Important Notice
2023 Ohio Individual Income Tax Return Processing Issue
We want to bring your attention to a significant processing issue affecting some 2023 Ohio individual income tax returns . Our tax team has identified an emerging situation that may impact clients who received interest income reported on Form 1099-INT during 2023 .
What ' s Happening ?
The Ohio Department of Taxation ( ODT ) recently implemented a new tax processing system . Following a system enhancement , an error occurred where the system incorrectly interpreted interest income from Form 1099-INT as unreported Ohio income tax withholding . This resulted in automatic adjustment notices being sent to taxpayers starting in mid- September 2024 , leading to erroneous refunds and carryforward adjustments .
We ' re Here to Help
Our tax team is actively monitoring this situation and working directly with ODT to resolve these issues . We will continue to provide updates as new information becomes available . If you have any questions or concerns about your 2023 Ohio tax return or related notices , please don ' t hesitate to reach out to your Rea advisor .
ODT has since implemented a fix on October 10 , 2024 , to correct this system error . Starting the week of October 21 , ODT will begin issuing new adjustment notices to affected taxpayers requesting the return of additional refunds or adjustment of carryforward amounts .
How Do I Know if I ' m Affected ?
You may be impacted if you : Received Form 1099-INT for interest income in 2023 Received an adjustment notice from ODT between mid-September and early October 2024 Were issued an unexpected refund or carryforward adjustment
Important : In the cases we ' ve reviewed , the adjustment amount exactly matches the interest income reported on Form 1099-INT . What Should You Do ?
If you receive or have received a notice from ODT : 1 . Don ' t cash any refund checks until you ' ve verified their accuracy 2 . Contact your Rea advisor immediately for assistance in reviewing the notice 3 . Keep all documentation related to any notices and refunds received 4 . Watch for a follow-up notice from ODT ( expected to begin the week of October 21 , 2024 ) 5 . Compare the adjustment amount to any 1099-INT interest income you reported
8
Kaitlyn Robison , CPA , CFE
Principal , Practice Leader of Tax Rea & Associates kaitlyn . robison @ reacpa . com ( 216 ) 573-2330