Important Tax Information that could affect you.
Ohio Revised Code Chapter 718
Due to changes to ORC 718 resulting from the passage of House Bill 5, the following Penalty and Interest rates will be in effect for payments made for the tax year 2016 and subsequent years.
The interest rate is the Federal short-term rate, rounded to the nearest whole number percent, plus five percent. The rate shall apply for the calendar year following July of the year in which the Federal short-term rate is determined.
Interest Rates on unpaid Income Tax and Withholding
- Interest Rate on past due tax payments for tax year 2025 will be 10% per annum.
- Interest Rate on past due tax payments for tax year 2024 will be 10% per annum.
- Interest Rate on past due tax payments for tax year 2023 will be 7% per annum.
- Interest Rate on past due tax payments for tax year 2022 will be 5% per annum.
- Interest Rate on past due tax payments for tax year 2021 will be 5% per annum.
- Interest Rate on past due tax payments for tax year 2020 will be 7% per annum.
- Interest Rate on past due tax payments for tax year 2019 will be 7% per annum.
- Interest Rate on past due tax payments for tax year 2018 will be 6% per annum.
- Interest Rate on past due tax payments for tax year 2017 will be 6% per annum.
- Interest Rate on past due tax payments for tax year 2016 will be 5% per annum.
- For tax years prior to 2016, the interest rate is 1.5% per month or portion thereof.
Penalties
Effective for tax year 2024 and forward:
Late filing penalty (includes late tax returns, withholding payments and withholding reconciliations): $25 plus interest and penalty charges.
Penalty for unpaid or late paid Income tax: 15% per occurrence, plus interest charges.
Penalty for late/unpaid Withholding tax: 50% of the amount not timely paid per occurrence, plus interest charges.
For tax years 2016-2023:
Late filing penalty (includes late tax returns, withholding payments and withholding reconciliations): $25 per month or fraction thereof; with a maximum of $150 for each failure, plus interest and penalty charges.
Penalty for unpaid or late paid Income tax: 15% per occurrence, plus interest charges.
Penalty for late/unpaid Withholding tax: 50% of the amount not timely paid per occurrence, plus interest charges.
