MD Form 510 with my MD-505 through ProSeries software.   I attached the form in the EF center and specifically select type Form "510 K-1" as the attachment.  The returns are received by Maryland but MD disallows the tax withheld claiming they did not receive the attachment. This form is required for all Nonresidents. I then have to respond to the MD notice and resubmit all the K-1's by fax.  Has anyone else has this issue?  Thank you for your help.

Labels (1)
0 Cheers
2 Replies 2
Level 8

As a MD CPA I get the notice on maybe 25% of the returns even though the K-1 was attached.  I actually get this on many states.  My guess is that K-1 withholding is not tracked by the states like W-2 or 1099 withholding is, so they cannot see it in their system (they don't post the withholding from the 1065/1120S to the individual).  It's embarrassing because the client thinks we messed up but after explanation and mail in, all is well.

Level 1

Thank you for the information. MD did receive the K-1 attachments before 2017.  A change must have occurred in 2018. I am working with Intuit to see what exactly occurred.  

0 Cheers