OSCPA staff report
Gov. Kasich on June 29 signed House Bill 133 into law, making official an OSCPA-requested fix of an unclear tax policy that was costing businesses money.
As we reported in May, the issue was brought to OSCPA’s attention by our Tax Special Interest Section discussion group. A member had a client who just missed the "Safe Harbor" on estimated payments by $50 and wound up owing thousands with a large penalty.
The action amends the law to change the way the Ohio interest penalty is calculated. A taxpayer or qualifying entity’s interest penalty is now calculated using the lesser of:
These changes are retroactively applied to Ohio’s income, school district income, pass-through entity, or fiduciary income tax return filed for any tax year beginning on or after Jan. 1, 2017.
The Ohio Department of Taxation said those impacted by this amendment may: