justicedao/ipfs_state_laws huggingface dataset:
150-316-0385 Nonresident Alternate Filing (1) Out-of-state employers may elect an alternate method of filing, reporting or calculating tax liability for payroll earned in Oregon by nonresident employees for a payroll period not to exceed 200 days in one calendar year. (2) Notice of election of alternative method shall be given on Oregon Department of Revenue form, Application for Alternative Filing Method for Temporary Employers, available from Oregon Department of Revenue, 955 Center Street, NE, Salem OR 97310. (3) The Oregon Department of Revenue shall furnish the employer with Oregon Withholding Tax forms and instructions for filing and paying tax. The employer shall remit payment(s) and file completed Oregon quarterly combined tax reports as required by ORS 316.168 and 316.197. (4) An employer electing the alternative method of withholding shall notify its employees of such election at the time withholding is made. (5) If a qualifying nonresident employee files a personal income tax return under the allowed alternative method, the return also serves as a closing agreement. The amount of withholding is considered to be the amount of income tax owing for the tax year and is not subject to change by the taxpayer or the department unless it is determined that the taxpayer was not a “qualifying nonresident employee” while working for the nonresident employer. (6) A nonresident employee who is working for an out-of-state employer which elects the alternative method under this rule, may elect to report and pay personal income tax on income earned by the employee in connection with the employee’s performance of temporary services within this state in the same manner as any other nonresident. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.223 History: Renumbered from 150-316.223, REV 63-2016, f. 8-15-16, cert. ef. 9-1-16 Renumbered from 150-316.216, REV 8-2010, f. 7-23-10, cert. ef. 7-31-10 RD 5-1993, f. 12-30-93, cert. ef. 12-31-93 RD 7-1991, f. 12-30-91, cert. ef. 12-31-91 RD 7-1989, f. 12-18-89, cert. ef. 12-31-89, Renumbered from 150-316.857 RD 11-1985, f. 12-26-85, cert. ef. 12-31-85
150-316-0390 Deductions Allowed on Either the Inheritance Tax Return or the Fiduciary Income Tax Return Certain deductions may not be taken on both the Oregon inheritance tax return (Form IT-1) and the Oregon fiduciary income tax return (Form 41). See OAR 150-118-0040 for details. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.272 History: Renumbered from 150-316.272, REV 63-2016, f. 8-15-16, cert. ef. 9-1-16 REV 6-2004, f. 7-30-04, cert. ef. 7-31-04 REV 2-2004(Temp), f. 4-30-04 cert. ef. 5-1-04 thru 9-30-04
150-316-0395 Tax Treatment of Unincorporated Organization Except as otherwise provided by statute, regulations under Internal Revenue Code Section 7701 that allow unincorporated entities to elect to be classified as corporations or partnerships for federal tax purposes shall also be effective for Oregon tax purposes. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.277 History: Renumbered from 150-316.277, REV 63-2016, f. 8-15-16, cert. ef. 9-1-16 RD 5-1997, f. 12-12-97, cert. ef. 12-31-97
150-316-0402 Oregon Qualified Trust Tax Return (1) General Rule. A trustee who has met certain conditions set forth in IRC Section 685, and has elected to file returns as a qualified funeral trust for federal purposes, must file an Oregon Form 41 (Oregon Fiduciary Income Tax Return) as a resident funeral trust. (2) Filing requirements. The trustee may file a single, composite Oregon resident funeral trust return for some or all trusts for which the trustee has filing responsibility, including trusts that had a short tax year. (3) Computation of Tax. When filing a composite return, the trustee must compute the tax separately for each trust and enter the total on the form. If an individual trust would require a tax rate above the minimum tax rate, the trustee must attach a schedule showing how the Oregon tax is computed for each trust. (4) Due Date. The Oregon resident funeral trust return is due the 15th day of the fourth month after the close of the tax year. (5) Effective Date. The provisions of this rule apply to tax years beginning on or after January 1, 2004. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.282 History: Renumbered from 150-316.282(4), REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 REV 6-2004, f. 7-30-04, cert. ef. 7-31-04
150-316-0415 Accumulation Distribution Credit for Oregon Taxes Paid by Trust During Income Accumulation Years (1) The accumulation distribution credit is determined by calculating the amount of tax that would have been paid by the trust if the distribution had been made in the year the income was earned, and then subtracting that amount from the tax that the trust actually paid in that year. The total available credit is distributed to the beneficiaries pro rata. (2) Trusts, whose Oregon taxable income in the year of income accumulation included capital gains that were not part of its distributable net income (DNI), must determine the amount of Oregon tax paid on ordinary income to arrive at the maximum Oregon tax credit available to the beneficiary. For purposes of this computation, the percentage of Oregon taxable income representing capital gains not included in DNI must be determined. Example 1: This example is a continuation of the first example in OAR 150-316-0575. A review of the facts in that example would be helpful. Based on the facts in the example in OAR 150-316-0575, the maximum credit available to the beneficiary for the Oregon tax paid by the trust is calculated as follows: [Example not included. See ED. NOTE.] (3) The credit allowable to the beneficiary cannot reduce the beneficiary’s tax below that which would have otherwise been due, without regard to the addition of the accumulation distribution. Example 2: The beneficiary’s total 1993 tax is $150. The total tax calculated without inclusion of the accumulation distribution in taxable income is $100. Although the maximum calculated credit is $71, the beneficiary can only claim a credit of $50 (the difference between $150 and $100). [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.298 History: REV 49-2017, f. & cert. ef. 8-2-17 Renumbered from 150-316.298, REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 RD 6-1996, f. 12-23-96, cert. ef. 12-31-96 RD 5-1994, f. 12-15-94, cert. ef. 12-31-94 RD 9-1992, f. 12-29-92, cert. ef. 12-31-92
