Chapter 150-316

150-316-0255 Withholding by Employers (1) The term “employer” includes any person or organization for whom an individual performs any service as an employee. An employer may be an individual, corporation, partnership, estate, trust, association, joint venture, or other unincorpor…

150-316-0257 Employer’s Election of Method of Computing Withholding (1) Employers have the option of using either the tax tables or the formulas developed and furnished by the department in computing the amount to be withheld from regular wage payments. The tax tables and formula…

150-316-0265 Withholding Payments: Cash Basis All withholding is on a cash basis and must be reported on a cash basis. Example: If services are performed in January but not compensated until April, withholding on the wages for those services is reported on the report for the quar…

150-316-0267 Additional Time to File Reports Oregon does not allow additional 10 day federal extension to file the quarterly tax report when all payments are paid when due. Information provided by the taxpayer on the tax report is essential to providing timely payment of Unemploy…

150-316-0275 Treatment of Payroll Based Program Overpayments (1) If an employer has overpaid income tax withholding, statewide transit tax withholding, or transit district payroll taxes due for a quarter and files an original or amended combined quarterly tax return or an origina…

150-316-0282 Exemptions for Military Personnel In addition to the withholding exemptions that a member of the Armed Forces may claim for federal income tax withholding purposes, such person who is a resident of the State of Oregon shall be allowed to claim a sufficient number of …

150-316-0284 Penalty (1) Definitions for the purposes of ORS 316.177 and this rule: (a) “Frivolous position” includes, but is not limited to: (A) Reference to a spurious constitutional argument; (B) Reliance on a “gold standard” or “war tax” deduction; (C) An argument that wages …

150-316-0290 Procedure for Correcting the Filing of Withholding Statements or Exemption Certificates (1) For the purposes of this rule, “materially deficient” withholding includes, but is not limited to: (a) When the employee has filed an exemption certificate with the employer a…

150-316-0295 Credit for Tax Withheld If the tax has actually been withheld at the source and reported to the Department of Revenue, credit or refund shall be made to the recipient of the income even though such tax has not been paid to the Department by the employer. Where the em…

150-316-0297 Where Taxpayer Reports on Fiscal Year Basis Taxes withheld during any calendar year shall be allowed as a credit for the taxable year of the taxpayer which begins in that calendar year. For example, where an employee is on a fiscal year ending June 30, 1969, he would…

150-316-0305 Withholding Income Taxes on IRAs, Annuities, and Compensation Plans (1) The withholding of income taxes from commercial annuities, employer deferred compensation plans, and individual retirement plans is mandatory. However, an individual may elect, under certain circ…

150-316-0307 Withholding Income Taxes on IRAs, Annuities, and Compensation Plans Oregon’s requirements to withhold income taxes from IRAs, annuities, and deferred compensation plans will be consistent with the provisions of Internal Revenue Code (IRC) Section 3405 except that man…

150-316-0315 Alternative Withholding Payment Method for Employers to Avoid Undue Burden (1) ORS 316.191 allows alternate methods for making withholding payments when an undue burden is caused by the present withholding method. The following are two examples of “undue burden:” (a)…

150-316-0320 Voluntary Withholding for Retired Members of the Uniformed Services (1) Upon written request to the appropriate retired pay office of uniformed service, a member may request voluntary state withholding tax. This request shall include the following information: (a) Me…

150-316-0325 Voluntary Withholding for Civil Service Annuitants (1) Upon written or telephone request to the U.S. Office of Personnel Management, a civil service annuitant may request voluntary state tax withholding. (2) A permanent withholding tax account shall be established in…

150-316-0330 Semiannual Reports and Payments Purposes of semiannual reporting the calendar year will be divided into two six-month periods; the first period being January through June with the return and any payment due on or before July 31; the second period being July through D…

150-316-0332 Withholding: Payment Due Dates (1) Oregon withholding tax payment due dates are determined by corresponding federal due dates as outlined in the following rules: Rule 1 — If the federal tax due is less than $1,000 at the end of any calendar quarter the Oregon tax due…

150-316-0334 Withholding Tax Payment Requirements for Agricultural Employers An employer of agricultural employees is required to pay Oregon taxes withheld at the same time as federal tax is deposited. Federal tax is the sum of withholding, FICA (social security) and Medicare tax…

150-316-0336 Employee’s Rights Recourse against an employer in regard to taxes on wages withheld and reported, but not paid to the Department of Revenue, is exclusively that of the state. An employee’s rights as to any such tax withheld, reported and unpaid are those of a tax cre…

