Yesterday, the Ohio Supreme Court directed the Ohio Treasurer and Tax Commissioner to respond to a lawsuit that would require the state of Ohio to state to start keeping records on how much state income tax has been withheld from each taxpayer.
The lawsuit was filed by Akron-based Community Legal Aid Services in August 2021, on behalf of James Palm and Sara Pearson, two Northeast Ohio taxpayers that were unable to provide W-2 information on their state tax returns. They were able to determine how much federal income tax was withheld by contacting the IRS, but were told by the Ohio Department of Taxation the state did not keep that information for state withholding. The state instructed the taxpayers to put a zero amount for withholding on their tax filing — even when their employers did withhold tax. The lawsuit claims that this policy results in the double taxation of thousands of taxpayers without W-2 forms.
Dana Goldstein , a lawyer with Community Legal Aid that, said that she suspects that for years, the state of Ohio has been “double taxing” Palm, Pearson, and likely thousands of others in similar situations. The state’s policy particularly hurts poorer Ohioans, as they are less likely to get W-2s every year.
“It’s a systemic problem that’s not being addressed,” Goldstein said in a statement. “It’s a problem that creates a double collection of taxes and it primarily falls on the shoulders of those least able to pay the tax.”
Stay tuned to our blog for updates on this important case.
The Willi Law Office, LLC has been providing personalized legal services to individuals and businesses in Westerville and Central Ohio for over 20 years.