150-316-0420 Taxable Income of Nonresident Estate or Trust (1) The determination of the taxable income of a nonresident estate or trust differs from that of a nonresident individual in that there is no provision for proration of items of income, deductions or exemptions. Taxable income must be determined by first recomputing the fiduciary’s net taxable income under the Internal Revenue Code using only those items of income, gain, loss and deductions derived from or connected with sources in Oregon, including the full amount of the personal exemption allowable in determining federal taxable income. This computation may be made on a federal Form 1041 and accompanying schedules if they are clearly marked as state schedules. Regardless of the form of the computation, a copy of the federal Form 1041, and all accompanying schedules, as filed with the Internal Revenue Service must be attached to the Oregon Fiduciary Form 41. (2) To arrive at the fiduciary’s Oregon taxable income, the recomputed federal net taxable income, limited to items derived from or connected with sources in Oregon, is increased or decreased by the “fiduciary adjustment” provided in ORS 316.287 and the transitional adjustment, if any, provided for in ORS 316.047. The “fiduciary adjustment” is computed in the same manner as that used for resident estates or trusts except that only items of income, gain, loss and deductions that are derived from or connected with sources in Oregon and a portion of any accrued federal income tax liability or refund are included in the computation. The amount of each federal income tax item of the fiduciary adjustment is computed by multiplying the accrued liability or refund by the percentage that the recomputed federal net income from Oregon sources bears to the federal net taxable income from all sources. Both factors in this computation must include only those items taken into account in determining net taxable income of the tax year to which the liability or refund applies. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.307 History: Renumbered from 150-316.307, REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 11-71
150-316-0427 Persons Required to Make Returns A person having income taxable by this state which is not included in federal taxable income is required to file a return. For example, a return must be filed reporting interest on obligations of any foreign state or territorial possession of the United States which by the laws of the United States is exempt from federal income taxation but not from state income taxation. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.362 History: Renumbered from 150-316.362(2), REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 RD 7-1989, f. 12-18-89, cert. ef. 12-31-89, Renumbered from 150-316.362(6) 12-70
150-316-0445 Liability of Fiduciaries A fiduciary is required to file a return reporting all of the income of the estate or trust even though such income may not in whole or in part be taxable to the estate or trust. If an estate or trust is exempt from filing under federal Internal Revenue Code regulations, it is also exempt from filing for Oregon unless notice to file is given by the Oregon Department of Revenue. The fiduciary also is required to pay the taxes on the income taxable to the estate or trust. Liability for the payment of the tax attaches to the person of the estate’s personal representative up to and after discharge, where prior to distribution and discharge, personal representative failed to file a return as required by law or failed to exercise due diligence in determining and satisfying the tax obligation. Liability for the tax also follows the estate itself. When by reason of the distribution of the estate and the discharge of the personal representative it appears that collection of tax cannot be made from the personal representative, legatees or distributees must account for their proportionate share of the tax due and unpaid to the extent of the distributive share received by them. See ORS 314.310. The same considerations apply in the case of trusts. See also ORS 316.387. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.382 History: Renumbered from 150-316.382, REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 5-5-82 2-11-82(Temp) 12-19-75 1-69
