This correspondence is directed specifically to any retirees who have recently received IRS notices regarding their 2013 tax filings and the “Pension Exclusion” which is currently explained in section 13 of the Maryland 2016 State and local tax forms and instruction booklet.
Apparently the electronic filing by Baltimore County for 2013 was in error. The 1099-R received by our members reflected the proper numbers. As a result of our inquires, Baltimore County is currently drafting a letter to all affected members. Additionally, the Comptroller’s Office has put out the following directive to Tax Preparers in the State of Maryland.
Comptroller’s Office Notice
MSATP was informed by the Comptroller’s Office that approximately 500 notices were mailed to taxpayers who received Baltimore County Pension (1099R) in 2013. Apparently, the paper copy and the information that was transmitted electronically to the State of MD was different. The 1099R your client received is correct. If your client receives a notice on this issue, please prepare a brief letter to the Comptroller with a copy of the 1099R.