Maryland state taxes do not expire. Maryland can estimate what you owe even if you don’t file a tax return. And Maryland is much more aggressive in its collection efforts than the IRS. For all these reasons, you should always resolve your state taxes before your IRS debt.

Unlike the IRS, the state of Maryland will never give up on collecting from you. There is no statute of limitations on tax debt in Maryland and unpaid taxes collect interest at a whopping 13% per year. Maryland can and will collect taxes from you that are 10, 15, or 20 years old. You cannot wait out the state of Maryland!

Also, Maryland does NOT require you to file your taxes before working out a settlement agreement. You may think this is a good thing, but it may not be. Maryland will simply estimate what they think you owe and try to collect it from you. Do you think they are going to give you their lowest estimate or their highest? They just want you to pay something. Moreover, if you don’t file, you can never wipe out the taxes in bankruptcy, since to do so you must have filed a return.

What’s more, Maryland is also much more aggressive than the IRS in its collection tactics. They can suspend your driver’s license, your occupational license, take your tax refunds, put a lien on your house, or garnish your paycheck.