Under House Bill 153, the Ohio Department of Taxation approved a no-interest payment plan under the consumer’s use tax amnesty program allowing eligible taxpayers up to seven years to satisfy their liability with a minimum monthly payment of $500.
In order to be eligible, the following conditions must be met:
- The taxpayer must not have been registered with the Department for consumer’s use tax as of June 1, 2011.
- The use tax liability reported on the amnesty application must exceed $500;
- An individual authorized to execute contracts on behalf of the taxpayer must agree to the terms of the payment plan; and
- The taxpayer must waive the statute of limitations for assessment of the consumer’s use tax due under the payment plan.
If a taxpayer misses a monthly payment, fails to return a fully executed copy of the payment plan agreement on time, or fails to remain current with all of its Ohio tax obligations, the Tax Commissioner may assess the taxpayer for the entire outstanding consumer’s use tax balance, including interest calculated from the date the tax was required to be paid.
See our prior Insight, "Ohio Enacts Consumer's Use Tax Amnesty Provisions," for more information on the consumer use tax amnesty program. Should you have any questions, please do not hesitate to contact the state and local tax professionals at Schneider Downs.
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