Multi-State Tax Law Blog
OHIO OFFERS TAX AMNESTY
Ohio is offering a TAX AMNESTY for taxpayers. The types of Ohio taxes available for the program are: (1) Individual Income Tax; (2) Individual School District Income Tax; (3) Employer Withholding Tax; (4) Employer Withholding School District Income Tax; (5) Pass-Through Entity Tax; (6) Sales Tax; (7) Use Tax; (8) Commercial Activity Tax; (9) Financial Institutions Tax; (10) Cigarette or Other Tobacco Products Tax; and (11) Alcoholic Beverage Taxes. These taxes must have been unpaid and due as of May 1, 2017.
The amnesty program will begin on January 1, 2018, and go through February 15, 2018. For those coming forward voluntarily, the state will waive all penalties and one-half of the interest owed. Additionally, and perhaps the best part, is the state will not pursue any civil or criminal actions. The key here, though, is that if you have received any contact from the Ohio Department of Revenue concerning being assessed or about a pending audit, then this disqualifies you from the program.
Is Ohio’s tax amnesty program right for you? It depends. One consideration is cost versus benefit. What is the amount of back taxes you owe? Would it be more cost efficient for you to disclose the taxes and pay now, or potentially be caught later and have to pay the full amount of interest, penalties, and fees in addition to the taxes? What about the possibility of criminal prosecution? For some individuals, no matter how little is owed, they just want to be able to sleep at night knowing they have paid what is owed. For them, the cost is worth the peace of mind.
Other states may be doing an amnesty program as well, which you may want to consider looking into whether you qualify for the programs in the other states. Even if you do not qualify, we may have tools at our disposal that may help you to still get amnesty even though a state is not officially offering an amnesty.
Remember, you can lose big if the state contacts you before you have a chance to enter the amnesty program. If you plan to take time to think about whether the program is right for you, do not take too much time.
About the Author: Gerald “Jerry” Donnini II is a partner of the Law Offices of Moffa, Sutton, & Donnini, P.A. Mr. Donnini concentrates in the area of Florida and Federal tax matters, with a heavy emphasis on the tobacco, convenience store and petroleum industries. He also handles a myriad of multi-state state and local tax issues. Mr. Donnini is a co-author for CCH’s Expert Treatise Library: State Sales and Use Tax and writes extensively on multi-state tax issues for SalesTaxSupport.com.
ADDITIONAL ARTICLES TO READ
LIMITED TIME TAX AMNESTY PROGRAM IN RHODE ISLAND, published December 9, 2017, by Jerry Donnini, Esq.
ANOTHER TAX AMNESTY FOR AMAZON FBA SELLERS IN THE WORKS?, published November 26, 2017, by Jerry Donnini, Esq.
THE VOLUNTARY DISCLOSURE PROGRAM, published October 11, 2017, by Jerry Donnini, Esq.
STATES OFFER AMNESTY FOR FBA AMAZON PRORGAM, published August 13, 2017, by Jerry Donnini, Esq.
Tennessee Jumps on Economic Nexus Train, published March 13, 2017, by Jerry Donnini, Esq.