Income Tax Department

Penalty and Interest Rates

480 Park Avenue, Upper Level
Amherst, Ohio 44001

ph (440) 988-4212
fax (440) 988-3749
Email

Regular Office Hours

8:00 am to 4:00 pm - Monday thru Friday (closed on gov’t hoildays)

Income Tax Due Date Has Been Extended to July 15, 2020

Governor Mike Dewine signed a bill that gave the Tax Commissioner of the State of Ohio the ability to make changes to the State tax law. Municipalities such as Amherst will follow any new guidelines as outlined in the Ohio Revised Code.

Income Tax Office Update

Due to current public health concerns surrounding COVID-19, the Income Tax office will not be open to the public.

Completed returns, tax documents, payments and extension requests may be dropped off in the new drop off slot located in the north window on the front of the San Spring building, located at 480 Park Ave. Staff will be available Monday through Friday, 8:00 am to 4:00 pm to answer questions by phone at 440-988-4212.

Tax Preparation Services Available

Even though we are unable to prepare tax returns face-to-face, we will prepare returns from documents that are mailed in or placed in the drop off slot.  Taxpayers can drop off their tax information 24 hours a day. Your information will be stored in a secure area until it can be retrieved by office personnel.

Your return will be prepared by our staff based on the information you provide. Along with a copy of the first page of your IRS 1040 form, it will be necessary to include a copy of each W2 form, any IRS forms showing income or loss such as Schedule C, E, or F and 1099s showing miscellaneous income not being reported on an IRS Schedule C. Please include your phone number in case we need to reach you for further information.  Your tax return will be prepared and mailed to you for signature and payment.

Penalty and Interest Rates

UNPAID MUNICIPAL INCOME TAX – INTEREST

Ohio Revised Code 718.27 requires that the Tax Administrator must publish the established interest rate for tax underpayments based on the federal short-term rate that will apply during the next calendar year.

Interest shall be imposed per year on all unpaid income tax and unpaid withholding tax.

The interest rate used shall be the federal short-term rate (rounded to the nearest whole number percent) plus five percent (5%).

The rate shall apply for the calendar year next, following July of the year in which the federal short-term rate is determined.

Calendar Year Monthly Interest Rate Yearly Interest Rate
2015 and prior  1.5% 18.00%
2016 .42% 5.00%
2017 and 2018 .50% 6.00%
2019 and 2020 .583% 7.00%

UNPAID MUNICIPAL INCOME TAX – PENALTY

A late paying penalty of fifteen (15%) on any tax balance for the tax years 2016 and forward will be charged. The City of Amherst will impose this penalty on June 1 of each year beginning with tax year 2016 on any tax balance that is due on the April IRS due date and not paid in full by May 31. FYE filers will have a 45 day grace period from the IRS due date.

Note: Interest and late paying penalty applies to any balance of tax due that is not paid by the due date of a return, even if the return is filed under extension. An estimated payment in the amount of 90% of the expected liability must be paid in full by the original due date or the 15% late paying penalty will be imposed on those returns under Federal extension.

A penalty may be imposed on unpaid withholding tax equal to fifty percent (50%) of the amount not timely paid.

FAILURE TO FILE TIMELY – PENALTY

A penalty may be imposed on a municipal income tax return not timely filed of $25.00 each month or any fraction thereof, during which the return remains unfiled regardless of the liability. The penalty shall not exceed $150.00 for each return not timely filed.

OTHER PENALTIES

In addition to the penalties above, the Ohio Revised Code Section 718.99 also provides criminal penalties for failure to comply with the income tax ordinance of up to one thousand dollars and/or imprisonment for a term of up to six months for each offense.

APPLICATION OF PAYMENTS

All payments received by the tax office will be applied in the order in which the balance became due. The payments will be applied in the following order: tax balance, late filing penalty, late paying penalty and interest.

CHARGE FOR DISHONORED REMITTANCE

There will be a $25.00 charge to anyone who provides a remittance that is subsequently dishonored by the bank upon which it is
drawn.