2013 Maryland MeF Test Package for Authorized e File Providers for Corporation and Pass Through Entity tax returns October 2013 Revenue Administration Division Annapolis, MD 21411 Peter Franchot, Comptroller
Table of Contents GENERAL INFORMATION... 3 NEW FOR TAX YEAR 2013... 3 New Maryland Electronic Filing Requirements for 502CR... 4 Contact Information for e-file Help Desk... 5 WHO MUST TEST... 5 WHEN TO TEST... 6 WHAT IS TESTED... 6 FORMS SUPPORTED... 7 ADDITIONAL FORMS AND PDF ATTACHMENTS... 8 SOFTWARE APPROVAL... 8 SPECIAL NOTES... 9 TEST SCENARIOS... 10 2
NEW FOR TAX YEAR 2013 New software designations Basic or Comprehensive Support for Amended filings (500X and 510 with amended indicator) New Maryland Electronic Filing Requirement for Form 500CR GENERAL INFORMATION This publication describes the Maryland State Acceptance Testing System procedures for Software Developers and Transmitters participating in the IRS and Maryland 1120/1065 Program using currently accepted Maryland schema versions. The purpose of testing prior to production processing is to ensure that the software adheres to Maryland schemas, business rules, and receipt of acknowledgments. The 2013 Maryland MeF Test Package for Authorized e-file Providers consists of special test conditions and will be available October 2013. The Maryland Software Identification number (MSID) assigned to your software by the Maryland e-file Help Desk and the Software Developer EFIN assigned by the IRS must be present in your test and production transmissions. New tax software companies must complete and send in the Software Vendor Contact Information sheet which is posted on our website and contact the e-file Help Desk at 410-260- 7753 to obtain a MSID. Maryland Announces New Software Designations There will be a significant change in the software approval process for Maryland MeF for Tax Year 2013. Beginning January 1, 2014, the Comptroller of Maryland will designate e-file Software Vendors Maryland products as either Basic or Comprehensive. The Comprehensive designation will be given to those companies who support all electronic forms, PDF attachments and Amended Returns; all other will be given the Basic designation. These designations will help taxpayers and tax professionals determine which software will best fit their needs. The Comptroller s webpage (www.marylandtaxes.com) will maintain a current list of software vendors approved for each designation. 3
New Maryland Electronic Filing Requirements for 502CR For all taxable years beginning after December 31, 2012, the Comptroller of Maryland mandates the electronic filing any of the following business tax credits: Enterprise Zone Tax Credit Health Enterprise Zone Hiring Tax Credit Maryland Disability Employment Tax Credit for employees Job Creation Tax Credit Community Investment Tax Credit Businesses that Create New Jobs Tax Credit Long-Term Employment of Qualified Ex-Felons Tax Credit Employer-Provided Long-Term Care Insurance Tax Credit Maryland Employer Security Clearance Costs Tax Credit Research and Development Tax Credits Biotechnology Investment Incentive Tax Credit Commuter Tax Credit Clean Energy Incentive Tax Credit Maryland-Mined Coal Tax Credit One Maryland Economic Development Tax Credit Oyster Shell Recycling Tax Credit Bio-Heating Oil Tax Credit Cellulosic Ethanol Technology Research and Development Tax Credit Wineries and Vineyards Tax Credit Maryland Film Production Employment Tax Credit Electric Vehicle Recharging Equipment Tax Credit 4
Contact Information for e File Help Desk Website Email www.marylandtaxes.com efil@comp.state.md.us Telephone number 410-260-7753 Fax number 410-974-2274 The Comptroller s website contains downloadable state forms and other information for MeF Authorized e-file Providers. All EROs, Transmitters and Software Developers who need e-file assistance are encouraged to contact the Maryland e-file Help Desk by telephone, email or fax. Telephone assistance is available Monday through Friday, 8:00 a.m. to 5:00 p.m. EST. Our mailing address is: Revenue Administration Division Electronic Processing Section 110 Carroll Street, Room 214 Annapolis, Maryland 21411-0001 Note: The Maryland e-file Help Desk telephone number should not be distributed since it is a courtesy provided to assist EROs. WHO MUST TEST All tax Software Developers and Transmitters must test with Maryland before submitting any tax returns. Software Developers and Transmitters must call the e-file Help Desk at 410-260-7753 prior to submitting their first tests. 5
WHEN TO TEST Maryland testing is tentatively scheduled to begin in early November 2013 in conjunction with the IRS. Software Developers and Transmitters may submit 2013 test returns until the IRS test system shuts down. The e-file Help Desk will assist with the reject code analysis or approval up to May 31, 2014. WHAT IS TESTED Annual tax law changes Schemas Business Rules Acknowledgments 6
. FORMS SUPPORTED Forms marked with an asterisk (*) are required. *Form 500 Corporation Income Tax Return Form 500D Declaration of Estimated Corporation Income Tax Form 500E Application for an Extension to File Corporation Income Tax Return Form 500CR Business Income Tax Credits Form 500DM Decoupling Modification Form 500MC Report of Maryland Multistate Manufacturing Corporation Form 500UP Underpayment of Estimated Income Tax by Corporations and PTEs Form 502S Sustainable Communities Tax Credit *Form 510 Pass-Through Entity Income Tax Return Form 510D Declaration of Estimated Pass-Through Entity Income Tax Form 510E Application for Extension to File PTE Income Tax Return Form 510 Schedule K-1 - Pass-Through Entity Members Information Form 500X - Amended Corporation Income Tax Return Form 510 with Amended indicator Amended Pass-Through Entity Income Tax Return 7
