Legal Question in Tax Law in Ohio

Re: What does

"Out of statute" was the taxing agency's employee's way of saying "beyond the statue of limitations." Generally, unless the matter which is the subject of the tax has been concealed with the intent to unlawfully evade the tax, taxing agencies only have a set number of years to go back and try to assess and collect taxes owed.

Your complaint that you've received refunds from the same agency for several subsequent years has no merit; however, if you don't pay this assessment (and it sounds like it's already an assessment; perhaps what they're calling it is a term of art unique to that agency)don't expect a refund next year. They'll offset your refund in the amount of what you owe.

Finally, do not think that if you wait "for 20 years" or any length of time the matter will become uncollectable by law; all that will happen is that interest (and perhaps penalties) will continue to accrue and you'll need more than a free legal bulletin board to help you.

Contact the agency, request copies of the return and other documentation that support the assessment, check the calculations (of tax, interest and penalties). If they've figured it wrong tell them about it and request an amended assessment. If they've figured it right, explain why you didn't pay it before and offer a compromised amount. Be careful, though. There's a definite and probably short time you have to take exception to an assessment. If you blow the appeal time, even if they've figured it wrong, you'll owe it. Consult a local tax attorney if you have other, more detailed questions and good luck.