(a) If a person does not file a federal income tax return, the person shall compute Maryland taxable income in accordance with the cash or accrual accounting method that: (1) the person uses to compute income regularly in keeping the person’s books; or (2) the Comptroller requires to reflect clearly the person’s income. (b) If a person does not file a federal income tax return, the person shall compute Maryland taxable income: (1) for the calendar year; or (2) if the person keeps adequate records for an annual fiscal year accounting period, for the fiscal year.
Maryland Legal Code