The Maryland Office of the Comptroller in late June announced a new portal that Marylanders can use to make reports of suspected tax fraud. This new tool will support the agency’s efforts to close the more than $2.6 billion known tax gap in Maryland. Individuals can also submit referrals under Maryland’s Whistleblower Reward Program. The new portal provides a central point on the Comptroller’s website for members of the public to report suspected business tax fraud. The new tool also streamlines the process of tracking tips for the agency’s Compliance Division. During the coming months, the Office of the Comptroller will add at least 25 new staff members to assist with tax audits and collections.
Our take: While the goal of the new portal is to facilitate the reporting of suspected tax fraud, it introduces several potential serious implications and scenarios for businesses of all sizes, including becoming a one-stop shop for disgruntled employees to erroneously report Maryland businesses without a basis in fact along with implications for inter-business relations. We advocate for fair use of the reporting portal, safeguards against malicious or false reports, clear guidelines to ensure transparency in the reporting and investigation process, and confidentiality while maintaining a fair business environment.
