Are you a private equity company or are you owned by a private equity company? How are you currently handling the Ohio Commercial Activity Tax ("CAT") filing requirements?
Private equity companies are currently the target of Ohio Commercial Activity audits. It has come to our attention that auditors in Ohio have been charged with auditing a minimum of one private equity company a year until all private equity companies have been audited.
Don’t be caught unaware of your Commercial Activity Tax filing requirements. Companies subject to Ohio CAT that have 50% or more common ownership are required to file the CAT on a combined or elected consolidated basis.
As a result of this requirement there is only one $1,000,000 exclusion allowed for the entire group.
Is there a way to still file on a separate company basis? The answer is yes but there are steps that need to be done to make sure the companies are properly registered with the state for CAT purposes and the proper elections have been made.
Who in the group is entitled to the $1,000,000 exclusion? This is determined by the common owner.
If you are not sure that your group is filing correctly or if you have questions about how to properly set up your CAT accounts, don’t delay in contacting Amy J. Gibson, CPA, from Skoda Minotti’s State and Local Tax Group at firstname.lastname@example.org or at 440-449-6800.