OVTALOGO

Ohio Virtual Tax Academy

Tax Information Webinars Since 2014

Participants: 11,332
CLE/CPE Credits Issued: 28,832  

... and counting

This event has closed.

Materials for the event can be found in the Agenda section of the page.

Video recording pending.

 

 

The Ohio Virtual Tax Academy (OVTA) is a free event designed to provide tax-related information to small business owners. Attorneys and accountants are also invited to attend and can earn up to three (3) CLE credits and up to three and a half (3.5) CPE credits. More information about the next OVTA will be available soon.

The next OVTA webinar is scheduled for: November 14, 2018

Important: If you are seeking CLE and/or CPE credit, you will be expected to watch/listen for the VTA “code words” that will be scattered throughout the presentations.  There are a total of six words that you will need to remember.  Upon exiting the event, you will be prompted to supply the code words in order to receive credit.  Failure to identify the appropriate code words will result in a loss of possible credit awarded. Effective January 1, 2014, attorneys may earn up to 12 hours of self-study CLE credit towards their annual limit from online webinars. The Ohio Department of Taxation is an equal opportunity employer and provider of ADA services.

If you have any questions please email Organizational Development or call us at (614) 466-7560. Our normal business hours are Mon-Fri 8:00 am - 5:00 pm.

November 2018 Agenda/Materials

Important:

The information presented in the slide presentations and contained in the FAQs is accurate as of the date of the presentation. To the extent that the positions stated in the FAQs do not conflict with any recent legislation, such positions are still in effect.  However, please note that the presentations and FAQs related to OVTA webinars are static and will not be updated to reflect more recent legislation, rules, court decisions, Information Releases or other types of guidance.  Additionally, many times the facts and circumstances surrounding the specific scenario will impact the answer.  Please contact the Department directly if you have any questions (Individual Income Tax - (800) 282-1780 or Business Tax - (888) 405-4039).

8:20 - 8:30

Opening Remarks

Lelia Brisco & Joe Testa

8:30 - 9:30

Updates for Personal & School District Income and Employer Withholding Taxes

This session will cover updates for the tax year 2018 personal and school district income tax return filing and employer withholding tax. Updates to the personal & school district filing include changes to the tax rates, taxing school districts, forms, and new MeF requirements as well as filing tips/reminders. The updates for the Employment Tax Division include: 2018 W2 specifications, PEO reporting changes, common bulk file errors and troubleshooting assistance, and general withholding reminders. This session will also include guidance on requesting employer withholding and school district withholding refunds via amended returns, WTAR’s and or by responding to URATs issued by the Department.

Monica Kendricks & Jihyun Noble

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9:30 - 9:40

Break

 

9:40 - 10:40

Allocating Compensation – Stock Options, Commissions, Base Salary, and Capital Gains

This presentation will cover the methods through which stock options and other types of compensation earned by nonresidents for personal services performed in Ohio is allocated and taxed under Ohio law. The presentation will also discuss approaches to the allocation of compensation in the audit and appeals processes and will provide taxpayers and practitioners with best practices for reporting and allocating compensation.

Michael Kamm & Andrew Winkel

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10:40 - 10:50

Break

 

10:50 - 11:50

Internet Retail & the Sales and Use Taxes

Post-Wayfair, what are some of the challenges and responsibilities for Ohio vendors and sellers? Session will also include applicable case law discussion and proposed legislation.

Steven Russell & Laura Stanley

PPT Iconpdf icon

 11:50 - 12:00

Evaluations/Closing Remarks

Lelia Brisco

 

