Title 29, Revenue and Taxation

If the operations of a taxpayer subject to ORS 314.280 or 314.615 result in a net loss, that net loss shall be apportioned in the same manner as the net income so as fairly and accurately to reflect the net loss of the business done within this state. The net loss applicable to O…

The provisions of ORS 314.280 and 314.605 to 314.675 apply to the allocation and apportionment of the income of corporations and nonresident individuals, and do not apply to the income of resident individuals, resident estates, and resident trusts taxable as provided in the Perso…

For purposes of ORS 317.267, amounts of global intangible low-taxed income described in section 951A of the Internal Revenue Code and included in gross income shall be treated in the same manner as a dividend. [2019 c.556 §4]

(1) Except as provided in ORS 314.722 or 314.731 to 314.737, a partnership as such is not subject to the tax imposed by ORS chapter 316, 317 or 318. Partnership income shall be computed pursuant to section 703 of the Internal Revenue Code, with the modifications, additions and su…

(1) Each item of partnership income, gain, loss or deduction has the same character for a partner as it has for federal income tax purposes. If an item is not characterized for federal income tax purposes, it has the same character for a partner as if realized directly from the s…

(1) The adjusted basis of a partner’s interest in a partnership shall be determined pursuant to the method described in sections 704(c)(1)(B)(iii), 705 and 733 of the Internal Revenue Code, and shall be increased or decreased as provided in this chapter and ORS chapter 316, 317 o…

(1) Amounts paid or incurred to organize a partnership may be deducted in the manner provided in section 709(b) of the Internal Revenue Code. (2) No gain or loss shall be recognized upon a contribution of property to a partnership in exchange for an interest in a partnership, unl…

(1) Gain or loss shall not be recognized by a partner upon a distribution by a partnership to that partner, except to the extent provided in section 731 of the Internal Revenue Code. (2) The character of gain or loss on the disposition by a distributee partner of unrealized recei…

(1) As used in this section, “publicly traded partnership” means a partnership treated as a corporation for federal income tax purposes under section 7704 of the Internal Revenue Code for the tax year. (2) Persons carrying on business as partners in a publicly traded partnership …

(1) Every partnership having a resident partner or having any income derived from sources in this state, determined in accordance with the applicable rules as in the case of a nonresident individual, shall make a return for the taxable year setting forth all items of income, gain…

Each partnership transacting business in this state shall, for the privilege of carrying on or doing business by it within this state, include with the filing of the return required under ORS 314.724 payment of a minimum tax of $150. [2009 c.745 §3]

ORS 314.724 shall apply to both corporate and noncorporate partners. [1989 c.625 §34]

The Department of Revenue may disclose to a partner of a partnership those items of partnership gain, loss or other particulars relating to the partnership that are necessary to determine or administer the tax imposed by ORS chapter 316, 317 or 318 if the department considers the…

As used in ORS 314.731 to 314.737: (1) “Adjustment” means a partnership adjustment, as defined in section 6241 of the Internal Revenue Code, whether that adjustment arises from action by the Internal Revenue Service or from the taxpayer’s filing of an amended federal return, a fe…

(1) Notwithstanding ORS 314.380, and except for adjustments required to be reported for federal purposes pursuant to section 6225(a)(2) of the Internal Revenue Code, partnerships and partners shall report the adjustments arising from a partnership-level audit or an administrative…

The Department of Revenue shall assess additional tax, interest and penalties for adjustments arising from an audit by the Internal Revenue Service, including a partnership-level audit, or reported by the taxpayer on an amended federal return, federal refund claim or other simila…

Except for adjustments required to be reported for federal purposes under section 6225(a)(2) of the Internal Revenue Code, a taxpayer shall file a claim for refund or credit of tax arising from adjustments made by the Internal Revenue Service on or before the later of: (1) The ex…

Nothing in ORS 314.731 to 314.737 or the amendments to ORS 305.242, 314.712, 314.714 or 314.778 by sections 6 to 9, chapter 132, Oregon Laws 2019, is intended to affect the obligation or right of a partner subject to the tax imposed under ORS chapter 316, 317 or 318 to report cha…

For purposes of this chapter and ORS chapters 316, 317 and 318: (1) “C corporation” means, with respect to any taxable year, a corporation which is not an S corporation for such year. (2) “S corporation” means, with respect to any taxable year, a corporation for which an election…

(1) Except as otherwise provided in ORS 314.766, 314.767 and 317.090, an S corporation shall not be subject to the taxes imposed by ORS chapter 316, 317 or 318. (2)(a) Subject to paragraphs (b) to (d) of this subsection, the taxable income of an S corporation shall be computed pu…

(1) The shareholder’s pro rata share of the income of an S corporation is subject to tax under ORS chapter 316. In determining the tax imposed under ORS chapter 316 of a shareholder for the shareholder’s taxable year in which the taxable year of the S corporation ends (or for the…

A distribution of property made by an S corporation with respect to its stock shall be treated in the manner provided under section 1368 of the Internal Revenue Code, subject to modifications, additions and subtractions under ORS chapter 316, 317 or 318. [Formerly 314.736]

