ohio it 3 2020

Ohio State and Local Tax Updates December 2019

New income tax rate goes into effect in the Village of Alexandria

Reminder for Ohio businesses on new W-2 upload feature

A new W-2 upload feature is coming Jan. 2 to the Ohio Business Gateway (OBG). The feature will allow employers and payroll providers to submit W-2 files to the Ohio Dept. of Taxation through the OBG. This eliminates the requirement to submit a separate Ohio IT 3 (“Transmittal of Wage and Tax Statements”). The Department also has posted on its website updated information about the upload feature and a tutorial on how to use it. Find this information and the new feature at

Board of Tax Appeals agrees that Bowling Green properly taxed a rural postal carrier’s income

First-quarter business fuel tax rates are released

First-quarter business fuel tax rates in Ohio are released. The OH Dept. of Taxation, Business Tax Division, has published the statewide average wholesale prices for a gallon of unleaded regular gasoline, a gallon of diesel fuel, and a gallon of propane for the first calendar quarter of 2020. The following averages are to be used to determine the calculated gross receipts of a supplier subject to the petroleum activity tax for the period Jan. 1 through March 31: unleaded regular gasoline, $1.798 per gallon; diesel fuel, $1.851 per gallon; and propane, $0.471 per gallon.

Ohio: your estimated payment deadline is near

Attention, Ohio calendar-year taxpayers: Your estimated payment deadline is nearing. The OH Dept. of Taxation reminds these taxpayers that the fourth declaration and estimated payment for the 2019 tax year is due Dec. 16. Taxpayers who have elected to have the Dept. of Taxation administer the tax for their companies must file declarations and make estimated payments directly to the department via the OH Business Gateway or Modernized e-File (MeF).

Ohio Dept of Taxation releases the OH and School Dist Employer Withholding Due Dates

The Ohio Department of Taxation has released the OH and School Dist. Employer Withholding Tax Due Dates 2019-2020 Payment Schedule. It’s for Forms IT 501 (“Employer’s Payment of OH Tax Withheld”) and SD 101 (“Employer’s Payment of School Dist. Income Tax Withheld”) for partial weekly, monthly and quarterly filers. Partial-weekly due dates pertain only to OH withholding tax. With rare exceptions, employers doing business in OH are responsible for withholding individual income tax from their employees’ pay. OH employers also have the responsibility to withhold school district income tax from the pay of employees who reside in a district that’s enacted such a tax.

Have you received a Federal Adjusted Gross Income (FAGI) billing alert from Ohio?

The Dept. of Taxation has begun mailing the alerts for tax-year 2017 to some OH taxpayers. The notices are being sent to those with discrepancies between what was reported on their federal individual income tax return (Form 1040) and on their state return (Form IT-1040) that year. If you’ve received such a notice, you should respond immediately. Otherwise, you risk a tax assessment and further collection action that may subject you to penalties and interest. If you dispute the discrepancy, you must file Form 4506-T with the IRS to obtain a Tax Account Transcript.

Ohio corp successfully challenges auditor’s calculation of employer withholding tax

An Ohio corporation successfully challenges an auditor’s calculation of employer withholding tax. The OH Court of Appeals reversed a Board of Tax Appeals (BTA) decision that affirmed an assessment against the company, which had failed to file employer withholding tax for 20 years. The appeals court found it unreasonable to allow the assessment calculation to be based on the auditor’s estimates, although she’d argued that she was unable to receive any of the necessary documentation from the company. However, at the BTA hearing the company offered the first page of federal IRS Form 1120S for the years at issue, which the auditor said she preferred not to use. (Dkt. No. 2018-G-0185, 9/30/19)

Check out these Ohio State and Local Tax updates for December 2019