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(a) (1) If a taxpayer’s tax liability shown on the annual tax return for the city changes as a result of an adjustment to the taxpayer’s federal or state income tax return, the taxpayer shall file an amended return with the city. The amended return shall be filed on a form required by the Tax Administrator.
(2) If a taxpayer intends to file an amended consolidated municipal income tax return, or to amend its type of return from a separate return to a consolidated return, based on the taxpayer’s consolidated federal income tax return, the taxpayer shall notify the Tax Administrator before filing the amended return.
(b) (1) In the case of an underpayment, the amended return shall be accompanied by payment of any combined additional tax due, together with any penalty and interest thereon. If the combined tax shown to be due is $10 or less, no payment need be made. The amended return shall reopen those facts, figures, computations or attachments from a previously filed return that are not affected, either directly or indirectly, by the adjustment to the taxpayer’s federal or state income tax return only:
A. To determine the amount of tax that would be due if all facts, figures, computations, and attachments were reopened; or
B. If the applicable statute of limitations for civil actions or prosecutions under § 886.12 has not expired for a previously filed return.
(2) The additional tax to be paid shall not exceed the amount of tax that would be due if all facts, figures, computations, and attachments were reopened; i.e., the payment shall be the lesser of the two amounts.
(c) (1) In the case of an overpayment, a request for refund may be filed under this division within the period prescribed by division (d) of this section for filing the amended return, even if it is filed beyond the period prescribed in that division if it otherwise conforms to the requirements of that division. If the amount of the refund is less than $10, no refund need be paid by the city. A request filed under this division shall claim refund of overpayments resulting from alterations only to those facts, figures, computations or attachments required in the taxpayer’s annual return that are affected, either directly or indirectly, by the adjustment to the taxpayer’s federal or state income tax return, unless it is also filed within the time prescribed in § 886.09.
(2) The amount to be refunded shall not exceed the amount of refund that would be due if all facts, figures, computations and attachments were reopened. All facts, figures, computations and attachments may be reopened to determine the refund amount due by inclusion of all facts, figures, computations, and attachments.
(d) Within 60 days after the final determination of any federal or state tax liability affecting the taxpayer’s city tax liability, that taxpayer shall make and file an amended city return showing income subject to city income tax based upon such final determination of federal or state tax liability. The taxpayer shall pay any additional city income tax shown due thereon or make a claim for refund of any overpayment, unless the tax or overpayment is less than $10.
(Ord. 163-2015, passed 12-21-2015)
(a) (1) A. Civil actions to recover municipal income taxes and penalties and interest on municipal income taxes shall be brought within the later of:
1. Three years after the tax was due or the return was filed, whichever is later; or
2. One year after the conclusion of the qualifying deferral period, if any.
B. The time limit described in division (a)(1)A. of this section may be extended at any time if both the Tax Administrator and the employer, agent of the employer, other payer or taxpayer consent in writing to the extension. Any extension shall also extend for the same period of time the time limit described in division (c) of this section.
(2) As used in this section, “qualifying deferral period” means a period of time beginning and ending as follows:
A. Beginning on the date a person who is aggrieved by an assessment files with the Board of Review the request described in § 886.21. That date shall not be affected by any subsequent decision, finding, or holding by any administrative body or court that the Board of Review did not have jurisdiction to affirm, reverse, or modify the assessment or any part of that assessment; and
B. Ending the later of the sixtieth day after the date on which the final determination of the Board of Review becomes final or, if any party appeals from the determination of the Board of Review, the sixtieth day after the date on which the final determination of the Board of Review is either ultimately affirmed in whole or in part or ultimately reversed and no further appeal of either that affirmation, in whole or in part, or that reversal is available or taken.
(b) Prosecutions for an offense made punishable under a resolution or ordinance imposing an income tax shall be commenced within three years after the commission of the offense, provided that in the case of fraud, failure to file a return, or the omission of 25% or more of income required to be reported, prosecutions may be commenced within six years after the commission of the offense.
(c) A claim for a refund of municipal income taxes shall be brought within the time limitation provided in § 886.09.
(d) (1) Notwithstanding the fact that an appeal is pending, the petitioner may pay all or a portion of the assessment that is the subject of the appeal. The acceptance of a payment by the city does not prejudice any claim for refund upon final determination of the appeal.
