Instructions For Ohio Form Ft 1120fi - Ohio Corporation Franchise Tax Report

carried forward from a year closed to assessment or refund to a

to have been made on the earlier of the date the Ohio corporation

year still open to assessment or refund. Furthermore, the statute of

franchise tax report was ﬁ led or the due date of the report including

limitations does not preclude the tax commissioner or the taxpayer

extensions. Thus, under prior case law if a franchise tax report was

from adjusting the unused credits carried forward from a year closed

ﬁ led before its extended due date, the three-year refund statute of

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

limitations began to run on the date the report was ﬁ led rather than

See Consumer Direct v. Limbach (1991), 62 Ohio St. 3d 180.

the later extended due date. See Hanna Mining Co. v. Limbach

[1985], 20 Ohio St. 3d 3 and Athena Manor, Inc. v. Limbach, BTA

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

Case No. 91-Z-12, February 26, 1993.

receipt of the assessment, interest accrues on the assessment

at the rate prescribed in R.C. 5703.47 from the date the tax

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

commissioner issues the assessment until the date the taxpayer

taxable income, then the department must receive the claim for

pays the assessment.

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

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

If the taxpayer disagrees with an assessment, the taxpayer may

general instruction #16 in the franchise tax instruction booklet

object to the assessment by timely ﬁ ling a petition for reassessment.

for corporations that are not ﬁ nancial institutions (available in a

See general instruction #20.

separate ﬁ le on the Department of Taxation’s Web site). However,

if the refund claim is ﬁ led outside the three-year refund statute of

20. Application for Refund and Petition for Reassessment

limitations and the statute of limitations has not been extended by

Franchise taxpayers may request a refund by ﬁ ling either prescribed

Ohio form FT WAIVER (see general instruction #19), the refund

Ohio form FT REF, Application for Corporation Franchise Tax

claim can include only the direct and indirect effects of the federal

Refund, or by ﬁ ling an amended report accompanied by the full

adjustments. See Gen. Motors Corp. v. Limbach (1993), 67 Ohio

and complete reason for the refund claim. Please do not ﬁ le an

St. 3d 90 and The First Federal Savings Bank v. Tracy, BTA Case

application for refund if the claimed overpayment for the tax

No. 94-T-1353, Aug. 23, 1996.

year is shown on the originally ﬁ led franchise tax report for

that tax year.

Regardless of the above provisions to the contrary, a franchise tax

refund claim that is based on a capital loss carryback is timely ﬁ led

Franchise taxpayers may initiate review proceedings pertaining to

if the refund claim is ﬁ led within three years from the due date of the

a franchise tax assessment issued by the Department of Taxation

franchise tax report (including extensions thereof) for the taxable

by ﬁ ling Ohio form PR, Petition for Reassessment.

year in which the capital loss arose. See Prechter v. Tracy, BTA

Case No. 95-M-1214, April 4, 1997.

Application for Corporation Franchise Tax Refund (Ohio form

FT REF) applies to claimed overpayments by a taxpayer, whether

A taxpayer cannot use a refund claim form (Ohio form FT REF) to ap-

made voluntarily or as the result of the payment of an assessment

peal an assessment unless the taxpayer has paid the assessment.

issued by the Ohio Department of Taxation. If the overpayment is

That is, if the taxpayer fails to ﬁ le a petition for reassessment within

not the result of an IRS adjustment and the statute of limitations

60 days of receipt of the assessment, then the taxpayer cannot ﬁ le

has not been extended by Ohio form FT WAIVER (see general

a refund claim protesting the assessment until after the taxpayer

instruction #19), then within three years of the date of the illegal,

has paid the assessment.

erroneous or excessive payment the department must receive (i)

the application for refund along with an amended report or (ii) an

Uniform application for refund procedure. R.C. 5703.70

amended report accompanied by the full and complete reason for

establishes a uniform application for refund procedure applicable to

the refund claim. See Abitibi-Price Corporation and Subsidiaries v.

franchise tax and various other taxes (but not to individual income

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

tax, school district income tax, withholding tax or pass-through entity

tax). If a taxpayer properly ﬁ les an application for refund under a

Please mail your amended report and Ohio form FT REF or an

law specifying that the R.C. 5703.70 uniform procedure applies and

amended franchise tax report along with a complete explanation

if the commissioner determines the amount of the refund to which

of the amendment to:

the applicant is entitled is less than the amount claimed, then the

tax commissioner and the taxpayer must proceed as follows:

Ohio Department of Taxation

Business Tax Division

1. The commissioner must notify the applicant in writing by ordinary

Corporation Franchise Tax Unit

mail of the disallowed portion of the claimed refund.

P.O. Box 2476

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

Columbus, Ohio 43216-2476

mails the notiﬁ cation to provide additional information to the

commissioner and/or to request a hearing.

Please indicate that a report is amended by checking the appropriate

3. If the applicant neither requests a hearing nor provides additional

box on the front of the report. Do not send the FT REF and

information within the 60-day period described in #2, then (a) the

amended report to the address shown on the franchise tax

commissioner will take no further action, (b) the refund denial

form.

becomes ﬁ nal, and (c) the taxpayer may not appeal to the Board

Refund Statute of Limitations Law. For purposes of the refund

of Tax Appeals the tax commissioner’s decision to deny all or a

statute of limitations, payment made before the due date or extended

portion of the claimed overpayment.

due date for ﬁ ling the report to which the payment relates are

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

deemed to have been made on the due date or extended due date.

described in #2, the commissioner must assign a time and place

See R.C. 5733.12. Thus, for payments made before the due date

for hearing. After the hearing, the commissioner may make such

or extended due date for ﬁ ling the report, the three-year refund

adjustments to the refund as the commissioner ﬁ nds proper and

statute of limitations begins to run on the report’s due date or the

must issue a ﬁ nal determination. The taxpayer may appeal the

later extended due date. (Under prior case law payments remitted

commissioner’s ﬁ nal determination to the Board of Tax Appeals

with the estimated tax report [Ohio form FT 1120E] and extension

pursuant to R.C. 5717.02.

requests [Ohio forms FT 1120ER and FT 1120EX] were deemed

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Instructions For Ohio Form Ft 1120fi - Ohio Corporation Franchise Tax Report - 2012 Page 9

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