Ohio Corporation Franchise Tax Report Instructions For Financial Institutions

partment of Development, P.O. Box 1001, Columbus, OH

Please indicate that a report is amended by checking the

43216-1001 or (614) 466-4551 or 1-800-848-1300.

box on the front of the report. Upon filing an amended

report, please do not send it to the address shown on the

For a further discussion and summary of Ohio’s enterprise

report. Rather, an amended report that reflects an over-

zone program see Stempfer, “Economic Development Program

payment should be mailed to the following address:

Opportunities in Ohio, Summary and Update Focusing on Re-

cent Tax-Related Legislation,” Ohio Tax Review, vol. 8.3 (1994),

Ohio Department of Taxation

at page 2.

Corporation Franchise Tax

P.O. Box 530

17. ASSESSMENTS

Columbus, Ohio 43216-0530

The tax commissioner may issue an assessment against the

An amended report that reflects a balance due or a no

taxpayer for any deficiency within three years after the later of

change in liability should be mailed to the following ad-

the following dates:

dress:

• The final date the report subject to assessment was required

Ohio Department of Taxation

to be filed, or

Corporation Franchise Tax

• The date the report was filed.

P.O. Box 2476

Columbus, Ohio 43216-2476

However, both the assessment statute of limitations and the

refund statute of limitations may be extended for an agreed

Application for Corporation Franchise Tax Refund. Form

upon period if both the taxpayer and the tax commissioner

FT REF applies to claimed overpayments by a taxpayer, wheth-

consent in writing to the extension by signing form FT WAIV-

er made voluntarily or as the result of the payment of an as-

ER.

sessment issued by the Ohio Department of Taxation. If the

overpayment is not the result of an IRS adjustment and the

An amended franchise tax report filed as a result of an adjust-

statute of limitations has not been extended by form FT WAIV-

ment to the corporation’s federal income tax return is deemed

ER (see general instruction #17), then the Department must

a report subject to assessment. However, the amended report

receive the application for refund or an amended report ac-

does not reopen those facts, figures, computations or attach-

companied by the full and complete reason for the refund claim

ments from a previously filed report no longer subject to as-

within three years of the date of the illegal, erroneous, or ex-

sessment or refund that are not affected, either directly or in-

cessive payment. See Abitibi-Price Corporation and Subsid-

directly, by the adjustment to the corporation’s federal income

iaries v. Tracy, BTA No. 98-N-401 (3-12-01).

tax return. Furthermore, once the three-year refund statute of

limitations has passed, the taxpayer may not offset the addi-

Refund Statute of Limitations Law. Effective September 6,

tional franchise tax resulting from IRS audit adjustments against

2002 for purposes of the refund statute of limitations, payment

franchise tax that the taxpayer erroneously overpaid due to

made before the due date or extended due date for filing the

errors or mistakes unrelated to the federal adjustments. See

report to which the payment relates are deemed to have been

Gen. Motors Corp. v. Limbach (1993), 67 Ohio St. 3d 90.

made on the due date or extended due date. See O.R.C. sec-

tion 5733.12 as amended by Substitute Senate Bill 200 (Tax-

The statute of limitations does not prohibit either the tax com-

payer Services Bill II), 124

General Assembly, effective Sep-

missioner or the taxpayer from adjusting the net operating loss

tember 6, 2002. For additional information please see general

carried forward from a year closed to assessment or refund to

instruction #27 in the franchise tax instruction booklet for cor-

a year still open to assessment or refund; nor does the statute

porations that are not financial institutions available on the

of limitations prohibit either the tax commissioner or the tax-

Department of Taxation’s Web site.

payer from adjusting the unused credits carried forward from

a year closed to assessment or refund to a year still open to

If the claimed overpayment is the result of a change in federal

assessment or refund. See Consumer Direct v. Limbach (1991),

taxable income, then the Department must receive the claim

62 Ohio St. 3d 180.

for refund within the later of the following: (a) the three-year

time period set forth above or (b) the one-year period set forth

If the taxpayer does not pay the assessment within 60 days of

in general instruction #15 in the franchise tax instruction booklet

receipt of the assessment, and does not file a petition for re-

for corporations that are not financial institutions available on

assessment within 60 days of receipt of the assessment, in-

the Department of Taxation’s Web site. However, if the refund

terest accrues on the assessment at the rate prescribed in

claim is filed outside the three-year refund statute of limita-

O.R.C. section 5703.47 from the date the tax commissioner

tions and the statute of limitations has not been extended by

issues the assessment until the date the taxpayer pays the

form FT WAIVER (see general instruction #17), the refund

assessment. If the taxpayer disagrees with an assessment,

claim can include only the direct and indirect effects of the

the taxpayer may object to the assessment by timely filing a

federal adjustments. See Gen. Motors Corp. v. Limbach (1993),

petition for reassessment. See general instruction #18.

67 Ohio St. 3d 90 and The First Federal Savings Bank v. Tra-

cy, BTA Case No. 94-T-1353, August 23, 1996.

18. APPLICATION FOR REFUND AND PETITION

FOR REASSESSMENT

Regardless of the above provisions to the contrary, a fran-

Franchise taxpayers may request a refund by filing either pre-

chise tax refund claim that is based on a capital loss carryback

scribed form FT REF, Application for Corporation Franchise

is timely if the refund claim is filed within three years from the

Tax Refund, or by filing an amended report accompanied by

due date of the franchise tax report (including extensions there-

the full and complete reason for the refund claim. Please do

of) for the taxable year in which the capital loss arose. See

not file an application for refund if the claimed overpay-

Prechter v. Tracy, BTA Case No. 95-M-1214, April 4, 1997.

ment is shown on the originally-filed franchise tax report.

A taxpayer may not appeal an assessment by filing a claim for

refund unless the taxpayer has paid the assessment. For ex-

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Ohio Corporation Franchise Tax Report Instructions For Financial Institutions - 2004 Page 8

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