Report: Ohio failed to return tax overpayments

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COLUMBUS, Ohio (AP) — Ohio wrongfully failed to returnmore than $30 million in business tax
refunds to companies that properlyrequested the money, the state watchdog said in a report
releasedThursday.The Ohio Inspector General found that $34 million inrequested refunds dating back several
years were placed on pendingstatus and therefore not paid out, according to the report, which saidthe
practice violates Ohio tax law and dates to at least 1999."Foryears, the Ohio Department of Taxation
has ignored the fact that theyare holding taxpayer money that doesn’t belong to the state,"
InspectorGeneral Randy Meyer said in a statement.A message was left with the Taxation Department seeking
comment.Themajority of money involved the corporate franchise tax, a formerbusiness tax that has now largely
been replaced by Ohio’s commercialactivities tax. It also included sales and uses taxes and
employers’withholding taxes.The money represents a fraction of the $28 billion in tax revenue Ohio is
expected to collect this year.Thursday’s report also said the practice of the Department of Taxation was not
to inform taxpayers of any overpayments.Lastyear, as the investigation was underway, the agency said it
would beginalerting businesses when they’ve unknowingly overpaid taxes and helpthem reclaim their money.At
the time of the announcement inDecember, Gov. John Kasich and tax commissioner Joe Testa said the statewould
begin notifying about 3,500 taxpayers who may have overpaid by atotal of up to $13.7 million.Copyright 2013
The Associated Press. All rightsreserved. This material may not be published, broadcast, rewritten
orredistributed.

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