Posts Tagged ‘Ohio Department of Taxation’

Get Ready, Get Set, Get Shopping!

Monday, August 1st, 2016

2016 Tax Free Holiday Is Aug. 5-Aug. 7

2016 Sales Tax Holiday | Rea & Associates | Ohio CPA Firm

This weekend when you are out back-to-school shopping, don’t be afraid to fill the cart with a little bit more! Friday, Aug. 5-Sunday, Aug. 7 is Ohio’s sales tax holiday! Read on to find out which items will be exempt from sales and use tax.  Don’t forget to share this post and/or this photo to remind friends and family of this event!

Will you be one of the many shoppers flooding stores this weekend in search of some great back-to-school bargains? If so, then your shopping trip got a whole lot better! This year’s Sales Tax Holiday will take place Friday, Aug. 5-Sunday, Aug. 7.

Read Also: Five Things You Didn’t Know About Ohio’s Tax Holiday

Without the burden of paying sales tax on a variety of items, shoppers will be able to make their dollars go a little further, which is especially great for those looking to fill their closets with the latest back-to-school fashions and their desks with school-time necessities.

This year during the sales-tax holiday, according to the Ohio Department of Taxation, the following items will be exempt from sales and use tax:

  • Clothing priced at $75 per item or less;
  • School supplies priced at $20 per item or less; and
  • School instructional material priced at $20 per item or less.

If you have Sales Tax Holiday questions, including how the tax free holiday works, how coupons and discounts are handled, and what products are eligible for the exemption, check out this helpful FAQ page, or you can call 800-304-3211.

By Lisa Beamer, CPA (New Philadelphia office)

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Phishing Scam Is A Threat To Ohio Businesses

Monday, March 28th, 2016
IRS Phishing Scam - Ohio CPA Firm

You can take a proactive stance when it comes to protecting your company from these scams by encouraging your employees to pay close attention to emails that request sensitive information, such as the names of employees, Social Security numbers, dates of birth, addresses and/or salary information or copies of employee’s W-2 information.

The Ohio Department of Taxation (ODT) is echoing phishing scam alerts made by the IRS earlier this month in an effort to protect businesses and employees state-wide from identity theft and tax fraud.

Read Also: Payroll, HR Departments Targeted By Cyber Criminals

According to ODT, payroll and human resources offices at companies nationwide – including some in Ohio – reportedly received emailed requests that appear to be sent from a high ranking member of the company’s management team requesting confidential payroll data. While the emails appear to be legitimate, they are actually being sent by cybercriminals who are looking to fool employees into sending them detailed payroll and W-2 information. The imposters then use the information to file fraudulent tax returns.

“The scam has worked on more than 30 companies resulting in the theft of W-2 tax information for thousands of current and former employees,” ODT’s news release states. “The W-2 form contains an employee’s Social Security number, salary and other confidential data. This information enables thieves to create a realistic looking, but fraudulent tax return requesting a tax refund that is then filed with Ohio or other states, and the IRS.”

The frequency of tax fraud and identity theft continues to increase at an alarming rate. This tax season alone, the IRS reported an approximate 400 percent increase in phishing and malware incidents – a surge that was addressed back in February.

“If your CEO appears to be emailing you for a list of company employees, check it out before you respond,” said IRS Commissioner John Koskinen. “Everybody has a responsibility to remain diligent about confirming the identity of people requesting personal information about employees.”

You can take a proactive stance when it comes to protecting your company from these scams by encouraging your employees to pay close attention to emails that request sensitive information, such as the names of employees, Social Security numbers, dates of birth, addresses and/or salary information or copies of employee’s W-2 information. You can also let them know that they should never send sensitive information until a conversation takes place, either in-person or over the phone, with the member of management seeking the information. You can also check out the information provided here for general insight from ODT that could be used to help your employees identify phishing attempts and email scams.

If your Ohio business has been the victim of or experienced this or any other type of email phishing scheme, contact ODT immediately at 800.282.1780 to protect against potential tax fraud and safeguard Ohio taxpayer dollars.

Those who are interested in learning more about the increasing threat of cybercrime should check out The Columbus Cybersecurity Series. Presentations are scheduled to take place throughout the year and will focus on ways to help business owners learn more about cyber threats. The first installment is scheduled for Wednesday, April 6. The event is free but registration is required to attend. Attendees will walk away with new insight into these attacks as well as tips and advice that will help you protect your business.

