Tuscarawas County Auditor’s Office
New Business Guide
Errors in Filing Personal Property
The 20 Most Common Errors in Filing Personal Property Returns
Over the course of many years, the Auditor’s office has undertaken to find out what the most common errors or mistakes that businesses make in filing their annual personal property tax returns. The following is a summary of the 20 most common mistakes encountered.
- Taxpayer failed to file returns in duplicate.
- Taxpayer failed to sign one or both of the returns filed.
- Taxpayer incorrectly added amounts or failed to recalculate the forms to check accuracy.
These three errors may seem trivial but they are also the most common mistakes noted. Prior to filing your tax returns, take a moment to recheck the amounts, file two returns and sign both of them.
- Taxpayer failed to complete page 1 entirely.
- Corporate Taxpayer failed to provide corporate charter number.
Completing page 1 entirely provides all information necessary to properly complete the returns. It is very important to include a corporate charter number (for corporations, only) because corporate returns are tracked at the State level with these numbers.
- Taxpayer failed to file in the proper tax district.
- Taxpayer failed to file an initial, 90 day return.
If you are unsure of your tax district, please don’t guess. Contact our Personal Property Division and confirm the address with our office. Many taxpayers fail to file their initial 90 day returns, which only leads to penalties.
- Taxpayer failed to report twelve (12) monthly inventory values.
- Taxpayer mis-classified merchandising inventory as manufacturing inventory.
- Taxpayer failed to report supplies inventory.
- Manufacturing companies not reporting monthly, full costing inventory values.
Taxpayers should report 12 monthly inventory values. Manufacturers are required to include all inventor able costs in their monthly values. Businesses, such as bars & restaurants, must have inventory in order to operate-they should always have values on their returns.
- Certain businesses fail to report any inventory values at all.
- Taxpayer failed to file form 921-Ohio Balance Sheet.
- Taxpayer failed to disclose value differences from Form 921 & taxable values.
- Taxpayer failed to report assets held under lease.
Completely preparing Form 921 (often referred to as pages 3 & 4), both front and back, will eliminate these shortcomings. Of special importance is to disclose A cost value differences.
- Taxpayers classifying the cost of a sign as buildings or leasehold improvements.
- Residential real estate owners who have furnished dwellings not filing returns.
The Cost of an independently standing or hanging sign is taxable for personal property. Residential real estate owners who have refrigerators, stoves or window air conditioners are required to report such costs on a return annually.
- Taxpayer failed to properly transfers amounts from schedules 2 through 4 to pg. 1.
Make sure that values transferred to page 1 are rounded to the nearest ten dollar amount.
- Taxpayer failed to timely file a return.
Returns are due by April 30th. A no cost, no payment extension can be granted for 45 days (June 14/15) if a written extension request is received by April 30. Be sure to not miss the deadlines.
- Taxpayer didn’t file a return because they owed no tax.
Most taxpayers don’t owe after applying the $10,000 exemption amount. Taxpayers should still file a return because the State of Ohio reimburses the County for these amounts, and this is why it is imperative that all taxpayers file in order that we can collect all we can to help meet public needs.Certain taxpayers are exempt from the filing requirements noted above based upon the $10,000 exemption and the new form 920-ez.