My DC tax return was "re-routed" to MD this year shortly after I received a notice stating that I owed over 5K in taxes.
I contacted the Maryland Comptroller's Office who advised that according to their records, I had filed for federal taxes in 2009 claiming I lived in Maryland but did not file for state taxes in MD. This situation resulted in me owing over 2K in taxes, over 2K in interest, and around $400 in fees.
Going back over my records, I was able to recall the following:
I lived in Virginia and worked in DC from Jan. 2009 to Aug. 2009.
I lived in Maryland and worked in DC from Aug. 2009 to Dec. 2009.
I lived in Maryland and worked in DC from Jan. 2009 to Aug. 2010.
After Aug. 2010, I moved back to VA but apparently the only issue up for debate here and responsible for the astronomical bill, is my short 2009 stint in MD, from Aug. 2009 to Dec. 2009. I say this because when discussing the matter with the Comptroller, they only mentioned what I owed for 2009. So I am assuming that all is well with my 2010 filings.
I seem to recall this situation however and was hoping someone might be able to confirm or call me crazy. I seem to remember something about not having to pay Maryland state taxes since I not only lived in the state for less than 6 months but also did not work in the state.
I couldn't find anything online regarding this so I'm assuming it is rubbish and I should have filed for VA (which I did) and part-year for MD, which I guess I didn't.
In any event, I was told that if I did not file, all I need to do is complete their 502 Maryland Resident Income Tax Return form, submit it to their Nexus department and after 6 to 8 weeks they'll hopefully determine that I owe nothing after applying my withholdings and waive what I owe in interest as well.
I assume I'd still be on the hook for the late fee but hearing I owe 5K and simply need to send in a form in order to basically owe nothing sounds too good to be true. Thoughts?
Also, why am I just now hearing from MD? I've always updated my address with the post office and receive redirected mail quite often. It's been around 6 years and I'm just now hearing about a bill that has racked up ridiculous late and interest fees? Should they have a record of notices they sent out or are they required to?