reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0100 - Disallowance of Certain Intercompany Transactions Involving Intangible Assets

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 provisions of section (3) of this rule apply in situations where:
(a) An intangible asset is owned by one
			 corporation, organization, trade or business (the owner) and used by another
			 (the user) for a royalty or other fee,
(b) Both the owner and the user are "owned by
			 the same interests," as defined in Treas. Reg.§1.469-4T, paragraph
			 (j),
(c) The owner and the user are
			 not included in the same Oregon tax return, and
(d) The separation of ownership of the
			 intangible asset from the user of the intangible asset results in either:
(A) Evasion of tax, or
(B) A computation of Oregon taxable income
			 that is not clearly reflective of Oregon apportionable income.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0105 - Farm Income Averaging

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
(a) Overview. An individual engaged in a
			 farming business may elect to compute his or her current year (election year)
			 income tax liability under ORS Chapter 316 by averaging, over the prior
			 three-year period (base years), all or a portion of the individual's current
			 year electable farm income (as defined in section (4) of this rule). To average
			 farm income, the individual:
(A) Designates
			 all or a portion of his or her elected farm income for the election year as
			 elected farm income; and
(B)
			 Allocates one-third of the elected farm income to each of the three base years;
			 and
(C) Determines the election
			 year tax under ORS Chapter 316 by determining the sum of:
(i) The election year ORS Chapter 316 tax
			 without regard to the elected farm income; plus
(ii) For each base year, the increase in ORS
			 Chapter 316 tax attributable to the elected farm income allocated to each
			 year.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0115 - Interest on Deferred Oregon Tax Liability with Respect to Installment Obligations

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Corporations with income from business activity taxable both within and without
			 this state must compute interest on deferred Oregon tax liability with respect
			 to installment obligations using the relevant apportionment and allocation
			 provisions of ORS Chapter 314.
(2)
			 Interest on deferred Oregon tax liability with respect to apportionable income
			 from installment obligations must be computed using the Oregon apportionment
			 factor for the year of the installment sale.
(3) Interest on deferred Oregon tax liability
			 with respect to nonapportionable income from installment obligations must be
			 computed using the allocation provisions that apply to the income from the
			 installment sale.
Example 1
:
C
			 Corp is a toy manufacturer doing business in Oregon and Washington. In 2016, C
			 Corp sells a factory in Washington. The sales price is $11,000,000, the basis
			 for Oregon tax purposes is $5,500,000, and the gross profit percentage is 50
			 percent. Under the terms of the sale, C Corp receives $1,000,000 in 2016 and a
			 note for $10,000,000 (including $5,000,000 of unrecognized gain) to be paid in
			 five equal annual installments. C Corp's Oregon apportionment percentage for
			 its 2016 calendar year return is 25 percent. The interest rules under IRC 453A
			 and ORS 314.302 apply because the face
			 amount of installment obligations remaining unpaid at the end of 2016 is
			 greater than $5,000,000. The interest to report as tax on the 2016 Oregon
			 return is computed as follows: [See PDF link below.]
Example 2
:
Assume the same facts
			 as Example 1. In addition, during 2017, C Corp receives a payment of $2,000,000
			 on the 2016 installment obligation. This leaves an unpaid balance of $8,000,000
			 at the end of 2017, including unrecognized gain of $4,000,000. C Corp's Oregon
			 apportionment percentage for 2017 is 34 percent. The interest to report as tax
			 on C Corp's 2017 Oregon return is computed as follows: [See PDF link
			 below.]
Example 3
:
Assume the same facts as in Examples 1 and 2, except that the property sold by
			 C Corp in 2016 is nonbusiness property located in Washington. No interest on
			 deferred Oregon tax liability will be reported to Oregon in either 2016 or
			 2017.
Example 4
:
Assume the same facts as in Example 3, except that the nonbusiness property
			 sold is located in Oregon. The amount of interest to report as tax on the 2016
			 and 2017 Oregon tax returns is calculated as follows: [See PDF link
			 below.]
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0120 - Reduction of Tax Attributes after Discharge of Debt

