Penalty & Interest

Commissioner of Taxation: John Zawisza

 

One Government Center, Suite 2070
Toledo, Ohio  43604
Taxation Phone:  (Temporarily Unavailable)
Taxation Email:  incometax@toledo.oh.gov (Most preferred method of contact)
Taxation Fax:  419.936.2320

TAX YEARS 2016 AND BEYOND:

INTEREST:  Interest for the year is based on the Federal Short Term Rate as of July of the prior year rounded to the nearest whole percent, plus 5%, thus the rate will change for each succeeding year based on the Federal rate of the previous July.  The rate will be posted in October for the upcoming year.

2018 interest rate is 6%.  Calculated using the July 2017 Federal Short Term rate of 1.22%--rounded down to the nearest whole percent of 1% plus 5% gives us a rate of 6% per annum (annual rate) for 2018.  This translates into a monthly rate of .5%.

2019 interest rate is 7%.  Calculated using the July 2018 Federal Short Term rate of 2.38%--rounded down to the nearest whole percent of 2% plus 5% gives us a rate of 7% per annum (annual rate) for 2019.  This translates into a monthly rate of .5833%.

2020 interest rate is 7%.  Calculated using the July 2019 Federal Short Term rate of 2.11%--rounded down to the nearest whole percent of 2% plus 5% gives us a rate of 7% per annum (annual rate) for 2017.  This translates into a monthly rate of .5833%%.

PENALTY:

Withholding:  50% of the amount not timely paid (a one-time charge) on each occurrence.

Net Profit Returns:  15% of the amount not timely paid (this is a one-time charge) on each occurrence.

Underpayment of Estimates:  Find corresponding 2210 Form for specific tax year. Click here

Penalty for failure to file timely Except for estimate payments - Failure to file any withholding monthly, quarterly or W-3 form and any net profit tax return, will be charged a $25 charge for each month or fraction thereof that the return remains unfiled not to exceed $150 for each such failure.  This penalty was effective as of 1/1/2016.

TAX YEARS 2015 AND PRIOR:

INTEREST:  The rate of interest is 6% per annum (1/2% per month)will apply to all 2015 and prior tax returns and underpayment of estimate tax (Form 2210) even if filed after 1/1/2016.

PENALTY:  The penalty for not paying timely is 5% for each of the first 5 months and an additional 1-1/2% per month thereafter.  This is for withholding and net profit returns for 2015 and prior years regardless of when filed.

2210 PENALTY:  The penalty for not paying quarterly estimates is calculated at the rate of 1-1/2% per month from the estimate due date until paid or April 15th whichever is earlier.  This penalty will apply to 2015 and prior year returns even if filed after 1/1/2016.