Ohio Supreme Court mandates Ohio Tax Commissioner refund Congressman Jim Renacci $359,822  plus interest.

In an Ohio Supreme Court case argued by Tax Attorney, Steven A. Dimengo, Buckingham client and Congressman Jim Renacci won a six figure tax appeal stemming from amounts paid in 2008.


In its June 15 decision, the Ohio Supreme Court unanimously found that Mr. Renacci acted in good faith and had reasonable cause in delaying the payment of tax based on a reasonable interpretation of federal statutes. In addition, the Court found that the Ohio Tax Commissioner abused his discretion in refusing to refund a double-interest penalty.


The dispute stems from the tax year 2000, when the Ohio Department of Taxation claimed Mr. and Mrs. Renacci failed to report trust income from an S Corporation that was previously not subject to Ohio income tax, as recognized by the Department of Taxation. The Renaccis argued that trust income should have been tax-free and that they had reasonable cause to exclude it on their tax return since the Tax Commissioner only announced a new, prospective interpretation of the law that was not accompanied by a change in statutes or regulations.


“I am very happy Congressman Renacci was fully vindicated by a unanimous Ohio Supreme Court – all seven justices”, said Steven. A. Dimengo, Buckingham attorney who argued the case before the Ohio Supreme Court on behalf of the Renacci’s. He stated further: “The Supreme Court rightfully found the Renacci’s acted in good faith and with reasonable cause in delaying the payment of Ohio income tax until the Court rendered its decisions relevant to their tax liability.”


In addition to Mr. Dimengo, Buckingham Litigator, Matthew R. Duncan, assisted in presenting the case, also appearing with Mr. Dimengo at the Ohio Supreme Court. “We are very pleased with the outcome of this case for Mr. and Mrs. Renacci, as well the precedent it sets for limiting the discretion of the Tax Commissioner to arbitrarily change his or her mind on tax policy without having a corresponding change in the law,” Mr. Duncan said.


Read more about the Ohio Supreme Court decision here: http://www.supremecourt.ohio.gov/rod/docs/pdf/0/2016/2016-Ohio-3394.pdf