Information Release

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CAT 2008-01 - Commercial Activity Tax: Voluntary Disclosure Agreements - Issued July 2008

The purpose of this information release is to explain the Ohio Department of Taxation’s (ODT) policy regarding voluntary disclosure agreements with regard to the commercial activity tax (CAT). Please direct any questions regarding this release to the CAT Division at 1-888-722-8829.

ODT offers voluntary disclosure programs for various taxes to allow taxpayers to come forward on a voluntary basis to comply with Ohio’s tax laws. By voluntarily disclosing their liabilities, taxpayers may avoid most penalties for failing to register, failing to file their returns, and failing to pay their liabilities timely.

Because the CAT is a relatively new tax (enacted in 2005) ODT does not offer a voluntary disclosure program for the CAT because all issues of noncompliance are within the statute of limitations for assessment. However, under current ODT policy, penalties will be waived for taxpayers that come forward to register, file, and pay the CAT, provided that ODT had not previously contacted the taxpayer through any audit or compliance, and that the taxpayer is not under investigation by ODT’s Enforcement Division. However, in no event may a taxpayer avoid paying interest on the delinquent account.

Therefore, ODT requests that taxpayers seeking to comply with the CAT: (1) register; (2) file all outstanding returns; and (3) pay any CAT liability plus interest from July 1, 2005 (or their liability start date) forward. Information regarding the specific registration and filing information is contained below. 

Annual Taxpayers

Annual taxpayers are those taxpayers with taxable gross receipts in excess of $150,000, but less than $1 million. Annual taxpayers may obtain forms through ODT’s Web site by selecting “Tax Forms” and “Commercial Activity Tax” from the drop-down menu at tax forms search. The following chart shows the forms due for annual taxpayers:

Type of Return

Reporting Period

 Calendar Year

Due Date

Form Name

Registration Form

     

CAT 1

2005 Semi-Annual  Return & 2005 AMT (1)

07/01/2005-12/31/2005

2005

February 10, 2006

CAT 10

2006 AMT

1/1/06 – 12/31/06 Payment Coupon

2006

May 10, 2006

CAT 11

2006 Annual Return & 2007 AMT

1/1/06-12/31/06

2007

February 9, 2007

CAT 12

2007 Annual Return & 2008 AMT

1/1/07-12/31/07

2008

February 9, 2008 (2)

CAT 12

(1) Annual Minimum Tax

(2) Please note that because February 9, 2008 falls on a non-business day, pursuant to R.C. 1.14, the return due date is extended to February 11, 2008.

NOTE:  Beginning in calendar year 2007, all annual returns are due on February 9th of each year for that calendar year, and reflect receipts from the previous calendar year.  On that return, all annual taxpayers also pre-pay the tax for the current calendar year.

Quarterly Taxpayers

Quarterly taxpayers are those taxpayers with taxable gross receipts in excess of $1 million. Quarterly taxpayers pay the annual minimum tax of $150 for the first $1 million in taxable gross receipts, and remit the tax for any amount exceeding $1 million in taxable gross receipts on a quarterly basis. Pursuant to R.C. 5751.07 and Ohio Adm. Code 5703-29-05, a quarterly taxpayer is required to file returns and to remit tax payments electronically. Quarterly taxpayers may comply with that requirement by submitting such returns and payments through the Ohio Business Gateway at obg.ohio.gov.  The following chart shows the due dates for quarterly taxpayers:

Type of Return

Reporting Period

Calendar Year

Due Date

Registration

     

2005 Semi-Annual Return & 2005 AMT

07/01/2005-12/31/2005

2005

February 10, 2006

2006 1st Quarter Return & 2006 AMT

01/01/2006-03/31/2006

2006

May 10, 2006

2006 2nd Quarter Return

04/01/2006-06/30/2006

 

August 9, 2006

2006 3rd Quarter Return

07/01/2006-09/30/2006

 

November 9, 2006

4th Quarter Return & 2007 AMT

10/01/2006-12/31/2006

2007

February 9, 2007

2007 1st Quarter Return

01/01/2007-03/31/2007

 

May 10, 2007

2007 2nd Quarter Return

04/01/2007-06/30/2007

 

August 9, 2007

2007 3rd Quarter Return

07/01/2007-09/30/2007

 

November 9, 2007

2007 Annual Return & 2008 AMT

10/01/2007-12/31/2007

2008

February 9,2008 (3)

2008 1st Quarter Return

01/01/2008 – 03/31/2008

 

May 10, 2008 (4)

2008 2nd Quarter Return

04/01/2008 – 06/30/2008

 

August 9, 2008 (5)

2008 3rd Quarter Return

07/01/2008 – 09/30/2008

 

November 9, 2008 (6)

2008 4th Quarter Return & 2009 AMT

10/01/2008 – 12/31/2008

 

February 9, 2009

(3) Id.

(4) Please note that because May 10, 2008 falls on a non-business day, pursuant to R.C. 1.14, the return due date is extended to May 12, 2008.

(5) Please note that because August 9, 2008 falls on a non-business day, pursuant to R.C. 1.14, the return due date is extended to August 11, 2008.

(6) Please note that because November 9, 2008 falls on a non-business day, pursuant to R.C. 1.14, the return due date is extended to November 10, 2008.

NOTE:  Pursuant to R.C. 5751.051(A)(1), a quarterly taxpayer is required to file a return no later than forty days after the end of each calendar quarter. The due dates for such returns are: February 9th, May 10th, August 9th, and November 9th of each year.

Interest Rates

Taxpayers may visit ODT's Web site to obtain the applicable interest rates.