Directory
Tax
Ohio’s Use Tax Amnesty Program Ends August 1
Ohio is the latest in a long line of states to offer tax amnesty for qualifying businesses. Amnesty programs have been used by many states during the last decade to generate immediate revenue and bring businesses that have not filed in the past into compliance. Ohio estimates up to 380,000 businesses may owe use tax, which is applied when goods or taxable services are purchased, used or consumed in Ohio and no sales tax is paid to the vendor at the time of purchase.
The amnesty program provides an incentive for businesses to resolve prior use tax burdens without suffering excess interest and penalties. In today's economy, avoiding additional penalties and interest may make the difference between a business continuing operations and closing its doors.
The amnesty offered is through August 1, 2011. The Ohio Department of Taxation will waive all interest and penalties as long as companies complete a voluntary disclosure statement and pay any use tax owed. If your business takes advantage of this program by August 1, 2011, you will be liable only for use tax for tax years 2008–10.
After August 1, 2011, the department will begin sending out letters to businesses advising them that they may owe use tax. If you contact the department after receiving a letter, the department will increase the number of years for review to four, but will still waive penalties. If no action is taken by August 1, 2011, or in response to a letter, the department may assess seven years of use taxes plus penalties and interest.
To take advantage of this amnesty program, you must do the following by August 1, 2011:
- Complete a voluntary disclosure statement
- Pay all use tax owed
If you do business in Ohio or would like additional information on this program, contact your BKD advisor or Terri Worthington at tworthington@bkd.com.
Directory
Subscribe