ODT mails income tax billing notices for unreported income

Written on Jun 28, 2021

The Ohio Department of Taxation is mailing CP2000 income tax billing notices for tax years 2015, 2016, 2017 and 2018 to taxpayers who have not filed an amended Ohio Individual Income Tax Return after resolving a CP2000 audit with the IRS.

The IRS commonly refers to the CP2000 audit as the unreported income program and as such reflects a correction to a taxpayer’s U.S. Individual Income Tax Return Form 1040. The Ohio CP2000 billing notice provides (i) the type and amount of unreported income identified by the IRS, and (ii) the total amount of additional tax due and interest owed to ODT. This program is administered by ODT’s Compliance Division and is authorized under 6103(d) of the Internal Revenue Code.

To avoid an assessment and additional charges, taxpayers must respond to this billing notice immediately.

Taxpayers who agree with the total amount owed as calculated on ODT’s CP2000 billing notice do not need to file an amended return and can pay via any of the options on the notice or by visiting tax.ohio.gov/pay for electronic payment options.

Taxpayers who disagree with the amount of unreported income must obtain a Tax Account Transcript from the IRS. Once received, send a copy of the Tax Account Transcript along with a copy of the CP2000 billing notice electronically by visiting tax.ohio.gov/ONRS.

Failure to respond to this notice will result in the issuance of an assessment and further collection action that may subject taxpayers to the following interest and penalties as prescribed by Ohio laws:

  • The interest rate on any unpaid tax due is set annually. The rate is 3% for 2016, 4% for 2017-2018, 5% for 2019-2020, and 3% for 2021.

  • Late payment penalty is double the amount of interest due

An interactive notice or a tutorial explaining this billing notice is available at www.tax.ohio.gov. To access it, select Self-Help eLibrary and choose Notice 2001 – CP2000 Billing.