Amnesty

About Amnesty

If your business has a sales tax account, chances are you need a use tax account too. Use tax is paid on products or services that you should have paid sales tax on but didnt. The Ohio Department of Taxation has stepped up efforts to enforce its existing use tax law through a series of educational programs, a voluntary disclosure program and has now created a use tax amnesty program.

Amnesty is the most business-friendly tax program ever enacted by the state of Ohio, and it will save businesses thousands of dollars.

How does Ohios Use Tax Amnesty Program work?

If your company owes use tax, you can file an application to participate in Ohios use tax amnesty program beginning October 1, 2011. By participating in the program, the look back period for use tax is shortened to January 1, 2009, and all penalties and interest on the tax liability are waived. Current legislation extends the tax amnesty program through May 1, 2013.

What if I am already in a use tax audit with the state of Ohio?

If you are already in a use tax audit, you can still participate in the tax amnesty program as long as a judgment has not been made.

What if I already entered into a voluntary disclosure agreement for Ohio use tax?

The Ohio Department of Taxations use tax voluntary disclosure program will still be available to taxpayers who do not qualify for amnesty. However, taxpayers qualifying for the amnesty program will need to use the new amnesty program, even if they currently have a VDA in process. The amnesty program is an improved version of the voluntary disclosure program that was established earlier this year.

Could Ohios use tax law change?

Yes. As the state looks for additional revenues to supplement its shrinking budget, it is possible that the terms of the use tax amnesty program could be changed by future legislation. Thats why its important to apply for the program now.

For more information on use tax as well as amnesty, visit our Use Tax Resource Center.