State Tax Debt: Ohio

Ohio State Tax Debt: Department of Taxation Assessments, Attorney General Collections and the IRS Compared

By Ray Neu, Publisher | Last reviewed: October 26, 2026 | Reading time: 9 min

Short answer

In Ohio, the Department of Taxation assesses unpaid state income tax, and unpaid balances are certified to the Ohio Attorney General for collection (ORC 131.02). The Attorney General can add collection costs, including up to 11% under ORC 109.081, enforce a court judgment, take refunds and settle through its own offer program. Federal debt stays with the IRS.

This page is for individuals who owe Ohio income tax. School district income tax goes on its own return (SD 100) with a separate payment, and city income tax withholding is not reported on either state form. For the federal side, see back taxes.

Deadlines to know: A petition for reassessment is due within 60 days after the notice of assessment is served, or the assessment becomes final (ORC 5747.13(B)). A final determination can be appealed to the Board of Tax Appeals within 60 days after service (ORC 5717.02).

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From notice of assessment to the Attorney General

Assessment. The Tax Commissioner may assess a late, incorrect or underpaid return within four years of the later of its due date or filing date, with no time limit when no return was filed or it was fraudulent (ORC 5747.13).
Petition or finality. With no signed petition within 60 days after service, the assessment is final. A petition can produce a corrected assessment (with a new 60-day window), a cancellation, or a hearing and final determination (ORC 5703.60).
Certification. ORC 131.02 sends amounts unpaid 45 days after they are due to the Attorney General. The Attorney General’s tax FAQ describes a certified letter from the Department allowing 60 days from its date before the debt is turned over.
Attorney General notice. It lists the assessment number, the tax and the reason, and says the two offices may compromise or accept payment over time.

Interest. The 2025 IT 1040 instructions set the 2026 rate at 7%. ORC 5703.47 resets it each October 15: the federal short-term rate, rounded, plus 3%. After certification, the entire unpaid assessment bears interest from the certification date (ORC 5747.13(C)).

How the Attorney General enforces a certified Ohio tax debt

Collection costs

Under ORC 109.081, up to 11% of amounts collected is charged to the debtor as a collection cost, at a rate the Attorney General sets. Fees of special counsel under ORC 109.08 can be added on top. The Attorney General says it does not report debts to credit bureaus, though special counsel or a county clerk may report legal action.

Judgment and lien

A certified copy of the final assessment entry can be filed with the clerk of the court of common pleas in the taxpayer’s county (Franklin County for nonresidents). The clerk enters a judgment with “the same effect as other judgments” (ORC 5747.13(C)), and a filed certificate of judgment becomes a lien on land in that county (ORC 2329.02). A state judgment goes dormant unless an execution, certificate, garnishment or other listed step occurs within 10 years of the judgment or renewal, or 15 years of the last execution (ORC 2329.07).

Wage and bank garnishment

No official source reviewed describes an administrative wage levy for Ohio income tax; Ohio’s garnishment chapter for judgment creditors applies. A written demand must go out 15 to 45 days before a wage order is sought (ORC 2716.02). The greater of 75% of disposable earnings or, for weekly pay, 30 times the federal minimum hourly wage is exempt (ORC 2329.66). For bank funds, an order binds only amounts over $400; the debtor can ask for a hearing within five business days of notice (ORC 2716.13).

Refund offsets

Ohio refunds can be applied to certified debt (ORC 5747.12), and the Attorney General says federal refunds can be offset too. Its offset review, due within 21 calendar days of the offset notice, is only for people who had no earlier chance to appeal.

How long Ohio has to collect

The first collection action must start by the later of seven years after the assessment is issued or four years after it becomes final, extended by any stay or agreement (ORC 131.02(F)(3)). Filing the assessment entry with a clerk of courts counts as that first action, and once it is timely, later steps may continue “for as long as the debt exists.” An unsatisfied certified claim is canceled 40 years after certification. The IRS has 10 years from assessment under 26 U.S.C. § 6502; the CSED calculator covers that federal date only.

An Attorney General account and an IRS balance at once?

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Payment arrangements, offers and penalty relief

Paying over time. The Department “is not authorized to set up payment plans,” and partial payments do not halt billing or Attorney General collection (2025 IT 1040 instructions). The Attorney General and the Department may accept periodic payments and may require security (ORC 131.02(E)); no published limits or fees were found. A rejection cannot be appealed, and a default voids the agreement (ORC 5703.06). Compare IRS installment agreements.

Offer in compromise. The Attorney General considers offers of less than the tax principal for economic hardship, doubt as to liability or innocent spouse claims. Conditions include certification for at least a year, at least $500 of principal, no bankruptcy and no pending Board of Tax Appeals case. All returns must be filed, every state debt included, and any IRS offer from the past five years attached. Rejections are final. New collection pauses for 30 days, but offsets, liens and existing garnishments continue. Absent special circumstances, accepted offers are paid in a lump sum within 60 days, with five years of compliance after. Compare the IRS offer in compromise.

Penalties. ORC 5747.15 allows a late filing penalty of up to the greater of $50 a month (capped at $500) or 5% a month (capped at 50%), and a late payment penalty of up to twice the interest. The Tax Commissioner may abate penalties, including for reasonable cause and not willful neglect; interest keeps running while a request is pending. Compare penalty abatement.

Spouses. Joint filers are jointly and severally liable (ORC 5747.08(E)). Innocent spouse status is a compromise standard under ORC 5703.06, and a spouse granted federal relief under IRC 6015 for an income item is rebuttably presumed innocent for it. See innocent spouse relief.

