A state of Ohio program established to collect past due taxes from insurance agents has surpassed the $20 million threshold, Ohio Department of Insurance Director Jillian Froment announced.
The vast majority of the nearly 220,000 agents licensed by the ODI are in good standing with the state, the agency said. Still, $20,064,075.40 in unpaid income tax, sales tax and workers’ compensation premium payments have been collected from more than 1,600 insurance agents or payment plans have been established.
The tax collection program operates through a partnership established in 2011 with the Ohio Attorney General’s Office and the Ohio Department of Taxation and the Ohio Department of Insurance, which annually determines if agents are compliant with Ohio laws.
Administrative action may be taken against an agent’s license if an outstanding judgment lien has been filed against the agent or their organization.
Administrative penalties may include revoking, suspending, or refusing to issue an insurance license.
Civil penalties can be imposed if an agent or agency fail to comply with any official invoice, notice, assessment, or order directing payment of state income tax, state sales tax or workers’ compensation premiums.
Source: Ohio Department of Insurance