5703-7-05 Income tax; extensions; penalties and interest.

(A) Except as otherwise expressly provided or clearly appearing from the context, any term in this rule has the same meaning as when used in a comparable context in Chapter 5747. of the Revised Code.

As used in this rule:

(1) "Annual return" means the annual return required by section 5747.08 of the Revised Code.

(2) "Unextended due date" means the date prescribed for filing the annual return without extension. For taxpayers whose return is based on a taxable year ending on the last day of December, section 5747.08 of the Revised Code prescribes a due date of the fifteenth day of April of the following year. For taxpayers whose taxable year is a fiscal year, rule 5703-7-01 of the Administrative Code prescribes a due date of the fifteenth day of the fourth month following the close of the fiscal year.

(3) "Tax" includes both the tax imposed by section 5747.02 of the Revised Code and any tax imposed under Chapter 5748. of the Revised Code and the interest penalty imposed by division (D) of section 5747.09 of the Revised Code.

(B)

(1) A taxpayer shall be granted an automatic six-month extension of time for filing the taxpayer's annual return if the taxpayer satisfies both of the following conditions by the unextended due date:

(a) The taxpayer has duly requested an automatic six-month extension of time for filing the taxpayer's federal income tax return;

(b) By the unextended due date for filing the return, the taxpayer has paid at least ninety per cent of the tax through withholding payments, estimated payments, and the crediting of overpayments from the immediately preceding taxable year. Such tax shall be reduced by all allowable credits described in section 5747.98 of the Revsied Code, all allowable credits provided by Chapter 5748. of the Revised Code, and all allowable grants.

(2) In addition to the automatic extension granted in paragraph (B)(1) of this rule, each taxpayer that has been granted an extension of time to file the taxpayer's federal income tax return by the Internal Revenue Service for reasons such as a calamitous act of nature shall have the same extension of time to file, and to make any elections with respect to, the taxpayer's related Ohio income tax return.

(C)

(1) A filing extension granted by paragraph (B)(1) of this rule is to the fifteenth day of the tenth month following the last day to the taxable year. For example, a taxpayer whose unextended due date is the fifteenth day of April is granted a filing extension to the fifteenth day of October;

(2) An extension under paragraph (B) of this rule does not extend the due date for purposes of imposing interest on any tax paid after the due date.

(D) A taxpayer granted a filing extension under paragraph (B) of this rule:

(1) Shall not be subject to the penalty imposed by division (A)(1) of section 5747.15 of the Revised Code for failure to file a timely return if either of the following applies:

(a) The taxpayer files his annual return by the extended due date set forth in paragraph (B) of this rule.

(b) The taxpayer files his annual return at a later date if the taxpayer has secured an approved federal extension to such later date.

(2) Shall not be subject to the penalty imposed under division (A)(2) of section 5747.15 of the Revised Code for failure to make timely payment of tax if both of the following apply:

(a) By the unextended due date, the taxpayer has paid at least ninety per cent of the taxes on the return through withholding payments, estimated payments, and the crediting of overpayments from an earlier tax year;

(b) By the extended due date set forth in paragraph (B) of this rule, or by a later date with an approved federal extension to such later date, the taxpayer has paid one hundred per cent of the tax.

(E) No interest penalty shall be charged under division (D) of section 5747.09 of the Revised Code for the period from the unextended due date until the date of payment. However, interest required under division (G) of section 5747.08 of the Revised Code shall apply to any underpayment of tax and shall run from the unextended due date until the date of payment.

(F) Nothing in this rule shall abate any penalty or interest imposed for failure to pay taxes in a timely manner if, subsequent to the filing of the taxpayer's return, the tax commissioner ascertains that the taxpayer owes taxes in addition to those shown to be due on the taxpayer's return or the taxpayer files an amended return showing additional taxes are due.

(G) This rule does not state the exclusive bases for abatement of penalty, but in all circumstances other than those described in this rule, the taxpayer shall have the burden of proving that the taxpayer's failure to file a return timely or to pay the tax timely resulted from a reasonable cause.

(H) Nothing in this rule precludes a member of the national guard or of a reserve component of the armed forces of the United States from qualifying for an extension under section 5747.026 of the Revised Code for the taxable year.

Effective: 12/28/2006
R.C. 119.032 review dates: Exempt
Promulgated Under: 5703.14
Statutory Authority: 5703.05 , 5747.08
Rule Amplifies: 5747.09 , 5747.15 , 5748.01
Prior Effective Dates: 12/20/71, 10/16/72, 7/20/73, 6/10/74, 6/13/75, 6/30/79, 11/15/81, 7/9/82, 3/19/93, 7/1/94, 9/19/96, 9/29/97, 9/16/98, 9/29/99, 9/6/02, 6/2/05, 6/30/05, 3/28/06 (Emer.), 6/30/06