75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
Senate Bill 690
Sponsored by COMMITTEE ON FINANCE AND REVENUE
CHAPTER ................
AN ACT
Relating to personal income tax compliance; creating new
provisions; amending ORS 305.225, 305.437, 314.840, 673.415 and
673.710; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 305.225 is amended to read:
305.225. (1) Notwithstanding ORS 314.835, if the Department of
Revenue determines that assistance of a law enforcement agency is
necessary to insure compliance with any of the laws of this state
administered by it, the department may request such assistance.
In connection with assistance requested under this section only,
the Department of Revenue may disclose a tax return, report or
claim, or information in its files regarding a tax return, report
or claim permitted or required to be filed with the department
under any law administered by the department to the Oregon State
Police, district attorney, grand jury { - or - } { + , + }
judicial authority { + or local law enforcement agency + } for
the investigation or the prosecution of violations of the
criminal laws of this state relating to perjury, theft or forgery
if those violations occur in connection with the filing of such a
return, report or claim, or of the tax laws of this state.
Disclosure under this section shall be solely for the purpose of
investigation or prosecution of violations involving the filing
of a false or fraudulent return, report or claim, wherein the
validity of the return, report or claim, or information contained
therein, is at issue. Returns, reports or claims, or information
contained therein shall not be disclosed if the purpose for which
the information is sought is as evidence of a crime unrelated to
the validity of the return, report or claim, or the information
contained therein, supplied to the department or if the
information is requested by a law enforcement agency in
connection with any other investigation or prosecution.
(2) Each person given access to the confidential tax
information authorized to be disclosed under this section shall
first execute and file with the department the certificate
required by ORS 314.840 (3) and shall cause a similar certificate
to be executed and filed with the department by any associate or
subordinate who is assigned to use the information for the
purposes stated in this section.
SECTION 2. ORS 314.840 is amended to read:
314.840. (1) The Department of Revenue may:
(a) Furnish any taxpayer, representative authorized to
represent the taxpayer under ORS 305.230 or person designated by
Enrolled Senate Bill 690 (SB 690-A) Page 1
the taxpayer under ORS 305.193, upon request of the taxpayer,
representative or designee, with a copy of the taxpayer's income
tax return filed with the department for any year, or with a copy
of any report filed by the taxpayer in connection with the
return, or with any other information the department considers
necessary.
(b) Publish lists of taxpayers who are entitled to unclaimed
tax refunds.
(c) Publish statistics so classified as to prevent the
identification of income or any particulars contained in any
report or return.
(d) Disclose a taxpayer's name, address, telephone number,
refund amount, amount due, Social Security number, employer
identification number or other taxpayer identification number to
the extent necessary in connection with collection activities or
the processing and mailing of correspondence or of forms for any
report, return or claim required in the administration of ORS
310.630 to 310.706, any local tax under ORS 305.620, or any law
imposing a tax upon or measured by net income.
(2) The department also may disclose and give access to
information described in ORS 314.835 to:
(a) The Governor of the State of Oregon or the authorized
representative of the Governor:
(A) With respect to an individual who is designated as being
under consideration for appointment or reappointment to an office
or for employment in the office of the Governor. The information
disclosed shall be confined to whether the individual:
(i) Has filed returns with respect to the taxes imposed by ORS
chapter 316 for those of not more than the three immediately
preceding years for which the individual was required to file an
Oregon individual income tax return.
(ii) Has failed to pay any tax within 30 days from the date of
mailing of a deficiency notice or otherwise respond to a
deficiency notice within 30 days of its mailing.
(iii) Has been assessed any penalty under the Oregon personal
income tax laws and the nature of the penalty.
(iv) Has been or is under investigation for possible criminal
offenses under the Oregon personal income tax laws. Information
disclosed pursuant to this paragraph shall be used only for the
purpose of making the appointment, reappointment or decision to
employ or not to employ the individual in the office of the
Governor.
(B) For use by an officer or employee of the Oregon Department
of Administrative Services duly authorized or employed to prepare
revenue estimates, or a person contracting with the Oregon
Department of Administrative Services to prepare revenue
estimates, in the preparation of revenue estimates required for
the Governor's budget under ORS 291.201 to 291.226, or required
for submission to the Emergency Board, or if the Legislative
Assembly is in session, to the Joint Committee on Ways and Means,
and to the Legislative Revenue Officer under ORS 291.342, 291.348
and 291.445. The Department of Revenue shall disclose and give
access to the information described in ORS 314.835 for the
purposes of this subparagraph only if:
(i) The request for information is made in writing, specifies
the purposes for which the request is made and is signed by an
authorized representative of the Oregon Department of
Administrative Services. The form for request for information
shall be prescribed by the Oregon Department of Administrative
Enrolled Senate Bill 690 (SB 690-A) Page 2
Services and approved by the Director of the Department of
Revenue.