By Lisa Beamer, CPA (New Philadelphia office)

Want to protect your employees from identity theft and tax fraud or need help recovering? Check out these articles:

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New Payment Option Available To Ohio Pass Through Entities

Thursday, November 19th, 2015
Tax Payment Process - Ohio CPA Firm

What is your business made of? If it’s a pass through entity, you now have an easier way to pay your tax bills. Read on to learn more.

Do you currently enjoy the benefits associated with owning a pass through entity (PTE) in Ohio, including better tax treatment and limited liability protection? Well, earlier this month the Department of Taxation announced another little perk – online payments! According to the release, the Treasurer of Ohio is now accepting tax payments per its Electronic Funds Transfer (EFT) program on its website. This announcement impacts:

EFT, according to the Treasurer’s Office, is a secure, online payment option for those seeking a convenient way to pay recurring commercial activity, corporate franchise, sales, streamlined, use, withholding and now pass through entity taxes. To utilize this online payment system, you must have a federal employer identification number.

Even though the online payment process is in full swing, pass through entities are still unable to register electronically. Once completed, you can submit the form to the Electronic Payments Unit of the Treasurer’s Office.

By Lisa Beamer, CPA (New Philadelphia office)

What Does Having The Right Business Structure Mean To You?

Did you know that business structure plays a huge role when determining what your business can and cannot do? It also helps determine your tax liability. Take a look at the slideshow below to learn more or click here to learn even more about the business structures that are available to you. You can also email Rea & Associates if you have additional questions.

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Colored Pencils, Glue and … Rubber Pants? Oh My!

Monday, August 3rd, 2015

Five Things You Didn’t Know About Ohio’s Tax Holiday

Ohio Sales Tax Holiday - Rea & Associates - Ohio CPA FirmRegardless of whether you are a parent with younger children, a student, a teacher, or maybe just someone who wants to stock up on a ridiculously large supply of colored pencils and glue, by the time you buy everything you need for that first day of school, you (and your bank account) are drained. OK – maybe it’s really not that bad, but by the time you purchase new clothes and shoes, a book bag or two and all the items that go in it, you will have spent a large sum of money.

Fear not fellow Ohioans! The Department of Taxation is offering relief.

This year, for the first time ever, the State of Ohio is giving those who shop for clothing (priced at $75 or less per item), school supplies (priced at $20 or less per item) and school instructional material (priced at $20 or less per item) a break from paying sales tax beginning 12:01 a.m. Friday, Aug. 7 and ending 11:59 p.m. Sunday, Aug. 9, 2015. And there is no limit on the quantity of items you can purchase.

“As the new school year approaches, additional expenses can put a strain on family budgets, said Ohio Tax Commissioner in a news release. “The sales tax holiday will give back-to-school shoppers a break from paying sales tax, and let Ohio families save some money.”

The one-time tax holiday, which was enacted as a result of Senate Bill 243, also applies to eligible items purchased online, by mail, telephone or email. But to qualify, the order must be placed, paid for and accepted by the retailer for immediate shipment during the hours the tax holiday is in effect. That being said, actual delivery can occur following the tax exemption period.

Read on to learn five interesting facts about the upcoming tax holiday.

Five Things You Didn’t Know About Ohio’s Tax Holiday

  1. Retailers cannot “opt out” of the 2015 Ohio Sales Tax Holiday event. The holiday is set by law, therefore all vendors must comply.
  2. Qualifying items placed on, or picked up from, layaway during the sales tax holiday ARE exempt from sales tax.
  3. During the sales tax holiday, all clothing that costs $75 or less is exempt from sales tax. So, obviously items such as shirts, pants, dresses, uniforms, shoes, coats, etc. are tax exempt; but items like receiving blankets, diapers, rubber pants and athletic supporters also made the cut.
  4. While you won’t have to pay sales tax on your aprons, belts and beach capes, wigs, belt buckles and wetsuits are another story. Make sure to check the official web page for more clarification.
  5. Teachers are also encouraged to take advantage of the holiday! In addition to traditional school supplies, the tax exemption is valid for reference books, maps, globes, textbooks and workbooks.