(2) If upon final determination of the appeal an error in the assessment is corrected by the Tax Administrator, upon an appeal so filed or pursuant to a final determination of the of Board of Review, of the Ohio Board of Tax Appeals, or any court to which the decision of the Ohio Board of Tax Appeals has been appealed, so that the resultant amount due is less than the amount paid, a refund will be paid in the amount of the overpayment as provided by § 886.09, with interest on that amount as provided by § 886.09(e).
(e) No civil action to recover city income tax or related penalties or interest shall be brought during either of the following time periods:
(1) The period during which a taxpayer has a right to appeal the imposition of that tax or interest or those penalties; and
(2) The period during which an appeal related to the imposition of that tax or interest or those penalties is pending.
(Ord. 163-2015, passed 12-21-2015)
(a) At or before the commencement of an audit, the Tax Administrator shall provide to the taxpayer a written description of the roles of the Tax Administrator and of the taxpayer during the audit and a statement of the taxpayer’s rights, including any right to obtain a refund of an overpayment of a tax. At or before the commencement of an audit, the Tax Administrator shall inform the taxpayer when the audit is considered to have commenced.
(b) Except in cases involving suspected criminal activity, the Tax Administrator shall conduct an audit of a taxpayer during regular business hours and after providing reasonable notice to the taxpayer. A taxpayer who is unable to comply with a proposed time for an audit on the grounds that the proposed time would cause inconvenience or hardship must offer reasonable alternative dates for the audit.
(c) At all stages of an audit by the Tax Administrator, a taxpayer is entitled to be assisted or represented by an attorney, accountant, bookkeeper, or other tax practitioner. The Tax Administrator shall prescribe a form by which a taxpayer may designate such a person to assist or represent the taxpayer in the conduct of any proceedings resulting from actions by the Tax Administrator. If a taxpayer has not submitted such a form, the Tax Administrator may accept other evidence, as the Tax Administrator considers appropriate, that a person is the authorized representative of a taxpayer.
A taxpayer may refuse to answer any questions asked by the person conducting an audit until the taxpayer has an opportunity to consult with the taxpayer’s attorney, accountant, bookkeeper, or other tax practitioner.
This division does not authorize the practice of law by a person who is not an attorney.
(d) A taxpayer may record, electronically or otherwise, the audit examination.
(e) The failure of the Tax Administrator to comply with a provision of this section shall neither excuse a taxpayer from payment of any taxes owed by the taxpayer nor cure any procedural defect in a taxpayer’s case.
(f) If the Tax Administrator fails to substantially comply with the provisions of this section, the Tax Administrator, upon application by the taxpayer, shall excuse the taxpayer from penalties and interest.
(Ord. 163-2015, passed 12-21-2015)
(a) As used in this section:
(1) “Last known address” means the address the Tax Administrator has at the time a document is originally sent by certified mail, or any address the Tax Administrator can ascertain using reasonable means such as the use of a change of address service offered by the Postal Service or an authorized delivery service under R.C. § 5703.056.
(2) “Undeliverable address” means an address to which the Postal Service or an authorized delivery service under R.C. § 5703.056 is not able to deliver an assessment of the Tax Administrator, except when the reason for non-delivery is because the addressee fails to acknowledge or accept the assessment.
(b) Subject to division (c) of this section, a copy of each assessment shall be served upon the person affected thereby either by personal service, by certified mail, or by a delivery service authorized under R.C. § 5703.056. With the permission of the person affected by an assessment, the Tax Administrator may deliver the assessment through alternative means as provided in this section, including, but not limited to, delivery by secure electronic mail.
(c) (1) A. If certified mail is returned because of an undeliverable address, the Tax Administrator shall utilize reasonable means to ascertain a new last known address, including the use of a change of address service offered by the Postal Service or an authorized delivery service under R.C. § 5703.056. If the Tax Administrator is unable to ascertain a new last known address, the assessment shall be sent by ordinary mail and considered served. If the ordinary mail is subsequently returned because of an undeliverable address, the assessment remains appealable within 60 days after the assessment’s postmark.
B. Once the Tax Administrator or other city official, or the designee of either, serves an assessment on the person to whom the assessment is directed, the person may protest the ruling of that assessment by filing an appeal with the Board of Review within 60 days after the receipt of service. The delivery of an assessment of the Tax Administrator under division (c)(1)A. of this section is prima facie evidence that delivery is complete and that the assessment is served.
