Fix to Form IT/SD 2210 a win for CPAs

Written on Jul 05, 2018

OSCPA staff report

Gov. Kasich on June 29 signed House Bill 133 into law, making official an OSCPA-requested fix of an unclear tax policy that was costing businesses money.

As we reported in May, the issue was brought to OSCPA’s attention by our Tax Special Interest Section discussion group. A member had a client who just missed the "Safe Harbor" on estimated payments by $50 and wound up owing thousands with a large penalty.

The action amends the law to change the way the Ohio interest penalty is calculated. A taxpayer or qualifying entity’s interest penalty is now calculated using the lesser of:

  • 90% of the current year’s tax liability; or
  • 100% of the prior year’s tax liability, provided the prior year return was filed.

These changes are retroactively applied to Ohio’s income, school district income, pass-through entity, or fiduciary income tax return filed for any tax year beginning on or after Jan. 1, 2017.

The Ohio Department of Taxation said those impacted by this amendment may:

  • File an original or amended return to apply for a refund,
  • File an application for a refund if an erroneous payment was previously made, or
  • File a petition for re-assessment if an assessment was previously issued by the Department.

Read the official July 3 tax alert from the Ohio Department of Taxation.