By Jesse MacDonald and Katie Lash
Ohio’s biennial budget legislation was signed into law by Governor John Kasich on June 30, 2017. A provision of this bill includes a temporary tax amnesty program that will commence on January 1, 2018 and end on February 15, 2018. Both personal and business taxes are eligible for the amnesty program. The following tax types will qualify for amnesty:
- Sales & Use Tax
- Income Tax
- School District Income Tax
- Pass-Through Entity Tax
- Employer Withholding Tax
- Employer Withholding School District Tax
- Commercial Activity Tax
- Financial Institutions Tax
- Cigarettes & Other Tobacco Product Taxes
- Alcoholic Beverage Tax
Taxpayers may request amnesty for all unreported or underreported qualifying delinquent taxes that were due and payable as of May 1, 2017 and remain unpaid and unreported. The amnesty program does not apply to any delinquent taxes for which a notice of assessment, notice of audit or bill has been issued. Furthermore, amnesty does not apply to any taxes where an audit has been conducted or is currently underway, or that relate to a tax period ending after June 30, 2017.
For taxpayers that qualify for the amnesty program and pay the full amount of qualifying delinquent taxes, the Ohio Department of Taxation is authorized to forgive one-half of any interest due and abate all applicable penalties, including any criminal or civil action regarding the outstanding liability.
Taxpayers should consult with their CSH tax advisors, or a member of our State and Local Tax Practice, before seeking amnesty from Ohio to make sure that participation in the program is the most beneficial for them.