Information Release

IT 2002-01 - "Combat Zone" Designation and Impact on Ohio Income Tax and School District Income Tax Returns  - February 1, 2002

Set forth below is the Ohio Department of Taxation's policy concerning the "federal combat zone designation" and the impact on Ohio taxes.

Taxes Affected: Ohio and School District Estimated Income Tax Payments and Income Tax Returns for Taxable Years Beginning After Dec. 31, 2000 for Taxpayers (Both Military and Civilian) in a Combat Zone

  • The due date for making estimated Ohio and school district income tax payments, Ohio and school district income tax return payments, and Ohio and school district income tax return filings is extended for 180 days beyond the period of service in the combat zone, plus time in missing-in-action status and time in continuous hospitalization outside the U. S. and up to five years of hospitalization within the U. S. resulting from injuries received in the combat zone.

  • The Tax Commissioner has waived all related interest penalties, failure-to-pay penalties, and failure-to-file penalties otherwise due during the suspension period.

  • Except as otherwise provided in sections 5747.023 and 5747.026 of the Ohio Revised Code, the taxpayer must pay interest with respect to Ohio and school district income tax return payments made after the fifteenth day of April of each year following the last day of the taxable year.

  • The Department of Taxation will not pay interest on refunds issued within ninety days after the taxpayer files the return.

General Policy Concerning Examinations/Audits and Collections

We will suspend, until sixty days prior to the last day of the four-year statute of limitations period, IT-1040 and SD-100 individual income tax return examinations/audits and pre-assessment actions to collect unpaid Ohio income tax and school district income tax on all military personnel serving in a combat zone and on all civilian support personnel serving in a combat zone.

Specific Policy for Taxpayers in Combat Zone

  • Notification by taxpayer or by his/her representative – examination/audit situation: inform the taxpayer or his/her representative to (i) write "Combat Zone" on the face of examination/audit notice, (ii) set forth on the notice the name of the taxpayer's representative, the representative's address, and the representative’s phone number, and (iii) return the notice to us.

  • Notification by taxpayer or by his/her representative -- collection situation: inform the taxpayer or his/her representative to (i) write "Combat Zone" across the face of copy of the billing notice or assessment, (ii) set forth on the notice the name of the taxpayer’s representative, the representative’s address, and the representative’s phone number, and (iii) return the notice to us.

  • Computerized billing programs: the files/data for combat zone taxpayers appearing on these programs are to be placed in a designated combat zone hold file (by program) and temporarily cleared from the assessment phase. In the situation where the statute of limitations is expiring on a billing notice, we will assess, but we will contact the taxpayer's representative (spouse, CPA, etc.) prior to issuing the assessment and explain (i) that Ohio law requires we assess and (ii) that we will urge the Ohio attorney general to suspend collection efforts. We will also explain that the sixty day period for a taxpayer to petition the assessment cannot be suspended.

  • Examination/Audit: all such files are to be placed on hold, and the file appropriately marked "combat zone". In the situation where the statute of limitations is expiring on the file, the agent will assess the audit file but will contact the taxpayer's representative prior to issuing the assessment and explain (i) that Ohio law requires we assess and (ii) that we will urge the Ohio A. G. to suspend collection efforts. We will also explain that the sixty-day period for a taxpayer to petition the assessment cannot be suspended.

  • Assessments: On the sixtieth day prior to the conclusion of the statute of limitations period, we must reinstate the procedures necessary to assure our timely mailing of the assessment.

  • If a spouse of a taxpayer in a combat zone filed separately, then the examination/audit and collection activity of that spouse will continue if that spouse is not also in a combat zone.

Servicemembers Civil Relief Act

Important: Title V of the Servicemembers Civil Relief Act (DOC) (50 U.S.C. App 501 et. seq.) may provide to servicemembers additional filing and payment extension periods not discussed above. Contact your local Legal Service Office or Staff Judge Advocate for additional information.