Village of Greenwich, Taxation Department
Income Tax Penalty and Interest
As required by Ohio Revised Code effective 1/1/2016 for tax years 2016 and greater, the Village of Greenwich is releasing the mandated interest and penalty charges.
Per the Ohio Revised Code, 718.27 operative 1/1/2016:
“Federal short-term rate” means the rate of the average market yield on outstanding marketable obligations to the United States with remaining periods of maturity of three years or less, as determined under section 1274 of the Internal Revenue Code for July of the current year.
“Interest rate as described in division (A) of this section” means the federal short-term rate, rounded to the nearest whole number per cent, plus five per cent. The rate shall apply for the calendar year next following July of the year in which the federal short-term rate is determined in accordance with division (A)(4) of this section.
With respect to unpaid income tax and unpaid estimated income tax, a penalty equal to fifteen percent of the amount not timely paid shall be imposed.
With respect to any unpaid withholding tax, a penalty equal to fifty percent of the amount not timely paid shall be imposed.
The Federal Short-Term Rate is available on the following webpage: http://apps.irs.gov/app/picklist/list/federalRates.html
The Federal Short Term Rate for July 2020, is 0.18%. This would make the interest rate for 2021 five percent (5%) per annum or one half of one percent (.42%) per month.
Due Date is July 15, 2020
Federal 1040 must be attached to your return
All forms must have a signature (joint filing as well)
Penalties may be imposed on a Municipal Income Tax Return, not filed timely, of twenty-five dollars ($25.00) EACH Month of any fraction, during which the return remains unfiled regardless of the liability. The penalty shall not exceed $150.00 for each return not timely filed.
The interest rate of 7% per annual (0.583 monthly) will be in effect for withholding tax for tax year 2020 not paid by the due date.