If a Company buys a piece of equipment from an employee/individual is that personal piece of equipment subject to Use tax for the Company? If a Company buys a piece of equipment from an employee/individual is that personal piece of equipment subject to Use tax for the Company? Can a vendor use the same license for two separate locations or do they need to have a license for each location?Can a vendor use the same license for two separate locations or do they need to have a license for each location?Does each separate location making retail sales in Ohio have to have a license for each store it has in the state? Does each separate location making retail sales in Ohio have to have a license for each store it has in the state? I am an out of state seller that sells one item a year into Ohio through the Internet. Is it the customer’s responsibility to accrue Ohio use tax on their consumer’s use tax account or does the company have to collect the sales tax and obtain an OH VL, file the ST report to report the sale and keep filing zero reports until they must file another sale? I am an out of state seller that sells one item a year into Ohio through the Internet. Is it the customer’s responsibility to accrue Ohio use tax on their consumer’s use tax account or does the company have to collect the sales tax and obtain an OH VL, file the ST report to report the sale and keep filing zero reports until they must file another sale? Should an Ohio resident that makes homemade goods and sells those items to others be charging sales tax on the goods they make? Should an Ohio resident that makes homemade goods and sells those items to others be charging sales tax on the goods they make? Would a company that charges a subscription fee to access data via a web interface and/or app be subject to sales tax? Would that tax be based on customer location? Would a company that charges a subscription fee to access data via a web interface and/or app be subject to sales tax? Would that tax be based on customer location? Sales Tax on Services - Is the $5000 based on previous year’s sales or they need to remit once they hit the $5000 for the current year? Sales Tax on Services - Is the $5000 based on previous year’s sales or they need to remit once they hit the $5000 for the current year? What is the best resource to find answers to sales tax questions? For example - a company builds robots and sends to various companies - who pays the sales tax - the company or the purchaser? What is the best resource to find answers to sales tax questions? For example - a company builds robots and sends to various companies - who pays the sales tax - the company or the purchaser? I'm not clear on the definition of Substantial Nexus. I'm not clear on the definition of Substantial Nexus. Do 529 rollover contributions from another state fund to an Ohio 529 fund qualify for the $4,000/beneficiary/year deduction? Do 529 rollover contributions from another state fund to an Ohio 529 fund qualify for the $4,000/beneficiary/year deduction? Is it possible to file a joint Ohio tax return but only have one spouse claim the non-Ohio resident status? Is it possible to file a joint Ohio tax return but only have one spouse claim the non-Ohio resident status? Can SD estimated payments be pre-scheduled? Can SD estimated payments be pre-scheduled? Are there any plans to make transcripts available to preparers online w/ TBOR1's like IRS TDS? Are there any plans to make transcripts available to preparers online w/ TBOR1's like IRS TDS? Where specifically can I find information about e-file rejection codes? Where specifically can I find information about e-file rejection codes? Employer is responsible to withhold SD for an employee. What about an employer that does not withhold SD on an employee residing in a taxable SD? What recourse does employee have, if any, other than to file and pay the SD tax? Employer is responsible to withhold SD for an employee. What about an employer that does not withhold SD on an employee residing in a taxable SD? What recourse does employee have, if any, other than to file and pay the SD tax? Are paper returns with a deceased spouse still allowed? Are paper returns with a deceased spouse still allowed? If a taxpayer cannot use a deduction for a 529 contribution because his tax is zero, can he carry forward the unused deduction? Can an unused 529 deduction be carried forward if a taxpayer forgets to take it and it's too late to amend the tax return? If a taxpayer cannot use a deduction for a 529 contribution because his tax is zero, can he carry forward the unused deduction? Can an unused 529 deduction be carried forward if a taxpayer forgets to take it and it's too late to amend the tax return? Do you have to attach the W-2, 1099, K-1, etc. to each efiled return even though all of that information was keyed into the return? Do you have to attach the W-2, 1099, K-1, etc. to each efiled return even though all of that information was keyed into the return? If a taxpayer lives and works in CA, but still maintains his OH driver’s license, is he required to file a tax return as an OH resident? If a taxpayer lives and works in CA, but still maintains his OH driver’s license, is he required to file a tax return as an OH resident? Am I able/required to file an annual reconciliation if no liability is being reported?Am I able/required to file an annual reconciliation if no liability is being reported?Are zero liability IT 501’s required to be filed monthly/quarterly?Are zero liability IT 501’s required to be filed monthly/quarterly?Is the IT 3 required to be filed for a small employer?Is the IT 3 required to be filed for a small employer?If my company is unable to electronically submit W-2’s can I send in paper copies?If