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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 284
2025-2026
Senator Schaffer
To
amend sections 5747.15 and 5751.06 and to enact section 5739.125 of
the Revised Code
to
waive penalties for taxpayers that do not file certain tax returns
because no tax is due.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 5747.15 and 5751.06 be amended and section 5739.125 of the
Revised Code be enacted to read as follows:
Sec.
5739.125.
Notwithstanding
any other provision of this chapter or Chapter 5741. of the Revised
Code, the tax commissioner shall not impose any penalty or interest
under either chapter or take any action otherwise authorized under
section 5739.30 of the Revised Code for the failure to file a return
if no amount of tax is due with the return.
Sec.
5747.15.
(A)
In addition to any other penalty imposed by this chapter or Chapter
5703. of the Revised Code, the following penalties shall apply:
(1)
If a taxpayer, a qualifying entity, an electing pass-through entity,
or an employer required to file any report or return, including an
informational notice, report, or return, under this chapter fails to
make and file the report or return within the time prescribed,
including any extensions of time granted by the tax commissioner, a
penalty may be imposed not exceeding the greater of fifty dollars per
month or fraction of a month, not to exceed five hundred dollars, or
five per cent per month or fraction of a month, not to exceed fifty
per cent, of the sum of the taxes required to be shown on the report
or return, for each month or fraction of a month elapsing between the
due date, including extensions of the due date, and the date on which
filed.
(2)
If a taxpayer fails to pay any amount of tax required to be paid
under section 5733.41 or Chapters 5747. or 5748. of the Revised Code,
except estimated tax under section 5747.09 or 5747.43 of the Revised
Code, by the dates prescribed for payment, a penalty may be imposed
not exceeding twice the applicable interest charged under division
(G) of section 5747.08 of the Revised Code for the delinquent
payment.
(3)(a)
If an employer fails to pay any amount of tax imposed by section
5747.02 of the Revised Code and required to be paid under this
chapter by the dates prescribed for payment, a penalty may be imposed
not exceeding the sum of ten per cent of the delinquent payment plus
twice the interest charged under division (F)(5) of section 5747.07
of the Revised Code for the delinquent payment.
(b)
If a qualifying entity or an electing pass-through entity fails to
pay any amount of tax imposed by section 5733.41, 5747.38, or 5747.41
of the Revised Code and required to be paid under this chapter by the
dates prescribed for payment, a penalty may be imposed not exceeding
the sum of ten per cent of the delinquent payment plus twice the
applicable interest charged under division (G) of section 5747.08 of
the Revised Code for the delinquent payment.
(4)(a)
If an employer withholds from employees the tax imposed by section
5747.02 of the Revised Code and fails to remit the tax withheld to
the state as required by this chapter on or before the dates
prescribed for payment, a penalty may be imposed not exceeding fifty
per cent of the delinquent payment.
(b)
If a qualifying entity withholds any amount of tax imposed under
section 5747.41 of the Revised Code from an individual's qualifying
amount and fails to remit that amount to the state as required by
sections 5747.42 to 5747.453 of the Revised Code on or before the
dates prescribed for payment, a penalty may be imposed not exceeding
fifty per cent of the delinquent payment.
(5)
If a taxpayer, a qualifying entity, an electing pass-through entity,
or an employer files what purports to be a return required by this
chapter that does not contain information upon which the substantial
correctness of the return may be judged or contains information that
on its face indicates that the return is substantially incorrect, and
the filing of the return in that manner is due to a position that is
frivolous or a desire that is apparent from the return to delay or
impede the administration of the tax levied by section 5733.41,
5747.02, 5747.38, or 5747.41, or Chapter 5748. of the Revised Code, a
penalty of up to five hundred dollars may be imposed.
(6)
If a taxpayer, a qualifying entity, or an electing pass-through
entity makes a fraudulent attempt to evade the reporting or payment
of the tax required to be shown on any return required under this
chapter, a penalty may be imposed not exceeding the greater of one
thousand dollars or one hundred per cent of the tax required to be
shown on the return.