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A taxpayer who has excluded income from
			 the discharge of indebtedness for federal tax purposes under IRC 108 must also
			 exclude the income for Oregon purposes. Separate rules apply depending on
			 whether the discharge is related to insolvency or qualified farm indebtedness,
			 or to bankruptcy. The taxpayer must reduce Oregon tax attributes independently
			 of the reduction made at the federal level.
Example
			 1
:
Henry realized income from the discharge of debt
			 in the amount of $100,000. Henry may elect to exclude the income to the extent
			 he is insolvent as defined under IRC 108. Henry determines that of the $100,000
			 of income, he may exclude $90,000 due to insolvency. The remaining $10,000 is
			 included in Henry's federal adjusted gross income. Henry is required to reduce
			 certain tax attributes to the extent he has excluded the debt discharge from
			 income. The election to exclude the income under IRC 108 is also effective for
			 Oregon tax purposes. Assume Henry has the following tax attributes: [See PDF
			 link below.]
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0125 - Listed Transaction Reporting Requirement

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For tax years beginning on or after
			 January 1, 2007, taxpayers who engage in or receive a tax benefit from
			 participation in reportable transactions as defined under section 2, chapter
			 568, Oregon Laws 2007 are required to report their participation on the Oregon
			 tax return for the tax year in which the participation took place.
(2) In addition to any other applicable
			 penalties, a taxpayer is subject to penalties as provided in section 9, chapter
			 568, Oregon Laws 2007 if the taxpayer fails to report the transaction as
			 required on the Oregon return.
Stat. Auth.: ORS
				  305.100,
				  314.308
Stats. Implemented: ORS
				  314.308
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0130 - Definition: Final Determination

Current through Register Vol. 63, No. 7, July 1, 2024
An order of the director of the department or a court decision
				becomes final after all periods of appeal have expired.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.330
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0135 - Returns When Accounting Period Changed

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A return may not be made for a period of
			 more than one year. A separate return for a fractional part of a year is
			 therefore required whenever there is a change. If a change in accounting period
			 requested by the taxpayer has been approved by the IRS for federal purposes,
			 the change shall also be permitted for Oregon tax purposes. A copy of the
			 approved application shall be sent to the Department. The Department will
			 require proration of exemptions, dependency credits, etc., where the part-year
			 return is based on a change of accounting periods. If the change is approved by
			 the Internal Revenue Service, the return for the period necessary to effect the
			 change shall be delinquent unless filed on or before the fifteenth day of the
			 fourth month after the close of such period and the taxpayer shall thereafter
			 make returns and compute income upon the basis of the new accounting
			 period.
(2) A taxpayer's taxable
			 year for Oregon income tax purposes shall be the same as the taxpayer's taxable
			 year for federal income tax purposes.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.355
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0140 - Information Returns

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definition.
			 As used in this rule:
(a) "Information
			 return," as used in ORS
			 314.360(4) and
			 sections (7) and (8) of this rule, means a federal form W-2 or 1099.
(b) "Payer" means any person required to
			 issue a 1099-MISC, 1099-G, 1099-R, W-2G, 1099-K, or a 1099-NEC.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0142 - Brokers' Information Returns

Current through Register Vol. 63, No. 7, July 1, 2024
When required by the Department (but not otherwise), any person
				or organization that acted at any time as a broker or agent in stock, bond or
				commodity transactions (including a bank that cleared orders for depositors' or
				custodians' accounts) shall make a separate return of information for each
				customer, showing the total sales and the total purchases. In lieu of
				information with respect to each of the brokers' customers, the Department may
				require returns of information with respect only to a specified customer or
				customers.
With the adoption of Oregon Laws 1984, Ch. 1, (Enrolled HB
				  3029), ORS 314.363 was repealed. The
				  administrative rules under this section will no longer be in effect for taxable
				  years beginning on or after January 1, 1986. For all prior years, the rules
				  under this section shall remain in full force and effect.
Publications: Publications referenced are available from the
				  agency.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.360
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0150 - Requirement to File Returns Electronically (Corporation E-file Mandate)

Current through Register Vol. 63, No. 7, July 1, 2024
(1) All
			 corporations required to electronically file their federal corporation tax
			 return are required to electronically file their Oregon corporation tax return.
			 A paper tax return filed by a corporation required to electronically file its
			 Oregon corporation tax return may be rejected, unless a waiver request has been
			 approved by the department prior to the filing of the paper return.
(2) Waivers.
(a) A waiver of the electronic filing
			 requirement granted by the Internal Revenue Service (IRS) will be accepted by
			 the department as a waiver to the mandate under section (1). The corporation
			 must notify the department in writing when such a waiver is granted in
			 accordance with the department's instructions.
(b) In addition to a waiver allowed under
			 subsection (a), the department may grant a waiver of the mandate in section (1)
			 if the following conditions are met:
(A) The
			 corporation requests a waiver in accordance with the department's instructions;
			 and
(B) The corporation's facts
			 and circumstances are such that complying with the mandate would cause the
			 corporation an undue financial hardship. The corporation's refusal to purchase
			 or use the requisite software or computer equipment does not, in and of itself,
			 satisfy the conditions for a waiver under this subsection.
(c) When circumstances warrant,
			 the department may issue an administrative waiver of the mandate in section (1)
			 when the department determines it is necessary to promote the effective and
			 efficient administration of the tax system.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0152 - Requirement to File Returns Electronically

