The event has concluded.

 

The Ohio Virtual Tax Academy (OVTA) is a free event designed to provide tax-related information to small business owners. Attorneys and accountants are also invited to attend and can earn up to three (3) CLE credits (pending Ohio Supreme Court approval) and up to three and a half (3.5) CPE credits. More information about the next OVTA will be available soon.

The latest event is scheduled for: August 16, 2017 

Important: If you are seeking CLE and/or CPE credit, you will be expected to watch/listen for the VTA “code words” that will be scattered throughout the presentations.  There are a total of six words that you will need to remember.  Upon exiting the event, you will be prompted to supply the code words in order to receive credit.  Failure to identify the appropriate code words will result in a loss of possible credit awarded. Effective January 1, 2014, attorneys may earn up to 12 hours of self-study CLE credit towards their annual limit from online webinars. The Ohio Department of Taxation is an equal opportunity employer and provider of ADA services.

If you have any questions please email Organizational Development or call us at (614) 466-7560. Our normal business hours are Mon-Fri 8:00 am - 5:00 pm.

Agenda/Materials

Important:

The information presented in the slide presentations and contained in the FAQs is accurate as of the date of the presentation. To the extent that the positions stated in the FAQs do not conflict with any recent legislation, such positions are still in effect.  However, please note that the presentations and FAQs related to OVTA webinars are static and will not be updated to reflect more recent legislation, rules, court decisions, Information Releases or other types of guidance.  Additionally, many times the facts and circumstances surrounding the specific scenario will impact the answer.  Please contact the Department directly if you have any questions (Individual Income Tax - (800) 282-1780 or Business Tax - (888) 405-4039).

8:20 - 8:30

Opening Remarks

Nathan Wright & Joe Testa

8:30 - 9:30

Legislative Updates

This session will provide an overview of the tax changes included in the recently passed state biennial budget, Am. Sub. H.B. 49. Topics will include changes to Ohio’s income tax, sale and use taxes, and administration of municipal income tax on business net profits.
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Joe Testa, Tim Lynch & Adam Schwiebert

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9:30 - 9:40

Break

 

9:40 - 10:40

Use Tax

This session will provide an overview of Ohio’s Consumer’s Use Tax, detailing what is subject to consumer’s use tax, how to accurately report the tax, and how to pay any obligation. The session will additionally define business fixtures, successor liability, and explain the benefits of a voluntary disclosure agreements.
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Dale Race & Holly Lynch

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10:40 - 10:50

Break

 

10:50 - 11:50

Small Business Deduction/Business Income Deduction

This session will cover some common errors and miscalculations discovered by the Audit Division through the audit of the Small Business Investor Income Deduction (IT-SBD – 2013 and 2014) and the Business Income Deduction (IT-BUS – 2015 and forward).
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Matthew Dodovich & Jonathan Brown

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 11:50 - 12:00

Evaluations/Closing Remarks

Nathan Wright

 

