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Voluntary Disclosure of Employer Withholding Tax Liabilities

The Department does not accept anonymous letters requesting to file as part of the Employer & School District Withholding Tax Voluntary Disclosure programs. Please see the following instructions for participation.

 

The Ohio Department of Taxation is committed to promoting tax compliance. The Department administers the Voluntary Disclosure program to assist employers with tax compliance. In exchange for voluntarily disclosing unpaid tax liabilities to the Department, the employer may receive substantially more favorable terms than if discovered to be noncompliant by the Department.

 

To be eligible for the voluntary disclosure program, the employer must meet the following criteria:

  • The employer has not previously been contacted by the Department regarding possible outstanding employer withholding and/or school district withholding tax liability.
  • The employer does not have any outstanding bills or assessments relating to Ohio employer withholding and/or school district withholding tax liabilities (including for interest or penalties).
  • The employer will disclose all Ohio employer withholding tax that it has collected and not remitted.
  • The employer is not, to the best of the employer’s knowledge, under investigation by the Criminal Investigations Division and/or Audit Division of the Department; AND
  • The employer has not previously filed employer withholding and/or school district withholding tax return(s) for any year during the disclosure period (2017-2020).

Employers who wish to utilize the voluntary disclosure program must submit the following items:

  • One (1) signed copy of the Voluntary Disclosure Agreement (VDA).
  • Employer will disclose to the Commissioner all Ohio employer withholding tax during the disclosure period by filing all annual employer withholding returns (IT 941 and/or SD 141), required to be filed, for each year within the disclosure period (2017-2020).
  • Employer will also disclose all Ohio employer withholding tax that it has collected and not remitted by filing all annual employer withholding returns required to be filed, regardless of whether such amounts were collected before or during the disclosure period (2017-2020).
  • Employer will make a voluntary payment to the State of Ohio of all individual income tax withholding due during the disclosure period, as well as any individual income tax withholding Employer has collected and not remitted regardless of whether such amounts were collected before or during the disclosure period (2017-2020).
  • As applicable, Employer will also make a separate, voluntary payment of all school district income tax withholding due for the disclosure period, as well as any school district income tax Employer has collected and not remitted regardless of whether such amounts were collected before or during the disclosure period (2017-2020).
  • Employer will make a voluntary payment to the State of Ohio of interest, which will be calculated on the total amount of Ohio employer withholding tax due. Employer acknowledges that the interest amount is due pursuant to R.C. 5747.07(F) and that the interest cannot be reduced or waived.
  • For any Ohio employer withholding tax collected and not remitted, Employer agrees to voluntarily pay a 10% penalty, calculated pursuant to R.C. 5747.15(A)(4)(a).
  • Employer agrees it will timely and electronically file and pay its Ohio employer withholding tax returns for all future tax periods, to the extent required by Ohio law.
     

Send these required items to the following address:

Ohio Department of Taxation

Employment Tax Division

Attn: Voluntary Disclosure Program, 3rd Floor

4485 Northland Ridge Blvd.

Columbus, Ohio 43229

 

Taxpayers who are not eligible for the voluntary disclosure program or who do not provide all of the required items will not be given the favorable protections offered in the VDA.

 

Please note:  Most other taxes administered by the Department (e.g. commercial activity, pass-through entity, sales, resort, use tax) offer a VDA program for taxpayers to come forward under more favorable terms than if discovered by the Department.  For additional information, please see those specific taxes by selecting "Business" across the top of our website then selecting "Voluntary Disclosure Program" under “Additional Business Resources” and then the tax type you wish to consider.

 

 

Voluntary Disclosure Agreement

 

 

 

 

 

 

 

Additional Resources

Additional Resources