ZHF and ODT to Present New PTE SALT Cap Form IT 4738 at OSCPA Webinar
The Ohio Society of CPAs is offering a CPE webinar on Thursday, March 9 at noon to cover the new IT 4738 Form. ZHF members Tom Zaino and Steve Hall will be joined by Matt Dodovich, an attorney supervisor in the Tax Appeals Division at the Ohio Department of Taxation, for the 50-minute presentation.
The Ohio Department of Taxation on Jan. 20 released a third round of guidance for pass-through entities (PTEs) who “elect” to be subject to a new entity-level tax in response to the federal $10,000 SALT deduction cap limit placed on individuals.
The ODT created the new Form IT 4738 after the enactment of OSCPA-supported Senate Bill 246, also known as Ohio’s version of the SALT cap deduction parity/workaround. The guidance includes a final version of the new IT 4738 form and instructions, a new payment coupon, and an additional 13 FAQs bringing the total to 33 FAQs. All of the prior guidance also can be found by clicking here.
S.B. 246 authorizes PTE owners to claim a refundable credit against the owner’s Ohio income tax liability equal to the owner’s proportionate share of the tax paid by the PTE. IRS Notice 2020-75 permitted states to enact legislation to clarify that taxes paid by a PTE do not count towards an owner’s $10,000 SALT deduction cap limitation for federal income tax purposes. Twenty-nine states have addressed this issue, and three states have introduced bills. See the map of states with pending or enacted legislation.
The CPE webinar is a great opportunity for tax practitioners to learn more about the new IT 4738 Form. If you have any questions about Ohio’s SALT cap workaround, please reach out to any ZHF professional. If you’re interested in attending OSCPA’s webinar, you can register here.