Ohio Tax Commissioner To Begin Notifying Taxpayers Of Credit Account Balance

Thanks to recently passed Am. Sub. S.B. 263, the Ohio Tax Commissioner has one more duty – to notify taxpayers who have overpaid a tax or fee. Pursuant to R.C. 5703.77, taxpayers with a “credit account balance” will now receive notice at least 60 days prior to end of the period of time for which they may file a refund application. Additionally, the new legislation authorizes the Tax Commissioner to apply the “credit account balance” to the taxpayer’s next reporting period or refund the tax, even if no refund application is filed. This codifies the policy change implemented by Gov. Kasich and Tax Commissioner Testa who began refunding certain taxpayers who made an overpayment after discovering that the Department of Taxation’s long-standing policy was not to issue refunds without such an application, even if it was aware of the overpayment.