Effective: June 14, 2022
Latest Legislation: Senate Bill 246 - 134th General Assembly
(A) As used in this section:
(1) "Estimated taxes" means the amount that a qualifying entity or electing pass-through entity estimates to be the sum of its liability under sections 5733.41 and 5747.41 or section 5747.38 of the Revised Code for its current qualifying taxable year or taxable year, as applicable.
(2) "Tax liability" means the total of the taxes and withholding taxes due under sections 5733.41 and 5747.41 of the Revised Code or the tax due under section 5747.38 of the Revised Code for the applicable taxable year prior to applying any estimated tax payment or refund from another year.
(3) "Taxes paid" includes payments of estimated taxes made under division (C) of this section and tax refunds applied by the qualifying entity or electing pass-through entity in payment of estimated taxes.
(4) "Required installment" means a payment equal to twenty-five per cent of the lesser of the following:
(a) Ninety per cent of the tax liability for the qualifying taxable year;
(b) One hundred per cent of the tax liability shown on the return of a qualifying entity or an electing pass-through entity for the preceding taxable year.
Division (A)(4)(b) of this section applies only if the entity filed a return under section 5747.42 of the Revised Code for the preceding taxable year and if the preceding taxable year was a twelve-month taxable year.
(B) In addition to the return required to be filed pursuant to section 5747.42 of the Revised Code, each qualifying entity or electing pass-through entity that is subject to the tax imposed under section 5733.41 and to the withholding tax imposed by section 5747.41 of the Revised Code or that is subject to the tax imposed under section 5747.38 of the Revised Code shall file an estimated tax return and pay a portion of the entity's tax liability for its taxable year. The portion of those taxes required to be paid, and the last day prescribed for payment thereof, shall be as prescribed by divisions (B)(1), (2), (3), and (4) of this section:
(1) On or before the fifteenth day of the month following the last day of the first quarter of the entity's taxable year, twenty-two and one-half per cent of the entity's estimated tax liability for that taxable year;
(2) On or before the fifteenth day of the month following the last day of the second quarter of the entity's taxable year, forty-five per cent of the entity's estimated tax liability for that taxable year;
(3) On or before the fifteenth day of the month following the last day of the third quarter of the entity's taxable year, sixty-seven and one-half per cent of the entity's estimated tax liability for that taxable year;
(4) On or before the fifteenth day of the month following the last day of the fourth quarter of the entity's taxable year, ninety per cent of the entity's estimated tax liability for that taxable year.
Payments of estimated taxes shall be made payable to the treasurer of state.
(C) If a payment of estimated taxes is not paid in the full amount required under division (B) of this section, a penalty shall be added to the taxes charged for the qualifying taxable year or taxable year, as applicable, unless the underpayment is due to reasonable cause as described in division (D) of this section. The penalty shall accrue at the rate per annum prescribed by section 5703.47 of the Revised Code upon the amount of underpayment from the day the estimated payment was required to be made to the day the payment is made.
The amount of the underpayment upon which the penalty shall accrue shall be determined as follows:
(1) For the first payment of estimated taxes each year, the required installment less the amount of taxes paid by the date prescribed for that payment;
(2) For the second payment of estimated taxes each year, the required installment less the amount of taxes paid by the date prescribed for that payment;
(3) For the third payment of estimated taxes each year, the required installment less the amount of taxes paid by the date prescribed for that payment;
(4) For the fourth payment of estimated taxes each year, the required installment less the amount of taxes paid by the date prescribed for that payment.
For the purposes of this section, a payment of estimated taxes on or before any payment date shall be considered a payment of a previous underpayment only to the extent the payment of estimated taxes exceeds the amount of the payment presently required to be paid to avoid any penalty.
The penalty imposed under division (C) of this section is in lieu of any other interest charge or penalty imposed for failure to file a declaration of estimated tax report and make estimated payments as required by this section.
