Ohio Use Tax Amnesty Program to Begin Oct. 1; OVMA to host Sales & Use Tax Workshop

Beginning in October, the Ohio Department of Taxation will commence a legislative-mandated use tax amnesty program for Ohio businesses. Use tax is part of sales tax law and must be paid by consumers, including businesses when sales tax was never collected by the seller on a taxable purchase. Most are unaware of use tax liabilities and hence the upcoming amnesty opportunity.

Veterinary clinics that have never established a use tax account with the Ohio Department of Taxation should strongly consider doing so this fall when the tax amnesty period for use tax begins. By coming forward to pay past use tax liability after Oct. 1, a business will only have to pay a use tax liability from Jan. 1, 2009, to their filing date—or, in other words, covering a period of just under three years. In addition, under the amnesty provisions all penalties and interest will be waived on your tax liability.

If a business does not come forward during amnesty and is audited later, the Tax Department will go back to Jan. 1, 2008, and penalties and interest will be assessed.

To assist you in understanding use tax liability as well as the nuances of your Ohio sales tax responsibilities, the OVMA will host a Sales and Use Tax Workshop next month. The workshop will feature an in-depth presentation by Justin Mohler, CPA, of the firm Watson & Associates, which specializes in sales and use tax. Registration is limited to the first 150 people and is $20 per person for OVMA members or non-DVM staff of the same clinic. Non-members are also welcome to attend at a rate of $120 per person.

OVMA Sales & Use Tax Workshop

  • When: Sept. 28, 2011, from 1 to 4 p.m.
  • Where: Longaberger Alumni House, 2200 Olentangy River Rd., Columbus
  • Registration Deadline: Sept. 21, 2011
  • Register: Online or by contacting the OVMA at 800.662.6862

 

OVMA is also exploring publication of a sales and use tax procedure guide with Watson & Associates. Watch your e-mail, the OVMA website and the OVMA newsletter for more information on these helpful members only informational resources.

One comment

  1. This is a great blog post. Your discussion about the look back period is spot on. Previously, the Ohio Department of Revenue under the Voluntary Disclosure Agreement was going to look back further into the past, but the Amnesty program limits the amount of time they will look back.

    Please be careful not to simply open a use tax account and think the problem is solved. Our firm had an experience where a client did that and was assessed taxes 20 years in arreas. It is essential that you work with a qualified professional to determine if you qualify and then to properly apply.