Income tax filing deadline looms

Residents reminded about local taxes

Doing your taxes can be a headache, but with Tax Day less than a month away, filing them sooner is better than later, according to Lorain City Treasurer Terri Soto.

This year, you have until April 18 to file your taxes on income earned in 2016 rather than the usual April 15 deadline since it falls on a Saturday.

On April 17, the District of Columbia celebrates Emancipation Day, so it affects taxes the same way federal holidays do.

Emancipation Day is normally April 16, but it falls on a Sunday, therefore, leaving taxes to be due April 18.

This allows three extra days for taxpayers to file.

Going to third party tax preparation services may take some weight off citizens shoulders, but it is the resident’s responsibility to file with the city they live in, Soto said.

“Certified public accountants are making money off filing federal and state returns,” she said. “But taxpayers need to be responsible to file with the city.”

After visiting multiple tax preparation services, Soto said she found out certified public

“I visited h&R Block, Jackson hewitt and other tax services. I was told taxpayers are given a folder to file locally, but they never end up filing.”

— Terri Soto, Lorain city treasurer

accountants are preparing local returns, but taxpayers are choosing to not file with city.

“I visited H&R Block, Jackson Hewitt and other tax services,” she said. “I was told taxpayers are given a folder to file locally, but they never end up filing.”

Most people don’t file with the city because they are upset about city conditions or just don’t care, according to Soto.

“People tend to not pay because they are upset with street conditions, sewer rates and other city issues,” she said.

“But, how are we supposed to fix things in the city if we are not receiving the revenue due to us?”

If failure to file by the deadline, citizens could face a $25 penalty.

House Bill 5 recently

added, “A late filing penalty may be imposed at the rate of $25 per month (or fraction of a month) that a return, other than an estimated income tax return, remains unfiled. This late filing penalty applies regardless of the liability on the return. The late filing penalty shall not exceed $150 for each failure to timely file.”

“Residents give local government a black eye, but this is coming from the state,” Soto said. “People don’t understand that.”

Between April and June, the city of Lorain processes about 10,000 returns.

After all returns are processed, the city sends a bill to residents who didn’t file or failed to pay saying they have 15 days to pay what is owed to the city along with late fees and interest charges.

If failure to pay in 15 days, residents are sent to a law firm, which they are then charged 30 percent of what is already owed to the

city, Soto said.

Before being sent to the law firm, residents have the option to sign a promissory note which puts residents on a payment plan and gives the city permission to automatically deduct payments from their checking or savings accounts on the 15th of every month.

Lorain used to offer electronic filing, but stopped because residents didn’t utilize the services, Soto said.

Soto said turning to outside debt collectors can be helpful.

“The law firm has a more vigorous approach about getting taxpayers to pay their debt,” she said. “In our era of transience, they are excellent about getting updated information on individuals who may have moved out of the city of Lorain.”

The city of Elyria handles taxes differently because it contracts with the Regional Income Tax Agency to process and collect payroll tax withholdings and estimated

income tax payments required by ordinance and individual and corporate tax returns.

“We are a R.I.T.A. (Regional Income Tax Agency) city,” Finance Director and Income Tax Administrator Ted Pileski said. “So, after R.I.T.A. exhaust all its methods, we will bring them through small claims or civil court, depending on the size of the debt.

“That typically prompts a lot of people to come in to pay or set up payment plans.”

Most court cases are dismissed upon payment or payment plans, according to Law Director Scott Serazin.

“We do everything we can before we take the issue to court,” Serazin said. “We would rather work it out than prosecute them.”

It’s all up to citizens to be responsible, Soto said.

“At the end of the day, people have to be responsible in their duties as taxpayers and citizens,” she said.