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The information on this billing was reported to us by the Internal Revenue Service (IRS). The audit notification which you have received is the result of a Federal Revenue Agent Report (RAR) examination. The adjustments made by the agent may affect your Federal Adjusted Gross Income (FAGI), the number of exemptions claimed, and/or your filing status.
1. How may I contact you about my RAR Billing Notice?
Ohio tax agents can be reached via telephone at 614-387-0024.
Please send all written correspondence to the following address or fax number:
The Ohio Department of Taxation
Personal Income Tax – Technical
PO Box 182847
Columbus, Ohio 43218-2847
614-466-0002 (fax)
2. Why did it take you so long to notify me?
The Ohio Department of Taxation (ODT) receives information from the IRS after a Final Determination has been issued by them. An audit selection is conducted to bill taxpayer’s who have not complied with Ohio law. ORC section 5747.10 requires an amended Ohio income tax return, Form IT 1040X, be filed within 60 days after the Final Determination of an IRS adjustment.
The RAR Notice of Deficiency, issued by the IRS, also states the IRS information is shared with state tax agencies, and advises the taxpayer if the change affects the amount of the State income tax, he/she should file the appropriate State form.
Please note: This procedure is addressed in both the Federal and Ohio tax booklets.
3. I filed an Amended Ohio Income Tax Return within the required time period.
If you have already filed an Amended Ohio Income Tax Return, Form IT 1040X and made payment of any additional Ohio tax due, send copies of the following:
To expedite processing, attach a copy of the Ohio RAR Billing Notice along with the above named document(s). Mail this information to the address shown on the billing notice. We will review this information and notify you of any changes made.
NOTE: If you are unable to obtain the information within the time frame allowed please contact us.
4. Can the penalty and interest be waived if I pay the original tax due?
The billing notice reflects the revised tax due amount and interest calculated from the due date of the original return through the billing date. Interest is statutory and cannot be waived. Interest is charged at the rate per annum prescribed by ORC section 5703.47. Penalty is charged at the assessment phase only and is subject to the guidelines set forth by the Assessment Division.
5. If I cannot pay by the deadline, will additional charges be added?
If the tax due is not paid by the deadline, an assessment will be issued with updated interest and penalty. The statutory interest rate will apply to any unpaid tax due.
A late payment penalty will be applied for unpaid balances, and a failure to file penalty may also be applied.
The table below shows the interest rates for 2000 through 2010.
Year |
Rate |
| 2010 | 4% |
2009 |
5% |
2008 |
8% |
2007 |
8% |
2006 |
6% |
2005 |
5% |
2004 |
4% |
2003 |
6% |
2002 |
7% |
2001 |
9% |
2000 |
8% |
6. Can I make payments until this account is paid-in-full?
The Ohio Department of Taxation is not authorized to set up a payment plan. However, any partial payments remitted will be applied to the outstanding balance. If the account is not paid-in-full by the specified date then an assessment will be issued. An assessment is a formal billing which includes additional interest and any applicable penalties.
To arrange for a payment plan, you must wait until ODT refers your assessed account to the Attorney General's Office (AGO). The AG's Office is the collection agent for the State of Ohio. When the AGO receives the tax claim a notice will be issued to you. The AG's Office may accept your request for installment payments and agree to a payment plan of up to one year.
7. I am unable to pay, what happens next?
If the RAR billing is not paid by the specified date, a formal bill called an assessment will be issued which includes updated interest and applicable penalty charges. If the account is not paid-in-full at the assessment phase, the account will be certified to the Attorney General’s Office (AGO) for collection. At this phase, a lien may be filed against you. You should contact a representative at each phase to discuss your account at that time.
8. I have already paid this bill.
It is possible that your payment and this notice crossed in the mail. Please attach a legible copy of the front and back of your cancelled check to the billing notice you received. If payment was made by credit card, please indicate the confirmation number and the amount of the payment on the bill stub.
Mail copies of the above named documents along with a copy of the RAR Billing Notice to the address shown on your billing notice. We will review this information and notify you of any changes made.
NOTE: If you are unable to obtain the information within the time frame allowed please contact us.
9. What options are available to pay the RAR billing notice?
Several payment options are available for paying your RAR billing notice. You may use any of the following three methods:
Credit Card
You can use your Discover/NOVUS, VISA, MasterCard or American Express card to pay your RAR billing notice. You can make credit card payments either by visiting tax.ohio.gov and clicking on the “Make a Payment” link in the left-hand column or by calling 1-800-2PAY-TAX (1-800-272-9829).
Whether you pay via our Web site or by telephone, Official Payments Corporation will provide the credit card services. Official Payments Corporation charges a convenience fee equal to 2.5% (or $1, whichever is greater) of the amount of the transaction. Official Payments Corporation will bill your credit card account for this convenience fee. The State of Ohio and your school district do not receive any portion of this fee.
Electronic Check
You can use the expanded electronic check payment option to pay your RAR billing notice. If you choose to make payment using an electronic check, it is the equivalent of using a debit card to withdraw money directly from your checking or savings account to pay the balance of the tax you owe.
The authorized amount will be withdrawn from your account within 24 hours unless you elect to delay payment. You can delay payment up until the payment deadline of the billing notice. Regardless of the date you choose, you must make sure that the money is in your account and available at that time.
Paper Check or Money Order
If you do not want to use a credit card or electronic check to make your payment, you may send a personal check or money order (payable to Ohio Treasurer of State) along with the bottom portion of the RAR audit notice. Also include your social security number(s) and taxable year on your personal check or money order.
