Business FAQs
- Can I deduct Charitable Contributions on my Net Profit Tax Return?
- I need to notify the Regional Income Tax Agency that my business is closed. How do I do this?
- How can I register with the Regional Income Tax Agency?
- How do I amend my payroll withholding tax return?
- How do I amend my Net Profit tax return?
- How is my business account identified with the Regional Income Tax Agency?
- How can I determine how much to withhold for my employee’s residences within the Regional Income Tax Agency’ s member cities?
- If I file a Federal Schedule C for a business, what Regional Income Tax Agency tax form should I file?
- How can I obtain an extension for filing business tax returns?
- Can I file a consolidated net profit tax return?
- I have employed a domestic worker; is it necessary to withhold city payroll tax?
- I need help determining the city in which my business is located. Whom do I call?
- Is it necessary to withhold on employees under 18 years of age?
- Is it possible to incur an assessment of penalty and interest?
- My company receives flow through income from another business entity. How do I indicate this on my tax return? (Form 27)
- Can I deduct Charitable Contributions on my Net Profit Tax Return?
Charitable contributions may be deducted to the same extent allowed federally as if the business were filing as a C corporation.
- I need to notify the Regional Income Tax Agency that my business is closed. How do I do this?
In writing, indicate the following information:
- The date your company went out of business
- Your company’s Employers Identification Number ( EIN )
- Your Signature and printed name and title.Mail your letter to the following address:
Regional Income Tax Agency
P.O. Box 477900
Broadview Hts, OH 44147
ATTN: Business Department - How can I register with the Regional Income Tax Agency?
Request or obtain the Business Registration Form 48.
Fill out the sections that apply to your company.
If you have already filed a Registration Form 48, and have a new physical location within a Regional Income Tax Agency member municipality, you must fill out a new Form 48, for the new location\worksite.
- How do I amend my payroll withholding tax return?
To amend your city payroll withholding account, you must use the Form 11-A. If you normally file monthly you can only amended your payroll account by filing corrected Form 11-A’s for each month an error occurred. If you file quarterly Form 11’s, then file a Form 11-A for the quarter you wish to correct. A FORM 11-A MUST BE FILED FOR EACH PERIOD THAT IS BEING AMENDED.
Generally, amended returns cannot be filed after three (3) years from the original filing date.
- How do I amend my Net Profit tax return?
To amend a net profit tax return, at the top of a net profit tax return write the word "AMENDED".
An amended return must be filed in order to report additional income and pay any additional tax due or claim a refund of tax overpaid.
A taxpayer may not change the method of accounting or apportionment of the net profits after the due date for filing the original return.
Generally, amended returns cannot be filed after three (3) years from the original filing date.
- How is my business account identified with the Regional Income Tax Agency?
The Regional Income Tax Agency uses your Federal Identification Number to identify your account information. On a billing statement, it is also referred to as an account number.
- How can I determine how much to withhold for my employee’s residences within the Regional Income Tax Agency’ s member cities?
Compare workplace tax rate to the credit limit of the taxpayer’s resident city. If the workplace tax is greater than or equal to the credit limit, use the credit limit percentage. If workplace tax rate is lower, use the lower rate.
Multiply the rate from the prior step above by the tax credit of the resident city.
Subtract the amount from the prior step above from the tax rate of the resident city.
The remaining value is the percentage of the individual's gross wage to be withheld for their residence.
- If I file a Federal Schedule C for a business, what Regional Income Tax Agency tax form should I file?
Please refer to the Individual Tax Return Form 37. Schedule J.
- How can I obtain an extension for filing business tax returns?
To apply for an application for extension of time to file a net profit tax return, file the application for extension.
If you have been granted an extension from the Internal Revenue Service, make sure you include a COPY of said extension.
Your extension requests must be made on or before the date for filing the tax return.
If you make an additional payment with your extension, the payment must be allocated to a Regional Income Tax Agency city or cities.
NO PAYROLL EXTENSION REQUESTS WILL BE GRANTED.
- Can I file a consolidated net profit tax return?
Consolidated tax returns may be filed by a group of corporations who are affiliated through stock ownership and who join in the filing of a federal consolidated income tax return. A consolidated return must include all subsidiaries.
- I have employed a domestic worker; is it necessary to withhold city payroll tax?
Local Ordinance indicates "No person shall be required to withhold the tax on the wages or other compensation paid domestic servants employed exclusively in or about such person’s residence, but such employee shall be subject to filing a tax return for the workplace city."
- I need help determining the city in which my business is located. Whom do I call?
The Regional Income Tax Agency can help you in determining what city to withhold, by calling the business department. Please have the street number and name handy.
- Is it necessary to withhold on employees under 18 years of age?
As a general rule, most Regional Income Tax Agency cities do not require tax to be withheld on employees under age 18. Several cities have variations to this rule. Refer to the special instructions for filing the Employers Municipal Tax Withholding Statement (Form 11).
- Is it possible to incur an assessment of penalty and interest?
Yes, the following offenses will result in the assessment of penalty and interest.
- Failure to pay taxes due
- Failure to remit taxes withheld from employees
- For underpaying estimated taxes there is a charge when the sum of the amount of estimated payments, (per individual city) total less than 80% of the amount of tax due (for Riverside, 70%) for the year as shown by the annual return. Or the estimated payment of tax is not equal to or greater than the tax liability of the previous tax year. - My company receives flow through income from another business entity. How do I indicate this on my tax return? (Form 27)
Pass-through income and losses your company receives are backed out of your company's municipal taxable income on the "other" line of Schedule X of Form 27. Indicate the dollar amount of the pass-through income and the Federal Identification Number of the pass-through entity on Schedule X.
Do not include or take credit for any municipal tax paid by the pass-through entitiy.