What is the Ohio statute of limitations on bad debt?

Answer 1

The IRS rules are the same for anyplace in the US...Ohio being one of them.

Yes, their is something called the "Statute of Limitations" or SOL, where the time for assessment and collection of taxes are restricted. However many things effect how the period for assessment (generally 7 years, but different on several types of tax or circumstances) is determind. For example, it starts to run from the time a return is filed (and even then, really from the date it is due or extended to, if filed early). So if you didn't file what qualifies as a return, they remain assessable for forever the SOl never starts running). The way the time is counted has all types of things that must be considered...the sending of many notices "tolls" (meaning stops the clock from running) for periods. Assessment is different than collection. The amount (as a percentage) of the underpayment can change things yet again.

So, certainly it is a worthy aspect to follow...as while the IRS computers are decent about keeping track and generally know if the period is open, they have been wrong. (But understand, that letter they sent 3 years ago to your old but last known address, received or not, or that you forgot about, they didn't...and it tolled the SOL).

Obviously, even the way the objection or claim of Statute barred assessment is handled is important, and can lead to other problems. I recommend finding someone with the designation E.A. - which means "enrolled agent" to handle this for you. (Look under tax consultants in the phone book). They are not CPA, who have a more pure accounting view, but rather frequently ex IRS agents...have the right to represent you and are really very savy with the process and getting to a result in situations like this.

Answer 2

In Ohio, like every other state, it depends on how the debt is documented. Oral debts are usually the shortest. Written and Promissory Notes are the longest. Open Accounts such as credit cards vary. In Ohio oral debts and open accounts are 6 years and the rest are 15 years the longest anywhere.

Answer 3

Normally 6 years, but is 15 years on a written contract

• Ohio Collection Laws Interest Rate
  Legal: 10%
  Judgment: 10%
• Ohio Collection Laws Statute Of Limitations (Years)
  Open account: 4
  Sales Contract (UCC2-725)
  Written Contract: 15
  Domestic Judgment: 21 renew every 5
  Foreign Judgment: 21 renew every 5
• Ohio Collection Laws Bad Check Laws (NSF) (Civil Penalty)
  The greater of $200 or three times the amount of check and attorney fees (no maximum)
• Ohio Collection Laws General Garnishment Exemptions
  See federal law - garnishment limited to once a month per employee

Answer 4

In Ohio that would be 15 years. Medical debts are normally documented in writing. That gives them a fairly long period of time in which to collect. And it will be measured from the last acknowledgment of the debt, payment or letter from the person who owes.

Answer 5

The statute of limitations for all debts, in Ohio and the other 49 US states is seven years. This is determined by the Federal Fair Debt Collections Practices Act.

Keep in mind that the time starts from the date of last service or the date of last payment, which ever is latest. So, if you bought those new jeans with your Macys' card on 1 January 2010, and never made a payment, Macys can legally collect against the debt until 1 January 2017. If however you made a payment on those jeans on 31 December 2016, they may collect until 31 December 2023. If you are going to pay on a bad debt, pay it off as soon as possible. If you are not going to pay, then don't and live with your conscience.

If the creditor sues the debtor though, and wins a judgment, that time limit extends to ten years from the date of judgment or last payment.

So, if the creditor gets that judgment on 31 December 2016, then Macys can collect on it until 31 December 2026. And, if your conscience wins and you make a payment against the full balance, OR Macys locates your bank account and sends an order of garnishment on 30 December 2026, then Macys can collect until 30 December 2036