More than 300,000 Ohio businesses have some use tax liability. That’s 96 out of every 100 businesses in Ohio.
The Ohio Use Tax Amnesty Program is a once in a generation opportunity for businesses to pay back use taxes with minimal to no liability. Here’s a breakdown of enforcement changes to use tax laws in Ohio and how the Ohio Use Tax Amnesty Program can help your business.
September 2011:
The State plans to contact businesses on the list with a letter or postcard. Click here for a free assessment to determine if your business will be on that list.
Ohio Use Tax Amnesty Program:
Business owners can enroll a new program: The Ohio Use Tax Amnesty Program. Those Ohio businesses enrolling in the Ohio Use Tax Amnesty Program only have to look back on their use tax records from January 1, 2009-present.
Participants in the Ohio Use Tax Amnesty Program also don’t have to pay penalties or interest. Plus, Ohio businesses can make monthly payments of their use tax liability for up to seven years.
These changes in Ohio use tax law are unprecedented. Contact an Ohio use tax expert today to take advantage of these historic amendments.
Renewed Enforcement:
Businesses have until May 1, 2013 to enroll in the Ohio Use Tax Amnesty Program. Those that fail to do so will be subject to a state audit that looks back at purchases for a longer period of time.
More than 90 auditors have been hired to perform these assessments and audits. The state also refined its database to find businesses that haven’t paid use tax in Ohio.
More than 300,000 Ohio businesses will be under the state’s eye. Take advantage of this once in a generation opportunity now.
Business thinking about rolling the dice should consider the following differences between self-reporting Ohio use tax liabilities and receiving an audit from the Ohio Department of Taxation.
| Self Report | Audit | |
|---|---|---|
| Look Back Period | January 1, 2009 | Between Seven and Ten Years |
| Interest Owed | None | At least 3-5 percent over seven-ten years. |
| Penalty Owed | No | Yes |
| Filing Costs | Hundreds of Dollars | ????????????????? |
The Ohio use tax is a specialized area of tax law. It is different from other state taxes, federal taxes and income taxes.
Because of this complexity, software like QuickBooks®, TurboTax® and other tax calculators may not help. Most certified public accountants even struggle deciphering more than 100 Ohio use tax exceptions and exemptions.
For the sake of your business, this complicated tax question requires an Ohio use tax expert.