Current through all regulations passed and filed through September 16, 2024
(A) Refunds of income taxes under Chapter
5747. of the Revised Code are subject to offset under sections
5747.12,
5747.121,
5747.122 and
5747.123 of the Revised Code.
The tax commissioner will identify those taxpayers due a refund who are subject
to such offset based upon information provided by any state or federal agency.
The commissioner will immediately disburse the refunds of those
taxpayers to the appropriate fund or agency, to the extent they do not exceed
the outstanding balance to be collected by such offset, and except as provided
in paragraph (B) of this rule. Any remaining portion of the tax refunds will be
paid to the taxpayer.
(B)
(1) A "liable spouse" is a taxpayer, included
on a jointly filed individual income tax return, who is liable for a debt under
sections 5747.12,
5747.121,
5747.122 and
5747.123 of the Revised Code. A
"non-liable spouse" is a taxpayer, included on a jointly filed individual
income tax return, who is not liable for a debt under sections
5747.12,
5747.121,
5747.122, and
5747.123 of the Revised
Code.
(2) In the case of taxpayers
who file joint returns, where one taxpayer is a liable spouse and one taxpayer
is a non-liable spouse, only the portion of the refund belonging to the liable
spouse is subject to the offset under paragraph (A) of this rule. The burden is
on the taxpayers to prove that a portion of the refund is not subject to offset
based on the information shown on the taxpayers' joint income tax return and
the attachments thereto.
(3) The
commissioner will notify the taxpayers that they have twenty-one days from
receipt of the notice to prove the portion of the taxpayers' refund not subject
to offset by utilizing the following calculation:
(a) Step 1: The taxpayer shall compute the
ratio of the non-liable spouse's portion of the taxpayers' Ohio adjusted gross
income to the total Ohio adjusted gross income as reporting for the tax year at
issue. In computing this amount, the taxpayer shall utilize only those
adjustments contained in division (A) of section
5747.01 of the Revised Code
related to the income included in the non-liable spouse's portion of federal
adjusted gross income.
(b) Step 2:
The taxpayer shall multiply the taxpayers' total tax liability prior to
applying any payments or withholding, by the ratio obtained in step
1.
(c) Step 3: The taxpayer shall
subtract the product obtained in step 2 from the portion of all payments,
including withholdings and estimated payments, belonging to the non-liable
spouse.
(4) If the
taxpayers have provided a calculation under paragraph (B)(3) of this rule, the
commissioner shall review the calculation.
(a)
If the commissioner concurs, the offset under paragraph (A) of this rule will
not include any amounts due to the non-liable spouse. The commissioner will
immediately disburse such portion of the refund belonging to the liable spouse
to the appropriate fund or agency.
(b) If the commissioner does not concur, the
commissioner will notify the taxpayers and provide a revised calculation. The
notice will advise them that they have twenty-one days from receipt of the
notice to:
(i) For amounts subject to offset
under section 5747.12 of the Revised Code,
submit any additional documentation to refute the revised
calculation;
(ii) For amounts
subject to offset under sections
5747.121,
5747.122, and
5747.123 of the Revised Code,
file a complaint with the commissioner concerning the revision, along with an
optional request for a hearing.
(5) If the taxpayers submit additional
documentation pursuant to paragraph (B)(4)(b)(i) of this rule, the commissioner
shall review the documentation and make any necessary adjustments. If the
taxpayers file a complaint pursuant to paragraph (B)(4)(b)(ii) of this rule,
the commissioner shall proceed according to the relevant statutory provisions.
Otherwise, the commissioner's revised calculation will be substituted for that
of the taxpayers. The commissioner will then make any disbursements in the same
manner as under paragraph (A) of this rule.
(6)
Notwithstanding
paragraph (B)(3) of this rule, if the taxpayer requests and the commissioner
agrees, the commissioner may calculate the portion of the refund subject to
offset based on any information in the commissioner's
possession.
(7) If no such proof or
review request is submitted within the time specified, the full refund will be
subject to offset under a paragraph (A) of this rule.
(C) For purposes of this rule, notices sent
by the commissioner by ordinary mail are rebuttably presumed to be received by
the taxpayers seven days after the mailing thereof.
(D) Nothing in this rule shall be construed
to limit any subsequent corrections, assessments, or refunds within the
applicable statutes of limitation.
