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To amend section 5747.08 of the Revised Code to | 1 |
permit individual taxpayers to direct the state to | 2 |
transmit an income tax refund directly to the | 3 |
taxpayer's checking, savings, or individual | 4 |
retirement account if the taxpayer files a return | 5 |
electronically. | 6 |
Section 1. That section 5747.08 of the Revised Code be | 7 |
amended to read as follows: | 8 |
Sec. 5747.08. An annual return with respect to the tax | 9 |
imposed by section 5747.02 of the Revised Code and each tax | 10 |
imposed under Chapter 5748. of the Revised Code shall be made by | 11 |
every taxpayer for any taxable year for which the taxpayer is | 12 |
liable for the tax imposed by that section or under that chapter, | 13 |
unless the total credits allowed under divisions (E), (F), and (G) | 14 |
of section 5747.05 of the Revised Code for the year are equal to | 15 |
or exceed the tax imposed by section 5747.02 of the Revised Code, | 16 |
in which case no return shall be required unless the taxpayer is | 17 |
liable for a tax imposed pursuant to Chapter 5748. of the Revised | 18 |
Code. | 19 |
(A) If an individual is deceased, any return or notice | 20 |
required of that individual under this chapter shall be made and | 21 |
filed by that decedent's executor, administrator, or other person | 22 |
charged with the property of that decedent. | 23 |
(B) If an individual is unable to make a return or notice | 24 |
required by this chapter, the return or notice required of that | 25 |
individual shall be made and filed by the individual's duly | 26 |
authorized agent, guardian, conservator, fiduciary, or other | 27 |
person charged with the care of the person or property of that | 28 |
individual. | 29 |
(C) Returns or notices required of an estate or a trust shall | 30 |
be made and filed by the fiduciary of the estate or trust. | 31 |
(D)(1)(a) Except as otherwise provided in division (D)(1)(b) | 32 |
of this section, any pass-through entity may file a single return | 33 |
on behalf of one or more of the entity's investors other than an | 34 |
investor that is a person subject to the tax imposed under section | 35 |
5733.06 of the Revised Code. The single return shall set forth the | 36 |
name, address, and social security number or other identifying | 37 |
number of each of those pass-through entity investors and shall | 38 |
indicate the distributive share of each of those pass-through | 39 |
entity investor's income taxable in this state in accordance with | 40 |
sections 5747.20 to 5747.231 of the Revised Code. Such | 41 |
pass-through entity investors for whom the pass-through entity | 42 |
elects to file a single return are not entitled to the exemption | 43 |
or credit provided for by sections 5747.02 and 5747.022 of the | 44 |
Revised Code; shall calculate the tax before business credits at | 45 |
the highest rate of tax set forth in section 5747.02 of the | 46 |
Revised Code for the taxable year for which the return is filed; | 47 |
and are entitled to only their distributive share of the business | 48 |
credits as defined in division (D)(2) of this section. A single | 49 |
check drawn by the pass-through entity shall accompany the return | 50 |
in full payment of the tax due, as shown on the single return, for | 51 |
such investors, other than investors who are persons subject to | 52 |
the tax imposed under section 5733.06 of the Revised Code. | 53 |
(b)(i) A pass-through entity shall not include in such a | 54 |
single return any investor that is a trust to the extent that any | 55 |
direct or indirect current, future, or contingent beneficiary of | 56 |
the trust is a person subject to the tax imposed under section | 57 |
5733.06 of the Revised Code. | 58 |
(ii) A pass-through entity shall not include in such a single | 59 |
return any investor that is itself a pass-through entity to the | 60 |
extent that any direct or indirect investor in the second | 61 |
pass-through entity is a person subject to the tax imposed under | 62 |
section 5733.06 of the Revised Code. | 63 |
(c) Nothing in division (D) of this section precludes the tax | 64 |
commissioner from requiring such investors to file the return and | 65 |
make the payment of taxes and related interest, penalty, and | 66 |
interest penalty required by this section or section 5747.02, | 67 |
5747.09, or 5747.15 of the Revised Code. Nothing in division (D) | 68 |
of this section shall be construed to provide to such an investor | 69 |
or pass-through entity any additional deduction or credit, other | 70 |
than the credit provided by division (J) of this section, solely | 71 |
on account of the entity's filing a return in accordance with this | 72 |
section. Such a pass-through entity also shall make the filing and | 73 |
payment of estimated taxes on behalf of the pass-through entity | 74 |
investors other than an investor that is a person subject to the | 75 |
tax imposed under section 5733.06 of the Revised Code. | 76 |
(2) For the purposes of this section, "business credits" | 77 |
means the credits listed in section 5747.98 of the Revised Code | 78 |
excluding the following credits: | 79 |
(a) The retirement credit under division (B) of section | 80 |
5747.055 of the Revised Code; | 81 |
(b) The senior citizen credit under division (C) of section | 82 |
5747.05 of the Revised Code; | 83 |
(c) The lump sum distribution credit under division (D) of | 84 |
section 5747.05 of the Revised Code; | 85 |
(d) The dependent care credit under section 5747.054 of the | 86 |
