Form 510c - Maryland Composite Pass-Through Entity Income Tax Return

Form

MARYLAND COMPOSITE PASS-THROUGH

2011

510C

ENTITY INCOME TAX RETURN

11510C149

GENERAL INSTRUCTIONS

Column C Member’s exemption amount . See instruction for Form

510C, line 4 .

Pass-through entities (PTEs) may use Form 510C to file a composite

income tax return on behalf of eligible nonresident individual members .

Column D Member’s standard deduction . See instruction for Form

Nonresident members other than individuals may not participate in

510C, line 5 .

the composite return. The Maryland tax of each nonresident individual

Column E Member’s share of decoupling modification flow-through

member is calculated using the rate of 5 .50% plus the 1 .25% .

from the PTE . See instruction for Form 510C, line 7 .

SPECIFIC INSTRUCTIONS

Column F Member’s pro rata share of income allocable to Maryland;

Who may use this form. Nonresident individual members of a PTE

it is the member’s portion of what is reported on line 4 of

doing business in the State who meet the composite return requirements

Form 510 .

contained in Administrative Release 6 and elect to be included in a

Column G Member’s pro rata share of the nonresident withholding

composite return may not be required to file Maryland nonresident

tax paid; it is the member’s portion of what is reported on

returns individually. Instead, the PTE doing business in the State may file

line 16d of form 510 .

a composite return on behalf of such nonresident individual members if:

Signature Verification. An authorized general partner, officer or member

1. Form 510C accurately reflects the Maryland taxable income and tax

of the PTE must sign and date Form 510C and enter his or her title . If

liability of each individual member shown on the return, AND

a preparer is used, the preparer must also sign the return and enter the

2 . Form 510C Schedule A is attached containing all required information

firm’s name, address and Preparer’s Tax Identification Number (PTIN).

for each individual member, AND

Penalties may be imposed for tax preparers who fail to sign the tax return

and provide their Preparer’s Tax Identification Number.

3 . The PTE pays the tax, interest and penalty due by each individual

member shown on the return .

Attachments and Mailing Instruction. Mail the completed return

an all required attachments to Comptroller of Maryland, Revenue

Any overpaid amount will be refunded to the PTE. For more

Administration Division, 110 Carroll Street, Annapolis, MD 21411-

information, Administrative Release 6 may be obtained from our Web

0001. Must attach with Form 510C: (1) Form 510C Schedule A, (2) the

site at .

PTE’s Form 510 Schedule B, Part I for individual members; and (3) the

Line 2

Enter the number of eligible nonresident individual members

members’ Form 510 Schedule K-1 issued by the PTE .

who have elected to be included on this composite return .

Extension of time to File. Follow the instructions on Form 502E to

Fiduciaries are not eligible and cannot be included .

request an automatic extension of the time to file 2011 composite return.

Line 4

Enter the total exemption amount reported on Column C,

Filing the 502E extends the time to file your return, but does not extend

Form 510C Schedule A . The exemption amount allowed

the time to pay your taxes . Payment of the expected tax due is required

for each nonresident individual member must be determined

with Form 502E by April 15, 2012. You can file and pay by credit card or

separately based on the individual member’s filing status.

electronic funds withdrawal (diret debit) on our Web site . If no tax is due

and you did not request a federal extension, file your extension online at

Generally, a nonresident is allowed the same number of

or by phone at 410-260-7829 . Only submit

exemptions that the nonresident is permitted on the federal

Form 502E if tax is due .

return; however, the exemption amount is different, and is

further prorated by the nonresident’s Maryland income factor .

Amended Returns. If filing an amended return, check the Amended

See Instruction 10 of Form 505, Maryland Nonresident

Return box on page 1 of Form 510C .

Income Tax Return to determine the exemption amount

Privacy Act Information. The Tax-General Article of the Annotated

before multiplying it by the Maryland income factor, which is

Code of Maryland authorizes the Revenue Administration Division to

the nonresident’s Maryland adjusted gross income (generally

request information on tax returns to administer the income tax laws

from Form 510C, Schedule A, Column F) divided by the

of Maryland, including determination and collection of correct taxes .

nonresident’s federal adjusted gross income (FAGI) .

Code Section 10-804 provides that you must include your Social

Line 5

Enter the total standard deduction amount reported on

Security number on the return you file. This is so we know who you

Column D, Form 510C, Schedule A . The standard deduction

are and can process your return and papers . If you fail to provide all or

amount allowed for each nonresident individual member must

part of the requested information, then applicable exemptions, credits,

be determined separately based on the individual member's

deductions or adjustments may be disallowed and you may owe more

Maryland adjusted gross income, and then prorated by the

tax . In addition, the law provides penalties for failing to supply information

nonresident’s Maryland income factor . See Instruction 15

required by law or regulations . You may look at any records held by

of Form 505, Maryland Nonresident Income Tax Return

the Revenue Administration Division which contain personal information

for determining the standard deduction amount . See the

about you . You may inspect such records, and you have certain rights to

instruction for line 4 for the nonresident individual member’s

amend or correct them . As authorized by law, information furnished to

Maryland income factor .

the Revenue Administration Division may be given to the United States

Internal Revenue Service, a proper official of any state that exchanges

Line 7

Enter the total PTE flow-through decoupling modification

tax information with Maryland and to an officer of this State having a right

amount reported on Column E, Form 510C.

No flow-

to the information in that officer’s official capacity. The information may

through addition or subtraction modifications, other than the

be obtained in accordance with a proper legislative or judicial order .

modification required as a result of Maryland’s decoupling

from the additional depreciation allowance and special 5-year

net operating loss carryback provisions may be claimed on a

composite return . See Administrative Release No . 38 .

Schedule A Instructions. Complete the following for each eligible

nonresident individual member who has elected to be included on this

composite return .

Column A Member’s full name and Social Security number .

Column B Member’s number of exemption allowance .

COM/RAD 071

11-49

Form 510c - Maryland Composite Pass-Through Entity Income Tax Return - 2011 Page 3

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