Current through Register Vol. 63, No. 7, July 1, 2024
(1) All paid tax preparers filing Oregon
			 personal income tax returns in this state are required to file them by
			 electronic means if the paid tax preparer is required to do so by federal law.
			 See 26 USC §
									6011 and Treasury Regulation §301.6011-7
			 for the federal mandate and relevant definitions.
(2) Waivers.
(a) A waiver granted by the Internal Revenue
			 Service (IRS) pursuant to Treasury Regulation §301.6011-7(c)(1) or (2)
			 will be accepted by the department as a waiver to the mandate under section
			 (1). The paid preparer must notify the department in writing when such a waiver
			 is granted in accordance with the department's instructions.
(b) In addition to a waiver allowed under
			 subsection (a), the department may grant a waiver of the mandate in section (1)
			 if the following conditions are met:
(A) The
			 paid preparer requests a waiver in advance of the preparation of personal
			 income tax returns subject to the mandate in accordance with the department's
			 instructions; and
(B) The paid
			 preparer's facts and circumstances are such that complying with the mandate
			 would cause the paid preparer an undue financial hardship. The paid preparer's
			 refusal to purchase or use the requisite software or computer equipment does
			 not, in and of itself, satisfy the conditions for a waiver under this
			 subsection.
(c) When
			 circumstances warrant, the department may issue an administrative waiver of the
			 mandate in section (1) to a paid preparer or group of paid preparers when the
			 department determines it is necessary to promote the effective and efficient
			 administration of the tax system.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0160 - Report of Changes in Federal Taxable Income

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Report Requirements. The report of change
			 or correction required by ORS
			 314.380(2) must
			 be:
(a) Filed in writing with the department;
(b) Signed by the taxpayer or the
			 taxpayer's authorized representative; and,
(c) Filed separately from any statement or
			 attachment forming a part of the taxpayer's original tax return.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0165 - Filing Returns of Income: Due date

Current through Register Vol. 63, No. 7, July 1, 2024
Returns of income must be filed with the department on or
				before the fifteenth day of the fourth month following the close of the tax
				year. For corporations, the due date is the 15th day of the month following the
				due date of the federal return. Thus, when the tax year is a calendar year, the
				return is due on or before the fifteenth day of April in the following year.
				Returns received after the due date are subject to late filing penalty as
				provided in ORS Chapter 314, except that returns received by mail are accepted
				without the imposition of such charges if postmarked before midnight of the due
				date (see ORS 293.660 and
				305.820). When the due date
				falls on a Saturday, Sunday or a state legal holiday, the return is due on the
				next business day following such Saturday, Sunday or state legal
				holiday.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.385
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0167 - Filing Returns of Income: Extensions, Chapters 316, 317 and 318

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If a taxpayer
			 cannot file a return within the prescribed time, the department may grant the
			 taxpayer an extension of time for filing but this does not extend the time for
			 payment of the tax.
(2) Procedure
			 when a federal extension is granted.
(a) The
			 department will grant extension of time to file an Oregon return if the
			 taxpayer has obtained an extension to file the federal return from the Internal
			 Revenue Service. The taxpayer does not need to request an Oregon extension. The
			 taxpayer must follow current tax return instructions to determine if a copy of
			 an approved federal extension or a filed automatic federal extension request
			 under Internal Revenue Code (IRC) section 6081 needs to be attached to the
			 Oregon return to serve as evidence of an Oregon extension. If there is no
			 requirement in the return instructions to attach the copy of the federal
			 extension request, the taxpayer must retain the document with their
			 records.
(b) An automatic extension
			 of time for filing a return does not relieve the taxpayer of the responsibility
			 to pay estimated tax or eliminate interest charges for failure to pay estimated
			 tax. An extension also does not relieve the taxpayer of a late payment penalty
			 provided under ORS 314.400, except when the
			 requirements of section (3) of OAR 150-314-0195 are met.
(c) The Oregon extension is for the same
			 length of time as the federal extension. If the Internal Revenue Service denies
			 the taxpayer's extension request, but grants the taxpayer a period of time from
			 the date of the denial in which to file the return, the department will grant
			 the taxpayer an equal period of time if a copy of the denied extension request
			 is attached to the Oregon return at the time of filing.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0169 - Standards for Substitute Tax Forms; Treatment of Forms Not Meeting the Standards; Treatment of Payments Received With Forms Not Meeting the Standards

