Over 2,000 agents & agencies in ohio owe $21.7 million in tax liens


Over 2,000 agents & agencies in ohio owe $21.7 million in tax liensAround 2,230 agents & agencies have been identified by the Ohio Department of Insurance Fraud, Enforcement and License Division with the help of Ohio Attorney General Mike DeWine’s office and it has been found that these agents and agencies own the state of Ohio $21.7 million in Tax Liens – sales tax, income tax, and workers comp premium payments.

Mary Taylor, Ohio Lieutenant Governor and Department of Insurance Director has stated that the department is helping the  insurance agents in Ohio to comply with the state laws via a program that can help recover this huge unpaid amount. This was a huge setback as it was a quite a significant sum of money and this was not in compliance with the state laws.

Taylor stated that these unpaid personal income taxes, workers’ comp premium payments, sales taxes etc., was a very significant amount of money that was owed to the state of Ohio by the agents and agencies, and it was not in compliance with the laws in the state. Hence, they wanted to ensure that the individuals who sell insurance are in a good standing financially, with the state of Ohio. The aim was to encourage a stable, competitive, and robust market and hence wanted to ensure that all agents & agencies have a level playing field and go by the same rules. This would help in giving each one of them the same opportunity in order to be successful.

As per the Ohio Revised Code, the Director of the Department of Insurance has the rights to suspend, refuse, or revoke the issuance of insurance licenses, impose some other sanctions, and assess civil penalty if any agent or an agency doesn’t comply with any of the official notices, invoices, assessments, or orders that direct payment of state, federal, or local income tax, local sales tax, state taxes, or any other workers’ comp premiums.

Recently, a new licensing law had been passed in Ohio, which required insurance agents to periodically renew their licenses (once in two years). In the next 18 months, the renewal applications would be reviewed by the department in order to ensure that the agents comply with the rules. If there are any outstanding judgment liens that are filed against any agent or the organization they work for, then the department has the rights to take administrative action, against the agencies as well as the agents who are not in compliance.