| January 2006 |
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TaxAdvisor
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Take a Fresh Look at Your State Taxes: Tax Amnesty Comes to Ohio
Ohio Offers Tax Amnesty Period
Now is the time to clear your conscience of certain overlooked and unpaid
taxes. From January 1, 2006 through February 15, 2006, the Ohio Department of
Taxation has a Tax Amnesty program. The program covers underreported and
unreported Corporation Franchise Tax, Sales & Use Tax, Personal Income Tax,
School District Income Tax, and Tangible Personal Property Tax due but unpaid on
May 1, 2005.
Through this one-time-only amnesty program, taxpayers can pay delinquencies
without penalties and only half of the normal interest charge. To
participate in the program, taxpayers need to file an application along with the
appropriate tax returns. Payment of the tax plus one half of the interest is due
at the time the application is filed.
Ohio Sales and Use Tax Check-up
Many companies may be leaving money on the table by paying sales and use tax
that is otherwise not due. In other cases, companies may face potential exposure
because of unpaid sales and use taxes. Sales and use tax laws are constantly
changing. Some may find that just when you think you have covered all taxable
items, the law adds new taxable services or changes the exemptions from the tax.
Ohio sales tax is due on the sale of tangible personal property and on
certain services. It is often unclear whether property is personal or real
property. In addition, the list of taxable services continues to grow.
Ohio use tax is due on taxable purchases you have made without paying sales
tax. This could include purchases through catalogs and the internet, as well as,
purchases of taxable items from out of state vendors.
Property that will be resold, used in manufacturing, or used in packaging is
exempt from tax with a valid exemption certificate. Other exemptions may be
available for food preparation, medical supplies and equipment, capitalized
research and development equipment, certain items used in making retail sales,
and other areas.
In light of the current amnesty program, now may be a good time to review
your compliance with the sales and use tax law. Bober,
Markey, Fedorovich & Company can review your records and assess
whether you may have a sales and use tax refund or potential exposure. We are
available both to evaluate your situation and help you implement appropriate
changes.
If you are interested in learning more about the amnesty program or the Sales
and Use Tax Check-up, please contact your partner/manager or call Paula
DiVencenzo directly at 330-255-2479 or email her at
paula@bobermarkey.com.
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