(7)
If any person makes a false or fraudulent claim for a refund under
this chapter, a penalty may be imposed not exceeding the greater of
one thousand dollars or one hundred per cent of the claim. The
penalty imposed under division (A)(7) of this section, any refund
issued on the claim, and interest on any refund from the date of the
refund, may be assessed under section 5747.13 of the Revised Code as
tax, penalty, or interest imposed under section 5733.41, 5747.02,
5747.38, or 5747.41 of the Revised Code, without regard to whether
the person making the claim is otherwise subject to the provisions of
this chapter or Chapter 5733. of the Revised Code, and without regard
to any time limitation for the assessment imposed by division (A) of
section 5747.13 of the Revised Code.
(B)
For purposes of this section, the taxes required to be shown on the
return shall be reduced by the amount of any part of the taxes paid
on or before the date, including any extensions of the date,
prescribed for filing the return.
(C)
Any penalty imposed under this section shall be in addition to all
other penalties imposed under this section. All or part of any
penalty imposed under this section may be abated by the commissioner.
All or part of any penalty imposed under this section may be abated
by the commissioner if the taxpayer, qualifying entity, electing
pass-through entity, or employer shows that the failure to comply
with the provisions of this chapter is due to reasonable cause and
not willful neglect.
(D)
Notwithstanding any other provision of this section or chapter, the
tax commissioner shall not impose any penalty or interest under this
chapter for the failure to file a return or report if no amount of
tax is due with the return or report.
Sec.
5751.06.
(A)
Any taxpayer that fails to file a return or pay the full amount of
the tax due within the period prescribed therefor under this chapter
shall pay a penalty in an amount not exceeding the greater of fifty
dollars or ten per cent of the tax required to be paid for the tax
period.
(B)(1)
If any additional tax is found to be due, the tax commissioner may
impose an additional penalty of up to fifteen per cent on the
additional tax found to be due.
(2)
Any delinquent payments of the tax made after a taxpayer is notified
of an audit or a tax discrepancy by the commissioner is subject to
the penalty imposed by division (B) of this section. If an assessment
is issued under section 5751.09 of the Revised Code in connection
with such delinquent payments, the payments shall be credited to the
assessment.
(C)
If the tax commissioner notifies a person required to register under
section 5751.05 of the Revised Code of such requirement and of the
requirement to remit the tax due under this chapter, and the person
fails to so register and remit the tax within sixty days after such
notice, the tax commissioner may impose an additional penalty of up
to thirty-five per cent of the tax due. The penalty imposed under
this division is in addition to any other penalties imposed under
this section.
(D)
The tax commissioner may collect any penalty or interest imposed by
this section in the same manner as the tax imposed under this
chapter. Penalties and interest so collected shall be considered as
revenue arising from the tax imposed under this chapter.
(E)
The tax commissioner may abate all or a portion of any penalties
imposed under this section and may adopt rules governing such
abatements.
(F)
If any tax due is not timely paid in accordance with this chapter,
the taxpayer shall pay interest, calculated at the rate per annum
prescribed by section 5703.47 of the Revised Code, from the date the
tax payment was due to the date of payment or to the date an
assessment was issued, whichever occurs first.
(G)
The tax commissioner may impose a penalty of up to ten per cent for
any additional tax that is due under division (B)(2) of section
5751.051 of the Revised Code from a taxpayer incorrectly reporting
its taxable gross receipts.
(H)
If the tax commissioner discovers that a taxpayer has billed or
invoiced another person for the tax imposed under this chapter in
violation of division (B) of section 5751.02 of the Revised Code, the
tax commissioner shall notify the taxpayer of the violation in the
manner provided in section 5703.37 of the Revised Code and may impose
a penalty of up to five hundred dollars. If the taxpayer subsequently
bills or invoices a person for the tax imposed under this chapter,
the tax commissioner shall impose a penalty of five hundred dollars.
(I)
Notwithstanding any other provision of this section or chapter, the
tax commissioner shall not impose any penalty or interest under this
chapter for the failure to file a return if no amount of tax is due
with the return.
Section
2.
That
existing sections 5747.15 and 5751.06 of the Revised Code are hereby
repealed.
Section
3.
The
amendment or enactment by this act of sections 5739.125, 5774.15, and
5751.06 of the Revised Code applies to returns or reports required to
be filed on or after the effective date of that amendment or
enactment.