Ohio – Late-Filing Penalty Upheld

1/24/2013

SALT Report 2081 – The Ohio Board of Tax Appeals upheld a sales tax assessment imposed on a Taxpayer for failure to file.  The Taxpayer appealed the assessment stating that she had pre-filed her sales tax returns for the period of May – October because she was planning to close her business during that time in order to travel. Upon her return the Taxpayer realized that the October return had not been accepted by the Department. Although the Taxpayer filed zero returns she was assessed $58.05 in penalties for failure to file.

In their decision the Appeals Board stated that “the remission of a penalty is discretionary” and it is the Taxpayer’s burden to prove that the Commissioner’s reasoning was unconscionable or unreasonable.  Accordingly, the Appeals Board denied the Taxpayer’s claim because the Taxpayer could not show that the Tax Commissioner’s original judgment was an abuse of discretion.

For Further Information

Ohio Board of Tax Appeals – Number 2012-A-357