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February 22, 2013

NLG Tax Alert - Ohio Consumer's Use Tax Amnesty Program is Expiring May 1, 2013

    The Ohio Department of Taxation’s (“ODT”) Consumer’s Use Tax Amnesty program is set to expire on May 1, 2013.  We wanted to alert all our clients and colleagues as to the approaching Consumer’s Use Tax Amnesty program expiration date so that you have time to review your records and contact us with any questions, comments, concerns, or interest as to taking advantage of the program before it expires.  At this time we feel it makes good business sense for all of our clients to review their relevant purchase invoices and prior Ohio Consumer’s Use Tax payments to identify any potential issues that the Ohio Consumer’s Use Tax Amnesty program may help you avoid before the program expires.  We have provided a brief summary of the Ohio Consumer’s Use Tax Amnesty program below.

    Under the Ohio Consumer’s Use Tax Amnesty Program, the Tax Commissioner will waive all unassessed use tax liability due for any periods prior to January 1, 2009.  Additionally, for taxpayers who were not registered for Ohio use tax as of June 1, 2011, consumer's use tax paid under amnesty is not subject to interest, or civil or criminal penalties.  But, taxpayers who were registered for Ohio consumer’s use tax as of June 1, 2011 are required to pay interest on any under-reported or unreported consumer's use tax.  Taxpayers should include consumer's use tax due on purchases made on or after January 1, 2009 on their amnesty applications.  Taxpayers must make a nonrefundable payment of all consumer’s use tax due on purchases made on or after January 1, 2009, through the last day of the month preceding the month in which amnesty is requested, and will be required to register for consumer’s use tax if not already registered.  A no-interest payment plan is available to businesses that were not registered for consumer's use tax as of June 1, 2011. The amount of consumer's use tax due under the amnesty must exceed $1,000, and the payment period cannot exceed seven years.  Taxpayers who have been issued an assessment for consumer's use tax due for any period are not eligible for amnesty, although they may still qualify for the Department's Voluntary Disclosure Program.  See Ohio Tax Information Release No. ST 2011-01, 9/01/2011.  For a more detailed discussion of this and other amnesty programs, see our prior article here and here.

    In sum, in light of the approaching Ohio Consumer’s Use Tax Amnesty program expiration date, we feel it is important that all of our clients review their files to determine whether they may need to consider taking advantage of that program before it expires on May 1, 2013.  We are experienced in analyzing the necessary information and documentation to make that determination, and in preparing and filing the application for Ohio Consumer’s Use Tax Amnesty.

    Nardone Law Group represents businesses and individuals with federal and state tax issues. If you have an unassessed use tax liability, you should contact an experienced tax attorney today. Nardone Law Group’s tax lawyers and professionals have vast experience representing clients before the IRS and the Ohio Department of Taxation. Our experienced tax lawyers will thoroughly review your case to determine what options and alternatives are available. Contact us today for a consultation to discuss your case.

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February 22, 2013

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