Corporation Franchise Tax

Filing Exemptions

Even though the vast majority of corporations are no longer subject to Ohio's corporation franchise tax, Ohio Revised Code section 5733.09 still contains wording that would normally require subchapter S corporations to file an informational report each year using form FT 1120S.

In order to reduce the compliance burden on such corporations, the Tax Commissioner has waived this requirement for the 2012 report year. The requirement was also waived for the 2010 and 2011 report years. The information normally obtained on form FT 1120S is instead being collected through returns filed as part of the withholding requirements for pass-through entities.

R.C. 5733.09 also normally requires that a corporation franchise tax or dealers in intangibles tax return be filed each year by real estate investment trusts (REITs), regulated investment companies (RICs) and real estate mortgage investment conduits (REMICs). Since 2004, the Tax Commissioner has waived this requirement for most (but not all) such entities.

Details are contained in the administrative journal entries listed below.