Do book royalties qualify as business income? Do book royalties qualify as business income? What is a PTE?What is a PTE?When is the IT-BUS set to expire? When is the IT-BUS set to expire? Would income from a family limited partnership be considered business income or does it depend on the underlying investments?Would income from a family limited partnership be considered business income or does it depend on the underlying investments?Is oil/gas land lease business income? Taxpayer leased the land anticipating future oil/gas royalties.Is oil/gas land lease business income? Taxpayer leased the land anticipating future oil/gas royalties.If you receive a trust K-1 can you assume that this is business income or do you have to look through the K-1 to see what is generating the income/loss on the K-1? If you receive a trust K-1 can you assume that this is business income or do you have to look through the K-1 to see what is generating the income/loss on the K-1? If an S Corporation is owned 100% by one spouse and it pays wages to both spouses can the compensation for both spouses be included in the business income deduction?If an S Corporation is owned 100% by one spouse and it pays wages to both spouses can the compensation for both spouses be included in the business income deduction?Clarification needed on Rental and Schedule E: if only one or two rentals are owned, can these be deducted as BID. Also, what if taxpayer relies on that as his only source of income in contrast to the taxpayer who owns a rental but has another job?Clarification needed on Rental and Schedule E: if only one or two rentals are owned, can these be deducted as BID. Also, what if taxpayer relies on that as his only source of income in contrast to the taxpayer who owns a rental but has another job?If I am an individual mineral interest owner who actively manages my minerals on my own land by negotiating leases, managing royalty payments and receiving these royalties on a regular monthly basis, am I eligible for the Business Income Deduction? If I am an individual mineral interest owner who actively manages my minerals on my own land by negotiating leases, managing royalty payments and receiving these royalties on a regular monthly basis, am I eligible for the Business Income Deduction? If you own 100% of a business but you get paid your wages through a PEO, are the wages included as business income?If you own 100% of a business but you get paid your wages through a PEO, are the wages included as business income?Can you discuss how the business income deduction effects the calculation for the credit for taxes paid to other states?Can you discuss how the business income deduction effects the calculation for the credit for taxes paid to other states?I have a trust set up for estate planning purposes. The trust holds investments that generate interest and dividends which pass through to the trust beneficiary. Since all the efforts and activity of the trust are focused on generating income from the investments, would the investment income of the trust be considered business income flowing through to the beneficiary? I have a trust set up for estate planning purposes. The trust holds investments that generate interest and dividends which pass through to the trust beneficiary. Since all the efforts and activity of the trust are focused on generating income from the investments, would the investment income of the trust be considered business income flowing through to the beneficiary? Is a gain on sale of FL rental property that has been a rental property for 5 years allowed for BID?Is a gain on sale of FL rental property that has been a rental property for 5 years allowed for BID?What has been the rationale for not allowing Trusts to take advantage of the Business?What has been the rationale for not allowing Trusts to take advantage of the Business?What about a capital gain on the sale of a rental property, rental property being included on Ohio SBD in past years? What about a capital gain on the sale of a rental property, rental property being included on Ohio SBD in past years? Does "compensation" include W-2 wages received by a 20%+ shareholder of an S Corporation? Does "compensation" include W-2 wages received by a 20%+ shareholder of an S Corporation? Are dividends paid to owners from an ICDisc considered business income? Are dividends paid to owners from an ICDisc considered business income? If the recipient's spouse owns 20%, do the wages/guaranteed payments qualify as Ohio Business Income? If the recipient's spouse owns 20%, do the wages/guaranteed payments qualify as Ohio Business Income? What is the rationale behind the minimum 20% ownership requirement for including guaranteed payments and compensation as business income for PTE? What is the rationale behind the minimum 20% ownership requirement for including guaranteed payments and compensation as business income for PTE? If you sell the stock of an S Corp, 50% ownership at a capital gain, is this gain subject to the business income deduction? If you sell the stock of an S Corp, 50% ownership at a capital gain, is this gain subject to the business income deduction? Does the W-2 of a 90% owner of a C Corp get reclassified as business income for the business income deduction? Does the W-2 of a 90% owner of a C Corp get reclassified as business income for the business income deduction? If wages paid by PEO are not business income, can the deduction of those wages be taken out of the business income and be called non-business deductions?If wages paid by PEO are not business income, can the deduction of those wages be taken out of the business income and be called non-business deductions?Please clarify sale of ownership 212 exception: if a partner in a partnership sells his interest in the partnership, does this qualify as a 212 classification as business income? Please clarify sale of ownership 212 exception: if a partner in a partnership sells his interest in the partnership, does this qualify as a 212 classification as business income? Do you need to report rental loss if there is no other business income? Do you need to report rental loss if there is no other business income? Is the IT K-1 required to be used or is it optionalIs the IT K-1 required to be used or is it optionalHas Ohio considered adjusting the PTE form for the 20% compensation add back? We have the situation when the company pays based upon the PTE income plus compensation but the individual gets to report the compensation on the BID. This is creating cash flow problems as company has tax payments and individual receives tax refunds. Thank you. Has Ohio considered adjusting the PTE form for the 20% compensation add back? We have the situation when the company pays based upon the PTE income plus compensation but the individual gets to report the compensation on the BID. This is creating cash flow problems as company has tax payments and individual receives tax refunds. Thank you. I purchased many office supplies during the Sales Tax Holiday this year. Do I now owe use tax on these items? I purchased many office supplies during the Sales Tax Holiday this year. Do I now owe use tax on these items? What types of items qualify as school supplies? What types of items qualify as school supplies? Would a business be required to report and submit use tax on used equipment purchased from an individual who is not in the business of selling such equipment? Would a business be required to report and submit use tax on used