When we think of taxes, tax audits, tax debt, and taxation notifications, the first thought is usually the IRS and its aggressive collection tactics and activities. It is important to understand that the Ohio Department of Taxation can be very aggressive in its collection of Ohio income taxes.
Beginning October 14th, 2015 the Ohio Department of Taxation will begin sending out (FAGI) Federal Adjusted Gross Income Notices to taxpayers who have inconsistencies between their Ohio 1040 tax return and that which was reported to the IRS when filing federal taxes. The FAGI Billing Notice from the Ohio Department of Taxation will be sent for discrepancies in Adjusted Gross Income, Exemptions, or Filing Status.
If you receive a Federal Adjusted Gross Income (FAGI) from the Ohio Department of Taxation, it is important to respond to this billing notice immediately as failure to respond can result in an assessment, further collection action, in addition to penalties and interest.
I Received a Federal Adjust Gross Income Billing Notice From The Ohio Department of Taxation, Now What?
The billing notice will display changes to the Federal Adjusted Gross Income, Exemptions, and/or Filing Status for your Ohio Income Taxes in the “As Corrected” portion of the FAGI billing notice. If you are in agreement with the amount owed in the billing notice, you can simply make payment. If you disagree with the amount of unreported income stated and additional taxes owed to the Ohio Department of Taxation, the charges may be disputed. In some cases, there are also additional changes which you may wish to make to your Ohio income tax filing, which will require filing an amended IT-1040X with the Ohio Department of Taxation.
In any case, please don’t hesitate to contact our office for a free consultation in order to determine the best resolution for your Ohio tax situation.