Why Annual IOLTA Reporting Is Required
IOLTA revenues administered by the Maryland Legal Services Corporation (MLSC) constitute one of our State’s principal funding sources for the provision of civil legal services to our low-income population. However, some Maryland attorneys are not in compliance with the requirement to place all of their IOLTA-eligible trust funds in an IOLTA account or their financial institutions have not designated these escrow accounts properly. The result may be a substantial loss of funding for this essential public program. This compliance reporting rule provides the administrative mechanism to assure full participation in the program.
How to Comply
You do not have to open an IOLTA account to be in compliance with IOLTA. An IOLTA account must be established if you are holding short-term or nominal trust funds of at least $3,500 on a regular basis. If this is not the case, you are eligible for a waiver, and you should open a non-interest bearing escrow account. The waiver is requested when you submit the Annual IOLTA Compliance Report (see Compliance FAQ 9). To open an IOLTA account, print the IOLTA Enrollment Form and take this with you to the bank when opening a new account.
When to Report
Each Maryland attorney is required to complete annually the Annual IOLTA Compliance Report, as instructed in the letter issued to you at the beginning of the year by the Maryland Court of Appeals. The IOLTA Compliance Report may be filed by mail or electronically, reporting on your IOLTA account(s) in existence as of the date you complete the report. You may complete the form online at www.mdcourts.gov or return the hard copy to the Administrative Office of the Courts, P.O. Box 319, Simpsonville, MD 21150-0319.
For more about compliance reporting, see the Compliance FAQs.