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.
Policy Concerning Examinations/Audits and
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.
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
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.
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.