Ohio Corporation Franchise Tax Report Instructions For Financial Institutions

ample, if the taxpayer fails to file a petition for reassessment

The portion of an assessment that must be paid upon the fil-

within sixty days of receipt of the assessment, then the tax-

ing of a Petition for Reassessment is as follows:

payer cannot file a refund claim protesting the assessment

1. If the sole item objected to is the assessed penalty or inter-

until after the taxpayer has paid the assessment.

est, the assessed corporation must pay the entire assess-

ment except for the penalty.

Uniform Application for Refund Procedure. Substitute Sen-

2. If prior to the date of issuance of the assessment the as-

ate Bill 200, 124

General Assembly, effective June 7, 2002

sessed corporation failed to file (i) the annual report required

enacted O.R.C. section 5703.70 to establish a uniform appli-

by O.R.C. section 5733.02, (ii) any amended report required

cation for refund procedure applicable to franchise tax and

by O.R.C section 5733.031(C) for the tax year at issue, or

various other taxes (but not to individual income tax, school

(iii) any amended report required by O.R.C. section

district income tax, withholding tax or pass-through entity tax).

5733.067(D) to indicate a reduction in the amount of the

If a taxpayer properly files an application for refund under a

credit provided under that section, the assessed corpora-

law that specifies that the O.R.C. section 5703.70 uniform pro-

tion must pay the entire assessment except for the penalty.

cedure applies, then the tax commissioner and the taxpayer

3. If prior to the date of issuance of the assessment the as-

must proceed as follows:

sessed corporation filed (i) the annual report required by

1. If the commissioner determines that the amount of the re-

O.R.C. section 5733.02, (ii) all amended reports required

fund to which the applicant is entitled is less than the amount

by O.R.C. section 5733.031(C) for the tax year at issue,

that the applicant claimed, the commissioner must notify

and (iii) all amended reports required by O.R.C. section

the applicant in writing by ordinary mail of the disallowed

5733.067(D) to indicate a reduction in the amount of the

portion of the claimed refund.

credit provided under that section, and if a balance of the

2. The applicant has 60 days from the date the commissioner

taxes shown due on the reports as computed on the reports

mails the notification to provide additional information to the

remains unpaid, the assessed corporation must pay only

commissioner and/or to request a hearing.

that portion of the assessment representing any unpaid

3. If the applicant neither requests a hearing nor provides ad-

balance as shown on those reports together with all related

ditional information within the 60-day period described in

interest.

#2 above, the commissioner will take no further action and

4. If the assessed corporation does not dispute that it is a tax-

the refund amount denied becomes final. That is, the tax-

payer but claims the protections of section 101 of Public

payer may not appeal to the Board of Tax Appeals the de-

Law 86-272, 73 Stat. 555, 15 U.S.C.A. 381, as amended,

nied portion of the refund.

the assessed corporation must pay only that portion of the

4. If the applicant requests a hearing within the 60-day period

assessment representing any unpaid balance of taxes

described in #2 above, the commissioner must assign a

shown due on the corporation’s annual report.

time and place for hearing. After the hearing, the commis-

5. If none of the conditions specified in (1), (2), (3), and (4)

sioner may make such adjustments to the refund as the

above apply, or if the assessed corporation claims that it is

commissioner finds proper and must issue a final determi-

not a taxpayer (that is, if the assessed corporation disputes

nation. The taxpayer may appeal the commissioner’s final

that it is subject to the franchise tax), the assessed corpora-

determination to the Board of Tax Appeals pursuant to O.R.C.

tion is not required to pay any portion of the assessment.

section 5717.02.

5. If the applicant does not request a hearing within the 60-

However, any unpaid portion of the assessment which upon

day day period described in #2 above, but does provide

final determination is found to be correct bears interest at the

additional information within that period, the commissioner

rate prescribed in O.R.C. section 5703.47 from the date the

must review the information, may make such adjustments

Department of Taxation issues the assessment until the date

to the refund as the commissioner finds proper, and must

the taxpayer pays the assessment. See O.R.C. section 5733.11

issue a final determination. The taxpayer may appeal the

as amended by Amended Substitute House Bill No. 215 (Bud-

commissioner’s final determination to the Board of Tax Ap-

get Bill), 122nd General Assembly and section 213 of Budget

peals pursuant to O.R.C. section 5717.02.

Bill. If the taxpayer decides to pay the assessment in full, such

payment is not acknowledgment of agreement and will not

Petition for Reassessment. Franchise taxpayers may initiate

prejudice the final determination of the petition, and the tax-

review proceedings pertaining to a franchise tax assessment

payer will receive interest on any refund found due. See gen-

issued by the Department of Taxation by filing form FT PR,

eral instruction #9 for interest on underpayments and over-

Petition for Reassessment. Form FT PR applies only to as-

payments.

sessments issued by the Ohio Department of Taxation. A tax-

payer must file its petition within sixty days of receipt of the

Refunds of Amounts Paid Toward an Assessment. The

assessment. If the taxpayer sends the petition by certified mail,

amount of an assessment that may be refunded under a time-

the date of postmark is considered the date filed. If the tax-

ly filed petition for reassessment is limited to the amount of

payer sends the petition by regular mail, the date the Depart-

the assessment that the taxpayer paid. No portion of the

ment receives the petition is considered the date filed. The

amount paid with the filing of the franchise tax report is avail-

petition must specify the items of the assessment objected to

able for refund under the O.R.C. section 5733.11 petition for

and the reasons for those objections. However, a taxpayer who

reassessment statute because there is no provision in O.R.C.

has timely filed a Petition for Reassessment may raise addi-

section 5733.11 which grants the commissioner the authority

tional written objections to the assessment at any time prior to

to refund any amount greater than the amount that the taxpay-

the date of the tax commissioner’s final determination. If a

er paid toward the assessment. The fact that the taxpayer raises

taxpayer fails to file the petition for reassessment within the

additional objections to the assessment prior to the tax com-

60-day period described above, the tax commissioner will dis-

missioner’s final determination and the fact that the taxpayer

miss the petition as the tax commissioner has no jurisdiction

mentions in those objections that the taxpayer is overpaid with

to consider a late-filed petition.

respect to amounts paid with the original report does not con-

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Ohio Corporation Franchise Tax Report Instructions For Financial Institutions - 2004 Page 9

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