Ohio Sales and Use Tax: Recent Board of Tax Appeals Decisions Highlight the Importance of Fully and Effectively Challenging Tax Commissioner Determinations
January 31, 2017
Following up on our Sales and Use Tax Subcommittee Report, there are quite a few cases of note decided by the Ohio Board of Tax Appeals. An unfortunate overriding theme in these recent decisions is that each taxpayer lost due to one of the following: insufficient evidence in support of appeal; the decision was consistent… Read More
Ohio State Bar Association: Sales and Use Tax Subcommittee Report
January 26, 2017
As co-chairs of the Ohio State Bar Association Sales / Use Tax Subcommittee, click here to view the report Steve and Rich presented at the January 19, 2017 Taxation Committee meeting. As you will notice, many of the Ohio sales / use tax cases recently decided by the Board of Tax Appeals were based upon a lack of proof by the taxpayer. It… Read More
Ohio Income Tax: Dividends from accumulated C corporation earnings retain their character and are non-taxable to nonresident shareholders.
January 4, 2017
The Ohio Supreme Court encountered a relatively unique situation in Giddens v. Testa, 2016-Ohio-8412. The two shareholders of Redneck, Inc., who resided in Missouri, received large dividends in 2008, at which time Redneck was taxed as an S corporation. However, the taxpayers showed the dividends were Redneck’s earnings and profits from when the corporation was… Read More
Ohio Supreme Court upholds bright-line nexus standard for Commercial Activity Tax; Remote vendors subject to Ohio tax even if lacking physical presence.
November 18, 2016
In a 5-2 decision, the Ohio Supreme Court found that the $500,000 gross receipts in Ohio standard for creating substantial nexus for the commercial activity tax (CAT) is constitutional. “We hold that given the $500,000 sales-receipts threshold, the burdens imposed by the CAT on interstate commerce are not ‘clearly excessive’ in relation to the legitimate… Read More
Is it Time for a Multistate Tax Check-Up?
October 12, 2016
Are you correctly assessing multistate tax obligations outside of your base/home state? This is important since there is no statute of limitations for assessments for the failure to file in a foreign state. Also, taxpayers need to make sure to avoid any double tax resulting from incorrectly addressing your tax situation and failing to claim… Read More
Ohio Commercial Activity Tax: The Agency Exclusion can provide significant tax reductions with proper planning.
October 6, 2016
Ohio Commercial Activity Tax includes a significant exclusion from gross receipts for amounts received by a taxpayer acting in an agency capacity. R.C. 5751.01(F)(2)(I) excludes “property, money, and other amounts received or acquired by an agent on behalf of another in excess of the agent’s commission fee or other reimbursement….” from the definition of taxable… Read More