Revised Code; | 87 |
(e) The lump sum retirement income credit under division (C) | 88 |
of section 5747.055 of the Revised Code; | 89 |
(f) The lump sum retirement income credit under division (D) | 90 |
of section 5747.055 of the Revised Code; | 91 |
(g) The lump sum retirement income credit under division (E) | 92 |
of section 5747.055 of the Revised Code; | 93 |
(h) The credit for displaced workers who pay for job training | 94 |
under section 5747.27 of the Revised Code; | 95 |
(i) The twenty-dollar personal exemption credit under section | 96 |
5747.022 of the Revised Code; | 97 |
(j) The joint filing credit under division (G) of section | 98 |
5747.05 of the Revised Code; | 99 |
(k) The nonresident credit under division (A) of section | 100 |
5747.05 of the Revised Code; | 101 |
(l) The credit for a resident's out-of-state income under | 102 |
division (B) of section 5747.05 of the Revised Code; | 103 |
(m) The low-income credit under section 5747.056 of the | 104 |
Revised Code. | 105 |
(3) The election provided for under division (D) of this | 106 |
section applies only to the taxable year for which the election is | 107 |
made by the pass-through entity. Unless the tax commissioner | 108 |
provides otherwise, this election, once made, is binding and | 109 |
irrevocable for the taxable year for which the election is made. | 110 |
Nothing in this division shall be construed to provide for any | 111 |
deduction or credit that would not be allowable if a nonresident | 112 |
pass-through entity investor were to file an annual return. | 113 |
(4) If a pass-through entity makes the election provided for | 114 |
under division (D) of this section, the pass-through entity shall | 115 |
be liable for any additional taxes, interest, interest penalty, or | 116 |
penalties imposed by this chapter if the tax commissioner finds | 117 |
that the single return does not reflect the correct tax due by the | 118 |
pass-through entity investors covered by that return. Nothing in | 119 |
this division shall be construed to limit or alter the liability, | 120 |
if any, imposed on pass-through entity investors for unpaid or | 121 |
underpaid taxes, interest, interest penalty, or penalties as a | 122 |
result of the pass-through entity's making the election provided | 123 |
for under division (D) of this section. For the purposes of | 124 |
division (D) of this section, "correct tax due" means the tax that | 125 |
would have been paid by the pass-through entity had the single | 126 |
return been filed in a manner reflecting the tax commissioner's | 127 |
findings. Nothing in division (D) of this section shall be | 128 |
construed to make or hold a pass-through entity liable for tax | 129 |
attributable to a pass-through entity investor's income from a | 130 |
source other than the pass-through entity electing to file the | 131 |
single return. | 132 |
(E) If a husband and wife file a joint federal income tax | 133 |
return for a taxable year, they shall file a joint return under | 134 |
this section for that taxable year, and their liabilities are | 135 |
joint and several, but, if the federal income tax liability of | 136 |
either spouse is determined on a separate federal income tax | 137 |
return, they shall file separate returns under this section. | 138 |
If either spouse is not required to file a federal income tax | 139 |
return and either or both are required to file a return pursuant | 140 |
to this chapter, they may elect to file separate or joint returns, | 141 |
and, pursuant to that election, their liabilities are separate or | 142 |
joint and several. If a husband and wife file separate returns | 143 |
pursuant to this chapter, each must claim the taxpayer's own | 144 |
exemption, but not both, as authorized under section 5747.02 of | 145 |
the Revised Code on the taxpayer's own return. | 146 |
(F) Each return or notice required to be filed under this | 147 |
section shall contain the signature of the taxpayer or the | 148 |
taxpayer's duly authorized agent and of the person who prepared | 149 |
the return for the taxpayer, and shall include the taxpayer's | 150 |
social security number. Each return shall be verified by a | 151 |
declaration under the penalties of perjury. The tax commissioner | 152 |
shall prescribe the form that the signature and declaration shall | 153 |
take. | 154 |
(G) Each return or notice required to be filed under this | 155 |
section shall be made and filed as required by section 5747.04 of | 156 |
the Revised Code, on or before the fifteenth day of April of each | 157 |
year, on forms that the tax commissioner shall prescribe, together | 158 |
with remittance made payable to the treasurer of state in the | 159 |
combined amount of the state and all school district income taxes | 160 |
shown to be due on the form, unless the combined amount shown to | 161 |
be due is one dollar or less, in which case that amount need not | 162 |
be remitted. | 163 |
Upon good cause shown, the tax commissioner may extend the | 164 |
period for filing any notice or return required to be filed under | 165 |
this section and may adopt rules relating to extensions. If the | 166 |
extension results in an extension of time for the payment of any | 167 |
state or school district income tax liability with respect to | 168 |
which the return is filed, the taxpayer shall pay at the time the | 169 |
tax liability is paid an amount of interest computed at the rate | 170 |
per annum prescribed by section 5703.47 of the Revised Code on | 171 |
