News & Views

Maryland private letter ruling process a step closer to reality

BY BILL SHERIDAN, CAE

Maryland’s General Assembly has passed legislation that would establish a Legal Division in the Office of the Comptroller and create a private letter ruling process. The bills in question, House Bill 366 and Senate Bill 477, passed their respective chambers during the General Assembly’s 2022 legislative session. Gov. Larry Hogan signed the legislation into law on May 16. MACPA legislative volunteers have been advocating for a Maryland private letter ruling (PLR) process for a long time. PLRs allow taxpayers to get binding answers from the Comptroller’s Office to their tax questions. In turn, the taxpayers can then pay the right amount of tax at the right time, rather than years later after an audit or litigation. Several dozen other state departments of revenue have a similar process in place. By establishing a Legal Division in the Office of the Comptroller and creating the PLR process, Maryland would take a strong step in the fair and transparent administration of state tax laws. The MACPA’s State Tax Committee has advocated for this legislation on behalf of our tax community and worked with bills’ sponsors, Del. Brooke Lierman and Sen. Katie Fry Hester, on an amendment to extend the amount of time the PLR is binding from three to seven years. MACPA members and legislative volunteers Karen Syrylo and Jeff Lawson in particular are to be recognized for taking time out of their busy-season schedules to testify in support of this important legislation. “We’ve been looking forward to having a PLR process in place for a long time,” said Syrylo, a tireless legislative volunteer and member of the MACPA’s State Tax Committee. “The MACPA and other organizations advocated for it to be included in the Augustine Commission’s 2016 tax issues report, and it was. We celebrated when it was included in 2016 legislation in Senate Bill 843, but we’ve been disappointed that the Comptroller’s requests for additional funding to implement the program have not granted in any year since. MACPA members have even worked with the Comptroller’s Office with suggestions for alternative, partial procedures. “Having this year’s bills pass in both chambers with strong bipartisan support is excellent,” she added. “Now, we look forward to the next step – having the state budget process provide sufficient funding for the Comptroller’s Office to be able to hire the right, experienced personnel to perform the duties of the

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Maryland’s General Assembly meets in Annapolis each year and votes on critical issues that impact your profession, your livelihood, and the businesses you serve. That’s why we urge you to support the CPA Committee on Political Action. The CPA/CPA is the only political action committee in Maryland dedicated solely to fighting for CPAs in the legislative arena. Good relationships with legislators are the core of the MACPA’s legislative advocacy efforts. Your contribution to the CPA/CPA is one of the easiest and most effective ways for CPAs to get involved in the political process and have an impact on the profession. Contributions to our PAC lag far behind other professional groups. This puts us at a severe disadvantage, especially when certain groups have interests opposed to ours and have far greater PAC participation from their members. Through contributions from members like you, the PAC works toward favorable outcomes on legislative issues, educates legislators about matters that are important to the CPA profession, and keeps MACPA members informed. But we can’t do it alone. Your involvement makes a difference and ensures that, together, we make the greatest impact. Please support the MACPA’s CPA/ CPA today by donating online at MACPA.org/advocacy. Or scan the QR code here.

Your contribution to the CPA/CPA will allow us to support legislators from both parties, and help the CPA profession maintain an influential presence in Annapolis. Thanks so much for your support! new Legal Division and private letter ruling procedures as provided in the recently passed bills.” “This is a major milestone for Maryland tax practitioners,” said Lawson, a shareholder with Stoy, Malone & Company and chair of the MACPA’s State Tax Committee. “Until now, we’ve had only informal processes through which we can receive answers to technical questions from the Comptroller’s Office, and those answers have not been binding. MACPA volunteer leaders are looking forward to working collaboratively with the Comptroller’s Office on regulations and funding to ensure that the program starts off on the right track.” Bill Sheridan, CAE, is editor of The Statement and chief communications officer for the MACPA.

A virtual lock for the job

John Wolohan, a junior at McDaniel College from New Windsor, Md., and a triple major in business administration, economics, and accounting economics, interviews with McDaniel alumnus Joey Conklin and Tyler Codd of Sturgill during McDaniel’s Interviewing Day on Sept. 30, 2021. The virtual event featured 26 accounting majors conducting 84 interviews with representatives from nine firms — Bounds Accounting & Tax Services; CliftonLarsonAllen; E. Cohen & Company; Gorfine, Schiller & Gardyn P.A.; Gross, Mendelsohn & Associates; KatzAbosch; RSM; Sturgill; and Withum.