my company is unable to electronically submit W-2’s can I send in paper copies?Our company is downsizing, and no longer has employees; how do I close my withholding account?Our company is downsizing, and no longer has employees; how do I close my withholding account?My client has acquired a new FEIN. How do I transfer the employer withholding account number to the new FEIN?My client has acquired a new FEIN. How do I transfer the employer withholding account number to the new FEIN?My client is a multi-state employer, do other states RS records need to be stripped from the file before submitting to OHIO?My client is a multi-state employer, do other states RS records need to be stripped from the file before submitting to OHIO?For clients with only 1 or 2 employees, are paper W-2’s permitted?For clients with only 1 or 2 employees, are paper W-2’s permitted?How do I electronically file the IT 3 on OBG?How do I electronically file the IT 3 on OBG?For reciprocity, Ohio sourced income is not subject to Ohio withholding? or just not required to file Ohio tax return if non-related employer? For reciprocity, Ohio sourced income is not subject to Ohio withholding? or just not required to file Ohio tax return if non-related employer? If you are an Ohio employer and you have someone that lives in Michigan and works every day in Ohio, should you be withholding Ohio tax and the appropriate municipality tax on that individual? If you are an Ohio employer and you have someone that lives in Michigan and works every day in Ohio, should you be withholding Ohio tax and the appropriate municipality tax on that individual? What should an employer do in this case: Employer is located in Youngstown and has an employee living in PA. Should the employer withhold Ohio, PA or nothing? If PA, has to get a PA account number (Inconvenience) but if not, employee will be on their own for PA taxes on this income because it won't be taxable to Ohio because of reciprocity. What should an employer do in this case: Employer is located in Youngstown and has an employee living in PA. Should the employer withhold Ohio, PA or nothing? If PA, has to get a PA account number (Inconvenience) but if not, employee will be on their own for PA taxes on this income because it won't be taxable to Ohio because of reciprocity. Does the employer have to, or can they tell the employee that they are responsible for PA on their own? Does the employer have to, or can they tell the employee that they are responsible for PA on their own? The individual would not have to file an Ohio return at that point correct? The individual would not have to file an Ohio return at that point correct? I am a resident in Michigan. I am a self-employed project engineer. In 2018 I spent 15 days working in Ohio on a project and received $12,000 of gross income. My business expenses directly related to the project in Ohio are $2,000, resulting in net income of $10,000. I have no other Ohio source income. Do I qualify for exemption from Ohio PIT under the de minimus exception? Gross income is more than $10,500. If I do not qualify for the de minimus exception, wouldn't my Ohio tax liability be zero after claiming the business income deduction and nonresident credit adjustment? I am a resident in Michigan. I am a self-employed project engineer. In 2018 I spent 15 days working in Ohio on a project and received $12,000 of gross income. My business expenses directly related to the project in Ohio are $2,000, resulting in net income of $10,000. I have no other Ohio source income. Do I qualify for exemption from Ohio PIT under the de minimus exception? Gross income is more than $10,500. If I do not qualify for the de minimus exception, wouldn't my Ohio tax liability be zero after claiming the business income deduction and nonresident credit adjustment? If a person works for the state of Ohio but then retires and moves to Florida...He collects retirement benefits from Ohio...does he have to file an Ohio tax return? If a person works for the state of Ohio but then retires and moves to Florida...He collects retirement benefits from Ohio...does he have to file an Ohio tax return? On HB 24, I don't understand what would be new in regards to Medicare premiums paid. In the past, they were deductible if the medical total (including Medicare) exceeded 7.5%. Now, are they allowed special treatment just like unsubsidized health insurance are handled? On HB 24, I don't understand what would be new in regards to Medicare premiums paid. In the past, they were deductible if the medical total (including Medicare) exceeded 7.5%. Now, are they allowed special treatment just like unsubsidized health insurance are handled? What is the difference between being a resident of Ohio and being domiciled in Ohio or are they the same thing? What is the difference between being a resident of Ohio and being domiciled in Ohio or are they the same thing? How is deferred compensation treated for someone who lived in Ohio when earned, but who has retired and moved out of Ohio before collecting? How is deferred compensation treated for someone who lived in Ohio when earned, but who has retired and moved out of Ohio before collecting? PA resident works two days a week in OH for an OH based employer and the balance of the week from home. The OH employer has no OH withholding responsibility and the employee no OH filing requirement? PA resident works two days a week in OH for an OH based employer and the balance of the week from home. The OH employer has no OH withholding responsibility and the employee no OH filing requirement? For Ohio residents working abroad - if they only have an Ohio driver's license and no property - are they still considered an Ohio resident? For Ohio residents working abroad - if they only have an Ohio driver's license and no property - are they still considered an Ohio resident? For the allocation of capital gain from the sale of an intangible: an ownership interest in an Ohio PTE, does your answer change if the nonresident owner is a greater than 20% owner of the PTE and actively participates in the operations and daily decision making of the entity? Would you then treat the gain as Ohio business income? For the allocation of capital gain from the sale of an intangible: an ownership interest in an Ohio PTE, does your answer change if the nonresident owner is a greater than 20% owner of the PTE and actively participates in the operations and daily decision making of the entity? Would you then treat the gain as Ohio business income? Likewise, what is the Department's position on non-conforming bonus depreciation adjustments for the SBD? Is it proper to add and/or subtract from small business income for any bonus depreciation added or subtracted from Ohio AGI prior to calculating the SBD? Likewise, what is the Department's position on non-conforming bonus depreciation adjustments for the SBD? Is it proper to add and/or subtract from small business income for any bonus depreciation added or subtracted from Ohio AGI prior to calculating the SBD? Taxpayer resides and works in Ohio. Receives a stock option grant that does not vest until after 4 years and can be exercised between years 5 and 8. Taxpayer retires at the end of year 4 and moves out of Ohio to another state. At the end of year 4 the stock price is below the stock option exercise price, so the stock option is "under water". During years 5-8 the stock price rises above the exercise price and the taxpayer exercises the stock option at the end of year 8 and realizes stock option income of $50,000. Since 100% of the stock option value was realized after the taxpayer became a nonresident of Ohio, is there still Ohio source stock option income taxed in Ohio using the Days Worked Method? Under the Days worked method 50% of the stock option income would be attributable while resident in Ohio (4/8) and thus, $25,000 would be taxed in Ohio even though there was no increase in stock value while the taxpayer resided in Ohio. Taxpayer resides and works in Ohio. Receives a stock option grant that does not vest until after 4 years and can be exercised between years 5 and 8. Taxpayer retires at the end of year 4 and moves out of Ohio to another state. At the end of year 4 the stock price is below the stock option exercise price, so the stock option is "under water". During years 5-8 the stock price rises above the exercise price and the taxpayer exercises the stock option at the end of year 8 and realizes stock option income of $50,000. Since 100% of the stock option value was realized after the taxpayer became a nonresident of Ohio, is there still Ohio source stock option income taxed in Ohio using the Days Worked Method? Under the Days worked method 50% of the stock option income would be attributable while resident in Ohio (4/8) and thus, $25,000 would be taxed in Ohio even though there was no increase in stock value while the taxpayer resided in Ohio. Is there an alternative allocation method allowed for stock options based on stock value (publicly traded stock)? Is there an alternative allocation method allowed for stock options based on stock value (publicly traded stock)? Let’s say we have an individual named Pam. Pam lives in Ohio Jan thru Oct and keeps books for husband Ohio Business. In Nov Pam and husband sell Ohio residence and buy house in Florida. Pam moves to Florida and continues to keep books for husbands Ohio business (he is living in rental apt) Is Pam's Nov and Dec w-2 pay non-taxed in Ohio. Let’s say we have an individual named Pam. Pam lives in Ohio Jan thru Oct and keeps books for husband Ohio Business. In Nov Pam and husband sell Ohio residence and buy house in Florida. Pam moves to Florida and continues to keep books for husbands Ohio business (he is living in rental apt) Is Pam's Nov and Dec w-2 pay non-taxed in Ohio. Stock option vesting date is not considered in the days-worked method. The time period used starts from the stock option grant date and ends on the exercise date? Stock option vesting date is not considered in the days-worked method. The time period used starts from the stock option grant date and ends on the exercise date? A client has been issued restricted stock that vests only if certain performance measures are met. He retires from the company sometime in year 1. He moves to another state in year 1. In year 2 the measurements are met, and the restricted stock vests and compensation is reported on a W-2. How is the Ohio portion of compensation determined? Based on the compensation that would have been reported if the restricted stock vested on the date he established non-residency and on the fair market value of the stock on that date? A client has been issued restricted stock that vests only if certain performance measures are met. He retires from the company sometime in year 1. He moves to another state in year 1. In year 2 the measurements are met, and the restricted stock vests and compensation is reported on a W-2. How is the Ohio portion of compensation determined? Based on the compensation that would have been reported if the restricted stock vested on the date he established non-residency and on the fair market value of the stock on that date? So, the days after retirement while a non-resident of Ohio could be included in the denominator but NOT in the numerator? So, the days after retirement while a non-resident of Ohio could be included in the denominator but NOT in the numerator?
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Presenters
Joe Testa

