Ohio Use Tax Alert


 Ohio Department of Taxation to Increase Focus on Consumer’s Use Tax.

 Ohio businesses have tremendous exposure to Ohio use tax., especially those still lacking a use tax account. It’s time for a low-cost use tax check-up  Our professionals are experienced in reducing or even eliminating use tax exposure. Click here to learn more about Buckingham’s SALT Group.

 Ohio use tax delinquencies commonly arise from:

  • Purchases from non-Ohio vendors failing to collect Ohio sales tax;
  • Misclassifying business fixtures as real property;
  • Taxable purchases from vendors provided blanket exemption certificates;
  • Inventory withdrawn for demonstrations, advertising or other taxable uses;
  • Products given away for prizes or samples;
  • Erroneously claimed exemptions, such as property used before or after the manufacturing process, or leased employees not assigned on a permanent basis under a one-year contract;
  • Taxable electronic information or computer services; and
  • Advertising related purchases.

We will provide your business with an initial use tax check-up for a flat fee as low as $500, which will include a review of your business’ books / records by an experienced Department audit manager (retired) to confidentially identify use tax exposure. Then, our team of attorneys will recommend how to address and minimize any identified exposure. We will also look to identify tax overpayments resulting in refunds to your business, while supporting future tax minimization through proper planning and compliance.

After it’s failed Use Tax Initiative in 2011, the Ohio Department of Taxation (“Department”) is once again increasing audit initiatives focused on consumer’s use tax. The Department is able to audit non-compliant Ohio businesses for up to 7 years if returns have not been filed. This is especially critical for businesses without an Ohio use tax account, which the Department can easily identify through cross checking existing registrations, such as Ohio employer withholding accounts or commercial activity tax accounts, against consumer’s use tax accounts. However, there are many ways we can help your business significantly reduce its exposure.

 Now is the perfect time for a low-cost use tax check-up!