What is required of a non-resident seller of real property in Maryland regarding taxes?

In Maryland, non-resident sellers of real property are required to remit an estimated payment for potential tax implications. This requirement arises to ensure that the state can collect taxes that may be due from the sale of the property. Non-resident sellers may be subject to Maryland income tax on any gain from the sale, and the state mandates that they make an estimated payment at the time of closing to cover these potential tax liabilities.

By remitting this estimated payment, non-resident sellers can avoid penalties or interest that might accrue if taxes are owed but not paid on time. This mechanism helps ensure compliance with tax obligations and protects the integrity of the Maryland tax system, as the state has a vested interest in collecting taxes owed from non-residents who profit from real estate transactions within its borders.

The other options do not accurately reflect the requirements placed upon non-resident sellers. A flat fee to the local government does not apply in this context, nor is there a blanket exemption from taxes for non-resident sellers. Additionally, while filing forms with the IRS may be relevant for tax purposes, it does not specifically address the obligations pertaining to Maryland state taxes in this situation.