Is tax amnesty just for use tax?

Joe Popp | April 5th, 2012

Ohio’s Use Tax Amnesty Program has been big news.  We’ve been happy to help businesses across Ohio take advantage of the Use Tax Amnesty Program, perhaps the most business-friendly tax program in Ohio’s history.  Businesses have been able to take care of outstanding use tax liabilities, open a use tax account, and start themselves off with a clean slate with the Ohio Department of Taxation.

Ohio’s Use Tax Amnesty Program has been so great that people have been asking us, “Can I get amnesty on other kinds of taxes, too?”  And, the answer is yes!  Although Ohio’s General Tax Amnesty program hasn’t received as much attention as Ohio’s Use Tax Amnesty program, it’s still a great opportunity for businesses.

What types of general taxes qualify for amnesty?

Taxpayers who owe the following types of unreported or underreported qualifying delinquent taxes may qualify for Ohio General Tax Amnesty:

  • Individual Income
  • Individual School District Income
  • Commercial Activity Tax (CAT)
  • Sales and out of state Seller’s Use (which is a version of sales tax)
  • Employer Withholding
  • School District Employer Withholding
  • Corporation Franchise
  • Pass Through Entity
  • Estate
  • Gross Receipts of a Natural Gas Company or a combined Electric and Gas Company
  • Motor Fuel
  • Cigarette or Other Tobacco Products
  • Dealers In Intangibles

Like the Use Tax Amnesty Program, Ohio’s General Tax Amnesty Program is a limited time offer – but while Use Tax Amnesty is about a year and half in duration, the General Amnesty is only a month and half in duration.  The program runs through June 15, 2012, and covers unpaid taxes that were delinquent as of May 1, 2011.  Under the program, when taxpayers own up to delinquent tax obligations, the Ohio Department of Taxation will forgive the penalty and one-half of the interest charges.  Aside from these financial benefits, taxpayers who file general tax amnesty will not be subject to criminal prosecution for their delinquent taxes.

Unlike the Use Tax Amnesty Program, there is no payment plan for General Tax Amnesty; payment must be made in full.  Although General Tax Amnesty is not quite as business-friendly as Use Tax Amnesty, it’s still a good opportunity for businesses to get their houses in order.  Contact your tax professional as soon as possible if you believe that owe delinquent taxes in any of the areas listed above.

Contact our Ohio tax amnesty experts

Do you have outstanding delinquencies on any Ohio taxes?  Are you worried about that “gotcha” moment when you’ll have to pay up on the delinquencies – and hefty interest and penalties?  Paying those delinquencies is inevitable, but Ohio’s General Tax Amnesty Program can help to reduce the bite of the interest and penalties.  Our Ohio tax professionals can review your situation and help you apply for amnesty for all of your delinquent taxes.  But the clock’s ticking… Contact Rea & Associates (soon!) to get started.

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