equipment purchased from an individual who is not in the business of selling such equipment? Can you clarify that these items/services are subject to use tax and not sales tax; in other words, it's one or the other.Can you clarify that these items/services are subject to use tax and not sales tax; in other words, it's one or the other.Is landscaper required to pay use tax on equipment he purchased and paid sales tax on equipment to vendor at time of purchase? Is landscaper required to pay use tax on equipment he purchased and paid sales tax on equipment to vendor at time of purchase? The trimmers, mowers, etc., if bought in Ohio, would be subject to sales tax already. I'm just not sure if the slides are clear about this.The trimmers, mowers, etc., if bought in Ohio, would be subject to sales tax already. I'm just not sure if the slides are clear about this.Are home healthcare services provided to private pay clients subject to sales tax? Are home healthcare services provided to private pay clients subject to sales tax? Regarding landscape purchase of tree to sell/install at customer’s residence, is sales tax paid to vendor selling tree to landscaper? or does landscaper charge home owner sales tax on tree and planting service, or is it not subject to sales tax as attached to real property? Regarding landscape purchase of tree to sell/install at customer’s residence, is sales tax paid to vendor selling tree to landscaper? or does landscaper charge home owner sales tax on tree and planting service, or is it not subject to sales tax as attached to real property? Does it matter who a business purchases from? For instance, if someone purchases used shelving from a neighbor to get started, is that subject to use tax? Does it matter who a business purchases from? For instance, if someone purchases used shelving from a neighbor to get started, is that subject to use tax? Where do you find special rulings, etc. for Auto Body Shops? Where do you find special rulings, etc. for Auto Body Shops? Would you please provide the manufacturing code again? Would you please provide the manufacturing code again? Does use tax need to be paid on the purchase of lp gas tanks that are purchased to rent or sell to customers? What about when the tank rental is waived due to quantity of gas purchased? Does use tax need to be paid on the purchase of lp gas tanks that are purchased to rent or sell to customers? What about when the tank rental is waived due to quantity of gas purchased? Is auto repair a taxable service? Is auto repair a taxable service? Do you have a use tax reference for cemeteries? Do you have a use tax reference for cemeteries? What if I pay sales taxes in another state substantially less than Ohio’s?What if I pay sales taxes in another state substantially less than Ohio’s?Are taxes paid according to the county you live in or in the county the item is purchased in?Are taxes paid according to the county you live in or in the county the item is purchased in?How is the VDA kept anonymous, while still being able to identify the applicant? Would I still need to remit use tax on little Johnny's snow removal? What about service? Where can I find the detail that you reference for specific businesses e.g. 203-02More specifically, service. Are the taxes based on my location or the location of the home base of the service provider.Will the tax amnesty program cover municipal net profit tax? If an installer of shower enclosures is hired by a contractor to install these enclosures is the installer required to file use tax on material purchased on the job? If the same installer is hired by a consumer directly to install a shower enclosure does the installer, then pay use tax on those materials used on the job because his vendor has not charged the installer? What if I purchase equipment from an individual who does not pay sales tax?If you're paying a neighbor $35/week to sweep and clean baths and this is her only place she provides this service to would the business pay use tax on this? So, I can purchase without paying use tax from those selling casually? For example, my client purchased tables for use in his office from an online seller in Ohio. Sales tax is not identified on the bill. The seller appears to be a normal person not in business selling furniture. Will the Ohio Department of Taxation accept amended returns for 2013 and 2014 that increase the BID deduction for S Corporations shareholder wages that were not previously included in the deduction as originally filed? What if the shareholder did not meet 20% direct ownership requirement but met the 20% by IRS attribution rules. Shareholder owned 10% and father/mother owned remaining 90%.Do sole proprietors, single member LLC's and individual schedule E landlords have the option to file non-resident municipal returns thru the Ohio Department of Taxation or must they continue to file directly with municipality? Why will sole proprietors and single member LLCs not also file centrally with the state? Will tax preparers be able to file OBG return for clients? Will the tax department be responsible for conducting all audits? Even those who opt out and file directly with the municipality? Does this mean RITA, CCA, etc., are going away? In regards to the new throwback rule - what if the business is in a township which has no municipal income tax and has sales in multiple cities. Does the business owe municipal income tax in all those cities or owe no municipal income tax? Net Profit tax: So sole proprietors and single member LLC still have to file paper copy and cannot file via the OBG? Are the deadlines for opt in any different for fiscal year business taxpayers? When is the expected rollout of this option? (First tax year this would be available) Does this mean that cities will be able to be e-filed? If you register on OBG, can you still file paper return instead of on OBG if you change your mind?For the personal income tax changes, what is the effective date? Would firms need to register as bulk filers? Is this new format going to be integrated with software where we can efile through them or will it all have to be done on OBG? If you have carryforward 529 deductions (limited to $2000 in the past) can you now use the $4000 for those carryovers? What is the effective date for the sales & use nexus changes on out-of-state retailers of at least $500K? Was the municipal throwback rule repealed for tax year 2017 or not until 2018? When will guidelines for the amnesty program be available? Does the amnesty program act as an audit "shield" similar to entering into a VDA? We have experienced municipalities opting out of paying taxes through Ohio Business Gateway by not confirming their bank account with the state of Ohio. For example, we can no longer pay for Wyoming Ohio withholding taxes through OBG. What steps are you taking to ensure the availability of tax payments for municipalities through OBG? About the throwback discussion, only 90% of sales are reported to City A. What about City B? Do you have to file or no since it is 10%? If you have carryforward 529 deductions (limited to $2000 in the past) can you now use the $4000 for those carryovers? How soon will the new CAUV rates be available? If income below $10,500 is no longer taxable, have the withholding tables been revised so that those earning under $10,500 will not have anything withheld? Many times, they have to file only for a refund.
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Presenters
Joe Testa