(2) If mailing of an assessment by the Tax Administrator by certified mail is returned for some cause other than an undeliverable address, the Tax Administrator shall resend the assessment by ordinary mail. The assessment shall show the date the Tax Administrator sends the assessment and include the following statement:
“This assessment is deemed to be served on the addressee under applicable law ten days from the date this assessment was mailed by the Tax Administrator as shown on the assessment, and all periods within which an appeal may be filed apply from and after that date.”
Unless the mailing is returned because of an undeliverable address, the mailing of that information is prima facie evidence that delivery of the assessment was completed ten days after the Tax Administrator sent the assessment by ordinary mail and that the assessment was served.
If the ordinary mail is subsequently returned because of an undeliverable address, the Tax Administrator shall proceed under division (c)(1)A. of this section. A person may challenge the presumption of delivery and service under this division in accordance with division (d) of this section.
(d) (1) A person disputing the presumption of delivery and service under division (c) of this section bears the burden of proving by a preponderance of the evidence that the address to which the assessment was sent by certified mail was not an address with which the person was associated at the time the Tax Administrator originally mailed the assessment. For the purposes of this section, a person is associated with an address at the time the Tax Administrator originally mailed the assessment if, at that time, the person was residing, receiving legal documents, or conducting business at the address; or if, before that time, the person had conducted business at the address and, when the assessment was mailed, the person’s agent or the person’s affiliate was conducting business at the address. For the purposes of this section, a person’s affiliate is any other person that, at the time the assessment was mailed, owned or controlled at least 20%, as determined by voting rights, of the addressee’s business.
(2) If a person elects to appeal an assessment on the basis described in division (d)(1) of this section, and if that assessment is subject to collection and is not otherwise appealable, the person must do so within 60 days after the initial contact by the Tax Administrator or other city official, or the designee of either, with the person. Nothing in this division prevents the Tax Administrator or other official from entering into a compromise with the person if the person does not actually file such an appeal with the Board of Review.
(e) Nothing in this section prohibits the Tax Administrator or the Tax Administrator’s designee from delivering an assessment by personal service.
(f) Collection actions taken upon any assessment being appealed under division (c)(1)B. of this section, including those on which a claim has been delivered for collection, shall be stayed upon the pendency of an appeal under this section.
(g) Additional regulations as detailed in the rules and regulations shall apply.
(Ord. 163-2015, passed 12-21-2015)
(a) As used in this section, “claim” means a claim for an amount payable to the city that arises pursuant to the city’s income tax imposed in accordance with this chapter.
(b) Nothing in this chapter prohibits the Tax Administrator from doing either of the following if such action is in the best interests of the city:
(1) Compromise a claim; or
(2) Extend for a reasonable period the time for payment of a claim by agreeing to accept monthly or other periodic payments.
(c) The Tax Administrator’s rejection of a compromise or payment-over-time agreement proposed by a person with respect to a claim shall not be appealable.
(d) A compromise or payment-over-time agreement with respect to a claim shall be binding upon and shall be to the benefit of only the parties to the compromise or agreement, and shall not eliminate or otherwise affect the liability of any other person.
(e) A compromise or payment-over-time agreement with respect to a claim shall be void if the taxpayer defaults under the compromise or agreement or if the compromise or agreement was obtained by fraud or by misrepresentation of a material fact. Any amount that was due before the compromise or agreement and that is unpaid shall remain due, and any penalties or interest that would have accrued in the absence of the compromise or agreement shall continue to accrue and be due.
(Ord. 163-2015, passed 12-21-2015)
(a) Any information gained as a result of returns, investigations, hearings or verifications required or authorized by this chapter is confidential, and no person shall access or disclose such information except in accordance with a proper judicial order or in connection with the performance of that person’s official duties or the official business of the city as authorized by this chapter. The Tax Administrator or a designee thereof may furnish copies of returns filed or otherwise received under this chapter and other related tax information to the Internal Revenue Service, the Tax Commissioner, and tax administrators of other municipal corporations.
(b) This section does not prohibit the city from publishing or disclosing statistics in a form that does not disclose information with respect to particular taxpayers.
