Ohioans to get second chance at back taxes

Individuals and businesses behind on their state taxes will get a chance to catch up starting Jan. 1 and save money doing it.

The state is launching a tax amnesty program that will run from New Year’s Day until Feb. 15. Taxpayers who fully pay qualifying tax delinquencies will owe no penalties and will pay only half of the interest normally charged.

The program applies only to those who haven’t already been contacted by the Ohio Department of Taxation about what they owe in taxes. It covers taxes that were supposed to be paid before May 1.

“For those folks, it’s a nice savings. No penalty and half interest,” said Joe Testa, the state’s tax commissioner.

The program is similar to an amnesty program the state conducted in 2012. That program netted the state about $30.5 million from 2,700 individuals and businesses.

State tax officials expect the 2018 program, adopted as part of the state budget that went into effect July 1, to collect at least $20 million.

“I can’t believe we wouldn’t hit that or exceed that,” Testa said.

More important, Testa said, it will bring taxpayers into compliance.

“When everybody complies with the tax law, it’s better for all of us,” he said.

The amnesty covers several kinds of taxes: individual income tax, school district income tax, employer

withholding tax, employer withholding for school district income tax, sales tax, use tax, commercial activity tax, financial institutions tax, taxes on cigarettes and other tobacco products, and taxes on alcoholic beverages.

The Taxation Department will begin promoting the secondchance program with the slogan “Ohio Tax Amnesty: Your Move Forward.” The awareness campaign will

include advertising on television, radio, email, social media and digital display advertising. Special events and outreach to tax practitioners also are planned.

Amnesty programs like this one typically are a good deal for delinquent taxpayers, said Ted Johnson, a taxand litigation-support partner with accounting firm Parms + Co. in Columbus.

“The penalties can get crazy. They can pile up,” he said.

It also gives comfort to taxpayers who may fear that catching up with their taxes will trigger an audit, he said.

“You’re in compliance, and we get the taxes, and all is right with the world,” he said.