Information Release

ST 2005-04 - Information Retention and Sharing Practices Related to Sales and Use Tax  - Issued May, 2005

As used in this notice, “confidential taxpayer information” means all information that is protected by Ohio or other applicable law, and “personally identifiable information” means information that identifies a person. “Personally identifiable information” may include, for example, a person’s name, street address, e-mail address, telephone number, or other means of identification.

Any personally identifiable information that the Department of Taxation collects, directly or through a certified service provider (“CSP”), as defined in R.C. 5740.01(C), is solely for the purpose of tax administration. Personally identifiable information is confidential taxpayer information, which under Ohio law may be used only for tax administration, including the sharing of such information with other states or the Internal Revenue Service in accordance with formal agreements. The Department’s general confidentiality statute, R.C. 5703.21, prohibits agents and employees of the Department from divulging such information for purposes other than tax administration except pursuant to specific provisions in division (C) of that section or when called upon to testify in any court or proceeding.

Under Ohio law, a CSP must protect the personally identifiable information of a consumer in the same manner as the Department is required to protect confidential taxpayer information. Furthermore, the CSP must not retain such information except:

 

  • To determine whether a consumer’s status or intended use of the goods or services purchased is exempt from the sales or use tax,
  • To investigate fraud by a consumer or seller, or
  • To the extent necessary to ensure the reliability of the CSP’s technology and certified automated system in performing all of a seller’s sales and use tax functions. The CSP must provide safeguards to protect personally identifiable information from unauthorized access and disclosure.

 

Any personally identifiable information about a consumer that the Department receives from a CSP may be examined during the Department’s regular business hours by the consumer to correct any inaccuracy. The Department will retain such information solely for the purpose of tax administration, for the time period prescribed by statute, and in accordance with the Department’s records retention schedule. The Department generally retains such records for a period of five years to verify registration, filing, compliance, and entitlement to any exemptions claimed, and for purposes of any audit or appeal.

If you have any questions regarding this matter, please call 1888-405-4039 (Ohio Relay Services for the Hearing or Speech Impaired: 1-800-750-0750).