(ii) The officer, employee or person receiving the information
does not remove from the premises of the Department of Revenue
any materials that would reveal the identity of a personal or
corporate taxpayer.
(b) The Commissioner of Internal Revenue or authorized
representative, for tax administration and compliance purposes
only.
(c) For tax administration and compliance purposes, the proper
officer or authorized representative of any of the following
entities that has or is governed by a provision of law that meets
the requirements of any applicable provision of the Internal
Revenue Code as to confidentiality:
(A) A state;
(B) A city, county or other political subdivision of a state;
(C) The District of Columbia; or
(D) An association established exclusively to provide services
to federal, state or local taxing authorities.
(d) The Multistate Tax Commission or its authorized
representatives, for tax administration and compliance purposes
only. The Multistate Tax Commission may make the information
available to the Commissioner of Internal Revenue or the proper
officer or authorized representative of any governmental entity
described in and meeting the qualifications of paragraph (c) of
this subsection.
(e) The Attorney General, assistants and employees in the
Department of Justice, or other legal representative of the State
of Oregon, to the extent the department deems disclosure or
access necessary for the performance of the duties of advising or
representing the department pursuant to ORS 180.010 to 180.240
and the tax laws of this state.
(f) Employees of the State of Oregon, other than of the
Department of Revenue or Department of Justice, to the extent the
department deems disclosure or access necessary for such
employees to perform their duties under contracts or agreements
between the department and any other department, agency or
subdivision of the State of Oregon, in the department's
administration of the tax laws.
(g) Other persons, partnerships, corporations and other legal
entities, and their employees, to the extent the department deems
disclosure or access necessary for the performance of such
others' duties under contracts or agreements between the
department and such legal entities, in the department's
administration of the tax laws.
(h) The Legislative Revenue Officer or authorized
representatives upon compliance with ORS 173.850. Such officer or
representative shall not remove from the premises of the
department any materials that would reveal the identity of any
taxpayer or any other person.
(i) The Department of Consumer and Business Services, to the
extent the department requires such information to determine
whether it is appropriate to adjust those workers' compensation
benefits the amount of which is based pursuant to ORS chapter 656
on the amount of wages or earned income received by an
individual.
(j) Any agency of the State of Oregon, or any person, or any
officer or employee of such agency or person to whom disclosure
or access is given by state law and not otherwise referred to in
this section, including but not limited to the Secretary of State
Enrolled Senate Bill 690 (SB 690-A) Page 3
as Auditor of Public Accounts under section 2, Article VI of the
Oregon Constitution; the Department of Human Services pursuant to
ORS 314.860 and 412.094; the Division of Child Support of the
Department of Justice and district attorney regarding cases for
which they are providing support enforcement services under ORS
25.080; the State Board of Tax Practitioners, pursuant to ORS
673.710; and the Oregon Board of Accountancy, pursuant to ORS
673.415.
(k) The Director of the Department of Consumer and Business
Services to determine that a person complies with ORS chapter 656
and the Director of the Employment Department to determine that a
person complies with ORS chapter 657, the following employer
information:
(A) Identification numbers.
(B) Names and addresses.
(C) Inception date as employer.
(D) Nature of business.
(E) Entity changes.
(F) Date of last payroll.
(L) The Director of Human Services to determine that a person
has the ability to pay for care that includes services provided
by the state institutions as described in ORS 179.321 or the
Department of Human Services or to collect any unpaid cost of
care as provided by ORS chapter 179.
(m) Employees of the Employment Department to the extent the
Department of Revenue deems disclosure or access to information
on a combined tax report filed under ORS 316.168 is necessary to
performance of their duties in administering the tax imposed by
ORS chapter 657.
(n) The State Fire Marshal to assist the State Fire Marshal in
carrying out duties, functions and powers under ORS 453.307 to
453.414, the employer or agent name, address, telephone number
and standard industrial classification, if available.
(o) Employees of the Department of State Lands for the purposes
of identifying, locating and publishing lists of taxpayers
entitled to unclaimed refunds as required by the provisions of
chapter 694, Oregon Laws 1993. The information shall be limited
to the taxpayer's name, address and the refund amount.
