Ohio Use Tax Amnesty Program Now In Full Swing

Businesses Who Proceed Cautiously Will Benefit Most

Now through May 1, 2013, The Ohio Department of Taxation (ODT) is offering an amnesty program for the Ohio consumer’s use tax.  The use tax amnesty program is part of Ohio’s shift in policy to become more tax friendly while ensuring that all businesses are “fairly taxed.”  Bober Markey Fedorovich (BMF) explained the use tax program in detail in a summer advisory; now that the ODT is beginning to implement the program, BMF wants to make its clients aware of potential concerns and opportunities presented by the program.  


On Oct. 1, the ODT started to contact a large number of Ohio businesses it believes are candidates for amnesty or who may have outstanding use tax liability.  In presenting the amnesty program, the ODT will encourage all businesses to apply for amnesty and will focus on the benefits amnesty may provide.  These benefits include a look-back period of Jan. 1, 2009 and the waiver of penalties and interest for taxpayers not previously registered for use tax.  


Businesses applying for amnesty should be aware of potential issues and opportunities presented by the amnesty program before applying.  The following is a list of considerations taxpayers should be aware of prior to applying for the amnesty program:

  • Whether Ohio’s use tax applies to them
  • Whether the business is eligible for amnesty and alternatives if not eligible
  • What potential use tax liability exists
  • What exemptions may apply to taxpayers’ purchases
  • How certain requirements of the program apply to them
  • What other tax savings opportunities exist relative to sales and use taxes


Based on prior amnesty programs, the ODT is likely to present the amnesty program favorably without addressing the concerns and criteria businesses should consider before applying for amnesty. BMF’s state and local tax experts have the experience to assist its clients to achieve the most favorable results under the amnesty program. 

Ohio businesses contacted by ODT should contact BMF for assistance in analyzing whether they are required to register for use tax and to determine whether they qualify for the amnesty program.  

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For more information, contact:

Robert M. Burak, CPA
Partner in charge, Tax Department
330.255.2419
Email

Jonathan O'Donnell, JD
Manager, SALT Practice Leader
330.255.2479
Email