150-316-0345 Requirement to use Electronic Funds Transfer (1) An employer required to make payment of Oregon combined payroll taxes and assessments under ORS 316.162 through 316.216 shall do so by electronic funds transfer (EFT) if the employer is required to make federal payroll…

150-316-0347 Electronic Funds Transfer. Payroll taxes and corporation estimated income and excise taxes not combined in determining mandate. Payments to be included. (1) For the purpose of determining whether payment of combined quarterly payroll taxes and assessments is required…

150-316-0355 Withholding: Payment and Reports It is the responsibility of a new employer to register with the department. A registration number must be assigned by the department for use in its administration of the income tax withholding, transit payroll, and statewide transit t…

150-316-0357 Waiver of Termination Reports For the purposes of waiver of termination reports, the Department of Revenue adopts the successor-in-interest definition as found in Employment Division OAR 471-031-0140, Filed 12-23-77 and Effective 1-1-78. Statutory/Other Authority: OR…

150-316-0359 Withholding: Annual Report by Employer (1) Definitions. As used in this rule: (a) “Employer” has the meaning given that term in ORS 316.162 and also includes lenders, sureties, and other persons subject to withholding and reporting requirements under ORS 316.169. (b)…

150-316-0361 Combined Reports and Statewide Transit Tax Reports: Agricultural Employers (1) If an agricultural employer is subject to a tax program (in addition to withholding tax) for example, Tri-Met or Lane Transit tax, the employer is required to file the Oregon Combined Payr…

150-316-0370 Liability for Unpaid Withholdings (1) It is the employer’s duty to hold in trust any amount of income tax withholding and statewide transit tax withheld from employee wages and to assume custodial liability for amounts to be paid to the department. Any employer who f…

150-316-0372 Officer Liability: Joint Determination of Liability Conference (1) If one or more of the persons who may be held liable under ORS 316.162 to 316.212 or ORS 320.550 appeals an assessment of unpaid income tax withholding or statewide transit tax, a joint conference may…

150-316-0380 Withholding Penalties See ORS 305.228, 305.990, 305.992, 314.400, 314.410, 314.440, 314.991, 316.992 and the corresponding rules for provisions regarding penalties, misdemeanors, and jeopardy assessments applicable to income tax withholding, statewide transit tax and…

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 …

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…

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…

150-316-0400 Resident and Nonresident Estates and Trusts (1) For the purposes of the taxes imposed upon the income of estates and trusts and paid by the fiduciary thereof, estates and trusts are classified as either resident or nonresident. (2) An estate is a resident if the fidu…

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 Retu…

150-316-0410 Fiduciary Adjustment The modifications applicable to individuals described in ORS Chapter 316 may or may not be applied in computing the income tax liability of an estate or trust, depending on the treatment of distributable net income of the estate or trust in the I…

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 ye…

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 …

150-316-0425 Oregon Multiple Funeral Trust Tax Return (1) General Rule. A trust established as a “funeral trust” and filing a fiduciary return under federal law as a grantor trust may join in filing an Oregon multiple funeral trust tax return. (2) Election. The election provided …

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 posse…

150-316-0435 Petitioning Department to Equally Split Joint Liability (1) A tax liability incurred by spouses filing a joint tax return is joint and several. Each spouse is responsible for the entire liability. However, the department may split a joint tax liability equally betwee…

150-316-0440 Innocent Spouse, Separation of Liability, and Equitable Relief Provisions (1) Internal Revenue Service (IRS) Determination Made to Grant Relief. The department will grant relief from liability for tax under ORS 316.369 if the person seeking relief provides proof that…

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 Inter…

150-316-0450 Decedent’s Estate: Request for a Final Tax Determination (1) The representative of a decedent’s estate has an affirmative duty to file any returns which the decedent failed to file or was unable to file (e.g., the return required for the part of the tax year prior to…

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…

150-316-0465 Estimated Tax (1)(a) No declaration of estimated tax is required if the estimated tax as defined ORS 316.557 is less than $1,000. (b) A required declaration shall contain information and be in the form prescribed by the Department of Revenue. Federal forms are not ac…

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…

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 othe…

150-316-0480 Estimated Tax: Application of Prior Year Overpayment (Refund) (1) Definitions for purposes of this rule: (a) “Open estimated tax account” is an account to which estimated tax installments may be made under ORS 316.579. (b) “Estimated tax underpayment period” is the p…