75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
Senate Bill 880
Sponsored by COMMITTEE ON FINANCE AND REVENUE
CHAPTER ................
AN ACT
Relating to tax compliance; appropriating money; limiting
expenditures; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) The Department of Revenue shall develop and
administer a tax amnesty program for taxpayers.
(2) The tax amnesty program shall be conducted during the
period beginning on the effective date of this 2009 Act or
October 1, 2009, whichever is later, and ending November 19,
2009.
(3) The tax amnesty program applies to tax years, reporting
periods and estates for which the department could issue a notice
of deficiency under ORS 305.265 or 314.410, as amended and in
effect on the day before the effective date of this 2009 Act.
(4) The department shall publicize the tax amnesty program
through appropriate outreach and media activities in order to
maximize public awareness of and participation in the program.
(5) The department may prescribe forms, issue instructions,
conduct public meetings and undertake any other action necessary
to maximize public participation in and compliance with the tax
amnesty program and the collection of tax liabilities to which
the program applies. + }
SECTION 2. { + (1) A taxpayer who meets all of the following
requirements during the period described in section 1 (2) of this
2009 Act may participate in the tax amnesty program:
(a) The taxpayer was required to:
(A) File a tax return under ORS chapter 314, 316, 317 or 318
for a tax year that begins before January 1, 2008;
(B) Pay personal income tax imposed under ORS chapter 316 for a
tax year or reporting period that begins before January 1, 2008;
(C) Pay tax imposed under ORS chapter 317 or 318 for a tax year
or reporting period that begins before January 1, 2008;
(D) File a return under ORS chapter 118 and pay any required
tax, if the return was due prior to January 1, 2008; or
(E) Pay any tax imposed on net earnings from self-employment
pursuant to ORS 267.385, if required to do so prior to January 1,
2008;
(b) The taxpayer files a completed amnesty application with the
department, signed under penalty of perjury, to participate in
the tax amnesty program; and
(c) Within 60 days after the conclusion of the tax amnesty
program, the taxpayer does all of the following:
Enrolled Senate Bill 880 (SB 880-B) Page 1
(A) Files a completed tax return or report for all tax years or
reporting periods described in paragraph (a) of this subsection
for which the taxpayer had not previously done so;
(B) Files a completed amended tax return or report for all tax
years or reporting periods described in paragraph (a) of this
subsection for which the taxpayer underreported or underpaid the
tax liability of the taxpayer; and
(C) Pays in full the taxes due, and 50 percent of the interest
due, for all tax years or reporting periods described in
paragraph (a) of this subsection or applies for an installment
payment agreement under subsection (5) of this section that
applies to the taxes and interest due for all tax years or
reporting periods described in paragraph (a) of this subsection
for which taxes remain unpaid.
(2) Notwithstanding subsection (1) of this section, a taxpayer
may not participate in the tax amnesty program if, prior to the
starting date of the period described in section 1 (2) of this
2009 Act, the department has issued a notice of deficiency to the
taxpayer or has assessed a tax for a tax year for which the
taxpayer could otherwise apply for amnesty under this section.
(3) In addition to the other requirements in subsection (1) of
this section, a taxpayer who has filed a petition for bankruptcy
protection under Title 11 of the United States Code may
participate in the tax amnesty program if the taxpayer submits an
order from a United States Bankruptcy Court allowing the taxpayer
to participate in the tax amnesty program.
(4) A taxpayer who participates in the tax amnesty program
described in this section may not request a refund with respect
to any tax paid under the tax amnesty program and waives any
right to appeal any tax reported on a tax return or report filed
or paid under subsection (1) of this section or pursuant to an
installment payment agreement entered into under subsection (5)
of this section.
(5)(a) A taxpayer may apply for an installment payment
agreement for the payment of taxes reported and due under
subsection (1) of this section. The application shall be made on
a form prescribed by the department and shall be due at the time
the taxpayer applies for amnesty under subsection (1) of this
section.
(b) The department shall enter into an installment payment
agreement with a taxpayer who has applied under paragraph (a) of
this subsection and shall establish a payment schedule if the
department concludes that the agreement will facilitate the
efficient collection of the outstanding tax liability.
(c) Any interest that remains unpaid upon a taxpayer's entering
an installment payment agreement shall be reduced by 50 percent.
