Chapter 150-314

150-314-0005 Period of Computation of Taxable Income (1) General Rule: If the taxable year of an individual, partnership, Corporation, S corporation, trust, REMIC, or other taxpayer for federal income tax purposes is different than the taxable year for Oregon tax purposes, the Or…

150-314-0010 Mitigation of Effect of Limitations and Other Provisions The following rules shall apply: (1) For determinations made on or before December 31, 1970, regulations promulgated prior to December 31, 1970, for ORS 314.110, 314.120 and 314.130 shall apply. (2) For determi…

150-314-0012 Determination by Agreement (1) In General: A determination may take the form of an agreement made pursuant to this section. Such an agreement is intended to provide an expeditious method for obtaining an adjustment under ORS 314.105 to 314.135 and for offsetting defi…

150-314-0025 Pollution Control Facilities: Revocation of Certificate Upon receipt of notice of revocation of a certificate, the Department shall issue a statement to the taxpayer of the amount of unpaid taxes due, together with interest from the time the taxes would have been due…

150-314-0027 Pollution Control Facilities: Facilities Not Eligible for Tax Credit Pollution control facilities, other than resource recovery facilities, constructed by or for the use of a governmental agency or public corporation, do not qualify for the tax credit, even if such a…

150-314-0035 Formula for Apportionment of Lobbying Expenses Subject to Proxy Tax The amount of lobbying expenses subject to the proxy tax under section 6033(e) of the Internal Revenue Code shall be apportioned to Oregon by multiplying the expenses by a fraction, the numerator of …

150-314-0040 Withholding on Real Property Conveyances (1) For purposes of ORS 314.258 and this rule: (a) “Authorized agent” does not include an employee of a transferee who merely makes payments to a transferor in connection with a conveyance, nor a person who performs services s…

150-314-0045 REMIC Filing Requirements A real estate mortgage investment conduit (REMIC) receiving income from prohibited transactions, must file an Oregon Form 20-I and a copy of the complete federal return, including a Schedule Q (Notice to Residual Interest Holder of REMIC Inc…

150-314-0047 REMIC Income Taxable to Nonresidents (1) Regular Interests. (a) In general, dividends, interest, royalties, and other income from the use or ownership of intangible personal property used in a trade or business is includable in the taxable income of a nonresident if …

150-314-0055 Change in Methods of Accounting or Reporting A taxpayer’s method of accounting for state income tax purposes must be the same as for federal tax purposes and it must clearly reflect the taxpayer’s income. If the taxpayer’s method of accounting does not clearly reflec…

150-314-0060 Election to Use Alternative Apportionment Weightings by Taxpayers Engaged in Utilities or Telecommunications; Revocation of Election (1) A taxpayer engaged in utilities or telecommunications as defined in ORS 314.280(3)(e)(A) and (B) may elect to use the double-weigh…

150-314-0062 Apportionment and Allocation of Income of Financial Organizations and Public Utilities from Business Activities Within and Without Oregon (1) The several parts of OAR 150-314.280, as amended in 1965 and thereafter, shall apply for all tax years beginning on and after…

150-314-0064 Definitions (1) The definitions of “apportionable income,” “commercial domicile,” “compensation,” “financial organization,” “nonapportionable income,” “public utility,” “sales,” and “state,” contained in ORS 314.610 and the related rules are by this reference incorpo…

150-314-0066 Apportionment and Allocation of Income Generally The provisions of OAR 150-314-0345 to 150-314-0351, 150-314-0365 to 150-314-0369, 150-314-0380 and ORS 314.650 are by this reference incorporated herein and made a part of this OAR 150-314-0066. Statutory/Other Authori…

150-314-0068 Allocation of Income The provisions of ORS 314.625 to 314.645, inclusive, are by this reference incorporated herein and made a part of this OAR 150-314-0068. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.280 History: Renumbered from 150-3…

150-314-0070 Apportionment Factors Generally (1) Apportionable income is apportioned to this state by use of the formula provided in ORS 314.650 as it applies to the tax year involved or the formula provided in ORS 314.280(3)(b) for qualifying utilities. For tax years beginning o…

150-314-0072 Apportionment Factors Property factor. Unless otherwise provided by rule, the provisions of ORS 314.655 and the rules pertaining thereto, are by this reference incorporated herein and made a part of this OAR 150-314.280-(F). Payroll factor. Unless otherwise provided …