ADDITIONAL FORMS AND PDF ATTACHMENTS Forms that business e-file software must generate: Form EL101B Maryland Income Tax Declaration for Corporate Electronic Filing (signature document) Form EL102B Maryland Income Tax Payment Voucher for Business Electronic Filers Maryland requires that certain certifications and supporting documents be electronically transmitted as a PDF document. Use the Reference Document ID attribute to link the attachment to the appropriate location on the return. All PDF attachments must be listed in the binary attachment portion of the return. There is a list of suggested naming conventions in the 2013 Maryland MeF Handbook for Authorized e-file Providers. SOFTWARE APPROVAL Returns transmitted for testing must always be identified with the test FEIN and the MSID indicated for each test return in this package. To test your software for additional conditions during testing or production use test FEINs 00-1100015 through 00-11000050. Test returns can be transmitted as many times as needed using the designated test FEIN numbers provided by Maryland. When transmitting the entire test package without errors, contact the e-file Help Desk at (410) 260-7753. Do not transmit any production returns until final approval has been received. To receive final approval, the Software Developer must transmit ALL test returns, at the same time without errors. The following non-electronic documents must be provided by email at efil@comp.state.md.us using MD Approval as subject or fax to 410-974-2274 to Attention: e- File Help Desk. EL101B - Income Tax Declaration for Business Electronic Filing EL102B - Income Tax Payment Voucher and instructions Copy of final acknowledgement received Maryland reserves the right to suspend testing at any time for good cause. Reasons for suspension include lack of progress in testing, failure to comply with instructions and continued failure to meet state specifications and requirements. Suspension would be subject to appeal. The e-file Help Desk can be contacted at 410-260-7753 or efil@comp.state.md.us. 8
SPECIAL NOTES The 2013 Maryland MeF Handbook for Authorized e-file Providers should be used for general system instructions. Also refer to the current release of Maryland schemas, validations and business rules available at www.marylandtaxes.com. 9
TEST SCENARIOS Test Scenario # 1 FEIN 00-1100001 The business files Form 500 and the Maryland modified income being fully taxable. There are special deductions on line 1b from 1120 line 29b. The business has an addition modification (code B) on line 7f. There are refundable tax credits, 502S Sustainable Communities Tax Credit and Research & Development Credit from 500CR Part K-II which are reported on Part Z of the Form 500CR. The return results in an overpayment being applied to next year s estimated tax. Forms for this return include: Form 500 Form 500CR Form 502S Federal Form 1120 Test Scenario # 2 FEIN 00-11000002 The business files Form 500 as a fiscal year filer. The return is filed with an apportionment factor between 0 and 1.000000. There is Decoupling Modification Addition adjustment on line 2b from Form 500DM. The return results in a balance due which includes interest from Form 500UP. Forms for this return include: Form 500 Form 500DM Form 500UP Federal Form 1120 10
Test Scenario # 3 FEIN 00-1100003 The business files Form 500, which indicates an addition modification on line 7f for credits from Form 500CR Parts B and J-I. The return results in an overpayment to be direct deposited to their checking account. Forms for this return include: Form 500 Form 500CR Federal Form 1120 Test Scenario # 4 FEIN 00-6900001 The business files a Form 510 for an S Corporation with individual members on line 1a and 1b. There is credit for nonresident tax paid by another pass through entity on line 16c. The return results in a balance due plus penalty and interest from 500UP to be direct debited from checking account. Forms for this return include: Form 510 Form 510 Schedule B Form 500UP Form 510 Schedule K-1 Federal Form 1120S 11
Test Scenario # 5 FEIN 00-6900002 The business files a Maryland Form 510 for a partnership with apportioned income as indicated on Schedule A. There are individual non-resident and non-resident entity members. There's an credit on 500CR Part T Winery and Vineyard Tax Credit. The return results in a balance due. Forms for this return include: Form 510 Form 510 Schedule B Form 500CR Part T Federal Form 1065 Test Scenario # 6 FEIN 00-1100004 Transmit Form 500E with a direct debit request. Test Scenario # 7 FEIN 00-6900006 Transmit Form 510E with a direct debit request. Test Scenario # 8 FEIN 00-1100005 Transmit Form 500D with a direct debit request. 12
Test Scenario # 9 FEIN 00-6900007 Transmit Form 510D with a direct debit request. Amended Test Scenarios Test Scenario #10 FEIN 00-1100001 The business files an Amended Form 500X with an adjustments to lines 1a and 10c. When the original Form 500 they failed to include an Oyster Shell Recycling Tax Credit on Part Q of the 500CR. The amended return results in a refund to be mailed. Forms for this return include: Form 500X Form 500CR Federal Form 1120 PDF or XML of Federal Form 1120 Test Scenarios #11 FEIN 00-6900002 The business files a 510 with Amended indicator to correct Federal Employer Identification Number (original 510 e-filed). Forms for this return include: Form 510 Amended Form 510 Schedule B Form 500CR PDF or XML of Federal Form 1065 13
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