International Business Machines Corp. v. Zaino

Summary

The Ohio Supreme Court held that a taxpayer seeking a refund of franchise taxes paid with its return must file an application for refund under Ohio Revised Code 5733.12(B). A petition for reassessment under Ohio Revised Code 5733.11 cannot be used to obtain a refund exceeding amounts paid toward the deficiency assessment, and the decision affirming the denial of IBM's refund was affirmed.

Holdings

1. A petition for reassessment under Ohio Revised Code section 5733.11 is limited to the deficiency assessment and may refund only amounts paid toward that assessment; it cannot provide a refund of taxes paid with the original return. A refund of amounts paid with the return must be sought through an application for refund under Ohio Revised Code section 5733.12(B).
2. A taxpayer's failure to file the refund application required by Ohio Revised Code section 5733.12(B) is a failure to substantially comply with a specific procedural requirement, depriving the Tax Commissioner of jurisdiction to consider the refund claim.

Questions Presented

1. Whether a taxpayer seeking a refund of franchise taxes paid with its return may obtain the refund through a petition for reassessment under Ohio Revised Code section 5733.11, or must file an application for refund under Ohio Revised Code section 5733.12(B).
2. Whether IBM substantially complied with the refund-application requirement by requesting a refund in correspondence during the reassessment proceeding.

Disposition

affirmed