(1) For purposes of employee fringe benefits, and subject to this chapter and ORS chapters 305, 316, 317 and 318 and ORS 314.712 to 314.722, 314.726 and 316.124, section 1372 of the Internal Revenue Code shall apply to an S corporation and its shareholders. (2) For purposes of fo…

(1) If, for any taxable year beginning in the recognition period, an S corporation has a net recognized built-in gain, there is hereby imposed a tax on the income of such corporation for such taxable year. (2) The amount of the tax imposed under subsection (1) of this section sha…

(1) If for the taxable year an S corporation has the following, then there is hereby imposed a tax on the income of such corporation for the taxable year: (a) Accumulated earnings and profits at the close of the taxable year; and (b) Gross receipts more than 25 percent of which a…

(1) Subject to subsection (2) of this section, if the Internal Revenue Code requires or permits an election or revocation to be made by an S corporation, then that election or revocation shall apply for Oregon tax purposes. If the Internal Revenue Code requires or permits an elec…

The definitions and special and transitional rules of sections 1377 and 1379 of the Internal Revenue Code apply for Oregon tax purposes. [Formerly 314.746]

The Department of Revenue may disclose to the shareholder of an S corporation those items of S corporation gain, loss or other particulars relating to the S corporation that are necessary to administer the tax imposed by ORS chapter 316, 317 or 318 if the department considers the…

(1) Any increase in tax by reason of a recapture of LIFO benefits under section 1363(d) of the Internal Revenue Code shall be payable in four equal installments. (2)(a) The first installment shall be paid on or before the due date for the return of the tax for the last taxable ye…

(1) Except as provided in ORS 314.766 (5)(b), the tax credits allowed or allowable to a C corporation for purposes of ORS chapter 317 or 318 shall not be allowed to an S corporation. The business tax credits allowed or allowable for purposes of ORS chapter 316 shall be allowed or…

As used in ORS 314.775 to 314.784: (1) “Distributive income” means the net amount of income, gain, deduction or loss of a pass-through entity for the tax year of the entity. (2) “Lower-tier pass-through entity” means a pass-through entity, an ownership interest of which is held b…

(1)(a) A pass-through entity having distributive income attributable to Oregon sources shall file a composite return of personal income and corporate income and excise tax on behalf of owners that elect to be included in the composite return filed by the entity. Distributive inco…

(1) A pass-through entity shall withhold tax as prescribed in this section if: (a) The pass-through entity has distributive income from Oregon sources; and (b) One or more owners of the entity are nonresidents and do not have other Oregon source income. (2) For each taxpayer desc…

(1) A pass-through entity is not required to withhold taxes under ORS 314.781 on behalf of a nonresident owner if: (a) The nonresident owner has a share of distributive income that is less than $1,000 for the tax year of the pass-through entity; (b) Withholding is not required pu…

The Department of Revenue shall administer and enforce the tax imposed by any law imposing tax upon or measured by net income. For this purpose the department may divide the state into districts. In each district a branch office may be established. The department may, from time t…

All officers empowered by law to administer oaths, the Director of the Department of Revenue and any agents, auditors and other employees as the director may designate, shall have the power to administer an oath to or take the acknowledgment of any person in respect of any return…

The Department of Revenue may, from time to time, make such rules and regulations, not inconsistent with legislative enactments, that it considers necessary to enforce income tax laws. [1957 c.632 §30 (enacted in lieu of 316.720 and 317.505)]

(1) Except as otherwise specifically provided in rules adopted under ORS 305.193 or in other law, it shall be unlawful for the Department of Revenue or any officer or employee of the department to divulge or make known in any manner the amount of income, expense, deduction, exclu…

(1) The Department of Revenue may: (a) Furnish any taxpayer, representative authorized to represent the taxpayer under ORS 305.239 or person designated by the taxpayer under ORS 305.193, upon request of the taxpayer, representative or designee, with a copy of the taxpayer’s incom…

(1) As used in this section, “consumer reporting agency” means any person that, for monetary fees or dues or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on con…

The certificate of the Department of Revenue to the effect that a tax has not been paid, that a return has not been filed or that information has not been supplied, as required by or under any law imposing a tax upon or measured by net income, shall be prima facie evidence that t…

The Department of Revenue shall prepare and publish annually statistics, reasonably available, with respect to the operation of income tax laws, including amounts collected, classification of taxpayers and other facts considered pertinent and valuable. [1957 c.632 §37 (enacted in…

The Department of Revenue may pay rewards to persons, other than officers or employees of the department, furnishing information that leads to the recovery of tax from other persons guilty of violating the provisions of income tax laws. Such rewards shall not exceed 10 percent of…

A person granted access to information described in ORS 314.835 under ORS 314.840 (2)(b) for the purpose of preparing revenue estimates shall not knowingly or intentionally use the information disclosed or the information to which access is given for any purpose if the effect of …

(1) Section 7508 of the Internal Revenue Code, insofar as it describes periods of time to be disregarded with respect to the performance of acts relative to federal income tax liability of an individual (or individual and spouse) who performs service in an area designated as a co…

(1) A person or an officer or employee of a corporation or a member or employee of a partnership who violates ORS 314.075 is liable to a penalty of not more than $1,000, to be recovered by the Attorney General, in the name of the state, by action in any court of competent jurisdi…