(p) In addition to the disclosure allowed under ORS 305.225,
state or local law enforcement agencies to assist in the
investigation or prosecution of the following criminal
activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
(q) The United States Postal Inspection Service or a federal
law enforcement agency, including but not limited to the United
States Department of Justice, to assist in the investigation of
the following criminal activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
Enrolled Senate Bill 690 (SB 690-A) Page 4
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
(r) The United States Financial Management Service, for
purposes of facilitating the reciprocal offsets described in ORS
305.612.
(s) A municipal corporation of this state for purposes of
assisting the municipal corporation in the administration of a
tax of the municipal corporation that is imposed on or measured
by income, wages or net earnings from self-employment. Any
disclosure under this paragraph may be made only pursuant to a
written agreement between the Department of Revenue and the
municipal corporation that ensures the confidentiality of the
information disclosed.
{ + (t) A consumer reporting agency, to the extent necessary
to carry out the purposes of section 7 of this 2009 Act. + }
(3)(a) Each officer or employee of the department and each
person described or referred to in subsection (2)(a), (e) to (k)
or (m) to (p) of this section to whom disclosure or access to the
tax information is given under subsection (2) of this section or
any other provision of state law, prior to beginning employment
or the performance of duties involving such disclosure or access,
shall be advised in writing of the provisions of ORS 314.835 and
314.991, relating to penalties for the violation of ORS 314.835,
and shall as a condition of employment or performance of duties
execute a certificate for the department, in a form prescribed by
the department, stating in substance that the person has read
these provisions of law, that the person has had them explained
and that the person is aware of the penalties for the violation
of ORS 314.835.
(b) The disclosure authorized in subsection (2)(q) of this
section shall be made only after a written agreement has been
entered into between the Department of Revenue and the person
described in subsection (2)(q) of this section to whom disclosure
or access to the tax information is given, providing that:
(A) Any information described in ORS 314.835 that is received
by the person pursuant to subsection (2)(q) of this section is
confidential information that may not be disclosed, except to the
extent necessary to investigate or prosecute the criminal
activities described in subsection (2)(q) of this section;
(B) The information shall be protected as confidential under
applicable federal and state laws; and
(C) The United States Postal Inspection Service or the federal
law enforcement agency shall give notice to the Department of
Revenue of any request received under the federal Freedom of
Information Act, 5 U.S.C. 552, or other federal law relating to
the disclosure of information.
(4) The Department of Revenue may recover the costs of
furnishing the information described in subsection (2)(k), (L)
and (n) to (p) of this section from the respective agencies.
SECTION 3. ORS 673.415 is amended to read:
673.415. (1) The Department of Revenue may furnish to the
Oregon Board of Accountancy a copy of the signature block of an
Enrolled Senate Bill 690 (SB 690-A) Page 5
income tax return prepared by any person for another. The
signature block may be furnished in instances in which the
department or the board has reasonable grounds to believe the
person preparing the return prepared it in violation of any
provision of ORS 673.010 to 673.457. The signature block shall
include the name, address and signature of the person who
prepared the income tax return and the date the return was
prepared. The department may include with the signature block the
name and address of the taxpayer, the number of the tax form
prepared
{ - and - } { + , + } the tax year of the income tax return
prepared { + and the information described in ORS 314.835 + }.
The board, and its members, officers and employees, shall use the
names and addresses furnished under this section solely in the
enforcement of ORS 673.010 to 673.457 and shall not otherwise
divulge or make known such information. A violation of this
prohibition against disclosure is punishable as provided in ORS
314.991 (2).
(2) The Department of Revenue may furnish to the board a copy
of the signature block of a tax return or report permitted or
required to be filed with the department and prepared by any
person for another. The signature block may be furnished in
instances where the department or the board has reasonable
grounds to believe the person preparing the return or report
prepared it in violation of any provision of ORS 673.010 to
673.457, or any rule adopted thereunder. The signature block
shall include the name, address and signature of the person who
prepared the tax return or report and the date the return or
report was prepared. The department may include with the
signature block the name and address of the taxpayer, the number
of the tax form or report prepared { - and - } { + , + } the
tax year of the return or report prepared { + and the
information described in ORS 314.835 + }. The board, its members,
officers and employees, shall use the names and addresses
furnished under this section solely in the enforcement of ORS
673.010 to 673.457 and shall not divulge or make known such
information. Any person who violates this prohibition against
disclosure, upon conviction, is punishable as provided in ORS
314.991 (2).