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
Definitions
. For purposes of this rule:
(a)
Official form
. An
			 official form is any payroll, income, excise tax, or corporate activity tax
			 form prepared, printed, and distributed by or on behalf of the department
			 pursuant to Oregon Revised Statutes (ORS) Chapters 310, 314, 315, 316, 317,
			 317A, 318, Lane Transit District (LTD) Ordinance 51, and Tri-County
			 Metropolitan Transportation District (TRIMET) Ordinance 92.
(b)
Substitute form
. A
			 substitute form is any payroll, income, excise tax, or corporate activity tax
			 form authorized under ORS Chapters 310, 314, 315, 316, 317, 317A, 318, LTD
			 Ordinance 51, or TRIMET Ordinance 92 that is intended to replace the official
			 form.
(c)
Tax
			 Return
. A tax return is a payroll, income, excise tax, or corporate
			 activity tax form filed with the department by or on behalf of a taxpayer under
			 the provisions of ORS Chapter 310, 314, 315, 316, 317, 317A, 318, LTD Ordinance
			 51, or TRIMET Ordinance 92.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0171 - Alternative Filing Methods

Current through Register Vol. 63, No. 7, July 1, 2024
(1) As
			 used in this rule:
(a) "Alternatively filed
			 return" means an Oregon return submitted using a department-approved
			 alternative filing method under section (2) of this rule.
(b) "IRS date of receipt" means the
			 electronic time stamp indicating the date and time of receipt of the Oregon
			 return by the Internal Revenue Service (IRS).
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0173 - Time Limitations Affected by Military Service

Current through Register Vol. 63, No. 7, July 1, 2024
The Provision of ORS
				316.020 (1967 Replacement Part),
				providing a moratorium for filing returns and payment of tax for certain
				members of the Armed Forces, was not made a part of ORS Chapter 316 (1969
				Replacement Part). Utilizing the powers of the Director given by ORS
				305.145, the Department will
				waive penalty and interest on account of late filing and late payment of
				personal income tax in those cases where penalty and interest are waived by the
				Internal Revenue Service on account of personal income, pursuant to IRC section
				7508(a). Section 7508(a) reads in part as follows:
"
			 (a) In the case of an individual serving in the Armed
			 Forces of the United States, or serving in support of such Armed Forces, in an
			 area designated by the President of the United States by Executive order as a
			 'combat zone' for purposes of section 112, at any time during the period
			 designated by the President by Executive order as the period of combatant
			 activities in such zone for purposes of such section, or hospitalized as a
			 result of injury received while serving in such an area during such time, the
			 period of service in such area, plus the period of continuous qualified
			 hospitalization attributable to such injury, and the next 180 days thereafter,
			 shall be disregarded in determining, under the internal revenue laws, in
			 respect of any tax liability (including any interest, penalty, additional
			 amount, or addition to the tax) of such individual:
"
			 (1) Whether any of the following acts was performed
			 within the time prescribed therefor:
" (A)
			 Filing any return of income, estate, or gift tax (except income tax withheld at
			 source and income tax imposed by subtitle C or any law superseded thereby);
" (B) Payment of any income,
			 estate, or gift tax (except income tax withheld at source and income tax
			 imposed by subtitle C or any law superseded thereby) or any installment thereof
			 or of any other liability to the United States in respect
			 thereof;..."
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.385
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0175 - Time Limitations for Persons Outside United States

Current through Register Vol. 63, No. 7, July 1, 2024
The Department will waive penalty (but not interest) for
				delinquent filing and delinquent payment of tax by taxpayers who qualify for
				the automatic two month extension for filing under Treasury Regulation
				1.6081-5. This regulation grants an automatic extension of time, for federal
				purposes, to file a return and pay the tax due by the fifteenth day of the
				sixth month following the close of the tax year. To qualify, a taxpayer must
				reside outside the United States and Puerto Rico on the original due date of
				the return. A taxpayer must have filed a return and paid the tax due within the
				federal extension period in order to receive this waiver. This is not an
				extension of time for filing but only a waiver of the delinquency penalty.
				Accordingly, a return filed under these circumstances will be considered
				delinquent.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  305.305
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0185 - Payment of Tax; Interest on Delayed Return

