Is it about time for your CAT Exam?
Because Ohio’s Commercial Activity Tax (CAT) is a relatively new and unique tax system, compliance can be difficult unless you deal with the CAT on a regular basis. Many tax professionals fall into the trap of using time-tested income tax or sales tax concepts, when the CAT rules have been created using their own standards. Many companies may be overcomplying or undercomplying and are just not aware of it. With the Ohio Department of Taxation’s (ODT) audit efforts the risk of audit is increasing every day.
What can a business do to make sure there are no surprises? ZHF’s CAT Exam is just what the doctor ordered.
Our Exam assists clients by examining their payments and filings to determine if they have potential exposures, identify potential refunds and suggest optimal filing positions to mitigate future exposure or overpayments. If your business (or one of your subsidiaries) has not filed a CAT return, our CAT Exam will help you (i) identify whether you meet Ohio’s far reaching nexus requirements and should be filing, and (ii) will quantify any potential CAT exposure. If any exposure exists, we can assist you with resolving that exposure through our Voluntary Disclosure services.
Why ZHF? Our professionals have extensive experience with the CAT, which included drafting the legislation, assisting with writing ODT’s information releases and rules, and creating ODT’s audit program and audit policies. Our professionals are also experienced with defending clients under audit, negotiating settlements with the ODT, and have appealed several CAT cases to the Ohio Board of Tax Appeals.