County Bulletin
TO: ALL COUNTY AUDITORS - Bulletin No. 177
FROM: Stanley J. Bowers, Tax Commissioner
RE: Uniform Principles - Delinquent and New Taxpayers
DATE: March 26, 1962
During the course of the recently completed county auditor
and branch office meetings, a number of differences were
observed in the procedures employed in our various offices
with delinquent and new taxpayer problems.
To ensure that all offices proceed uniformly in these areas
of personal property tax administration, you are advised as
follows:
I. Delinquent Taxpayers
In the instance of individuals or persons engaged in business
who have not filed tax returns and
who voluntarily seek to
comply with the law and make the necessary filings, such
persons will be permitted to:
a. Use the federal election method (Form 912) in making their
original filing in the case of individual intangible
taxpayers, and
b. To file with their returns, in the case of business
taxpayers, claims for deductions form depreciated book value
(902 claims).
Delinquent taxpayers will be accorded the above
considerations unless assessments are made by the Department
or by a county auditor prior to the filings on the part of
such delinquent taxpayers. Assessments made, either by
the county auditor or by this Department, where no returns
are filed, should be based on the ordinary listing methods
for intangible property belonging to individual taxpayers
(unless of course the provisions of Sec. 5711.10, R.C., are
applicable) or on the true value of tangible personal
property determined from the taxpayers' books and records in
the case of business taxpayers.
Application of
Section 5711.03, R.C., to New Taxpayers the provisions
of Section 5711.03, R.C., relating to persons or taxpayers
engaging in business on or after January 1 of any year, do
not apply to
individuals, partnerships or corporations who are engaged in
business and who extend or expand the scope of their business
activities on or after January 1 so long as the original
business entity form (single proprietorship, partnership or
corporation) is retained in the new business. The
following example will illustrate the position herein
intended.
John Smith, dba Smith Hardware, will not be obliged to file
a return under the provisions of this section for a
business started January 1 and which is known as John
Smith, dba Smith Grocery. If, however, John Smith,
who has been doing business as Smith Hardware, forms a
partnership with John Doe and commences business after
January 1 in any year as John Smith and John Doe, dba S.
& D. Laundramat, then the partnership will be
responsible for filing of an original return under the
provisions of Section 5711.031 R.C., covering the new
business activity.
As you can readily surmise the principles enumerated herein
do not cover the full spectrum of delinquent or new
taxpayer problems; however, we do anticpate that if all
offices will proceed in accordance with the principles
herein outlined, we will effectively resolve certain
differences which presently exist in our various
offices. Your cooperation in the foregoing matters
will be greatly appreciate.