(Ord. 163-2015, passed 12-21-2015)
No person shall knowingly make, present, aid or assist in the preparation or presentation of a false or fraudulent report, return, schedule, statement, claim, or document authorized or required by the city ordinance or state law to be filed with the Tax Administrator, or knowingly procure, counsel or advise the preparation or presentation of such report, return, schedule, statement, claim or document, or knowingly change, alter or amend, or knowingly procure, counsel or advise such change, alteration or amendment of the records upon which such report, return, schedule, statement, claim or document is based with intent to defraud the city or the Tax Administrator.
(Ord. 163-2015, passed 12-21-2015)
(a) As used in this section:
(1) “Applicable law” means this chapter, the resolutions, ordinances, codes, directives, instructions, and rules adopted by the city provided they impose or directly or indirectly address the levy, payment, remittance, or filing requirements of the city.
(2) “Federal short-term rate” means the rate of the average market yield on outstanding marketable obligations of the United States with remaining periods to maturity of three years or less, as determined under § 1274 of the Internal Revenue Code, for July of the current year.
(3) “Income tax,” “estimated income tax,” and “withholding tax” means any income tax, estimated income tax, and withholding tax imposed by the city pursuant to applicable law, including at any time before January 1, 2016.
(4) “Interest rate as described in division (a) of this section” means the federal short-term rate, rounded to the nearest whole number percent, plus 5%. The rate shall apply for the calendar year next following the July of the year in which the federal short-term rate is determined in accordance with division (a)(2) of this section.
(5) “Return” includes any tax return, report, reconciliation, schedule, and other document required to be filed with the Tax Administrator or the city by a taxpayer, employer, any agent of the employer, or any other payer pursuant to applicable law, including at any time before January 1, 2016.
(6) “Unpaid estimated income tax” means estimated income tax due but not paid by the date the tax is required to be paid under applicable law.
(7) “Unpaid income tax” means income tax due but not paid by the date the income tax is required to be paid under applicable law.
(8) “Unpaid withholding tax” means withholding tax due but not paid by the date the withholding tax is required to be paid under applicable law.
(9) “Withholding tax” includes amounts an employer, any agent of an employer, or any other payer did not withhold in whole or in part from an employee’s qualifying wages, but that, under applicable law, the employer, agent, or other payer is required to withhold from an employee’s qualifying wages.
(b) (1) This section applies to the following:
A. Any return required to be filed under applicable law for taxable years beginning on or after January 1, 2016; or
B. Income tax, estimated income tax, and withholding tax required to be paid or remitted to the city on or after January 1, 2016.
(2) This section does not apply to returns required to be filed or payments required to be made before January 1, 2016, regardless of the filing or payment date. Returns required to be filed or payments required to be made before January 1, 2016, but filed or paid after that date shall be subject to the ordinances or rules and regulations, as adopted before January 1, 2016, of the city to which the return is to be filed or the payment is to be made.
(c) Should any taxpayer, employer, agent of the employer or other payer for any reason fails, in whole or in part, to make timely and full payment or remittance of income tax, estimated income tax, or withholding tax or to file timely with the city any return required to be filed, the following penalties and interest shall apply.
(1) Interest shall be imposed at the rate described in division (a) of this section, per annum, on all unpaid income tax, unpaid estimated income tax, and unpaid withholding tax.
(2) A. With respect to unpaid income tax and unpaid estimated income tax, the city may impose a penalty equal to 15% of the amount not timely paid.
B. With respect to any unpaid withholding tax, the city may impose a penalty equal to 50% of the amount not timely paid.
(3) With respect to returns other than estimated income tax returns, the city may impose a penalty of $25 for each failure to timely file each return, regardless of the liability shown thereon for each month, or any fraction thereof, during which the return remains unfiled regardless of the liability shown thereon. The penalty shall not exceed $150 for each failure.
(d) Nothing in this section requires the city to refund or credit any penalty, amount of interest, charges, or additional fees that the city has properly imposed or collected before January 1, 2016.
(e) Nothing in this section limits the authority of the city to abate or partially abate penalties or interest imposed under this section when the Tax Administrator determines, in the Tax Administrator’s sole discretion, that such abatement is appropriate.
(f) By the thirty-first day of October of each year the city shall publish the rate described in division (a) of this section applicable to the next succeeding calendar year.
(g) The city may impose on the taxpayer, employer, any agent of the employer, or any other payer the city’s post-judgment collection costs and fees, including attorney’s fees.
(Ord. 163-2015, passed 12-21-2015)
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