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2022 GENERAL INFORMATION - VANDALIA
1. WHO MUST FILE 7. AMENDED RETURNS
All business entities having gross receipts, employees, assets, An amended return is necessary for any year in which an amended
performing services or in any other way conducting business within Federal return is filed or in which your Federal tax liability has
the City of Vandalia, whether or not any income was earned or any tax changed. An amended return must be filed within 90 days of the filing
is due, are required to file an annual return. date of any amended Federal return and must include a copy of the
amended Federal return.
All resident business entities, including corporations, S-corporations,
joint ventures, partnerships and other businesses are required to file an 8. CONSOLIDATED RETURNS
annual return on an entity basis. A taxpayer that is a member of an affiliated group of corporations may
elect to file a consolidated municipal income tax return if a
Non-resident business entities, including corporations, partnerships, consolidated federal income tax return was filed with respect to that
joint ventures, trusts and other businesses, that conduct business, taxable year. This election is binding for a five-year period unless the
perform services, have a location or have income (or losses) in tax administrator approves a request to discontinue filing consolidated
Vandalia are required to file on an entity basis. returns. A taxpayer shall prepare the consolidated municipal income
tax return in the same manner as is required for preparation of the
2. DUE DATE consolidated federal income tax return, which is required to be filed by
Returns are due by April 15th following the close of the calendar year, the common parent of the affiliated group of which the taxpayer is a
or within 3½ months of the end of the year for those businesses on a member.
fiscal year basis. The due date may vary slightly depending on
weekends and/or federal holidays. 9. DECLARATION OF ESTIMATED TAX
Every taxpayer who anticipates having income tax due of $200.00 or
3. EXTENSIONS more must file an annual declaration of estimated tax. At least 90% of
Extensions may be granted on an automatic basis if an automatic six- the current year tax liability or 100% of the previous year liability must
month extension was requested for filing the federal income tax return. be paid by January 15 thfollowing the taxable year for calendar year
A copy of the federal extension must accompany the municipal income filers. In the case of any underpayment of any portion of a tax liability,
tax return when filed by the extended due date. An extension of the penalty and interest may be imposed on the amount of the
time to file does not extend the time to pay the tax. Penalty and interest underpayment. Quarterly statements are available on our website:
charges may be imposed on any tax remaining unpaid after the original www.vandaliaohio.org.
due date. Additionally, there is no provision for extending the current
year first quarter estimated payment. Extension request forms may be 10. NET OPERATING LOSSES
obtained from the Tax Office or our website: www.vandaliaohio.org. For taxable years beginning in 2018, a business may deduct any net
operating loss incurred in a taxable year beginning on or after January
4. SUPPORTING DOCUMENTS 1, 2017. The amount of such net operating loss shall be deducted from
Documentation is necessary to verify all amounts of taxable or non- the net profit to the extent necessary to reduce taxable income to zero,
taxable income, expenses, deductions and credits. with any remaining unused portion of the net operating loss carried
forward for five consecutive taxable years or until fully utilized. As
The following documents are required to be submitted with the part of a phase-in plan by the State of Ohio, for tax years 2018-2022,
business municipal income tax return: Internal Revenue Service Form a business may not deduct more than 50% of the amount of the allowed
1065, Form 1120, Form 1120S, Form 1120F, Form 1120-REIT or deduction. For tax year 2022, the allowable deduction is the lesser of
Form 1041. Other documentation, such as any supporting schedules 50% of the 2022 pre-apportioned taxable gain (if a prior year loss is
and statements, may be necessary as well. available) or 50% of the pre-apportioned accumulated prior year loss
carryforward. (ORC 718.01(D)(3)(c)(i))
Those taxpayers claiming deductions for commissions paid, contract
labor and the like must provide a schedule showing a breakdown of 11. LATE FILING FEE, PENALTIES AND INTEREST
amounts paid, how much of said work was in each locality, names to When returns are filed after the due date by business entities required
whom paid with addresses and social security numbers or federal to file an annual Vandalia return, a late filing fee of $25.00 per month
identification numbers. Copies of Form 1099-MISC may be sent in ($150.00 maximum) is imposed without regard for the amount of tax
lieu of the schedule. due. Late filing fees may be imposed even though no tax may be due.
5. RENTALS Any Vandalia income tax remaining unpaid after the due date may be
Net rental earnings from all types of real estate or other property or subject to a penalty of 15% and interest of 0.58% per month (7%
equipment are taxable if located within Vandalia. An annual return is annually) for taxable year 2022.
required even though a loss may have been incurred.
12. VISA/MASTERCARD
6. STATUS CHANGES City taxes may be paid online with your credit card or by electronic
Taxpayers with name, address or other status changes or check. Please refer to the City of Vandalia’s website,
reorganizations must file those changes with the Income Tax Office www.vandaliaohio.org, to access the online payment center. Credit
within 30 days of the change. card payments are now accepted in person in the tax office as well.
