Voluntary Tax Disclosure Programs Help Ohio Business Owners

behind on taxesFor business owners and individuals who are a little or a lot behind on taxes, Ohio offers Voluntary Disclosure Programs.


For many reasons, taxpayers get behind on their taxes. Business taxes are neglected, an employment tax dispute could be in the offing, or a failure to file an individual income tax return could weigh heavily. In Ohio, you may be able to take advantage of several programs that allow you to disclose tax liabilities to the Department of Taxation before you come to the attention of the agency Criminal Investigations Division.


At the state and federal level, tax authorities are aiming for compliance. Compliance on an individual and population level is achieved through robust enforcement, education, and whistleblower programs. Both the IRS and the Ohio Department of Taxation offer programs that allow taxpayers and business owners to cure tax deficiencies in a more favorable structure than a civil audit or criminal tax investigation.


The Criminal Investigations unit of the IRS (IRS-CI) has long offered a Voluntary Disclosure Practice for taxpayers who make good faith efforts to bring a tax arrears to the attention of the IRS that might otherwise end up the subject of an IRS criminal tax audit. While disclosure at the federal level may not avoid penalties or even prosecution, voluntarily approaching the organization can result in a recommendation that your case not be prosecuted. That’s a pretty good incentive considering the alternative.


As at the federal level, our tax attorneys also work with clients to help them understand local disclosure programs offered through the Ohio Dep. of Taxation. The state offers a number of programs to encourage voluntary compliance that can resolve tax arrears without creating further tax controversy or allegation of tax fraud.


Types of programs offered through the Ohio tax agency include:

  • Commercial Activity Tax
  • Corporation Franchise Tax 
  • Employer Withholding Tax
  • Financial Institution Tax
  • Pass-Through Entities Tax
  • Resort Area Gross Receipts Excise Tax
  • Sales & Use Tax
  • Individual Income Tax


Participating in these disclosure programs is conditioned on the terms of each type of program. Overall, the value of stepping up before you come to the attention of an enforcement effort can mitigate the impact of your tax liability. Carrying through on a Voluntary Disclosure Agreement (VDA) is critical to gain the full benefit of the disclosure programs.


Disclosure programs can help you avoid prosecution and the penalties that accrue with unpaid tax liabilities. If you know you are non-compliant, talk with an Ohio tax lawyer about how a VDA can help you worry a little less about when a tax agency will catch up to you.


Experienced tax lawyers help you with tax litigation and other financial challenges

For skilled tax representation following receipt of an audit notice or allegations of tax crime, the legal team at Robert J. Fedor, Esq, LLC, provides trusted tax advice and skilled guidance. Serving clients in Chicago and Cleveland and abroad, our legal team can answer your questions today. Call us at 800-579-0997.


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