Ohio – Consumer’s Use Tax Amnesty Program

SALT Report 1171 – The Ohio Department of Taxation is offering a Consumer’s Use Tax Amnesty Program. The amnesty program applies to all use tax due for purchases made on or after January 1, 2009.  Under the amnesty program the Ohio Tax Commissioner will waive all use tax liability that has not been assessed prior to January 1, 2009.  Additionally, any consumer’s use tax paid under amnesty will not be subject to interest or civil or criminal penalties.

A no-interest payment plan is available to businesses that were not registered for consumer’s use tax prior to June 1, 2011.

Payment plan requirements:

  • the amount of consumer’s use tax due under amnesty must exceed $1,000.
  • a minimum monthly payment of $1,000 is required
  • the payment period requested cannot exceed 7 years
  • at least one corporate officer, LLC member, or general partner must agree to the terms of the payment plan and agrees to accept personal liability for the entire debt, and
  • an additional Guarantor must agree to accept personal liability for the entire debt. However, if the business is a single member LLC, no additional Guarantor is required.
The no-interest payment plan allowed under the consumer’s use tax amnesty program allows taxpayers to provide a surety bond, an irrevocable letter of credit, or other security equal to the total tax liability due under the amnesty plus an additional 20%. The bond, letter of credit, or security must be in effect for the duration of the payment plan. Failure to comply with the terms of the payment plan will result in the forfeiture of any unpaid balance, including interest and fees, from the surety bond, letter of credit, or other security.
If you apply for amnesty but the ODT determines that you do not qualify because of a prior consumer’s use tax assessment or a prior consumer’s use tax amnesty submission, ODT will issue an assessment for the balance of your tax liability, plus interest.  Payment plans will not offered to consumers who do not qualify for amnesty.  However, taxpayers who do not qualify for the amnesty program may qualify for ODT’s Voluntary Disclosure Program.
Step-by-step-instructions on how to request amnesty are provided as well as tutorials that offer assistance in registering for an OBG account, establishing a Consumer’s Use Tax account, completing a return and setting up a payment plan.
The amnesty program runs from October 1, 2011 and ends on May 1, 2013.
For Further Information:
Consumer’s Use Tax Amnesty Program
Ohio Department of Taxation Proposed Rule 5703-9-60