Current through Register Vol. 63, No. 7, July 1, 2024
See OAR 150-305.220(1) for the rate of interest on a delayed
				payment of tax.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.395
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0187 - Responsibility for Tax Payments

Current through Register Vol. 63, No. 7, July 1, 2024
When an employer fails to withhold income tax from an employee
				under ORS 316.167, the employee is not
				relieved from paying income tax under Chapter 305, 314 and
				316.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.395
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0195 - Delinquency Penalty

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Although ORS
			 314.400(1)
			 refers to a delinquency penalty for (A) failure to file a report or return by
			 the due date or (B) failure to pay a tax due by the due date, only one
			 five-percent penalty is added, even though there is a failure as to both
			 requirements.
Example 1: Joe did not obtain
			 an extension to file his tax return, which was due on April 15. On July 1, he
			 filed the return and paid $2,000 of tax plus interest of $40. Joe will be
			 charged a penalty of $100 ($2,000 x 5 percent).
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0197 - Failure to File Penalty

Current through Register Vol. 63, No. 7, July 1, 2024
A penalty of 20 percent of the tax required to be shown as tax
				on the return will be added if a return is not filed within three months after
				the due date. The three month period will be measured from the last day of any
				extension granted to file the return.
Stat. Auth.: ORS
				  305.100
Stats. Implemented:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0199 - Interest on Deficiencies and Delinquencies

Current through Register Vol. 63, No. 7, July 1, 2024
In general, interest is accrued on the unpaid tax from the due
				date of the return until paid. When additional tax is due as a result of a
				refund issued in error, a Notice of Deficiency will be issued for the tax and
				interest paid to the taxpayer. Interest then accrues on the total amount owed
				from the day after the check was issued until paid.
Example 1: John and Mary were issued a tax
			 refund of $585 along with $11 interest on July 17, 2006. The department later
			 determines that the refund was issued in error, and issues a Notice of
			 Deficiency for $596 ($585 tax and $11 interest) on August 18, 2006. Interest
			 then accrues on the $596 total amount owed beginning July 18, 2006, until the
			 deficiency is paid.
Example 2
:
Ron and Nancy were issued a tax refund of $1,185 along with $42
			 interest on October 17, 2006. The department later determines that $395 of the
			 refund was issued in error, and issues a Notice of Deficiency for $409 ($395
			 tax and $14 interest received on the improper refund) on December 18, 2006.
			 Interest then accrues on the $409 total ($395 tax and $14 interest) beginning
			 October 18, 2006, until the deficiency is paid.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.400
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0205 - Substantial Understatement Penalty (SUP)

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The department will assess a penalty if a
			 substantial understatement of net tax exists for any taxable year. The penalty
			 is equal to 20 percent of the amount of any underpayment of net tax
			 attributable to the understatement. A substantial understatement exists only if
			 incurred on the return of the individual, corporation, or reporting entity
			 required to file a return and pay tax.
(2) Net Tax. In determining if a substantial
			 understatement of net tax exists, net tax equals the total tax as calculated in
			 accordance with the applicable provisions of ORS chapters 314, 315, 316, 317,
			 and 318, reduced by nonrefundable and refundable credits.
(3) Substantial Understatement of Net Tax. An
			 understatement of net tax is substantial if the understatement exceeds $3,850
			 for corporations (other than S corporations, as defined in section
			 1361 of the Internal Revenue Code,
			 or a personal holding company, as defined in section
			 542 of the Internal Revenue Code),
			 or exceeds $2,650 for individuals and all other taxable entities.
(4) Penalty. The substantial understatement
			 penalty is equal to 20 percent of the amount of the understatement of net tax.
(a) The total understatement of net tax is
			 the amount of net tax due as determined by the department, minus:
(A) Net tax as reported on the return by the
			 taxpayer for the taxable year,
(B)
			 The tax attributable to any item for which there is or was substantial
			 authority, and
(C) The tax
			 attributable to any item for which the relevant facts affecting the item's tax
			 treatment are adequately disclosed on the return or in a statement attached to
			 the return, and there is a reasonable basis for the tax treatment of the item
			 by the taxpayer.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0207 - Waiver of 20 Percent Substantial Understatement of Net Tax Penalty Imposed under ORS 314.402

