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03/16/2018

Centralized municipal tax filing registrations gain momentum

A flurry of registrations raised the number of businesses opting in to centralized filing of municipal net profits taxes to more than 2,000 – and still counting.

The deadline passed March 1 for businesses with a calendar year-end to opt in for centralized filing of municipal net profits taxes for the 2018 tax year, but registration remains open for businesses with fiscal years that don’t match the calendar.

“Given the amount of uncertainty and friction around this new option,” said Ohio Department of Taxation spokesman Gary Gudmundson, “and given the short time span in which to get the word out and alert businesses to the signup, attracting more than 2,300 business taxpayers – and more than 1,100 in the last two days – is a clear signal that this option has tremendous appeal.”

All businesses that opted in should have notified all cities where they filed last year by March 1, as well. The next deadline for calendar-year-end businesses is the first-quarter estimated payment, due April 15.

Business owners: See this and other upcoming deadlines here.

“We’ve seen many single-city taxpayers, and a few who file in hundreds of cities, who’ve opted in,” said Gudmundson. “As awareness grows, we fully expect the customer base to grow significantly too.”

The centralized filing option is beneficial for Ohio businesses that file returns in multiple cities or villages, as it cuts down on administration headaches and reduces compliance costs. The Ohio Department of Taxation (ODT) estimates it will save businesses a combined $1.6 billion annually in compliance costs if all Ohio businesses participate.

Don’t have a calendar year end? There’s still time to opt in now with the Ohio Department of Taxation. More details are available on the Ohio Department of Taxation’s Taxpayer Information Guide.

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