MARYLAND
FORM
510D
PASS-THROUGH ENTITY
DECLARATION OF ESTIMATED
INCOME TAX INSTRUCTIONS
COM/RAD-073
2020
Purpose of Form Form 510D is used by a pass-through
entity (PTE) to declare and remit estimated tax.
General Requirements PTEs are required to pay tax on
behalf of all nonresident members. For nonresident members
that are individuals or nonresident fiduciaries, the tax is
5.75% in addition to the special nonresident tax of 1.75% of
the nonresident member’s distributive or pro rata share of
income. For nonresident entity members, the tax is 8.25% of
the nonresident member’s distributive or pro rata share of
income. A nonresident entity is an entity that is not formed
under the laws of Maryland; and is not qualified by, or
registered with the Department of Assessments and Taxation
to do business in Maryland. The amount of tax due may be
limited based on the distributable cash flow limitation. The
Distributable Cash Flow Limitation worksheet is available in
our PTE income tax instructions, which can be downloaded at
www.marylandtaxes.gov.
Certain PTEs meeting certain reporting requirements are
exempt from the requirement to pay nonresident tax on behalf
of its nonresident members. See instructions for Form 510 for
more information.
When the tax is expected to exceed $1,000 for the tax year,
the PTE must make quarterly estimated payments. The total
estimated tax payments for the year must be at least 90% of
the tax developed for the current tax year or 110% of the tax
that was devel oped for the prior tax year to avoid interest and
penalty.
In the case of a short tax period, the total estimated tax
required is the same as for a regular tax year: 90% of the tax
that was developed for the current (short) tax year or 110%
of the tax that was developed for the prior tax year. The
minimum estimated tax for each of the installment due dates
is the total estimated tax required divided by the number of
installment due dates occurring during the short tax year.
However, if the pass-through entity has a short tax period of
less than 4 months, it does not have to pay estimated tax nor
file Form 510D.
Maryland law provides for the accrual of interest and
imposition of penalty for failure to pay any tax when due.
If it is necessary to amend the estimate, recalculate the
amount of estimated tax required using the estimated tax
worksheet provided. Adjust the amount of the next installment
to reflect any previous underpayment or overpayment. The
remaining installments must be at least 25% of the amended
estimated tax due for the year.
The PTE must issue a statement to each nonresident member
showing the amount of tax paid on their behalf. Nonresident
members must include the statement with their own income
tax returns (Form 500, 504, 505 or 510) to claim credit for
taxes paid on their behalf.
When to File File Form 510D on or before the 15th day of
the 4th, 6th, 9th and 12th months following the beginning of
the tax year or period for S corporations or by the 4th, 6th,
9th and 13th months following the beginning of the tax year
for partnerships, LLCs and business trusts.
Tax Year or Period The tax year is shown at the top of
Form 510D. The form used for filing must reflect the
preprinted tax year in which the PTE’s tax year begins.
If the tax year of the PTE is other than a calendar year, enter
the beginning and ending dates of the fiscal year in the space
provided at the top of Form 510D.
Name, Address, and Other Information Type or print the
required information in the designated area.
Enter the exact PTE name with any “Trading As” (T/A) name if
applicable.
Enter the Federal Employer Identification Number (FEIN). If
the FEIN has not been secured, enter “APPLIED FOR” followed
by the date of application. If a FEIN has not been applied for,
do so immediately.
Filing electronically using Modernized Electronic Filing
method (MeF) (software provider must be approved by the
IRS and Revenue Administration Division). If filed
electronically, do not mail 510D; retain it with
company’s records.
If you need to make additional payments for the current tax
year you may file electronically, or you can go to www.
marylandtaxes.gov and download another Form 510D.
Payment Instructions Include a check or money order made
payable to Comptroller of Maryland. All payments must
indicate the FEIN, type of tax and tax year beginning and
ending dates. DO NOT SEND CASH.
Mailing Instructions Mail the completed Form 510D and
payment to:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, MD 21411-0001
