Income/Franchise:
Ohio Department of Taxation Finalizes Rule on New Elective PTE-Level Tax
Final Amended Reg. section 5703-7-05, Ohio Dept. of Tax. (11/14/22). Pursuant to new law in Ohio that permits qualifying pass-through entities (PTEs) to make an annual election to pay an entity-level state income tax for taxable years beginning on or after January 1, 2022 [see S.B. 246 (2022) and previously issued Multistate Tax Alert for more details on this new tax], the Ohio Department of Taxation (Department) finalized an amended rule providing that for any taxable year, an electing PTE that receives an extension for filing its federal income tax return shall automatically receive an extension for filing its corresponding Ohio tax return “under this chapter to the same due date, provided that the federal extension due date is beyond the unextended due date for the corresponding Ohio return.” The amended rule becomes effective on November 24, 2022. Note that this amended rule does not appear to explicitly extend the date to make the pass-through entity-level state income tax election. Please contact us with any questions.
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