So, I get this form in the mail from the Ohio Department of Taxation... Form 7004... which states that I failed to file a school income tax return for my local school district for 2002. This letter explains that I have 20 days to respond or they will file an estimated assessment with the addition of a $500 penalty. The way that they determined that I had not filed my SD-100 return for the local school district was by matching my State Income Tax return filing address.
Well, I did not take up my new residence in the district in question until January of 2003. This is easy enough to handle as the form 7004 even instructs us to send a letter of explanation back to them that we did not live in the district until 2003.
But the more I pondered this issue, the more confused I became, so I called the Taxpayer Hotline. After about 90 minutes of trying to get past a busy signal, I got to the automated attendant, which immediately prompted me with information about how to remit my tax payement over the phone with a credit card.
Anxious bunch aren't they.
So I wade through the list of options, and get a chance to hear more information about the form 7004 itself. This was a general re-statement of the copy of the letter, with a very light, sugar coated explanation that I was somehow at fault for not filing the right forms.
I punch past and opt to talk to a live Tax agent. After a short 40 minute wait, I was greeted by a very nice voice that claimed her name was Ann. I explained to Ann that I had received this form 7004 letter in the mail and had some questions that the automated attendent didn't seem to cover.
She politely stated that she would do her best to assist me.
The first thing that I asked was, if the DeRolf IV decision by the State Supreme Court of Ohio left the school funding legislation in a de facto status of being unconstitutional; then, in all seriousness, how could the Ohio Department of Taxation send a letter like this claiming that they would assess you with a bill and a penalty if you didn't respond?
She stated that yes, school funding was declared unconstitutional by the Ohio Supreme Court, and it was up to the Ohio Legislature to fix it, but until they do, the Ohio Department of Taxation must follow the code that exists, up to and including taking people to court for non-payment of a tax that has been declared unconstitutional. Meaning, they pay legal fees, court costs, labor expenses, administrative costs, an such to file and pursue cases that they know they will lose because of the law being unconstitutional. Since most people continue to pay the taxes and even pass new school levy income taxes under the same unconstitutional law, nobody at the state legislature seems motivated to give the money back or change the law.
Then I asked Ann about their system itself. Particularly, the fact that they use the State Tax return filing address to identify any missing school district returns. If someone relocates from one district to another anytime between January 1 and April 14 of any year, though they spent the entire year at their prior address, their tax return for that year will likely be filed with their new address. This means, anyone who relocates inside the State of Ohio within the first 3 & 1/2 months of every year will likely receive the form 7004 notice letter and consume government resources to explain why they don't owe the tax for the new district.
Just how many households in Ohio do you think relocates annually in the timeframe between January 1 and April 14?
That's a lot of money spent of letters, postage, labor, long distance charges for their 888 hotline, etc...
ALL TO COLLECT A TAX THAT HAS BEEN DECLARED UNCONSTITUTIONAL BY THE OHIO SUPREME COURT
Needless to say, Ann was a bit taken aback by my statements, but... get this.... she agreed with me.
She agreed.
Thomas Jefferson must not only be flipping in his grave... the Department of the Interior is getting richter scale earthquake readings stemming from his epileptic convulsions.