Joe Testa            

Tax Commissioner

Joe W. Testa is the 18th Tax Commissioner to lead the Ohio Department of Taxation. The Tax Commissioner is responsible for administering and enforcing most state and many local government taxes, including the state income tax, state and local sales taxes, and several business and excise taxes. All told, these taxes provide approximately $30 billion in revenues to support funding of Ohio’s schools and colleges, Medicaid, law enforcement, transportation and a myriad of other public services.

 

Lelia Brisco

Lelia Brisco

Program Facilitator

Lelia started her position as Training Officer with Organizational Development (OrgD) in November 2010. She began her career with the Department of Taxation in 2007, in the processing division. Lelia was a 13 year member of the Air Force Guard and Reserve, and held the position of Training Assistant. Lelia currently trains classes such as Customer Service, Work Place Violence, Managing Multiply Priorities, SOJT and Train the Trainer. She assist with the CCC, Holiday Food Basket, Operation Feed, and manages special projects.

 

Monica Kendricks

Monica Kendricks

Tax Examiner, Employment Tax Division

Monica is currently a Tax Examiner in the Employer & School District Withholding unit of the Employment Tax Division. In addition to educating potential bulk filers on schematic requirements as well as troubleshooting issues in submission, she works with PEO compliance. Her duties include training, overpayment request reviews and electronic filing compliance. Monica has been employed with the Department since 2007.

 

Jihyun Noble

Jihyun Noble

Tax Program Assistant Administrator, Personal & School District Income Tax Division

Jihyun Noble is a Tax Program Assistant Administrator in the Personal and School District Income Tax Division and has been with the Ohio Department of Taxation for 9 years. Jihyun leads both paper and electronic filing units for the division, while serving on the forms committee as well. Jihyun earned a B.S. with honors in Finance from Kansas State University and currently holds PMP (Project Management Professional) and CSM (Certified Scrum Master) certifications.

 
Michael Kamm

Michael Kamm

Tax Examiner Manager, Audit Division

Michael began his career with the Department of Taxation in 2005 as a TCA1 in the Excise and Motor Fuel division. He became a TCA 3/lead in the then Discovery division in 2008 and later reached expert classification as a TCA5 in the Discovery Division working primarily in the areas of personal income tax and use tax. The Tax Discovery Division has since merged with the Audit Division in 2016 where Michael continued to excel. Michael was promoted in 2018 and is now a manager in the Limited Scope group of the Audit Division. Michael is now responsible for overseeing auditors who are assigned to a diverse group on assignments ranging from Commercial Activity Tax, Personal Income Tax, and Sales and Use taxes. Michael received his Bachelor’s Degree in Business Administration from Bowling Green State University in 2004.

 
Andrew Winkel

Andrew Winkel

Attorney-Supervisor, Office of Chief Counsel-Tax Appeals Division

Andrew currently serves as an attorney-supervisor in the Tax Appeals Division, where he is responsible for supervising the staff and operations of the Department’s administrative appeals of every tax type, except those related to Sales & Use Tax and Real Property. In addition, Andrew continues to act as a hearing officer and draft final determinations on many of the most complex legal issues that come before the Division. Andrew joined the Department’s Legislation Division in 2009 and has worked in the Tax Appeals Division since 2011. He received his B.S.C. from the Scripps College of Communication at Ohio University, his J.D. from Ohio Northern University’s Pettit College of Law, and is scheduled to receive a Masters of Public Policy & Management from the Glenn School of Public Affairs at the Ohio State University in 2019.

 
Steven Russell

Steven Russell

Tax Program Assistant Administrator, Business Tax Division

Steven (Steve) Russell began his career at the Ohio Department of Taxation about 24 years ago. For the last 21 years, he has specialized in sales and use tax auditing and/or administration which includes experience with manufacturers, construction contractors, and retailers. Prior to becoming assistant administrator, Steve was a part of the Audit Division’s Review and Support Group where he helped administer the direct pay authority program. Steve spent six years as assistant administrator of the Audit Division, where he was responsible for forming Audit Division practices and providing technical guidance. In May 2015, Steve moved to the Business Tax Division where he helps oversee Ohio’s business taxes and provides technical guidance in the sales and use tax area. He has presented numerous times at the Ohio tax conference, Cherry Valley tax course, and to numerous other groups and organizations. Steve received his B.S. in accounting from Otterbein College, Westerville, Ohio in 1991.

 
Laura M. Stanley, Esq.

Laura M. Stanley, Esq.

Legal Counsel - Sales & Use Tax Division

Currently, Laura Stanley is Legal Counsel for sales and use taxes for the Ohio Department of Taxation, within the Business Tax Division. In this position, Laura is responsible for drafting final determinations, legal ruling requests, administrative rules, information releases, and reviewing proposed legislation, as well as advising the Administrators of the Business Tax Division and Commissioner's Office on legal matters. Previously, Laura served as Legal Counsel for various taxes, including the commercial activity and petroleum activity taxes within the Business Tax Division and the excise taxes within the Excise & Energy Tax Division. Prior to becoming Legal Counsel, Laura worked as a Management Analyst Supervisor in the Commercial Activity Tax Division and was instrumental in several projects, including the Voluntary Disclosure Program. Additionally, Laura assisted her predecessor in her capacity as Legal Counsel for the Commercial Activity, Motor Fuel, and Excise Tax Divisions. Laura enjoys the presentation circuit and looks forward to building relationships through interaction with the public. Laura graduated from The University of Akron in Akron, Ohio with a Bachelors of Science in Political Science & Criminal Justice and an Associate of Applied Science in Criminal Justice Technology. Additionally, Laura earned her J.D. from Capital University School of Law in Columbus, Ohio.