Oregon Administrative Code

150-305-0140 Interest on Deficiencies and Delinquencies (1) Adjustment to statutory rate. For deficiencies and delinquencies owing on or after January 1, 2026, unless otherwise provided by law, every deficiency and delinquency arising under any law administered by the department …

150-305-0142 Interest on Refunds (1) Adjustment to statutory rate. For refunds owing on or after January 1, 2026, unless specifically provided by statute or by rule, every refund arising under any law administered by the department will bear interest at the rate of eight percent …

150-305-0144 Interest Rate Formula Rule (1) Once a year the director will compare the Oregon interest rate used for deficiencies, delinquencies, and refunds with the interest rate charged by the Internal Revenue Service for deficiencies and delinquencies to which one percent has …

150-305-0150 Defines Order for Purposes of Interest Rate Increase (1) If tax is not paid within 60 days after the date an individual is notified of a tax delinquency, the interest rate imposed by ORS 305.220 is increased by four (4) percent annually. The interest is also increase…

150-305-0152 Interest Rate Increase — Jurisdictional Only Appeals For purposes of ORS 305.222(3), an appeal to the Oregon Tax Court must be one in which there is jurisdiction to consider the merits of the issue. In an appeal where the court must first determine whether it has jur…

150-305-0160 Penalty for Dishonored Checks (1) A penalty on dishonored checks will be assessed in the amount of $25.00 or three times the amount of the check, whichever is greater, but not to exceed $500.00. This is in addition to all other penalties provided by statute. (2) Othe…

150-305-0170 Representation of Taxpayers before the Department of Revenue (1) Application of ORS 305.230. The provisions of ORS 305.230 apply to all administrative proceedings before the Department of Revenue. Only those individuals who qualify under ORS 305.230 and this rule may…

150-305-0180 Designation of Oregon Tax Matters Partner (1) A partner who elects to designate a tax matters partner as their authorized representative in proceedings before the Department of Revenue for issues relating to the partnership adjustments on a notice of deficiency shall…

150-305-0182 Binding Actions of the Tax Matters Partner The provisions of this rule dealing with hearings apply to hearing requests filed with the Department of Revenue prior to September 1, 1997. See OAR 150-305-0330 for information about hearing requests filed on or after Septe…

150-305-0190 Compromise of a Disputed Liability (1) A disputed liability is one where the taxpayer sends written objection to a notice of deficiency, appeals a notice of assessment, or appeals a determination by the director of the Department of Revenue. (2) Compromise of a dispu…

150-305-0192 Appeals of Interest Charged on the Underpayment of Estimated Tax (1) Appeals based on accuracy. Interest on underpayment of estimated tax imposed under the provisions of ORS 316.587 or 314.525 must be appealed as if it were a deficiency, as defined in OAR 150-305-019…

150-305-0193 Satisfying liens or warrants (1) For the purpose of the satisfaction of liens or warrants, for amounts collected by the Department, a lien or warrant is satisfied when a balance under the lien or warrant is paid in full upon receipt of one or more of the acceptable f…

150-305-0194 “Deficiency” Defined A deficiency is the amount by which the tax as correctly computed exceeds the tax, if any, reported by the taxpayer. If, after the original deficiency has been assessed, subsequent information shows the correct amount of tax to be greater than pr…

150-305-0196 Notices of Deficiency and Assessment Mailed When Authorization to Represent Signed (1) If a written authorization to represent the taxpayer is filed with the department, original Notices of Deficiency (as referred to by ORS 305.265(2)) and original Notices of Assessm…

150-305-0198 Reopening an Audit (1) Policy. When an issue has been audited, a position taken, and the case closed, that issue may be reopened for audit if there is evidence of fraud, malfeasance, concealment, misrepresentation of material fact, omission of income, or collusion ei…

150-305-0200 Adjustments Included in Deficiency Notice When Federal Audit Report Received See OAR 150-314-0224 which explains what adjustments can be included in a Notice of Deficiency when a federal audit report is received. Statutory/Other Authority: ORS 305.100 Statutes/Other …

