The Ohio Department of Taxation, Sales and Use Tax Division requires a surety bond for vendors who have failed to file monthly reports or pay taxes on time for two consecutive months or for three or more months within a 12-month period. By providing this bond, Jet Insurance Company is guaranteeing your compliance and assuring payment is available to the Department of Taxation if you default.
We know that getting a bond can be a nuisance, but our process is stress-free and can be completed within minutes.
It really depends on your credit, along with the bond limit. Those two factors help determine your bond cost, which with Jet, will only be a small percentage of the bond limit.
The minimum bond amount required by the Ohio Department of Taxation is $1,000. The Department will calculate your bond limit to be equal to your average tax liability over one year, based on a review of returns or other comparable information.
The Ohio Department of Taxation only requires this bond for vendors who have neglected to pay owed taxes or file monthly tax reports in accordance with the Ohio Revised Code Section 5739.12. The bond basically acts as a second chance to the vendor. The Department brings in a surety company (Jet) to guarantee restitution is available if the vendor, again, fails to comply with the regulations. The bond must be filed within 10 days of receiving the notice from the commissioner regarding the requirement.
Should the vendor fulfill obligations within the 12-month time frame that the bond is required, the vendor is then able to conduct business without holding a bond. If the vendor fails to operate according to the regulations, suspension of the license is on the line.
Simply provide the information asked for in our step-by-step application, including your social security number for the soft credit check (not to worry, your credit will not be affected). Once submitted, Jet conducts a quick review of the application and a quote will be emailed to you upon approval. At this time, you can input your payment information and purchase the bond directly through the emailed link. After purchase, you will receive an email with a copy of the bond and your receipt.
Yes; after we receive your payment we will proceed with filing the bond for you, free of charge. If you prefer to file the bond yourself, you can select that option when paying for the bond and send the bond to the following address:
State of Ohio Department of Taxation
Sales and Use Tax Division
PO Box 530
Columbus, OH 43216
The bond can be cancelled, but keep in mind that you are required to have this bond to keep your license active and show compliance with the Department of Taxation. If you are ending your license early and need to cancel the bond, you can email us at [email protected]. The Department does require that the bond stay active for 30 days upon them receiving the cancellation notice from Jet.
The bond is generally only needed for a 12-month period of the bond filing date, as long as you make payments and file reports for 12 consecutive months. Monthly sales tax returns are due to the Department of Taxation by the 23rd of the following month from the period filed. For example, the tax return for March 1st through March 31st is due April 23rd.
At the end of the 12 months, the Department of Taxation will release you and Jet from liability under the bond. As long as you continue to remit payments and file reports in a timely manner you will no longer need a bond.
The Ohio Revised Code Section 5739.30, along with the bond form, is clear that the Ohio Department of Taxation will utilize the bond for a vendor’s failure to file sales tax reports or returns. Follow these regulations and comply with Chapter 5739 of the Code to avoid any disciplinary action, including a bond claim. Jet recommends always working with the Department to correct any issues before the situation is made worse.
The Ohio Department of Taxation only requests a bond claim payout for one reason: you did not comply with the statutes. Because of this, Jet is almost immediately responsible for making the payment to the Department. However, because we are a direct surety company, we take the time to look into the details to ensure no payments are made for false claims. Valid claims will be paid from Jet to the Department of Taxations, for which you are liable to pay back. This is because the bond is an extension of credit and you are responsible for your wrongful actions. The bond is a second chance to prove to the Department that you are able to make payments in a timely manner, so if this chance is failed, you are unlikely to be able to proceed with your vendor license in the future.