Ohio Department of Taxation Announces Use Tax Amnesty/Voluntary Disclosure Program

The Ohio Department of Taxation has introduced the Use Tax Education Program (UTEP) to work with Ohio businesses to understand and stay in compliance with use tax laws. The program offers financial incentives to businesses with use tax liability to pay what is owed. Businesses that should be registered to remit use tax but aren’t will be notified by UTEP that they need to register. Businesses can then register and begin remitting use tax on future purchases. In addition, the program will allow a business to enter into an agreement to clear up past unpaid use tax liabilities. Under the terms of the agreement, the business would pay use tax plus interest on untaxed purchases for the last four years or less, depending on when the business started. The business would also agree to register and remit use tax on purchases going forward. In the absence of fraud, the Department agrees to waive use tax liability for all years beyond the look-back period and waive the 15 percent penalty applicable to the unpaid use tax. The Department will start actively contacting businesses registered for other taxes but not use tax in the second half of 2011. Companies are encouraged to evaluate their potential liability and contact the Department to secure registration under the UTEP program. (Use Tax Education Program, Ohio Department of Taxation, January 28, 2011)

Posted on March 14, 2011