On August 29, 2017, the Ohio Department of Taxation began mailing out income tax billing notices for tax years 2013, 2014 and 2015. These tax notices are being sent to individuals who had a change made to their Federal tax return as part of the Internal Revenue Service CP2000 audit program. The IRS CP2000 program identifies unreported or underreported income based on a matching program that compares information reported to the IRS with a taxpayer’s information reported on their tax return.
The State of Ohio is sending out billing notices due to notification by the Internal Revenue Service that a correction has been made to a taxpayer’s Federal Form 1040. An increase to Federal adjusted gross income usually results in an increase to Ohio taxable income, with a corresponding increase in Ohio income tax.
The Ohio tax notice provides the type and amount of unreported income that was provided by the IRS, as well as the total amount owed (additional tax due and interest) to the State of Ohio as a result of this unreported income.
If you receive a CP2000 Notice from the State of Ohio, you should respond to the notice immediately. Potential responses to the notice will be:
- Dispute of the amount owed due to an error by the Ohio Department of Taxation
- Possible filing of an amended Ohio income tax return due to additional changes to be made to that year’s Ohio income tax return
- Agreement with the billing notice
If you are in agreement with the tax notice, payment methods include paying online, by telephone or by paper check. Please note that failure to respond to the tax notice will result in the issuance of another assessment and further collection action, including additional interest and penalties.
If you have any questions or receive one of these tax notices, please contact us for assistance.