is suing the state over a practice it says double taxes citizens. This practice primarily impacts low-income taxpayers who don鈥檛 have access to their W-2s, the end of year statement that shows your earnings.
When a taxpayer can鈥檛 provide the W-2 information, the state processes the tax return as if the taxpayer paid no state income tax. But the employer has already withheld the state income tax from paychecks. Then, the employee gets a bill for taxes most are unaware they鈥檝e already paid.
Attorney Dana Goldstein says this practice is a result of the state not properly crediting taxpayers鈥� accounts when employers pay the state income tax, which is required under state law.
鈥淪o, what they need to do is hire a data miner 鈥� or what we鈥檙e hoping they do is hire a data miner, which shouldn鈥檛 be too difficult in today鈥檚 computer world 鈥� to be compliant,鈥� she said.
Goldstein also hopes the lawsuit will result in the state notifying taxpayers of potential account balances and potential tax returns, which is also required under state law.
鈥淲hy don鈥檛 they tell them of the potential refund? Because they don鈥檛 keep accurate records. Because they don鈥檛 properly credit taxpayers accounts when the employer pays the state income tax to the state of Ohio,鈥� she said.
Goldstein thinks the lawsuit should result in new policies that properly credit taxpayers鈥� accounts.