Contesting an Ohio assessment

Petition for reassessment. Due to the Tax Commissioner within 60 days after service. Petitions tied to returns the Commissioner finds frivolous or fraudulent require payment of the assessed amount by that deadline (ORC 5747.13(E)).
Board of Tax Appeals. Notice of appeal within 60 days after service of the final determination (ORC 5717.02). Disputes of $10,000 or less, excluding interest and penalty, can use the small claims docket, whose decisions cannot be appealed (ORC 5703.021).
Courts. Appeal to the Supreme Court of Ohio or a court of appeals within 30 days after the Board’s journal entry (ORC 5717.04).
Refund claim. Within four years from the erroneous or excessive payment (ORC 5747.11).

Taxpayer rights. If the Department fails to substantially comply with ORC 5703.51, the resulting penalties and interest must be excused on an application filed within one year of when the taxpayer knew or should have known. Its problem resolution officers cannot take cases already certified to the Attorney General (ORC 5703.52).

Ohio and the IRS side by side

As of October 2026. Federal details: IRS wage garnishment, IRS bank levy, federal tax lien.

Topic	Ohio (individual income tax)	IRS
Who collects	Department of Taxation assesses; Attorney General’s Collections Enforcement Section collects certified debt	The IRS assesses and collects federal tax itself
Collection period	Start by the later of 7 years after issue or 4 years after finality, then while the debt exists; canceled 40 years after certification	10 years from assessment (CSED)
Wage garnishment share	Court order on the judgment; greater of 75% of disposable earnings or a minimum wage multiple is exempt	Pay above an exempt amount tied to the standard deduction and dependents (Publication 1494)
Bank levy	Court garnishment; binds funds over $400; hearing on request within five business days	Deposits surrendered 21 days after service (§ 6332(c))
Lien or judgment	Clerk enters a judgment; lien on land once a certificate is filed; dormancy rules in ORC 2329.07	Federal tax lien; released within 30 days of full payment
Payment plan	Not through the Department; Attorney General may accept periodic payments; published terms not stated	Long-term plan for $50,000 or less
Offer in compromise	Attorney General program; $500 principal minimum; lump sum within 60 days; no appeal	Lump sum or periodic; $205 fee
Appeals body	Board of Tax Appeals, then the Supreme Court of Ohio or a court of appeals	IRS Independent Office of Appeals

Federal changes. When the IRS changes a federal return in a way that affects Ohio, an amended IT 1040 is due within 90 days after the adjustment is final, even past the four-year window (ORC 5747.10).

Separate agreements. An Ohio compromise or payment agreement binds only its parties (ORC 5703.06(D)); no Ohio source reviewed treats an IRS plan or offer as covering state debt. On wages, an IRS levy can take priority over an Ohio garnishment order.

When an attorney matters

During an audit and its administrative review, ORC 5703.51(F) allows help from “an attorney, accountant, bookkeeper, or other tax practitioner,” and form TBOR 1 names a representative for Department matters. The statute adds that it does not let a nonlawyer practice law. Where that matters:

Attorney General settlements. The offer page warns that non-attorney negotiation for another “may be determined to constitute the unauthorized practice of law,” citing 2017-Ohio-9110.
Board of Tax Appeals. A non-attorney acting for a party may not make legal argument, and parties not appearing for themselves need an Ohio attorney, outside the small claims docket (OAC 5717-1-02, 5717-1-08).
Privilege. 26 U.S.C. § 7525 covers CPAs and enrolled agents only in noncriminal IRS matters and federal court.

See tax attorney vs. CPA vs. enrolled agent.

Related guides

Frequently Asked Questions

Who collects Ohio state tax debt?

The Ohio Department of Taxation issues the assessment. A balance left unpaid is certified to the Ohio Attorney General, whose Collections Enforcement Section collects it and may add collection costs, including up to 11% under ORC 109.081.

How long can Ohio collect a state income tax debt?

Collection must begin by the later of 7 years after the assessment is issued or 4 years after it becomes final. After a timely judgment filing, ORC 131.02 lets collection continue while the debt exists; unpaid certified claims are canceled 40 years after certification.

Can the Ohio Attorney General garnish wages for state income tax?

Ohio collects through a court judgment, and its garnishment law requires a written demand 15 to 45 days before an order is sought. The greater of 75% of disposable earnings or a set multiple of the federal minimum wage is exempt.

Does Ohio offer payment plans or settlements for state tax debt?

The Department of Taxation says it cannot set up payment plans. The Attorney General may accept periodic payments, and its offer in compromise program considers debt certified for at least a year with at least $500 of tax principal.

Review an Ohio tax debt with the federal picture

A free, confidential evaluation is a starting point for an Ohio assessment, an Attorney General account or an IRS balance.

Start Your Free Evaluation Call (202) 968-1121

About the Author

Ray Neu

Ray Neu is the publisher of IRSAttorneys.net. A former law enforcement officer with a background in criminal justice and digital publishing, he oversees editorial direction, partnership standards, and compliance review for the site. He is not an attorney and does not provide legal advice; all tax law content is sourced and reviewed against the standards documented on the Editorial Team & Standards page.

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Sources

IRS Circular 230 Disclosure: To ensure compliance with Treasury Department rules governing tax practice, any tax information contained on this website was not written and is not intended to be used, and cannot be used, for the purpose of avoiding any federal tax penalty. You should consult a licensed tax professional regarding your individual situation.

Results described on this website are not a guarantee, warranty, or prediction of the outcome of any tax matter. Every situation is different. Prior results do not guarantee a similar outcome. Article content reflects general information about federal and state tax procedure as of the last reviewed date and may not reflect subsequent changes in IRS or state tax agency policy, statutes, regulations, or case law.