Tax Rules: Final: 5703-7
5703-7-05 - Income tax; extensions;
penalties and interest
(A) Except as otherwise expressly provided or clearly
appearing from the context, any term in this rule has the
same meaning as when used in a comparable context in Chapter
5747. of the Revised Code.
As used in this rule:
(1) "Annual return" means the annual return required by
section 5747.08 of the Revised Code.
(2) "Unextended due date" means the date prescribed for
filing the annual return without extension. For taxpayers
whose return is based on a taxable year ending on the last
day of December, section 5747.08 of the Revised Code
prescribes a due date of the fifteenth day of April of the
following year. For taxpayers whose taxable year is a fiscal
year, rule 5703-7-01 of the Administrative Code prescribes a
due date of the fifteenth day of the fourth month following
the close of the fiscal year.
(3) "Tax" includes both the tax imposed by section 5747.02 of
the Revised Code and any tax imposed under Chapter 5748. of
the Revised Code and the interest penalty imposed by division
(D) of section 5747.09 of the Revised Code.
(B)(1) A taxpayer shall be granted an automatic six-month
extension of time for filing the taxpayer's annual return if
the taxpayer satisfies both of the following conditions by
the unextended due date:
(a) The taxpayer has duly requested an automatic six-month
extension of time for filing the taxpayer's federal income
tax return;
(b) By the unextended due date for filing the return, the
taxpayer has paid at least ninety per cent of the tax through
withholding payments, estimated payments, and the crediting
of overpayments from the immediately preceding taxable year.
Such tax shall be reduced by (I) all allowable credits
described in section 5747.98, (II) all allowable credits
provided by Chapter 5748. of the Revised Code, and (III) all
allowable grants.
(2) In addition to the automatic extension granted in
paragraph (B)(1) of this rule, each taxpayer that has been
granted an extension of time to file the taxpayer's federal
income tax return by the Internal Revenue Service for reasons
such as a calamitous act of nature shall have the same
extension of time to file, and to make any elections with
respect to, the taxpayer's related Ohio income tax return.
(C)(1) A filing extension granted by paragraph (B)(1) of this
rule is to the fifteenth day of the tenth month following the
last day to the taxable year. For example, a taxpayer whose
unextended due date is the fifteenth day of April is granted
a filing extension to the fifteenth day of October;
(2) An extension under paragraph (B) of this rule does not
extend the due date for purposes of imposing interest on any
tax paid after the due date.
(D) A taxpayer granted a filing extension under paragraph (B)
of this rule:
(1) Shall not be subject to the penalty imposed by division
(A)(1) of section 5747.15 of the Revised Code for failure to
file a timely return if either of the following applies:
(a) The taxpayer files his annual return by the extended due
date set forth in paragraph (B) of this rule.
(b) The taxpayer files his annual return at a later date if
the taxpayer has secured an approved federal extension to
such later date.
(2) Shall not be subject to the penalty imposed under
division (A)(2) of section 5747.15 of the Revised Code for
failure to make timely payment of tax if both of the
following apply:
(a) By the unextended due date, the taxpayer has paid at
least ninety per cent of the taxes on the return through
withholding payments, estimated payments, and the crediting
of overpayments from an earlier tax year;
(b) By the extended due date set forth in paragraph (B) of
this rule, or by a later date with an approved federal
extension to such later date, the taxpayer has paid one
hundred per cent of the tax.
(E) No interest penalty shall be charged under division (D)
of section 5747.09 of the Revised Code for the period from
the unextended due date until the date of payment. However,
interest required under division (G) of section 5747.08 of
the Revised Code shall apply to any underpayment of tax and
shall run from the unextended due date until the date of
payment.
(F) Nothing in this rule shall abate any penalty or interest
imposed for failure to pay taxes in a timely manner if,
subsequent to the filing of the taxpayer's return, the tax
commissioner ascertains that the taxpayer owes taxes in
addition to those shown to be due on the taxpayer's return or
the taxpayer files an amended return showing additional taxes
are due.
(G) This rule does not state the exclusive bases for
abatement of penalty, but in all circumstances other than
those described in this rule, the taxpayer shall have the
burden of proving that the taxpayer’s failure to file a
return timely or to pay the tax timely resulted from a
reasonable cause.
(H) Nothing in this rule precludes a member of the national
guard or of a reserve component of the armed forces of the
United States from qualifying for an extension under section
5747.026 of the Revised Code for the taxable year.
Effective: 12-28-06
Promulgated under: 5703.14
Authorized by: 5703.05, 5747.08
Amplifies: 5747.09, 5747.15, 5748.01
Prior effective dates: 9-20-92, 3-28-06 (Emer.), 6-30-06