150-316-0452 Decedents’ Estate: Application for Discharge from Personal Liability for Tax on Decedent’s Income (1) The representative of a decedent’s estate may make written application to the department for discharge from personal liability for tax on the decedent’s income. This application must be made after filing the decedent’s final individual income tax return, or any individual income tax returns the representative of a decedent’s estate is required to file on behalf of the decedent because the decedent failed to file the required returns prior to their death. (2) The written application must include the following information: (a) The name of the decedent; (b) The decedent’s Social Security Number; (c) A list of the tax years for which the representative of a decedent’s estate filed individual income tax returns on behalf of the decedent during the period of estate administration. The representative of a decedent’s estate must also provide a copy of the document which shows they were appointed to represent the estate. (3) The discharge becomes effective nine months after the department receives the application for discharge, if the representative of a decedent’s estate has received no notification of tax liability during that time, or if notification of tax liability was received and paid during that time. (4) The discharge does not apply to tax liability resulting from assets of the decedent’s estate which are still in the possession or control of the representative of a decedent’s estate. (5) The failure of a representative of a decedent’s estate to make application under this subsection does not affect the protection available to the representative under ORS 116.113(2), 116.123 and 116.213. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.387 History: Renumbered from 150-316.387(4), REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 RD 3-1995, f. 12-29-95, cert. ef. 12-31-95
150-316-0470 Allocation of Joint Estimated Tax Payments (1) Spouses in a marriage may make joint estimated tax payments for any part of the tax year although they may elect to file separate tax returns. If separate returns are filed the joint estimated tax payments may be treated as the estimated tax of either the husband or wife or may be divided between the spouses in such manner as they agree. (2) If the spouses do not agree on how to divide their joint estimated tax payments, the payments shall be allocated between them by the department. Spouses will be considered not to have agreed on a method for dividing their joint estimated payments when both spouses file separate returns claiming credit for estimated tax payments which when combined do not equal the amount of joint estimated tax payments received by the department during the tax year. (3) The department shall divide the joint estimated tax payments by allocating to each spouse an amount of the payments in the proportion that the spouses’ separate tax liability computed after credits, other than the credits for withholding and estimated tax payments, bears to the combined separate tax liabilities of both spouses. The formula to be used is: Separate tax liability — (divided by) — (Combined separate tax liabilities x joint estimated tax payments) During 20XX, Adam and Betty make joint estimated tax payments of $2,000, Betty also has tax withholding of $1,000. Adam and Betty decide to file separate returns for 20XX but fail to agree on how to divide their 20XX joint estimated tax payments. Adam has a separate tax liability after credits of $1,500. Betty has a separate tax liability of $1,100 before credit for withholding of $1,000. Using the formula stated above, Adam’s share of the estimated tax payments is $1,154 ($1,500 ÷ $2,600 x $2,000). Betty’s share of the estimated tax payments is $846 ($1,100 ÷ $2,600 x $2,000). Adam will owe a net amount of $346 ($1,154 – $1,500) and Betty will receive a refund of $746 ($846 + $1,000 – $1,100). (4) If spouses in a marriage make joint estimated tax payments and the department issues a notice of assessment against either or both of the spouses under the provisions of ORS 305.265(10), the department shall allocate the estimated tax payments between the spouses. The allocation of payments shall be made using the best information available to the department. (5) In the event one of the spouses received credit for more than their allocable share of the joint estimated tax payments as determined by the department, the difference between their allocable share and the amount for which credit was received when the return was processed, shall be remitted to the department. This amount shall be remitted with the filing of an amended return or through payment of a notice of deficiency issued by the department. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.567 History: REV 3-2017, f. 5-31-17, cert. ef. 6-1-17 Renumbered from 150-316.567, REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 RD 6-1996, f. 12-23-96, cert. ef. 12-31-96 RD 15-1987, f. 12-10-87, cert. ef. 12-31-87 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85
150-316-0475 Estimated Tax: Farmer’s and Fisher’s For the purpose of declaring estimated tax, gross income is determined using sources within and without this state. Example: John is a resident of the state of Washington and owns a farm which is located in Oregon. All of his other income is from nonfarm sources within the state of Washington. The total farm income from Oregon sources is $50,000. The total gross income from within and without Oregon is $90,000. Since the gross income from farming is not equal to or greater than two-thirds of John’s total gross income, the exception for farmers and fishers to making estimated tax payments is not met. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.573 History: Renumbered from 150-316.573, REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 RD 15-1987, f. 12-10-87, cert. ef. 12-31-87
