G 2002-01 - Modified Appeal Procedures - Corrected
Assessments - December 16, 2002
This information release summarizes the changes to the appeal
procedures provided for in Ohio Revised Code section (R.C.)
5703.60 that were enacted in Substitute Senate Bill 200.
These procedures apply to most tax assessments issued by the
Ohio Department of Taxation (ODT) on and after September 6,
2002. R.C. 5703.60 allows ODT to issue a Corrected Assessment
as an alternative means of resolving a disputed tax
assessment without ODT having to issue a Final Determination.
After reviewing the information submitted by a taxpayer or on
ODT's own motion, ODT can make corrections to the original
assessment through the issuance of a "Corrected Assessment."
Please note, ODT's issuance of a Corrected Assessment will
likely be sent by ordinary mail (i.e., it does not have to be
sent by certified mail) to the last known address of the
taxpayer.
This Corrected Assessment procedure is available for most,
but not all, tax assessments issued by ODT. Specifically, the
Corrected Assessment procedure is applicable to the following
taxes: Beer and Wine Taxes, Cigarette Tax, Corporation
Franchise Tax, Electric Light Company Municipal Income Tax,
Horse Racing Tax, Income Tax, Motor Fuel Use Tax, Motor Fuel
Tax, Other Tobacco Products Tax, Sales/Use Tax, School
District Income Tax, Severance Tax, and Tire Fee. For the
public utility taxes imposed under R.C. Chapter 5727, the
Corrected Assessment procedure only applies to assessments
issued for the Natural Gas Company Excise Tax, the Natural
Gas Distribution Company (MCF) Tax, and the Electric
Distribution Company (KWH) Tax. The Corrected Assessment
procedure does not apply to
property tax assessments (including the Dealers in
Intangibles Tax).
The Corrected Assessment procedure is an optional process
only available at the discretion of
ODT. That is, a taxpayer does not have the right to require
ODT to use the Corrected Assessment procedure. However, the
statute does allow a taxpayer the right to opt-out of the
procedure. To do this, the taxpayer (also called a
petitioner) must request in writing that ODT not use this
procedure for each assessment appealed by the taxpayer. A
petitioner can accomplish this by clearly indicating on its
petition for reassessment that the petitioner does not want
ODT to issue a Corrected Assessment. To assist in this
process, the petitioner can use ODT's standard petition for
reassessment form and check the appropriate box on that form
to indicate that the petitioner does not want ODT to issue a
Corrected Assessment. (A link to that form is provided
below.) If the taxpayer so indicates, ODT must issue a Final
Determination.
If ODT issues a Corrected Assessment and the
taxpayer/petitioner disagrees with the Corrected Assessment,
the taxpayer/petitioner may file a
new petition for reassessment to
petition the Corrected Assessment. The appeal time period is
60 days from the date ODT mails the Corrected Assessment. The
appeal period is not 60 days from
the taxpayer's/petitioner's receipt date of the Corrected
Assessment. In response to this new
petition, ODT will issue a Final Determination, because ODT
can only issue one Corrected Assessment with respect to an
assessment.
It is important to note that ODT's issuance of a
Corrected Assessment nullifies any prior petition for
re-assessment filed by the petitioner before ODT issued the
Corrected Assessment. Thus, if a taxpayer/petitioner
disagrees with ODT's Corrected Assessment, the
taxpayer/petitioner must file a new petition for
reassessment. Otherwise, the Corrected Assessment becomes
final and such assessment is not appealable to the Ohio Board
of Tax Appeals.
R.C. 5703.60 also requires a petitioner that wants a hearing
before ODT to request such a hearing in writing. The
petitioner can ask for a telephone hearing or for a personal
appearance hearing (personal appearance hearings are normally
conducted at ODT's central office in Columbus, Ohio). The
hearings are informal in nature (e.g., the rules of evidence
do not apply). If the petitioner does not specifically
request a hearing, ODT will likely consider the matter
without one. The petitioner can specifically request a
hearing on its own petition for reassessment or it can use
ODT's standard petition for reassessment form by checking the
appropriate box. (A link to that form is pro-vided below).
http://tax.ohio.gov/documents/forms/appeals/PR.pdf
If you have any questions call 1-888-297-7150. For Deaf,
Hearing Impaired or Speech Impaired who use TTY or TDD only:
Please contact the Ohio Relay Service at 1-800-750-0750 and
give the communication assistant the Ohio Department of
Taxation telephone number.