Ohio’s Department of Taxation is getting serious about its enforcement of the state’s use tax law – and the longer you wait to comply, the more it will cost you.
Note: Ohio has established a tax amnesty program since this post was originally created.
Use tax is a tax that wasn’t paid, but should have been, on taxable property or services your business purchased. It most often occurs when a business purchases goods in-state, out-of-state or over the internet, and the retailer does not collect Ohio sales tax.
Later this summer, the department will begin issuing letters to approximately 380,000 companies it has identified that do not have a use tax account. If your business ignores the notice, it could be audited, or the state could send you a notice estimating the amount of use tax you owe. If your business doesn’t have a use tax account, taking action quickly will help you avoid penalties and a longer look-back period
Join Smart Business and Rea & Associates for a one-hour webinar on Wednesday, April 6, to learn more about Ohio’s Use Tax Education Program (UTEP). You’ll learn:
– What UTEP means to you and your company
– potential items that are subject to use tax
– How you can mitigate your risk as Ohio rolls out this program
– What steps you need to follow to complete a voluntary disclosure agreement
– How your company can address use tax in the future