(D) An underpayment of estimated taxes determined under division (C) of this section is due to reasonable cause if any of the following apply:
(1) The amount of tax that was paid equals at least ninety per cent of the tax liability for the current taxable year, determined by annualizing the income received during that year up to the end of the month immediately preceding the month in which the payment is due;
(2) The amount of tax liability that was paid equals at least ninety per cent of the tax liability for the current taxable year;
(3) The amount of tax liability that was paid equals at least one hundred per cent of the tax liability shown on the return of the entity for the preceding taxable year, provided that the immediately preceding taxable year reflected a period of twelve months and the entity filed a return under section 5747.42 of the Revised Code for that year.
(E)(1) Divisions (B) and (C) of this section do not apply for a taxable year if either of the following applies to the entity:
(a) For the immediately preceding taxable year, the entity computes in good faith and in a reasonable manner that the sum of its adjusted qualifying amounts or its qualifying taxable income, as applicable, is ten thousand dollars or less.
(b) For the taxable year the entity computes in good faith and in a reasonable manner that the sum of its adjusted qualifying amounts or its qualifying taxable income, as applicable, is ten thousand dollars or less.
(2) Notwithstanding any other provision of Title LVII of the Revised Code to the contrary, the entity shall establish by a preponderance of the evidence that its computation of the adjusted qualifying amounts or qualifying taxable income, as applicable, for the immediately preceding taxable year and the taxable year was, in fact, made in good faith and in a reasonable manner.
(F) The tax commissioner may waive the requirement for filing a declaration of estimated taxes for any class of qualifying entities if the commissioner finds the waiver is reasonable and proper in view of administrative costs and other factors.
(G) Estimated taxes paid by a qualifying entity or an electing pass-through entity may be applied to satisfy the entity's tax liability under section 5733.41, 5747.38, or 5747.41 of the Revised Code. Nothing in this section authorizes such an entity to apply estimated taxes paid against more than one tax.
Last updated July 28, 2022 at 4:04 PM
Structure Ohio Revised Code
Section 5747.01 | Definitions.
Section 5747.011 | Gain or Loss Included in Trust's Ohio Taxable Income.
Section 5747.012 | Tax Treatment of Qualifying Investment Income From Pass-Through Entity.
Section 5747.013 | Calculating a Trust's Modified Ohio Taxable Income.
Section 5747.021 | School District Income Tax.
Section 5747.022 | Tax Credits for Exemptions.
Section 5747.024 | Military Pay Not Included in Adjusted Gross Income.
Section 5747.025 | Personal Exemptions.
Section 5747.026 | Extensions for Filing and Payment by Members Called to Active Duty.
Section 5747.03 | Distributing Income Tax Revenue.
Section 5747.031 | Separate Reporting of Business and Nonbusiness Income Tax Revenues.
Section 5747.04 | Attributing Tax Receipts to County.
Section 5747.05 | Tax Credits.
Section 5747.054 | Tax Credit Based on Federal Dependent Care Credit.
Section 5747.055 | Tax Credit for Retirement Income.
Section 5747.057 | Tax Credit for Career-Technical Education Program Employees.
Section 5747.058 | Tax Credits to Foster Job Creation or Retention.
Section 5747.06 | Employer's Duty to Withhold Tax.
Section 5747.061 | Withholding Tax From Wages of Nonresident Employees.
Section 5747.062 | Withholding Tax From State Lottery Winnings.
Section 5747.063 | Withholding From Casino and Sports Gaming Winnings.
Section 5747.064 | Withholding From Video Lottery and Sports Gaming Winnings.
Section 5747.07 | Employers to File Return and Pay Withholding.
Section 5747.071 | Withholding Tax From Retirement Benefits.
Section 5747.072 | Employers Remitting Taxes by Electronic Funds Transfer.
Section 5747.08 | Filing Income Tax Return.
Section 5747.082 | Use of Electronic Filing by Tax Preparers.
Section 5747.083 | Report or Payment of Use Tax on Personal Income Tax Return.
Section 5747.09 | Declaration of Estimated Taxes.
Section 5747.10 | Amended Returns.