150-305-0202 Language Used to Request a Conference or File Written Objections (1) Requesting a Conference. A conference request must be mailed, emailed, faxed, or sent through Revenue Online at the address provided in the Notice of Deficiency or accompanying statement. In all eve…

150-305-0204 Conferences: Purpose and Procedure (1) A conference is a meeting with a department conference officer who reviews the reasons for the adjustment with the taxpayer. The purpose of a conference is to allow a person to obtain an informal department review of a deficienc…

150-305-0206 Written Objections: Procedures (1) When the department receives written objections, a department representative shall review the objections and try to resolve the disagreement. The representative shall then reach a decision regarding the written objections. (2) Once …

150-305-0208 Assessing Tax on Failure to File (1) The law places an affirmative duty on the taxpayer to file a timely and correct return and directs the department to take steps to require compliance. (2) General. In the case of a failure by the taxpayer to file a return, the dep…

150-305-0210 Last Known Address (1) Notices of Deficiency and Notices of Assessment are required to be mailed to the last-known address or via other means as agreed upon by the taxpayer. Pursuant to ORS 305.127, the department may provide notice to a person by means other than re…

150-305-0212 Interest on Deficiency If a refund is allowed due to a net operating loss carryback and subsequently it is determined that the amount of the net operating loss was in error, interest shall be computed on the amount of the incorrectly received refund (tax and interest…

150-305-0214 Penalties (1) A fraud penalty imposed pursuant to ORS 305.265(13) is separate and distinct from delinquency penalties as it relates to the nature of the deficiency itself. Such penalty normally will be imposed with the issuance of the initial notice of deficiency. Th…

150-305-0216 Appeal from a Notice of Deficiency: Periods of Limitation (1) Date of assessment if taxpayer does not file a timely appeal with the department. If a taxpayer pays a deficiency in full before the department issues a notice of assessment and does not send a timely writ…

150-305-0218 Waiver of a Conference or Written Objection; Direct Appeal of Deficiency (1) A taxpayer may waive a conference or written objection and request immediate assessment of a deficiency for purposes of filing a direct appeal with the Magistrate Division of the Oregon Tax …

150-305-0230 Claim for Refund A claim for refund is not required to be submitted on a particular form. A claim for refund may be submitted as an original return or report claiming a refund, an amended return or report claiming a refund, or any other refund computation setting for…

150-305-0232 Notices of Proposed Refund Adjustment Mailed When Authorization to Represent Signed (1) If a written authorization to represent the taxpayer is filed with the department, the original Notice of Proposed Refund Adjustment (as referred to by ORS 305.270(3)) shall be se…

150-305-0234 Written Objections to a Proposed Refund Adjustment (1) Written Objection Procedures. (a) If a taxpayer disagrees with a notice of proposed refund adjustment, and does not want a conference, the taxpayer may file written objections with the department. (b) The taxpaye…

150-305-0236 Date of Notice (1) For purposes of ORS 305.270(4), the term “date of the notice of proposed adjustment” means the date the notice was mailed. (2) The date the notice was mailed shall be deemed to be the date printed on the notice unless the addressee can establish by…

150-305-0238 Audit Period for Refunds Issued without Examination The department shall have the periods of limitation as provided in ORS 314.410 or one year from the date the refund check is issued, whichever period expires the later, to examine or audit the refund claim and issue…

150-305-0240 Proposed Refund Adjustment (1) A taxpayer may waive a conference or written objection and appeal a notice of proposed refund adjustment as provided in this rule. (2) In general. Any request for a direct appeal from a notice of proposed refund adjustment must meet gen…

150-305-0260 Relief for Subsequent Tax Years (1) ORS 305.285 provides an additional procedural remedy for a taxpayer. It precludes the need for filing a protective petition during the pendency of petition for a previous year. While ORS 305.285 extends the period for filing petiti…

150-305-0270 Beneficial Ownership (1) An employer is any business entity which has employees. (2) A business entity’s activity shall not be considered to have ceased doing business if the employer has changed its name and still the business activity continues under the same benef…