SECTION 4. ORS 673.710 is amended to read:
673.710. (1) If a personal income tax return is prepared by
someone other than the taxpayer, the Department of Revenue may
furnish to the State Board of Tax Practitioners a copy of that
portion of the return that shows:
(a) The name, business name and address of the preparer;
(b) The date of preparation; and
(c) The signature of the preparer.
(2) In instances where the department or the board has
reasonable grounds to believe the person preparing the return
prepared it in violation of ORS 673.605 to 673.740, the
department may furnish the following additional information:
(a) The name and address of the taxpayer;
(b) The identifying number used on any form, report or schedule
filed as part of the return; { - and - }
(c) The tax year reported on the return, or any portion of the
return { - . - } { + ; and
(d) The information described in ORS 314.835. + }
(3) The board, its members, officers and employees, shall use
the names and addresses furnished under this section solely in
the enforcement of ORS 673.605 to 673.740 and shall not otherwise
Enrolled Senate Bill 690 (SB 690-A) Page 6
divulge or make known such information. Any person who violates
this prohibition against disclosure, upon conviction, is
punishable as provided in ORS 314.991 (2).
SECTION 5. ORS 305.437 is amended to read:
305.437. (1) Whenever it appears to the Oregon Tax Court that
proceedings before it have been instituted or maintained by a
taxpayer primarily for delay or that the taxpayer's position in
such proceeding is frivolous or groundless, { - damages - }
{ + a penalty + } in an amount not to exceed $5,000 shall be
awarded to the Department of Revenue by the Oregon Tax Court in
its judgment. { - Damages - } { + The penalty + } so awarded
shall be paid within 10 days after the judgment becomes final. If
the { - damages remain - } { + penalty remains + } unpaid,
the department may collect the amount awarded in the same manner
as income taxes are collected under ORS 314.430.
(2) As used in this section { - , - } { + :
(a) + } A taxpayer's position is 'frivolous' if there was no
objectively reasonable basis for asserting the position.
{ + (b) 'Position' means any claim, defense or argument
asserted by a taxpayer without regard to any other claim, defense
or argument asserted by the taxpayer. + }
SECTION 6. { + Section 7 of this 2009 Act is added to and made
a part of ORS chapter 314. + }
SECTION 7. { + (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 consumers for
the purpose of furnishing consumer reports to third parties, and
that uses any means or facility of interstate commerce for the
purpose of preparing or furnishing consumer reports.
(2)(a) Notwithstanding ORS 314.835, and subject to rules
established by the Department of Revenue, if a taxpayer has
neglected or refused to pay any tax and has not filed in good
faith an appeal to the tax court within the period required by
ORS 305.280 contesting the tax, the department may:
(A) Report periodically to consumer reporting agencies the name
of any taxpayer who is delinquent in the payment of taxes and the
amount owed by the taxpayer; and
(B) Otherwise make available to a consumer reporting agency
upon its request information regarding the amount of delinquent
taxes owed by a taxpayer.
(b) The department shall provide advance notice to the taxpayer
concerning the proposed reporting of information to the consumer
reporting agencies. The notice must inform the taxpayer:
(A) Of the amount of the tax liability that the department will
report to the consumer reporting agencies;
(B) That the department will continue to report the amount of
tax liability owed without sending additional notice to the
parties;
(C) Of the taxpayer's right to request an administrative review
within 30 days after the date of the notice; and
(D) Of the issues that may be considered on review.
(3) The department shall report information under subsection
(2) of this section only to a person that has furnished evidence
satisfactory to the department that the person is a consumer
reporting agency.
(4) When the department has made a report to a consumer
reporting agency under subsection (2) of this section, the
department shall promptly notify the consumer reporting agency
Enrolled Senate Bill 690 (SB 690-A) Page 7
when the department's records show that the taxpayer no longer
owes delinquent taxes. + }
SECTION 8. { + The amendments to ORS 305.437 by section 5 of
this 2009 Act apply to appeals pending on, or filed on or after,
the effective date of this 2009 Act. + }
SECTION 9. { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
----------
Passed by Senate May 18, 2009
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 17, 2009
...........................................................
Speaker of House
Enrolled Senate Bill 690 (SB 690-A) Page 8
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled Senate Bill 690 (SB 690-A) Page 9