that liability from the time that payment is due without extension | 172 |
to the time of actual payment. Except as provided in section | 173 |
5747.132 of the Revised Code, in addition to all other interest | 174 |
charges and penalties, all taxes imposed under this chapter or | 175 |
Chapter 5748. of the Revised Code and remaining unpaid after they | 176 |
become due, except combined amounts due of one dollar or less, | 177 |
bear interest at the rate per annum prescribed by section 5703.47 | 178 |
of the Revised Code until paid or until the day an assessment is | 179 |
issued under section 5747.13 of the Revised Code, whichever occurs | 180 |
first. | 181 |
If the tax commissioner considers it necessary in order to | 182 |
ensure the payment of the tax imposed by section 5747.02 of the | 183 |
Revised Code or any tax imposed under Chapter 5748. of the Revised | 184 |
Code, the tax commissioner may require returns and payments to be | 185 |
made otherwise than as provided in this section. | 186 |
To the extent that any provision in this division conflicts | 187 |
with any provision in section 5747.026 of the Revised Code, the | 188 |
provision in that section prevails. | 189 |
(H) If any report, claim, statement, or other document | 190 |
required to be filed, or any payment required to be made, within a | 191 |
prescribed period or on or before a prescribed date under this | 192 |
chapter is delivered after that period or that date by United | 193 |
States mail to the agency, officer, or office with which the | 194 |
report, claim, statement, or other document is required to be | 195 |
filed, or to which the payment is required to be made, the date of | 196 |
the postmark stamped on the cover in which the report, claim, | 197 |
statement, or other document, or payment is mailed shall be deemed | 198 |
to be the date of delivery or the date of payment. | 199 |
If a payment is required to be made by electronic funds | 200 |
transfer pursuant to section 5747.072 of the Revised Code, the | 201 |
payment is considered to be made when the payment is received by | 202 |
the treasurer of state or credited to an account designated by the | 203 |
treasurer of state for the receipt of tax payments. | 204 |
"The date of the postmark" means, in the event there is more | 205 |
than one date on the cover, the earliest date imprinted on the | 206 |
cover by the United States postal service. | 207 |
(I) The amounts withheld by the employer pursuant to section | 208 |
5747.06 of the Revised Code shall be allowed to the recipient of | 209 |
the compensation as credits against payment of the appropriate | 210 |
taxes imposed on the recipient by section 5747.02 and under | 211 |
Chapter 5748. of the Revised Code. | 212 |
(J) If, in accordance with division (D) of this section, a | 213 |
pass-through entity elects to file a single return and if any | 214 |
investor is required to file the return and make the payment of | 215 |
taxes required by this chapter on account of the investor's other | 216 |
income that is not included in a single return filed by a | 217 |
pass-through entity, the investor is entitled to a refundable | 218 |
credit equal to the investor's proportionate share of the tax paid | 219 |
by the pass-through entity on behalf of the investor. The investor | 220 |
shall claim the credit for the investor's taxable year in which or | 221 |
with which ends the taxable year of the pass-through entity. | 222 |
Nothing in this chapter shall be construed to allow any credit | 223 |
provided in this chapter to be claimed more than once. For the | 224 |
purposes of computing any interest, penalty, or interest penalty, | 225 |
the investor shall be deemed to have paid the refundable credit | 226 |
provided by this division on the day that the pass-through entity | 227 |
paid the estimated tax or the tax giving rise to the credit. | 228 |
(K) The tax commissioner shall ensure that each return | 229 |
required to be filed under this section includes a box that the | 230 |
taxpayer may check to authorize a paid tax preparer who prepared | 231 |
the return to communicate with the department of taxation about | 232 |
matters pertaining to the return. The return or instructions | 233 |
accompanying the return shall indicate that by checking the box | 234 |
the taxpayer authorizes the department of taxation to contact the | 235 |
preparer concerning questions that arise during the processing of | 236 |
the return and authorizes the preparer only to provide the | 237 |
department with information that is missing from the return, to | 238 |
contact the department for information about the processing of the | 239 |
return or the status of the taxpayer's refund or payments, and to | 240 |
respond to notices about mathematical errors, offsets, or return | 241 |
preparation that the taxpayer has received from the department and | 242 |
has shown to the preparer. | 243 |
(L) The tax commissioner shall permit individual taxpayers to | 244 |
instruct the department of taxation to cause any refund of | 245 |
overpaid taxes to be deposited directly into a checking account, | 246 |
savings account, or an individual retirement account or individual | 247 |
retirement annuity, as designated by the taxpayer, when the | 248 |
taxpayer files the annual return required by this section | 249 |
electronically. | 250 |
(M) The tax commissioner may adopt rules to administer this | 251 |
section. | 252 |
Section 2. That existing section 5747.08 of the Revised Code | 253 |
is hereby repealed. | 254 |