Back | August 31, 2011
Guidance on Ohio Consumer’s Use Tax Amnesty
The Ohio Department of Taxation has released additional information on the consumer’s use tax amnesty program that commences Oct. 1, 2011, and ends May 1, 2013.
Conditions of Amnesty
Under the amnesty program, the Tax Commissioner will waive unassessed use tax liability for periods prior to Jan. 1, 2009. The use tax paid under the program is not subject to interest or to civil or criminal penalties. Those taxpayers registered for use tax as of June 1, 2011, however, must pay interest on any unreported or underreported consumer’s use tax.
Amnesty Application
The consumer’s use tax due on purchases made on or after Jan. 1, 2009, must be included in the amnesty application. If a taxpayer has been issued an assessment for consumer’s use tax for any period, the taxpayer is not eligible for amnesty. Application may be made only once during the program. Taxpayers not qualifying for amnesty may still qualify for the department’s voluntary disclosure program.
Payment Plan
A no-interest payment plan is available for those businesses not registered for consumer’s use tax as of June 1, 2011. The amount of use tax due must exceed $1,000, and a minimum payment of $1,000 per month is required. The payment period must not exceed seven years. At least one corporate officer, LLC member or other guarantor must agree to the terms of the payment plan and must agree to accept personal liability for the debt. An additional guarantor must also agree to accept personal liability. The business must waive the statute of limitations for assessment of consumer’s use tax under the payment plan.
The department also provides a step-by-step guide to requesting amnesty and a series of fact sheets on the application of use tax to the following businesses: construction contractors, manufacturers, retailers, and service providers. Information on the consumer’s use tax amnesty can be found on the department’s website.
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