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 department will waive the penalty if the taxpayer shows that there was
			 reasonable cause for the understatement and that the taxpayer acted in good
			 faith.
(2) The department will not
			 waive the penalty if the taxpayer was involved in an abusive transaction as
			 defined in ORS 314.402(4) for
			 the tax year at issue.
(3)
			 Reasonable cause and good faith. A taxpayer's reasonable cause and good faith
			 for a substantial understatement of net tax is demonstrated by the extent of
			 the taxpayer's efforts to determine the taxpayer's correct tax liability under
			 the law.
(a) The following circumstances
			 demonstrate reasonable cause and good faith:
(A) The taxpayer relied on a position
			 contained in a proposed federal regulation or state rule.
(B) The taxpayer honestly misunderstood the
			 facts or law affecting the understatement, and the misunderstanding was
			 reasonable in light of the taxpayer's experience, knowledge and education.
(C) The taxpayer or taxpayer's
			 return preparer made a computational or transcriptional error in preparing the
			 return.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0209 - Substantial Authority, Adequate Disclosure and Reasonable Basis

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definitions.
			 For purposes of ORS 314.402, OAR 150-314.402(1), and
			 this rule:
(a) "Substantial authority" has
			 the same meaning as used in Treasury Regulation 1.6662-4(d).
(b) "Adequate disclosure" has the same
			 meaning as used in Treasury Regulation 1.6662-4(e)-(f).
(c) "Reasonable basis" has the same meaning
			 as used in Treasury Regulation 1.6662-3(b)(3).
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0215 - Listed Transaction Understatement; Penalty

Current through Register Vol. 63, No. 7, July 1, 2024
(1) "Return of the taxpayer" for purposes of
			 this penalty is defined as the original return filed with the department that
			 contains a listed transaction understatement, or the most recent amended return
			 filed with the department that contains a listed transaction
			 understatement.
(2) "Net increase
			 in taxable income" for purposes of this penalty is defined as an increase to
			 taxable income or a decrease to a taxable loss.
Example
			 1
:
Taxpayer files an original 2006 return that
			 contains a listed transaction understatement. Taxpayer amends the 2006 return
			 and makes no changes to the treatment of the listed transaction. The
			 Department, during an audit, discovers a listed transaction understatement on
			 the taxpayer's return. The listed transaction understatement penalty is based
			 on the net increase in taxable income between the treatment of the listed
			 transaction reported on the amended return and the correct treatment of the
			 listed transaction.
Example 2
:
Taxpayer files an original 2007 return. Taxpayer amends the 2007
			 return to report the correct treatment of a listed transaction. The listed
			 transaction understatement penalty is based on the net increase in taxable
			 income between the amount of the listed transaction on the original return and
			 the correct treatment of the listed transaction reported on the amended
			 return.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0220 - Addit ional Assessments

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 filing of a 'tentative return' which does not reveal the details of income or
			 deductions is not considered a filing within the meaning of ORS
			 314.410, and the statute of
			 limitations upon an additional assessment does not begin to run until a
			 detailed return, showing items of income and deductions, is filed. Beginning
			 with the tax year 1994, a copy of the federal Form 1040, Form 1040A, Form
			 1040EZ, or 1040 PC, whichever is applicable, must be filed with Form 40,
			 pursuant to ORS 316.457 and OAR 150-316.457, or
			 the return will be deemed incomplete.
(2) For tax years beginning on or after
			 January 1, 1969 and before December 31, 1993, a complete copy of the federal
			 income tax return, including all schedules, must be filed with the
			 department.
Forms referenced are available from the
				  agency.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.410
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0222 - Five-Year Statute of Limitations

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For tax years beginning before January 1,
			 2014, the term "gross income" as used in ORS
			 314.410(2) has
			 the same meaning as provided under section
			 61 of the Internal Revenue Code.
			 For tax years beginning on or after January 1, 2014, the term "gross income" as
			 used in ORS 314.410(2) has
			 the same meaning as provided under:
(a)
			 Section 61 of the Internal Revenue Code as
			 it relates to any income other than from the sale of goods or services in a
			 trade or business, or
(b) Section
			 6501(e) of the
			 Internal Revenue Code as it relates to a trade or business.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0224 - Time Limit to Make Adjustment

