Information current as of January 31, 2021.
The SARS-CoV-2 virus and the incidence of COVID-19 are changing life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor™ or visit our COVID-19 Resource Center for current information as needed.
Information Specific to Ohio
- Ohio will extend the deadline to file and pay the state income tax to July 15, waiving penalty and interest. The extension applies to: individual income tax; school district income tax; pass-through entity tax; department-administered municipal net profit tax; and the first and second quarterly payments, normally scheduled for April 15 and June 15 for most taxpayers.
- DOR Notice, March 27, 2020. o H.B. 197, effective March 27, 2020.
- Ohio is allowing an extension to the statute of limitations on refund claims due to expire between March 9, 2020 and the end of the governor's COVID-19 emergency declaration (or July 30, 2020, whichever is earlier).
- DOR Notice, April 1, 2020.
- Ohio has extended the date to pay real property taxes and assessments for the second-half collection of tax year 2019 for the following counties: Belmont, Cuyahoga, Delaware, Franklin, Geauga, Monroe, Montgomery, Paulding and Washington.
- Ohio DOR Notice, May 6, 2020.
- Ohio legislation treats the forgiven amount of a PPP loan excluded from gross income for federal income tax purposes under the CARES Act as not subject to the Ohio Commercial Activity Tax.
- Ohio H.B. 481, Laws 2020, effective June 19, 2020.
- Ohio issued guidance that the Economic Injury Disaster Loan advance grants of up to $10,000 and the receipt of coronavirus relief grants and loans, established by the CARES Act, by a business isn’t excluded from gross receipts for the commercial activity tax, unless a loan isn’t forgiven. However, the employee retention tax credits authorized by the CARES Act are excluded from gross receipts, which exclude refundable tax credits and other tax benefit recoveries.
- Ohio DOR FAQs, August 1, 2020.
- Ohio explained that Public Health and Social Services Emergency Fund payments aren't excluded from a taxpayer's gross receipts for purposes of income tax. However, if the healthcare provider is a nonprofit organization as defined in Ohio Admin. Code §5703-29-10, that nonprofit organization is an excluded person under Ohio Rev. Code §5751.01(E)(8) and therefore not subject to the tax.
- Ohio DOR FAQs, August 1, 2020.
- Ohio updated guidance on taxation of COVID-19 tax relief by clarifying the type of grants that are included in gross receipts for purposes of the commercial activity tax. Such grants include, but aren’t limited to, county-issued grants, small business relief grants, and grants from the Bar and Restaurant Assistance Fund.
- Ohio Department of Taxation, COVID-19 Tax Relief FAQs; January 1, 2021.