Comptroller asks Ways and Means to allow email notices to employers about state earned income tax credit

Comptroller Brooke Lierman told the House Ways and Means Committee on Feb. 6 that House Bill 603 would let her office email employers to promote Maryland's earned income tax credit (EITC) rather than relying only on mailed notices.

Lierman said the EITC is an important anti-poverty, bipartisan program but that many eligible workers do not claim it because they do not file tax returns or do not know they are owed a refund. The bill would give the Comptroller flexibility to notify employers either by mail or email so employers can share the information with employees or post it internally, she said.

The comptroller said the agency currently mails notice letters to employers each year at an approximate cost of $150,000 and many letters are returned or never opened. HB 603 would allow the agency to use email where available to reach more employees at lower cost, she said. Committee members asked how the Comptroller determines which employers have employees who may qualify; Lierman said the office typically sends notices to most employers that file with the agency and would assess available email addresses and bounce rates to choose the best contact method.

Delegate Buckle asked whether the bill imposes a new mandate on employers; a committee colloquy established that the bill would not create a new employer obligation but would give the agency an alternative communication method. Delegate Miller asked whether the bill authorizes mail or email ("or"); Lierman said the measure is permissive and the office would default to using valid email addresses and fallback to mail where needed.

Committee staff recorded no formal vote during the hearing; the Comptroller asked the committee for a favorable report.

The bill hearing concluded with no additional testimony for HB 603.