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 The provisions of this rule that apply to a federal change or correction apply
			 to reports that are received by the department on or after October 4, 1997. The
			 provisions of this rule that apply to another state's change or correction
			 apply to changes or corrections made on or after October 23, 1999.
(2) The department may mail a Notice of
			 Deficiency at any time within two years after the department receives
			 notification of a change or correction contained in:
(a) A report received from the Internal
			 Revenue Service;
(b) A report
			 received from another state's taxing authority; or
(c) The written report filed by the taxpayer
			 as required by ORS 314.380(2)(a)(A).
Example 1 : Ron filed his 1996 federal and
			 state returns on time. The Internal Revenue Service (IRS) audited and adjusted
			 his federal return in March 2000. The department may mail a Notice of
			 Deficiency within two years of receiving the report of the Internal Revenue
			 Service adjustment.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0226 - Notification of Gain Realized Upon the Sale or Exchange of a Principal Residence

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 period for the assessment of any deficiency attributable to any part of the
			 gain realized upon the sale or exchange of the taxpayer's principal residence
			 shall not expire prior to three years from the date the department is notified
			 by the taxpayer of:
(a) The cost of
			 purchasing the new residence which the taxpayer claims results in
			 nonrecognition of any part of such gain; or
(b) The taxpayer's intention not to purchase
			 a new residence; or
(c) A failure
			 to purchase a new residence within the prescribed period. The department is
			 deemed to have been notified when the taxpayer provides this information to the
			 department.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0228 - Extension of Period for Assessment

Current through Register Vol. 63, No. 7, July 1, 2024
Once the provisions of ORS
				314.410(6) have
				been exercised, the Department and the taxpayer may, by written agreement,
				extend beyond the original agreed period the period for mailing a notice of
				deficiency or assessing a deficiency, provided the subsequent agreement is made
				before the original agreement expires.
Stat. Auth.: ORS
				  305.100
Stats. Implemented:
				  314.410
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0230 - Effect of Federal Extension of Period for Assessment

Current through Register Vol. 63, No. 7, July 1, 2024
If a taxpayer and the Commissioner of Internal Revenue, or the
				taxing authority of another state, enter into an agreement, or renewal thereof,
				extending the period of time for giving notices of deficiencies and assessing
				deficiencies of income tax, the Department may give notice of a deficiency
				within the limits set forth in subsections (1) to (7) of ORS
				314.410 or within six months
				from the expiration date of the agreement, whichever period expires the
				later.
Stat. Auth.: ORS
				  305.100
Stats. Implemented:
				  314.410
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0240 - Refunds Generally

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Refund
			 Limitations - Time and Amount.
(a) If the
			 amount of the tax imposed by the statute is less than the amount paid by the
			 taxpayer and the taxpayer does not then owe any other tax or liability to the
			 State of Oregon, such overpayment must be refunded. A refund may be made under
			 ORS 314.415 in compliance with a
			 claim for refund filed by the taxpayer under ORS
			 305.270 or by correction of the
			 return by the department. To issue a refund based on an audit examination, an
			 auditor's report showing the amount of refund must be completed and approved
			 prior to the expiration of the applicable period set forth in the following
			 paragraph.
(b) Except as provided
			 in subsections (3), (4), (5) and (6) of ORS
			 314.415, a refund or credit may
			 not be granted unless a correction by the department is approved or a claim is
			 filed within three years after the return is filed, or within two years after
			 part or all of the tax is paid, whichever period expires later. Under ORS
			 316.417(1) and
			 317.504, a return filed before
			 the due date is considered as having been filed on the due date.
(c) If there is an amount due from the
			 taxpayer, the refund otherwise allowable will be applied to the balance due. An
			 appeal from an additional assessment paid by the taxpayer to stop the running
			 of interest cannot be classed as a "refund" claim. Except as provided in ORS
			 314.415(5), the
			 amount refunded cannot exceed the amount of tax paid during the applicable
			 period of limitation before a correction by the department is approved or the
			 filing of the claim.
Example:
A taxpayer files a 2002 return on April
				15, 2003, showing tax due in the amount of $100 and pays that amount at the
				time the return is filed. On April 1, 2006, additional tax of $50 is assessed
				by the department on the 2002 return and is paid by the taxpayer on May 1,
				2006. Within two years the taxpayer files a claim for refund based on items not
				previously adjusted on the 2002 return. The refund claim shows an overpayment
				of $75 of the total $150 paid. The refund claim is limited to $50, the sum paid
				within the open period preceding the filing of the claim.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0242 - Refunds