NOTE: To avoid errors, please read or listen to all payment options when paying via internet or by telephone to ensure proper crediting of your payment. When paying by telephone, choose the individual income tax billing notice payment option and the correct notice ID.
10. The information contained in the billing notice is not correct. The Internal Revenue Service (IRS) has changed the initial audit.
If you believe the information that we obtained from the Internal Revenue Service is incorrect, you must attach a copy of the following:
Mail the above named document(s) along with a copy of the Ohio RAR Billing Notice to the address shown on your billing notice. We will review this information and notify you of any changes made.
NOTE: If you are unable to obtain the information within the time frame allowed please contact us.
11. I disagree with the RAR Billing Notice.
The information on this billing was reported to us by the Internal Revenue Service (IRS). If you disagree with the information provided by the IRS you may contact them at 1-800-829-1040 to request a Federal Tax Account Transcript.
Mail the IRS Tax Account Transcript along with a copy of the RAR Billing Notice to the address shown on your billing notice. We will review this information and notify you of any changes made.
NOTE: If you are unable to obtain the information within the time frame allowed please contact us.
12. Can the Ohio Department of Taxation request a copy of the Federal or other state(s) tax return information on my behalf?
To request a copy of your Federal Tax Return contact IRS Customer Service at 1-800-829-1040 to obtain a Tax Account Transcript. To request a copy of your state tax return, contact the taxing authority where you filed the state tax return. ODT cannot obtain other state tax information.
Mail the IRS Tax Account Transcript and/or other state(s) return along with a copy of the RAR Billing Notice to the address shown on your billing notice. We will review this information and notify you of any changes made.
NOTE: If you are unable to obtain the information within the time frame allowed please contact us.
13. I was not an Ohio resident for the year identified on the RAR Billing Notice.
The RAR audit program uses information provided by the Internal Revenue Service to identify Ohio residents who were audited by the IRS. Occasionally, we receive information for taxpayers who are not residents but used an Ohio address on their tax return.
If you were not a resident of Ohio and did not earn or receive income in Ohio, or had nexus to Ohio for the year in question, please submit a copy of the state income tax return and copies of all W-2’s filed with your state of residence.
If your state of residence does not have an income tax, please attach a copy of two of the following:
Mail copies of the documents along with a copy of the RAR Billing Notice to the address shown on your billing notice. We will review this information and notify you of any changes made.
NOTE: If you are unable to obtain the information within the time frame allowed please contact us.
14. The name of my ex-spouse appears on the RAR Billing Notice.
If you reported a joint filing status on the Federal Income Tax Return for the tax year identified in the billing notice, you and your ex-spouse are jointly and severally liable for any additional liability. This means that both you and your ex-spouse will be held liable for any unpaid taxes.
15. Our divorce decree states that I am not liable for any federal, state or local income tax owed as a result of filing a joint return with my ex-spouse. It explicitly states my ex-spouse is liable for any taxes owed as a result of our filing jointly.
A divorce decree settlement is a legal issue and must be settled through the courts. Since you and your ex-spouse filed a joint return for the year(s) at issue, you and your ex-spouse are jointly and severally liable for any additional liability. This means that both you and your ex-spouse will be held liable for any unpaid taxes.
16. My employer paid taxes to Ohio so I did not file and I no longer have my W-2 information.
You are required to file an Ohio income tax return each year if you are an Ohio resident or if you are a nonresident who earns or receives income from an Ohio source. If you did not file a tax return, you are subject to a failure to file penalty.
To obtain your W-2 information, contact your employer. If your employer cannot provide them to you, please send copies of your pay statement(s) showing the amount of Ohio income tax withheld together with a copy of the billing notice.
Mail copies of the W-2’s or pay statement(s) along with a copy of the RAR Billing Notice to the address shown on your billing notice. We will review this information and notify you of any changes made.
NOTE: If you are unable to obtain the information within the time frame allowed please contact us.
17. Why didn’t I get credit for the Ohio withholding taxes that were withheld from my paycheck?
The billing notice you received was computed based on information received from the IRS. Your liability may be offset by taxes already withheld; however, you must provide a copy of the W-2 form(s) showing the amount of Ohio tax withheld. In addition, you may claim any credits or deductions for which you are entitled by filing a tax return for the year(s) in question.
Mail copies of the W-2’s or pay statement(s) along with a copy of the RAR Billing Notice to the address shown on your billing notice. We will review this information and notify you of any changes made.
NOTE: If you are unable to obtain the information within the time frame allowed please contact us.
18. Can I file an Ohio tax return now?
You may file a return. Tax forms may be obtained electronically through ODT’s website at tax.ohio.gov or via telephone using the forms request line at 1-800-282-1782. The return should be submitted with documentation that supports all deductions or credits claimed on the return.
Mail the tax return and any supporting documentation along with a copy of the RAR Billing Notice to the address shown on your billing notice. We will review this information and notify you of any changes made.
Note: If the return has a balance due, payment plus any additional interest must be remitted. If the return has an overpayment, it may not be granted due to the statute of limitations and/or 60-day grace period.
19. After completing the return, I am due a refund.
Mail the completed tax return and any supporting documentation along with a copy of the RAR Billing Notice to the address shown on your billing notice. We will review this information and notify you of any changes made.
If you are an Ohio resident, or if you are a nonresident who earns or receives income in Ohio, you are required to file an Ohio income tax return each year. If you do not file a tax return, you may be subject to a failure to file penalty. This penalty may be applied against your refund, and if your refund is less than the penalty, you may be billed for the difference.