Section 5747.11 | Refunds - Interest.
Section 5747.112 | Paying Refund of School District Income Taxes.
Section 5747.113 | Income Tax Refund Contribution System.
Section 5747.12 | Applying Refund to Satisfy Debt to State.
Section 5747.121 | Collecting Child Support From Refunds.
Section 5747.122 | Collecting Overpayments of Public Assistance From Refunds.
Section 5747.123 | Collecting Overpaid Child Support From Refunds.
Section 5747.13 | Liability of Employer for Failure to File Return or Collect or Remit Tax.
Section 5747.132 | Eliminating Interest or Penalty on Qualifying Refund Overpayment.
Section 5747.14 | Imposing Jeopardy Assessments.
Section 5747.15 | Failure to File or Remit Tax - Filing Frivolous, Dilatory or Fraudulent Claim.
Section 5747.16 | Secretary of State Agent for Service of Process on Nonresidents.
Section 5747.17 | Maintaining Records.
Section 5747.18 | Powers of Tax Commissioner.
Section 5747.19 | Filing Incomplete, False, and Fraudulent Returns.
Section 5747.20 | Allocating Nonbusiness Income or Deduction.
Section 5747.21 | Apportioning Business Income or Deduction.
Section 5747.22 | Apportioning and Allocating Income and Deductions of Pass-Through Entities.
Section 5747.221 | Items of Income and Deductions Not to Be Allocated or Apportioned to Ohio.
Section 5747.23 | Taxing Trust Income.
Section 5747.24 | Presumption of Domicile.
Section 5747.26 | Lead Abatement Tax Credit.
Section 5747.29 | Political Campaign Contribution Tax Credit.
Section 5747.30 | Exemption for Nonresident Pass-Through Entities as to Commercial Printing.
Section 5747.37 | Credit for Legally Adopted Minor Child.
Section 5747.38 | Pass-Through Entity Income Tax.
Section 5747.39 | Pass-Through Entity Owner Credit.
Section 5747.40 | Definitions Relating to Qualified Pass-Through Entities.
Section 5747.42 | Filing Annual Return.
Section 5747.43 | Filing Estimated Tax Return and Making Estimated Payments.
Section 5747.44 | Tax Payment by Electronic Funds Transfer.
Section 5747.46 | Library and Local Government Support Fund Definitions.
Section 5747.48 | Distribution of County Library and Local Government Support Fund.
Section 5747.49 | Prohibiting Later Performance of Duties.
Section 5747.501 | Estimating and Certifying Amount for Distribution Into Local Government Fund.
Section 5747.502 | Reports on Fines Resulting From Traffic Law Photo-Monitoring Devices.
Section 5747.503 | Payments to County Undivided Local Government Funds of Supplement for Townships.
Section 5747.51 | Allocating Local Government Fund to County Undivided Local Government Funds.
Section 5747.52 | Calculating Subdivision Share of Undivided Local Government Fund.
Section 5747.54 | Failure to Certify Percentage Share of the Undivided Local Government Fund.
Section 5747.55 | Appealing County Budget Commission Action.
Section 5747.60 | Delegating Investigation Powers of Tax Commissioner.
Section 5747.70 | Deductions for Contributions to College Savings Programs.
Section 5747.71 | Earned Income Tax Credit.
Section 5747.72 | Credit for Home Instruction Expenses.
Section 5747.73 | Credit for Donations to Scholarship Organizations.
Section 5747.75 | Credit for Dependents Who Attend Nonchartered Nonpublic School.
Section 5747.76 | Refundable Income Tax Credit for Owner of Rc 149.311 Certificate.
Section 5747.77 | Beginning Farmer Tax Credits.
Section 5747.78 | Deductions for Amounts Contributed to Able Savings Account.
Section 5747.79 | Deduction for Capital Gains From Sale of Business.
Section 5747.80 | Issuance of Tax Credits by Ohio Venture Capital Authority.
Section 5747.81 | Tax Credit for Holders of Small Business Investment Certificate.