When we think of taxes, tax assessments, and other taxation problems, 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 September 29th, 2015 the Ohio Department of Taxation started sending CP2000 Billing Notices to taxpayers who failed to amend their Ohio State income taxes upon completion of an IRS CP2000 audit.
An IRS CP2000 audit occurs when the information reported on your tax return does not match the income and payment information the IRS has on file for you. This typically happens as the result of third party information being reported to the IRS that differs from your tax return.
Upon resolution of the IRS CP2000 audit you are required by the Ohio Department of Taxation to file an amended Ohio Individual Income Tax Return Form IT-1040X. As a result of adding additional income to your Federal taxes, the Ohio Department of Revenue is electronically notified that your Ohio income taxes should also be amended and you owe additional taxes and interest.
It is very important that you respond to this notice to avoid an assessment being issued as well as further collection actions. If you have received a CP2000 Notice due to the unreported income billing program, you do have a few options. If in agreement with the amount owed in the billing notice, you can make payment. If in disagreement 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 tax law office for a free consultation in order to determine the best resolution for your Ohio tax situation.
IRS.gov Understanding Your CP2000 Notice – Retrieved From: https://www.irs.gov/Individuals/Understanding-Your-CP2000-Notice
Tax.ohio.gov CP2000 Notice / Unreported Income Billing Program – Retrieved from: http://www.tax.ohio.gov/Portals/0/ohio_individual/individual/CP2000BillingProgram.pdf