150-305-0272 Cancellation of Doubtful Liabilities (1) This procedure is intended for those cases where the tax assessment set up by the department exceeds the taxpayer’s correct tax liability by at least $100. (2) For purposes of this rule, the correct tax is the amount of tax de…

150-305-0274 Refund of Penalty and Interest The department must refund penalty and interest when it has been determined that it has been paid but was not legally due. Interest must be computed on the amount of tax plus penalty and interest not legally due. The interest starting d…

150-305-0276 Appeal Time Frame If a taxpayer wishes to appeal denial of a request for cancellation of assessment or refund, the appeal shall be made within 90 days of notice of denial. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 305.295 History: Renumbe…

150-305-0290 Concurrent Appeals (1) Applicability of ORS 305.305. (a) Any reference in this rule to the appeal provisions in ORS 305.305 refers to deficiencies of Oregon tax based on: (A) A federal revenue agent’s report; or (B) The audit report of another state’s taxing authorit…

150-305-0300 “Methods of Collection” Defined Methods of collection include but are not limited to seizure of wages, bank accounts, personal property, business property, stocks, bonds, dividends and real property to the extent it is determined to be cost effective by the departmen…

150-305-0302 Contracts Requiring Certificate of Compliance with Oregon Tax Laws (1) An agency must obtain a certificate of compliance with Oregon tax laws from providers before entering into certain contracts. Those contracts or agreements under which goods, services, or real est…

150-305-0304 Certificate of Compliance With Oregon Tax Laws (1) The Department of Revenue may issue a certificate of tax compliance to a taxpayer upon request. The certificate acts as an official acknowledgement by the department that the taxpayer is in compliance with all tax or…

150-305-0306 Circumstances Not in Violation of Oregon Tax Laws (1) For purposes of ORS 305.385(6), a taxpayer complying with an acceptable payment arrangement for satisfaction of an unpaid tax obligation is not in violation of the tax laws as they relate to that unpaid tax. Any t…

150-305-0308 Annual Certification Requirement (1) An agency shall obtain a written certification of compliance with the tax laws listed in ORS 305.380(4) from each provider of goods, services, or real estate space. The written certification may be obtained either: (a) Annually; o…

150-305-0320 Mediation Any statements made during mediation will be confidential except as provided for in ORS 314.840. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 305.501 History: Renumbered from 150-305.501, REV 49-2016, f. 8-13-16, cert. ef. 9-1-16 R…

150-305-0330 Appeal Procedures (1) The Department of Revenue shall give notice to the taxpayer to reflect that final department actions may only be appealed to the Magistrate Division of the Oregon Tax Court. (2) Time for Filing Appeals: (a) Under ORS 305.280(2), an appeal from a…

150-305-0340 Stay of Collection: When Collection Action Won’t Be Stayed (1) The department may continue to collect delinquent taxes during the pendency of an appeal if it becomes known the taxpayer is preparing to depart from the state or move assets out of the state to avoid pay…

150-305-0350 Offset of State Debt Through U.S. Treasury Offset Program (1) For the purpose of this rule: (a) A debt is “liquidated” if the debt meets the criteria for liquidated debt under the Oregon Accounting Manual, Chapter 35, the debtor is not currently in bankruptcy, and th…

150-305-0360 Rules Application (1) “Local marijuana tax” means a tax or fee authorized under ORS 475B.491 on the sale of marijuana items that are sold within an area subject to a city’s jurisdiction or an unincorporated area subject to a county’s jurisdiction by a person that hol…

150-305-0362 Appearance Procedure — Local Taxes Administered by the Department of Revenue A political subdivision may intervene in any conference held by the department in connection with a local tax administered by the department under an agreement with that political subdivisio…

150-305-0370 Use of Checkoff Resources Entities receiving checkoff resources are restricted in the manner in which the resources may be used by the organization. (1) Checkoff resources received by an entity may only be used to fund: (a) Existing programs. Checkoff resources may o…

150-305-0380 Application and Signature Due Dates Completed applications and completed signature petitions must be received by the Charitable Checkoff Commission by July 1 of the first tax year for which the entity seeks to be included on a schedule of the individual tax return. S…