150-316-0485 Tax Used to Compute Underpayment of Estimated Tax Any interest due for underpaying estimated taxes is computed using the total tax shown on the return. If the return is adjusted in initial processing, the recomputed tax must be used for determining any underpayment interest. Prior to October 6, 2001, subsequent amendments to the tax will not affect the underpayment interest amount unless the amended return is received prior to the statutory due date of the original return. Amended returns filed on or after October 6, 2001 will not affect the underpayment interest amount unless the amended return is received by the statutory due date of the original return or within the extension period granted for the original return. Example 1: Mary files an Oregon income tax return on a calendar year basis. She filed a return for tax year 2000 on February 15, 2001, showing a tax liability of $1,700. On April 10, 2001, she filed an amended return for tax year 2000 showing a tax liability of $1,450. The return for the taxable year for purposes of computing any interest on underpayment of estimated tax is the amended return filed on April 10, 2001. Example 2: Using the same facts as given in Example 1 except that Mary's amended return was filed on May 20, 2001. The original return filed on February 15, 2001, is the return for the taxable year for purposes of computing any interest on underpayment of estimated tax. Example 3: Mark files an Oregon income tax return on a calendar year basis and had an extension to October 15, 2008 in which to file his 2007 return. He filed his 2007 return on May 1, 2008 showing a tax liability of $2,150. On October 15, 2008, he filed an amended return for 2007 showing a tax liability of $1,375. The return for the taxable year for purposes of computing any interest on underpayment of estimated tax is the amended return filed on October 15, 2008. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.587 History: Renumbered from 150-316.587(1), REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 REV 3-2006, f. & cert .ef. 7-31-06 REV 11-2004, f. 12-29-04, cert. ef. 12-31-04 REV 8-2001, f. & cert. ef. 12-31-01 RD 15-1987, f. 12-10-87, cert. ef. 12-31-87
150-316-0487 Estimated Tax: Underpayment Interest Not Imposed if There is a Casualty, Disaster or Other Unusual Circumstances (1) No interest for underpayment of estimated tax will be imposed on any portion of the underpayment that is caused by reason of casualty, disaster or other unusual circumstances where it would be against equity and good conscience to impose interest. The determination of whether unusual circumstances exist is made on a case-by-case basis, taking into account all pertinent facts and circumstances. The most important factor is the extent of the effort required by the taxpayer to comply with the law and make the required installments. (2) The following are examples of situations that will be accepted by the department as unusual circumstances for not imposing interest. (a) Where the failure to make the necessary estimated tax payment was caused by death or serious illness of the taxpayer, or death or serious illness in the taxpayer’s immediate family. (b) Where the taxpayer’s books and records are destroyed by fire, flood or other natural disaster and therefore, the taxpayer is unable to determine the correct estimated tax payment. (c) Where the disaster is so overwhelming that the taxpayer neglects to make the necessary estimated tax payment. (d) Where the failure to make the necessary estimated tax payment was caused by the unavoidable and unforeseen absence of the taxpayer from the state immediately prior to the due date of the estimated tax payment. (3) Example: Sharon filed her 2003 Oregon income tax return and had tax to pay of $2,500. Interest on underpayment of estimated tax was imposed. Sharon’s house was destroyed by fire on August 5, 2003 and all of her tax records were destroyed. The department will not impose the interest on underpayment of estimated tax for the third and fourth installment periods due to the casualty. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.587 History: Renumbered from 150-316.587(5)(b), REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 REV 11-2004, f. 12-29-04, cert. ef. 12-31-04 RD 7-1991, f. 12-30-91, cert. ef. 12-31-91
150-316-0491 Estimated Tax: Partnership and S Corporation Income of Part-year Residents and Nonresidents For purposes of imposing interest on underpayment of estimated tax, an exception exists for part-year and nonresidents receiving income from an S corporation. No interest will be imposed on the underpayment attributable to the shareholders pro rata share of the S corporation income if the income is for the initial year in which S corporation status is elected and the shareholder is a nonresident or for the prior tax year was a part-year resident for Oregon. This exception applies to tax years beginning on or after January 1, 1987. Example: Frank and Ethel move to Oregon in August, 2006. Frank is a partner in an Oregon partnership. The partnership incorporates in 2007 and elects S corporation status. For 2007, Frank and Ethel file as full-year Oregon residents and report their share of the S corporation income. No interest is imposed on any underpayment attributable to Frank's share of the S corporation income because they meet the exception. They are part-year residents for 2006; 2007 is the initial year of election of S corporation status. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 316.587 History: Renumbered from 150-316.587(5)(d), REV 65-2016, f. 8-15-16, cert. ef. 9-1-16 REV 4-2009, f. & cert. ef. 7-31-09 REV 6-2008, f. 8-29-08, cert. ef. 8-31-08 RD 7-1991, f. 12-30-91, cert. ef. 12-31-91, Renumbered from 150-316.587(5) RD 7-1989, f. 12-18-89, cert. ef. 12-31-89 12-31-87, Renumbered from 150-316.587(4)(A) 12-31-85, Renumbered from 150-316.587(4) 10-7-85