SOURCE: http://www.tax.ohio.gov/sales_and_use/salestaxholiday/holidayfaq.aspx

Click here to learn more about Ohio’s 2015 Sales Tax Holiday. Happy back-to-school shopping!

By Lisa Beamer, CPA (New Philadelphia office)

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Update: Ohio Tax Quiz Appears To Be Working

Friday, March 13th, 2015
Tax ID Quiz

According to officials at the Ohio Department of Taxation, while the new Identification Confirmation Quiz may be a pain in the neck, it appears to be working as a identity theft deterrent – Rea & Associates – Ohio CPA Firm

We have learned over the last month that Ohio’s new system of validating taxpayer identification, the Identification Confirmation Quiz, appears to be working.

In an effort to boost security and prevent tax-fraud in the state, the Ohio Department of Taxation introduced the quiz at the onset of the 2015 tax season and began flagging tax returns with data points that are inconsistent with public and commercial data sources. If their returns are flagged, taxpayers are required to take a Quiz to prove their identities.

Read: Theft Safeguards To Cause Tax Return Delays In Ohio

“Through Feb. 18, more than 1.3 million tax returns have been filed with about 874,000 requesting a state income tax refund. About half of the refund requests have been selected for additional screening to ensure that they were not filed by an I.D. thief,” stated Ohio’s Tax Commissioner Joe Testa in a press release. “About 97 percent of taxpayers taking the quiz are passing. That proves they are who they say they are.”

That means about 3 percent who fail the test are being declined to receive refunds that they would have normally received in previous years. As long as that 3 percent consists of actual identity thieves, the results reported are significant.

By Lisa Beamer, CPA (New Philadelphia Office)

 

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Theft Safeguards To Cause Tax Return Delays In Ohio

Tuesday, January 20th, 2015

If time is money then the new security measures to protect Ohio taxpayer’s returns and prevent identity theft comes at a price. The Ohio Department of Taxation (ODT) said that in an effort to boost security and prevent tax-fraud in the state, Ohio will implement an “up-front filter to all tax-refund requests to analyze the demographic information reported on the return.”

According to Joe Testa, the state’s tax commissioner, the ramped up security is in response to increased fraud attempts. The Columbus Dispatch reports that the state foiled $250 million in attempted tax fraud during the 2014 tax season, which is a significant increase over the foiled tax fraud average of $10 million in previous years. Figures of how much fraud went undetected last year or in previous years are not available.

The Tax-Fraud Quiz

If your tax return is flagged as a result of anomalies in reported demographic information then you will have to complete an Identification Confirmation Quiz, according to Testa. If you are selected to take the quiz, you should expect a delay as to when your funds will be dispersed. Traditionally, it takes up to 15 days to process refunds that will be distributed to the taxpayer via electronic deposit. Those who opt to receive their refunds in check form could wait 30 days to receive their money. This year, those who must take the quiz to validate their identities, may have to wait longer than they have in previous years to receive their refunds.

Which Returns Will Be Flagged?

On its website, the ODT says that tax returns will be analyzed for certain inconsistent data points against public and commercial data sources. For example, in the Dispatch article, taxation spokesman Gary Gudmundson said that “names and Social Security numbers that show up in a different part of the state, or in another state, after being located for years in a specific area of Ohio” may be flagged. This means that if you moved this year, your return may flagged as one that has a higher probability of fraud. The next step is to take the quiz to verify your identity. If the return is flagged, the taxpayer will be required to complete the quiz or prove their identity through documentation before the tax return will be processed.

How To Know If Your Return Was Flagged?

The ODT will send a letter to taxpayers who are required to take the identification quiz. Those who don’t receive a letter will not be able to complete the quiz. Those who are selected will have 60 days to complete the multiple choice quiz. The quiz will be timed and it must be completed online. The state agency has provided answers to Frequently Asked Questions about the quiz on its website.

Contact your financial advisor or seek out a tax professional to help guide you through these security measures. Email Rea & Associates for more information about this and other tax-related concerns.

By Lisa Beamer, CPA (New Philadelphia office)

 

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Less Ohio Tax Centers, No Tax Booklets, But Still Many Resources

Wednesday, August 3rd, 2011

With more Ohio taxpayers now filing state returns electronically, the Ohio Department of Taxation has closed seven regional taxpayer centers and will no longer mail its income tax booklets to taxpayers. (more…)

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