I owe Akron city taxes (sales, 2013, taxi)

[DawnBicker]

I just recently found out that I was supposed to file for the years 2010 and 2011. Why didn't I do it? Because when mom claimed me at the time, her tax preparer said I didn't have to file. Well, Akron requires me to file if I make more than $600. And both years my income was between $1000-1700. I'm going to file these two years (in addition to 2013) and try to pay what I owe. I just found these W-2 forms.

I owed and paid about $11 for 2012 because the town I worked in had a lower tax rate. So I would have owed $11 for 2011 and 2010 each. Does this mean I will owe thousands of dollars or will it be hundreds? Anything over 200 and I may need to make an installment plan. I just need some type of solution to this issue. I would have filed if I knew I had to, and consequently that tax preparer messed up my mom os bad that she owes $2000.

[Fletchman]

Ohio's municipal tax structure is ridiculous. They may charge you a penalty and interest, but it would not be very much in your situation.

[DawnBicker]

The penalty and interest is both 1% per month with a minimum penalty of 5%, and I don't know how to even calculate this.

[SquareBetterThanAll]

X * .12 will give you simple interest for a year. Its not compounded but gives you an idea.

Not sure the law on municipal taxes but IRS if it is past 3 years and not fraudulent they can't come after you.

My honest thought is if you are talking about nominal amounts of money they don't have the staff to ever bother with issues that small (unless you point it out). Or if it is $22 compounded over a couple years I mean that is under $100, just pay.

[SquareBetterThanAll]

Originally Posted by Fletchman

Ohio's municipal tax structure is ridiculous. They may charge you a penalty and interest, but it would not be very much in your situation.

? Its all off of your federal filing, it isn't complicated.

[DawnBicker]

Originally Posted by SquareBetterThanAll

X * .12 will give you simple interest for a year. Its not compounded but gives you an idea.

Not sure the law on municipal taxes but IRS if it is past 3 years and not fraudulent they can't come after you.

My honest thought is if you are talking about nominal amounts of money they don't have the staff to ever bother with issues that small (unless you point it out). Or if it is $22 compounded over a couple years I mean that is under $100, just pay.

If it's under $100, it's definitely doable.

[Fletchman]

Originally Posted by SquareBetterThanAll

? Its all off of your federal filing, it isn't complicated.

Complicated? No.

But in no other state in the nation can someone be taxed in two municipalities. Most states don't even have a municipal tax. Not the best way to encourage people to live in Ohio.

[jlawrence01]

Originally Posted by Fletchman

Complicated? No.

But in no other state in the nation can someone be taxed in two municipalities. Most states don't even have a municipal tax. Not the best way to encourage people to live in Ohio.

If you really like to fill out tax forms, work contract positions in multiple taxing jurisdictions in Ohio. One year, we had to complete no less than eight local income tax returns as the employers did not withhold.

[Cleveland_Collector]

Originally Posted by Fletchman

Complicated? No.

But in no other state in the nation can someone be taxed in two municipalities. Most states don't even have a municipal tax. Not the best way to encourage people to live in Ohio.

Most of those states just have higher state tax rates or charge sales taxes and fees where OH doesn't.

Filing regional tax is very simple.

[SquareBetterThanAll]

Not to say there isn't a variance between overall tax cost state-to-state, but it is rarely as stark as it looks on the surface. Taxes are packed on in all sorts of places - sales tax, even municipal utility costs or fuel tax. Having lived in other locations I can assure you no municipal tax or no income tax locations are not quite the deal they appear to be on the surface.