New Amnesty Programs Help Individuals, Businesses Comply with Ohio Tax Laws

The recently passed Ohio budget bill contains a number of tax related provisions.  The most immediate and impactful tax changes are contained within two amnesty programs.  The programs are summarized below:

  • General Tax Amnesty – Under the general tax amnesty program, taxpayers can report delinquent taxes related to most Ohio state and local taxes, including commercial activity, property, sales and school district taxes.  Taxpayers who report any delinquent tax under the amnesty program will have penalties and one-half of interest related to the delinquent tax period waived.

  • Use Tax Amnesty – Use tax applies to taxable purchases where sales tax was not paid to the vendor; these purchases are generally with out-of-state vendors or internet purchases.  Taxpayers owing use tax can file for amnesty and will be required to file and pay all delinquent use tax from January 1, 2009 forward.  Taxpayers who were not registered for Ohio’s use tax prior to June 1, 2011 and who participate in the amnesty program will benefit by having all penalties and interest waived.

It is important to note that, generally, taxpayers who have been contacted by the Department of Taxation (DOT) prior to participation in either amnesty program are ineligible for amnesty.  Other details regarding the amnesty programs have not yet been established.  It is expected that the DOT will be very strict with taxpayers who fail to report delinquent taxes under an eligible amnesty program.

The tax professionals at Bober Markey Fedorovich are experienced and prepared to analyze your current tax situation to maximize the benefits presented by the state’s amnesty programs.  For the use tax amnesty program, taxpayers can begin applying as early as this October. 

Other tax provisions contained in Ohio’s budget bill may provide planning opportunities or change certain filing requirements and notification methods used by the state.  BMF will keep you apprised of these provisions as the DOT provides more details regarding their application. 

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For more information, please contact our state and local tax team or your engagement manager to determine whether either program can benefit you.

 

Robert M. Burak, CPA
Partner in charge, Tax Department
330.255.2419
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Jonathan O'Donnell, JD
Tax Manager, SALT Practice Leader
330.255.2479
Email