Interest & Penalties

Interest, Penalties & Exceptions

Interest shall be imposed at the rate defined in the chart below, per annum, on all unpaid income tax, unpaid estimated income tax, and unpaid withholding tax. This imposition of interest shall be assessed per month. 

With respect to unpaid income tax and unpaid estimated income tax, a penalty equal to 15 percent (15%) of the amount not timely paid shall be imposed.

With respect to any unpaid withholding tax, a penalty equal to 50 percent (50%) of the amount not timely paid shall be imposed.

2023 Late Filing Penalties

With respect to returns other than estimated income tax returns, the City of Athens shall impose a penalty not exceeding $25.00 for each failure to timely file each return, regardless of the liability shown.  The City of Athens shall abate or refund the penalty assessed on a taxpayer's first failure to timely file a return after the taxpayer files that return.  This goes into effect for the 2023 income tax filing year.
 

Interest

By October 31 of each year, the interest rate that will apply to overdue municipal income taxes during the next calendar year will be posted herein, as required by Ohio Revised Code Section 718.27(F).

The interest rate is calculated by adding five percentage points to the federal short-term rate (rounded to the nearest whole number percent) that was in effect during July of the current year, in accordance with Ohio Revised Code Section 718.27(A)(5).

Based on these requirements, the applicable interest rate is as follows:

2022 through 2017 Late Filing Penalties

With respect to returns other than estimated income tax returns, the City of Athens shall impose a penalty of $25.00 per month, regardless of the liability shown. The penalty shall not exceed a total of $150.00 plus interest for each failure to timely file a return. If a return on extension is filed after the October 15th due date, the penalty is calculated back to the original due date of the return.

2016 Late Filling Penalties

 Individual and Business

• $25.00 per month not to exceed $150.00 per each failure to timely file.
• 15% penalty for a not timely filed payment.

Withholding

• $25.00 per month not to exceed $150.00 per each failure to timely file.
• 50% penalty for amounts not timely paid. This is a one-time charge per occurrence.

2015 and Prior Late Filing Penalties

• A penalty of $2 per day, not to exceed $50 per year; or one and one-half percent (1.5%) per month or fraction of a month, whichever is greater, is assessed for failure to pay taxes due.
• A penalty of $2 per day, not to exceed $50 per period or three percent (3%) per month or fraction of a month, whichever is greater, is assessed for failure to remit taxes withheld from employees (withholding tax).
• A penalty of $2 per day, not to exceed $50 per year is assessed for failure to file a required return, even if no tax is due. The penalty is assessed per year for every year the return has not been filed, until a return is filed.
• A penalty of $2 per day, not to exceed $50 per year, is assessed for failure to file a required declaration (estimate) of estimated, taxable income.

Exceptions

Interest and penalties will not be imposed on an additional tax assessment made by the Income Tax Department if the return and the tax were paid timely, filed in good faith, and with absence of fraud.

In addition, penalty and interest will not be imposed on an additional tax assessment resulting from a federal audit if the amended return is filed and the additional tax is paid within three months after the federal audit.