Information Release

G 2002-01 - Modified Appeal Procedures - Corrected Assessments - December 16, 2002

This information release summarizes the changes to the appeal procedures provided for in Ohio Revised Code section (R.C.) 5703.60 that were enacted in Substitute Senate Bill 200. These procedures apply to most tax assessments issued by the Ohio Department of Taxation (ODT) on and after September 6, 2002. R.C. 5703.60 allows ODT to issue a Corrected Assessment as an alternative means of resolving a disputed tax assessment without ODT having to issue a Final Determination. After reviewing the information submitted by a taxpayer or on ODT's own motion, ODT can make corrections to the original assessment through the issuance of a "Corrected Assessment." Please note, ODT's issuance of a Corrected Assessment will likely be sent by ordinary mail (i.e., it does not have to be sent by certified mail) to the last known address of the taxpayer.

This Corrected Assessment procedure is available for most, but not all, tax assessments issued by ODT. Specifically, the Corrected Assessment procedure is applicable to the following taxes: Beer and Wine Taxes, Cigarette Tax, Corporation Franchise Tax, Electric Light Company Municipal Income Tax, Horse Racing Tax, Income Tax, Motor Fuel Use Tax, Motor Fuel Tax, Other Tobacco Products Tax, Sales/Use Tax, School District Income Tax, Severance Tax, and Tire Fee. For the public utility taxes imposed under R.C. Chapter 5727, the Corrected Assessment procedure only applies to assessments issued for the Natural Gas Company Excise Tax, the Natural Gas Distribution Company (MCF) Tax, and the Electric Distribution Company (KWH) Tax. The Corrected Assessment procedure does not apply to property tax assessments (including the Dealers in Intangibles Tax).

The Corrected Assessment procedure is an optional process only available at the discretion of ODT. That is, a taxpayer does not have the right to require ODT to use the Corrected Assessment procedure. However, the statute does allow a taxpayer the right to opt-out of the procedure. To do this, the taxpayer (also called a petitioner) must request in writing that ODT not use this procedure for each assessment appealed by the taxpayer. A petitioner can accomplish this by clearly indicating on its petition for reassessment that the petitioner does not want ODT to issue a Corrected Assessment. To assist in this process, the petitioner can use ODT's standard petition for reassessment form and check the appropriate box on that form to indicate that the petitioner does not want ODT to issue a Corrected Assessment. (A link to that form is provided below.) If the taxpayer so indicates, ODT must issue a Final Determination.

If ODT issues a Corrected Assessment and the taxpayer/petitioner disagrees with the Corrected Assessment, the taxpayer/petitioner may file a new petition for reassessment to petition the Corrected Assessment. The appeal time period is 60 days from the date ODT mails the Corrected Assessment. The appeal period is not 60 days from the taxpayer's/petitioner's receipt date of the Corrected Assessment. In response to this new petition, ODT will issue a Final Determination, because ODT can only issue one Corrected Assessment with respect to an assessment.

It is important to note that ODT's issuance of a Corrected Assessment nullifies any prior petition for re-assessment filed by the petitioner before ODT issued the Corrected Assessment. Thus, if a taxpayer/petitioner disagrees with ODT's Corrected Assessment, the taxpayer/petitioner must file a new petition for reassessment. Otherwise, the Corrected Assessment becomes final and such assessment is not appealable to the Ohio Board of Tax Appeals.

R.C. 5703.60 also requires a petitioner that wants a hearing before ODT to request such a hearing in writing. The petitioner can ask for a telephone hearing or for a personal appearance hearing (personal appearance hearings are normally conducted at ODT's central office in Columbus, Ohio). The hearings are informal in nature (e.g., the rules of evidence do not apply). If the petitioner does not specifically request a hearing, ODT will likely consider the matter without one. The petitioner can specifically request a hearing on its own petition for reassessment or it can use ODT's standard petition for reassessment form by checking the appropriate box. (A link to that form is pro-vided below).

If you have any questions call 1-888-297-7150. For Deaf, Hearing Impaired or Speech Impaired who use TTY or TDD only: Please contact the Ohio Relay Service at 1-800-750-0750 and give the communication assistant the Ohio Department of Taxation telephone number.