There are few aspects of our daily lives that are not affected in some way by tax laws.
Whether this involves income tax, tax on the sale of personal and real property, gift tax, or estate taxes, our system of taxation has a far-reaching impact. We know how confusing and overwhelming the tax code can be. At Dagger Law, we pride ourselves on helping clients understand their options in terms that are clear and understandable. No matter how complex, or simple, your tax-related problem is we aim to get your issues resolved quickly and correctly.
** New Budget signed into effect affects Ohio taxes – 7/1/2021 **
Touted as Ohio’s “Year of Recovery!” by Governor Mike DeWine, Ohio’s 2022-23 Fiscal Year $75 billion nearly 1,000-page budget brings many changes, including numerous impacts for every Ohioan.
The Governor signed the 2022-23 budget after the official midnight beginning of the new state fiscal year.
This budget brings significant changes to the way the state assesses income tax to residents. First, the enacted legislation contains a 3% cut in income taxes and eliminates the top income tax bracket. This change reduces the number of tax brackets to four. It now makes Ohio’s state income tax the second-lowest out of all of our neighboring border states, only trailing Indiana. In addition, residents can now earn up to $25,000 before being subject to any state income tax, up from the previous $22,150 threshold. Additionally, these changes are retroactive to January 1st, 2021. There will be no usual adjustment of the income tax brackets for annual inflation for 2021.
Did you work from home during the COVID-19 pandemic but paid taxes to your usual work community?
In that case, you could qualify for a municipal tax refund. Ohioans can seek a refund of municipal income tax paid to a municipal taxing jurisdiction while working at home during 2021. The refund includes a full refund if you live and work in a non-taxing municipality or community during the COVID-19 pandemic. For people who work in higher local taxing jurisdictions (like the City of Columbus) but live in communities in and around Fairfield County, this provision will lead to a total refund of the difference paid.
Among other provisions in the budget, the General Assembly legalized electronic instant bingo has in Ohio at veterans and fraternal organizations.
Organizations that already offer regular bingo will be allowed to have up to 10 single-player terminals for eBingo. In addition, the budget appropriates $250 million to support the Ohio Residential Broadband Expansion Grant Program. The new budget gives the Ohio Broadband Expansion Program Authority to provide “last-mile connectivity” to Ohioans that private high-speed internet providers cannot service due to cost.
Lastly, plastic bags and disposable containers are off-limits from taxing for good.
In 2020, Gov. DeWine signed into law House Bill 242, a temporary, one-year ban on cities from taxing “auxiliary containers.” Items fitting this definition include bags, cans, cups, containers, kegs, bottles, or single-use packaging designed to consume or transport food. With DeWine’s signature, the budget makes this temporary ban permanent. Up 33, this provision will impact Bexley, who instituted a similar ban last year. Of all Ohio cities with a ban, Cincinnati is the largest and the most recent to enact such an ordinance. We predict that there will be future challenges to this ban. Some local leaders have already voiced their frustration on this infringement of “home rule.”
DeWine vetoed 14 proposed provisions in the budget.
Examples include the creation of a venue within the Court of Claims for Open Meetings Law violations. This provision would have allowed business owners who incurred health order fines during COVID-19 to receive a reimbursement for the penalties. DeWine also struck a provision to enable the House Speaker and Senate President to hire private attorneys for redistricting litigation. The Governor asserted that the vetos were in the best interest of Ohio.
If you are looking for guidance regarding the impact of these budget items, we are here to help.
A tax lawyer from Dagger Law can assist clients with effective planning strategies that minimize both individual and business income taxes, as well as estate or gift taxes.
Our experienced tax attorneys can also provide trusted legal advice to help guide you through the preparation of your personal tax returns and other business tax, compliance-oriented, matters. Additionally, the tax lawyers at Dagger Law provide legal representation, on behalf of their clients, in disputes involving the IRS and other federal, state, and local taxing authorities. We can help clients identify potential issues, assist businesses with meeting compliance standards in their tax filings, and provide representation during the negotiation of a settlement arrangement. We aim to minimize the impact that tax issues can have on your life.
R. Mark Bibler has experience as a Certified Public Accountant (currently inactive), and focuses his legal practice as Dagger Law’s primary tax lawyer. In this role he serves as a trusted resource on all tax matters handled by the firm, whether they are personal or corporate in nature. His past work experience includes employment in the tax department of one of the world’s largest accounting firms.
Our experienced tax lawyers can answer your questions about common taxation concerns, such as:
- What should I do if I receive a letter from the IRS or the Ohio Department of Taxation?
- Do trusts and estates have to file income tax returns, and when do they need to do so?
- How do I know if a proposed tax assessment is correct?
- Under what circumstances do I need to file a gift tax return?
- When does an estate file its tax return, and who is responsible to handle that?
- Will I owe estate taxes on the death of my spouse?
- Will I owe estate taxes on the death of my parent?
- Are there things we can do to minimize the tax liability of an estate in probate?
- How much of the estate will be needed to pay taxes?
- What are the tax effects when I sell a business, real estate, or other property?
- I am approaching retirement age – what will be the taxes owed on my retirement account distributions?
Q: Why would I need a tax attorney?
A: Many tax issues come from the audit of one or more tax returns. If you are notified that your tax returns will be audited, we recommend that you hire an experienced tax attorney right away. An attorney can ensure that proper communications and deadlines with the IRS are met, work side by side with you during the audit process, and help negotiate a settlement if it is necessary to do so. Additionally, a lawyer may be able to help you avoid a tax lien, which could damage your credit rating.
Q: What is a tax lien?
A: A tax lien gives the government a legal claim to your property in order to resolve an outstanding debt. While your property won’t be seized, it does mean that the lien entitles the taxation authority the first right over any creditors, which will impact the amount of money you get upon a sale, or may require settlement in order to sell or pass on the property.
Q: Can I go to jail for not filing my taxes?
A: You are far more likely to go to jail for the fraudulent filing of taxes, than failing to file or pay. That said, any situation can get out of control, and while the government tax authority ultimately wants what it is owed there can be stiff penalties for failing to file. If you are in a situation where you can’t afford to pay your tax debt, we recommend that you at least file and pay what you can. If things are more complex than this, it would be suggested that you contact a tax attorney for more specific guidance with navigating all of the tax laws and associated penalties you might be facing.
Q: Will a tax lawyer travel to me, or do I need to come to your offices in Lancaster or Canal Winchester?
A: While some meetings will need to occur in our offices, we try to minimize your travel time. We offer two convenient office locations in Lancaster and Canal Winchester, Ohio. Our goal is to reduce the disruption to your life caused by legal issues and conduct most communications or meetings through emails or phone calls. In certain circumstances, we realize that clients can’t reach us, and we may be required to visit your location. Suppose you retain a Dagger Law attorney to represent you. In that case, they will travel to the necessary court hearings and legal procedures to represent you anywhere in Ohio! Please note that in some instances, the cost to represent your case may require an unusual amount of money due to travel expenses. In such cases, we may recommend using legal representation closer to the location of your case. We are happy to provide referrals in these instances if we are able.
We proudly serve the following communities throughout Central and Southeastern Ohio:
- Fairfield County
- Franklin County
- Hocking County
- Licking County
- Pickaway County
- Baltimore, Ohio
- Buckeye Lake
- Canal Winchester
- Greater Columbus Ohio Area
- Lancaster, Ohio
- Newark, Ohio
- other locations nearby
Check out the nearest location to you by clicking on Our Locations Page.