Oregon Administrative Code

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…

150-314-0205 Substantial Understatement Penalty (SUP) (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 understatemen…

150-314-0207 Waiver of 20 Percent Substantial Understatement of Net Tax Penalty Imposed under ORS 314.402 (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 depa…

150-314-0209 Substantial Authority, Adequate Disclosure and Reasonable Basis (1) Definitions. For purposes of ORS 314.402, OAR 150-314-0205, and this rule: (a) “Substantial authority” has the same meaning as used in Treasury Regulation 1.6662-4(d). (b) “Adequate disclosure” has t…

150-314-0215 Listed Transaction Understatement; Penalty (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 depart…

150-314-0220 Additional Assessments (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 un…

150-314-0222 Five-Year Statute of Limitations (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,…

150-314-0224 Time Limit to Make Adjustment (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…

150-314-0226 Notification of Gain Realized Upon the Sale or Exchange of a Principal Residence (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 t…

150-314-0228 Extension of Period for Assessment 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, …

150-314-0230 Effect of Federal Extension of Period for Assessment 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 ass…

150-314-0240 Refunds Generally (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…

150-314-0242 Refunds (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 i…

150-314-0244 Minimum Offset Amount (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 …

150-314-0246 Interest Computation — Offset (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…

150-314-0248 Refund Offset Priority (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 …

150-314-0250 Refunds; Net Operating Loss and Net Capital Loss Carryback Claims (1) Application. For purposes of this rule, provisions applying to individuals also apply to estates and trusts. (2) Extended period for refund claim. (a) A special period of limitations is provided un…

150-314-0252 Effect of Federal Extension of Period for Assessment If a taxpayer and the Commissioner of Internal Revenue enter into an agreement, or renewal thereof, extending the period of time for giving notices of deficiencies and assessing deficiencies of federal income tax f…

150-314-0254 Separate Refunds When a Joint Return Has Been Filed (1) The department may, as a convenience to taxpayers, issue separate refunds when either spouse submits a signed request. To issue separate refunds when a joint refund check has already been issued, the check must …

150-314-0256 Refunds of Tax Overpayments to Spouse or Heirs (1) For deaths which occur on or after September 9, 1995: Upon the death of a taxpayer entitled to a refund not in excess of $10,000, when the estate is not probated, refunds may be made to survivors by classes upon fili…

150-314-0265 Model Recordkeeping and Retention (1) Definitions. For purposes of this rule, these terms shall be defined as follows: (a) “Database management system” means a software system that controls, relates, retrieves, and provides accessibility to data stored in a database.…

150-314-0267 Requirement to Provide Copies of Documents (1) Definitions for purposes of this rule. (a) “Photocopy” (photocopied) means a copy or reproduction of an original document including books and papers; to make a photographic reproduction of any document, printed, pictoria…

150-314-0275 Definition: Collection Charge As used in ORS 314.430(1) “collection charge” includes: (1) The fees and costs listed in ORS 18.999(4), related to recovery of expenses incurred in enforcing judgments, and (2) All fees or charges of the Secretary of State imposed under …

150-314-0277 Payment Secured by Bond, Deposit or Otherwise The issuance of a warrant to the sheriff to enforce collection of delinquent taxes will be stayed either by paying the amount of assessed taxes, penalties and accrued interest after it becomes due or by securing payment o…

150-314-0279 Statute of Limitation on Tax Collection No statute of limitation runs on a tax self-assessed or additionally assessed by the Department in the time allowed by ORS 314.410 and collectible by warrant. However, the statute of 10 years limitation on judgment liens begins…

150-314-0285 Assessment of Withholding Tax Against Liable Officers 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 150-305.525 for information about hearing requests filed on or a…

150-314-0290 Estimated Tax: When Estimates Are Required; Refunds Prior to Filing of Return (1) Every corporation or group of corporations required to file an Oregon excise or income tax return and expecting to have a tax liability of $500 or more must make estimated tax payments.…

150-314-0292 Estimated Tax: When Estimates Are Required For Tax Exempt Corporations Tax exempt corporations subject to tax on their “Unrelated Business Income” and that are required to file and pay federal income taxes, must also file an Oregon tax return. If their Oregon tax lia…

150-314-0294 Estimated Tax: Affiliated Corporations (1) If two or more affiliated corporations file a consolidated state return as described in ORS 317.710 through 317.725, each shall be jointly and severally liable for the filing and payment of the estimated tax liability. Estim…

150-314-0300 Estimated Tax: Due Dates of Payments for Short-Period Returns If a return is filed for a short period of less than 12 months, the estimated tax payments are due as follows: (1) If the period covered is less than four months, only one payment is required. It is equal …

150-314-0302 Estimated Tax: Application of Payments (1) Overpayments of tax (a) Election. When a corporation files its completed excise or income tax return and the tax shown due thereon is less than the amounts previously paid for that year, the corporation may make an irrevocab…

150-314-0310 Requirement to Use Electronic Funds Transfer (1) For tax years beginning on or after January 1, 2002, corporations are required to make estimated Oregon Corporation Excise or Income Tax payments by electronic funds transfer (EFT) if required to pay federal corporatio…

150-314-0315 Corporation Estimated Tax: Delinquent or Underestimated Payment or Both, Constitutes Underpayment (1) An underpayment of corporation estimated tax exists when the payments received on or before a payment due date are less than the required payment due as determined u…

150-314-0317 Estimated Tax: Consolidated Return Underpayments (1) If a consolidated state return is filed, any underpayment shall be computed on a consolidated basis. In computing the underpayment on a consolidated basis, the tax and facts shown on the returns for the preceding y…

150-314-0319 Estimated Tax: Apportioned Returns Corporations that are required to apportion income between Oregon and other states, are required to use either the current period’s actual or the prior full year’s apportionment factor to meet the annualization exception to underpay…