Joe Testa            

Tax Commissioner

Joe W. Testa is the 18th Tax Commissioner to lead the Ohio Department of Taxation. The Tax Commissioner is responsible for administering and enforcing most state and many local government taxes, including the state income tax, state and local sales taxes, and several business and excise taxes. All told, these taxes provide approximately $30 billion in revenues to support funding of Ohio’s schools and colleges, Medicaid, law enforcement, transportation and a myriad of other public services.

 

Nathan Wright

Nathan Wright

Tax Education Program Manager

Nathan began his career with the Department of Taxation in 2006 as a TCA 1 in TPS. He became a TCA 3/Lead in TPS in Feb. 2011 and then moved to STARS in May 2013 as a tester/trainer. In November of 2013 Nate moved to OrgD/Tax Education Program. The TEP team is responsible for creating a cohesive, unified, tax-related training program. They will create and maintain a program that focuses on up-to-date, relevant, and easy to access resources. Nathan received a Bachelor’s Degree in Business Administration from Ashland University in 2003.

 

Catherine DeRose
 

Tim Lynch

Legislative Liaison

Tim Lynch has been the legislative liaison for ODT since February of 2011. Prior to ODT, Mr. Lynch served as a legislative aide in both the Ohio Senate and the Ohio House of Representatives dating back to 2005. While completing a business degree in Transportation and Logistics at The Ohio State University, he served as an Ohio House of Representatives page.

 


Adam Schwiebert

Adam Schwiebert

Legislative Liaison

Adam Schwiebert has served as legislative liaison for ODT since November 2015. Duties of the liaison position include representing ODT in meetings with legislators, tax professionals, and senior tax officials as well as reviewing legislative bills and assisting legislative offices with tax inquiries. Prior to ODT, Mr. Schwiebert served as a legislative aide in the Ohio House of Representatives.

 

 
Dale Race

Dale Race

Tax Examiner Specialist – Audit

Dale began his career with the Department of Taxation in the Cincinnati, Ohio office in 2003 as a Tax Auditor Agent 1 where he was a generalist spending equal time auditing employer withholding, corporate franchise, personal property and sales/use taxes. He began to focus mainly on sales/use tax in 2007 and in 2008 he became a member of Commercial Activity Tax Core Group 2 which helped in the development of auditing procedures for Commercial Activity Tax. In 2010, he returned to specializing in the area of sales/use tax where he currently is a Tax Examiner Specialist where he acts as lead auditor of sales/use tax audits.

 

Holly Lynch

 

Holly Lynch

Attorney 2- Office of Chief Counsel: Tax Appeals Division

Holly Lynch currently serves as an Attorney at the Ohio Department of Taxation in the Office of Chief Counsel, Tax Appeals Division and works with a variety of taxes including individual income, pass-through entity, financial institution, school district income, sales and use, corporate franchise, and employer withholding. Holly received her B.B.A. from Belmont University and her J.D. from Ohio Northern University.

 

 

Matthew Dodovich

 

Matthew Dodovich

Division Counsel, Income, Pass-Through Entity & Withholding Taxes

Matt Dodovich currently serves as a Division Counsel at the Ohio Department of Taxation in the Office of Chief Counsel and specializes in the individual income, school district income, municipal income, pass-through entity, and employer withholding taxes. Matt joined the Department in April 2012 as an administrative hearing officer in the Tax Appeals Division. He later served as an attorney for the Department’s Appeals Management Division.

 

 

Jonathan Brown

 

Jonathan Brown

Tax Examiner– Audit

Jonathan began his career with the Department of Taxation in 2010 as a TCA 1 in TPS and moved to the PIT/SD Suspense Unit in October 2010. He became a TCA 3/Lead in the Compliance/Tax Discovery Unit in August 2013. In May of 2016 the Compliance/Tax Discovery Unit moved to the Audit Division and transitioned into to the Tax Discovery/Audit Lite Unit where Jonathan was selected as a Tax Examiner Specialist in June of 2017. Jonathan received a Bachelor’s of Science Degree in Business Administration from Ashland University in 2009.

 

 
Past Events

For topics, presentation materials, and full-length videos of our past events, follow the links below:

August 2017

May 2017

February 2017

November 2016

August 2016

May 2016

February 2016

November/December 2015

September 2015

July 2015

March 2015

December 2014

September 2014

March 2014