150-314-0074 Modified Factors for Carriers of Freight or Passengers: General Rule (1) Apportionable income is apportioned to this state by use of the formula provided in ORS 314.650 as it applies to the tax year involved. For tax years beginning on or after July 1, 2005, ORS 314.…

150-314-0076 Modified Factors for Carriers of Freight or Passengers: Special Rules — Railroads (1) In General. Where a railroad has income from sources both within and without this state, the amount of apportionable income from sources within this state must be determined pursuan…

150-314-0078 Modified Factors for Carriers of Freight or Passengers: Special Rules — Airlines (1) In General. Where an airline has income from sources both within and without this state, the amount of apportionable income from sources within this state is determined pursuant to O…

150-314-0080 Modified Factors for Carriers of Freight or Passengers: Special Rules — Trucking Companies (1) In General. As used in this rule, the term “trucking company” means a motor common carrier, a motor contract carrier, or an express carrier that primarily transports tangib…

150-314-0082 Modified Factors for Companies Engaged in Sea Transportation Service (1) Sea transportation services within this rule include the activities of steamship companies substantially engaged in interstate or international commerce which derive income within and partly fro…

150-314-0084 Modified Factors for Companies Involved in Interstate River Transportation Service (1) A taxpayer involved in interstate river transportation will calculate its Oregon income under the provisions of ORS 314.610 to 314.665 except as modified by this rule. Apportionabl…

150-314-0086 Other Methods: Limited Application (1) For taxpayers that are taxable both within and without Oregon, the provisions of ORS 314.280 will ordinarily require apportionment to arrive at a fair and accurate measure of net income from business activity in Oregon. If the t…

150-314-0088 Modified Factors for Financial Institutions (1) This rule is based on a model regulation adopted by the Multistate Tax Commission to promote uniform treatment of this item by the states. A financial institution having income from business activity that is taxable bot…

150-314-0090 Public Utilities: Sale of Commodities (1) The sale of a commodity such as electricity, water, steam, oil, oil products or gas, including but not limited to natural and liquid gas, which is delivered or shipped to a purchaser with a contractually specified point of ph…

150-314-0100 Disallowance of Certain Intercompany Transactions Involving Intangible Assets (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 anothe…

150-314-0105 Farm Income Averaging (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…

150-314-0110 Allocation of Oregon Modifications to Passive Activity Losses (1) Oregon Passive Activity Loss. The Oregon passive activity loss shall be equal to the federal passive activity loss (defined in IRC Section 469(d)) as modified by the additions, subtractions, modificati…

150-314-0115 Interest on Deferred Oregon Tax Liability with Respect to Installment Obligations (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 obligat…

150-314-0120 Reduction of Tax Attributes after Discharge of Debt (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 discha…

150-314-0125 Listed Transaction Reporting Requirement (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 …

150-314-0130 Definition: Final Determination An order of the director of the department or a court decision becomes final after all periods of appeal have expired. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.330 History: Renumbered from 150-314.330(…

150-314-0135 Returns When Accounting Period Changed (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 …

150-314-0140 Information Returns (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, 10…

150-314-0142 Brokers’ Information Returns 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’ acco…

150-314-0150 Requirement to File Returns Electronically (Corporation E-file Mandate) (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 co…

150-314-0152 Requirement to File Returns Electronically (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 Re…

150-314-0160 Report of Changes in Federal Taxable Income (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) File…

150-314-0165 Filing Returns of Income: Due date 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 fe…

150-314-0167 Filing Returns of Income: Extensions, Chapters 316, 317 and 318 (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) Proc…

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 (1) Definitions. For purposes of this rule: (a) Official form. An official form is any payroll, income, excise tax, o…

150-314-0171 Alternative Filing Methods (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 indi…

150-314-0173 Time Limitations Affected by Military Service 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). U…

150-314-0175 Time Limitations for Persons Outside United States 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. T…

150-314-0185 Payment of Tax; Interest on Delayed Return See OAR 150-305-0140 for the rate of interest on a delayed payment of tax. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.395 History: Renumbered from 150-314.395, REV 32-2016, f. 8-12-16, cert. e…

150-314-0187 Responsibility for Tax Payments 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. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: OR…

150-314-0195 Delinquency Penalty (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 bo…

150-314-0197 Failure to File Penalty 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 f…

150-314-0199 Interest on Deficiencies and Delinquencies 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…