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The return of
			 the taxpayer, filed timely and in the prescribed manner, constitutes a claim
			 for refund under the provisions of this section. For the purpose of determining
			 when the three-year period for claiming a refund expires, the due date of a
			 return is the statutory due date, not the due date after extension.
(2) The department will refund the excess tax
			 paid whenever the review required by statute is completed, even if the date of
			 refund is more than three years after the due date of the return.
Example 1
:
Simon filed his 1999
			 Oregon personal income tax return on April 1, 2003, requesting a refund. The
			 department reviewed and processed the return in mid-May of that year. Although
			 the refund payment would be outside the three year statute for refunds, the
			 department can make the payment because Simon filed his return within the
			 statute of limitations period.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0244 - Minimum Offset Amount

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 department is prohibited by statute from issuing refunds of less than the
			 minimum allowed by ORS
			 314.415 after reduction for
			 amounts owed. The department will not apply a refund less than the minimum to a
			 subsequent year's estimated tax account or to a charitable checkoff.
(2) Refunds from all tax programs may be
			 offset against delinquent accounts as specified in OAR 150-314-0248.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.415
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0246 - Interest Computation - Offset

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 An overpayment of any tax imposed and interest on the overpayment, if any, must
			 be offset against any tax, penalty, or interest then due from the taxpayer.
			 "Tax, penalty or interest then due from the taxpayer" means any amount of tax
			 that has been assessed before the date the refund is applied or proposed to be
			 applied and any penalty or interest incurred in connection with the
			 tax.
(2) If a Notice of Assessment
			 is issued, the department must make the offset on the date the refund is
			 issued.
(3) If a Notice of
			 Deficiency is issued, the department may offset upon receiving written
			 authorization from the taxpayer. If the taxpayer submits a written
			 authorization to offset, the authorization must include the taxpayer's name,
			 social security number or other identifying number, current address, accounts
			 (if known), and the signature of the taxpayer. The date on which the offset
			 must be made is the date that either a net billing or a refund is issued, or
			 the date a payment is received, whichever is earlier.
Example 1
:
On February 15, 1985
			 it was determined that a taxpayer had overpaid the 1982 tax by $500 and
			 underpaid the 1983 tax by $800. Assume the underpaid account had not yet been
			 assessed and on March 15, 1985 the department received a written authorization
			 allowing the department to offset the refund to the nonassessed account. The
			 net amount due from the taxpayer on April 15, 1985, the date the net billing is
			 issued, is calculated as follows: [See PDF link below.]
Example 2
:
On February 1, 1985,
			 it was determined that a taxpayer underpaid the 1983 tax by $800. On May 15,
			 1985, the account was assessed and a five (5) percent failure-to-pay penalty
			 was imposed. On June 15, 1985, it was determined that the taxpayer overpaid the
			 1982 tax by $500. Since the 1983 account is an assessed account, the department
			 may offset the total refund (including interest) to the assessed account on
			 June 15, 1985. The net amount due from the taxpayer on June 15, 1985, the date
			 the refund is offset to the assessed account, is calculated as follows: [See
			 PDF link below.]
Example
			 3
:
On February 15, 1986 it was determined by a field
			 audit that a taxpayer underpaid the 1984 tax by $1,000 and overpaid the 1983
			 tax by $500. On that date, the taxpayer signed an authorization to offset and
			 paid $515. In this example, the offset is made at the date of payment, which is
			 earlier than the date the net billing is issued. The amount due on February 15,
			 1986 is calculated as follows: [See PDF link below.]
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0248 - Refund Offset Priority

Current through Register Vol. 63, No. 7, July 1, 2024
(1) As
			 used in this rule:
(a) "Appropriation
			 accounts" means accounts that are established by an appropriation of the state
			 legislature.
(b) "Nonassessed
			 accounts" means: tax accounts for which the department has determined a
			 deficiency exists but that have not yet been assessed.
(c) "Assessed accounts" means:
(A) Tax accounts that have not been paid for
			 which an appeal has not been made or is final and a written notice of
			 assessment stating the amount so assessed has been issued to the taxpayer;
			 and
(B) Self-assessed accounts that
			 have not had a written notice of assessment issued to the taxpayer.
(d) "Oldest account" means the
			 account with the earliest set-up date. If more than one account has the same
			 set-up date, the earliest tax year is the oldest account.
(e) "Set-up date" means the date the account
			 was established or created.