What is the procedure for requesting a refund?
If the corporation erroneously made franchise tax payments for the 2010 tax year or after, the corporation can obtain a refund by filing the appropriate corporation franchise tax report and (i) completing the taxpayer identification information at the top of page 1 and check the sixth (6th) box in the upper right corner of page 1; (ii) completing lines 23 through 31 on page 1; (iii) completing the declaration on page 8; and (iv) filing this form with supporting documentation, if needed. Please do not check the box if the corporation remains subject to the franchise tax after the phase-out and the taxpayer is claiming any refundable credits.
To request a refund in connection with an amended Ohio corporation franchise tax report, corporations should file an amended report along with an Application for Corporation Franchise Tax Refund (prescribed form FT REF) (the preferred method). However, a letter accompanying the amended report detailing the reasons for the overpayment may be accepted in lieu of form FT REF if the letter contains a statement which sets forth the full and complete reason for the overpayment (see Abitibi-Price Corporation and Subsidiaries v Tracy, BTA No. 98-N-401(3-12-01)). The filing of an amended report without an application for refund or without a letter detailing the reason for the claim is not sufficient and does not constitute an application for refund.
Note: An application for refund is not required when the claimed overpayment is indicated on the originally filed corporation franchise tax report.
Form FT REF applies to claimed overpayments by a taxpayer, whether payment was made voluntarily or as the result of an assessment issued by the Ohio Department of Taxation. If the claimed overpayment is not the result of an IRS adjustment and the statute of limitations has not been extended by form FT WAIVER (the prescribed form by which the Department of Taxation and the taxpayer agree to extend the statute of limitations for the period of time set forth in the FT WAIVER agreement), then the department must receive the application for refund within three years of the date of the illegal, erroneous, or excessive payment.
If the claimed overpayment is the result of a change in federal taxable income, then the department must receive the application for refund within the later of the following: (a) the three-year time period set forth above or (b) the one-year period described under "When should federal changes be reported to Ohio?" However, if the refund claim is filed after the three year refund statute of limitations has expired and the statute of limitations has not been extended by form FT WAIVER, then the refund claim can include only the effects of the federal adjustments.
A franchise tax refund claim that is based on a capital loss carryback is timely filed if the refund claim is filed within three years from the due date of the franchise tax report (including extensions thereof) for the taxable year in which the capital loss arose. To download Ohio corporation franchise tax forms, visit our Tax Forms home page.
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