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Department of Taxation releases update for Ohio’s PTE tax for electing entities

Written on Sep 28, 2022

Senate Bill 246 was passed by the General Assembly and signed into law by Gov. DeWine on June 14. This bill added section R.C. 5747.38, which allows a qualifying pass-through entity (PTE) to “elect” to be subject to this new entity-level tax. 

Frequently Asked Questions (FAQs) are available on the DOT’s web site for electing PTEs. The Department will continue to add FAQs as new information and guidance is finalized.  

A draft version of the new IT 4738 form is posted on the searchable tax forms page.  

Currently, no estimated payment coupon (UPC) is available for the IT 4738. If you have made, or need to make, estimated payments, it is recommended that you use the IT 1140 UPC. The next estimated payment due dates are Oct. 15, 2022, and Jan. 15, 2023. When you file the IT 4738, there will be a line in Schedule I of the return (Page 2, Line 12) to notify the DOT to transfer payments from one of the other PTE form types (IT 1140 or IT 4708) to the IT 4738 for previously made payments. See example below. 

Line 12 on the new IT 4738 is where the entity reports any 2022 estimated payments made on an IT 1140 or IT 4708 UPC that the entity wants transferred to the IT 4738. 

For further updates, and to see previous tax alerts, please continue to monitor the Department’s web site at tax.ohio.gov/electingPTE.