(d) Under any installment payment agreement entered into under
this subsection, all outstanding taxes and interest must be paid
on or before May 31, 2011. + }
SECTION 3. { + (1) For any taxpayer who fully complies with
the tax amnesty program described in section 2 of this 2009 Act,
the Department of Revenue shall waive all applicable penalties,
including criminal penalties that would otherwise apply under ORS
314.075 and 314.991 (1), that would otherwise apply to the taxes
being reported and paid under section 2 of this 2009 Act, and
shall waive 50 percent of any interest otherwise due.
(2)(a) If the department has entered into an installment
payment agreement with the taxpayer, the failure of the taxpayer
to fully comply with the terms of the installment payment
agreement renders the waiver of penalties under subsection (1) of
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this section and the installment payment agreement void. The
total amount of tax, interest and all applicable penalties
becomes immediately due and payable. The reduced interest rate
applicable under section 2 (5)(c) of this 2009 Act is voided and
replaced by the rate established under ORS 305.220, which is
applicable to any amount that remains unpaid by the taxpayer.
(b) This subsection does not apply if the department determines
that the failure to fully comply with the terms of the
installment payment agreement is due to reasonable causes. + }
SECTION 4. { + (1) An amount equal to 25 percent of the total
amount of unpaid tax that is otherwise due is added to the amount
of outstanding tax liability for any tax year or reporting period
for which amnesty could be sought under section 2 of this 2009
Act and for which the taxpayer failed to apply for amnesty and:
(a) Failed to file a return or report; or
(b) Filed an original or amended return that failed to report
or underreported tax liability.
(2) If, following the closure of the amnesty period specified
in section 1 (2) of this 2009 Act, the Department of Revenue
issues a notice of deficiency with respect to an unreported or
underreported tax liability for a tax year for which an amnesty
application was filed under section 2 of this 2009 Act, an amount
equal to 25 percent of the total amount of unpaid tax that is
otherwise due is added to the amount of outstanding tax
liability.
(3) The penalties imposed under subsections (1) and (2) of this
section do not apply to any additional tax liability that results
from an adjustment made to a return by the Internal Revenue
Service, unless the service has finally imposed a penalty under
sections 6662, 6662A, 6663 or 7201 of the Internal Revenue Code.
(4) The penalties imposed under this section are in addition to
and not in lieu of any other penalty. + }
SECTION 5. { + (1) Sections 1 to 4 and 7 of this 2009 Act are
repealed January 2, 2014.
(2) The Tax Amnesty Fund established under section 7 of this
2009 Act is abolished January 2, 2014.
(3) The unexpended moneys remaining in the Tax Amnesty Fund on
January 2, 2014, shall be transferred to the General Fund. + }
SECTION 6. { + Sections 1 to 4 of this 2009 Act are added to
and made a part of ORS chapter 314. + }
SECTION 7. { + (1) The Tax Amnesty Fund is established in the
State Treasury, separate and distinct from the General Fund.
Interest earned by the Tax Amnesty Fund shall be credited to the
fund. Moneys in the fund are continuously appropriated to the
Department of Revenue.
(2)(a) Except as provided in paragraph (b) of this subsection,
all moneys received by the Department of Revenue under sections 1
to 4 of this 2009 Act shall be deposited in the Tax Amnesty Fund.
The department shall be reimbursed from the fund for costs
incurred by the department to administer sections 1 to 4 of this
2009 Act. The total amount of costs paid under this subsection
may not exceed $1 million.
(b) Moneys received by the department under sections 1 to 4 of
this 2009 Act with respect to taxes imposed under ORS 267.385 on
net earnings from self-employment and any penalties imposed on
those taxes shall be paid to the transit district that imposed
the tax, as provided in ORS 305.620. Costs incurred by the
department to administer sections 1 to 4 of this 2009 Act on
behalf of transit districts may be recovered by the department as
provided in ORS 305.620.
Enrolled Senate Bill 880 (SB 880-B) Page 3
(3) The department shall certify to the Emergency Board, or to
the Legislative Assembly if it is in session, the costs that are
incurred by the department in carrying out the purposes of
sections 1 to 4 of this 2009 Act.
(4) The unexpended moneys remaining in the Tax Amnesty Fund on
June 30, 2011, shall be transferred to the General Fund. + }
SECTION 8. { + Notwithstanding any other law limiting
expenditures, the amount of $1 is established for the biennium
beginning July 1, 2009, as the maximum limit for payment of
expenses from the Tax Amnesty Fund. + }
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. + }
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Passed by Senate June 25, 2009
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 29, 2009
...........................................................
Speaker of House
Enrolled Senate Bill 880 (SB 880-B) Page 4
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled Senate Bill 880 (SB 880-B) Page 5