Chapter 314 — Taxes
Imposed Upon or Measured by Net Income
ORS sections in this chapter were
amended or repealed by the Legislative Assembly during its 2012 regular
session. See the table of ORS sections amended or repealed during the 2012
regular session: 2012 A&R Tables
New sections of law were adopted by the
Legislative Assembly during its 2012 regular session and are likely to be
compiled in this ORS chapter. See
sections in the following 2012 Oregon Laws chapters: 2012
Session Laws 0031
2011 EDITION
INCOME TAXATION GENERALLY
REVENUE AND TAXATION
GENERAL PROVISIONS
314.011 Definitions;
conformance with federal income tax law
314.015 Soccer
referees considered independent contractors
314.021 Application
of chapter
314.023 Application
to partners in domestic partnership and to surviving partners
314.029 Application
of Deficit Reduction Act of 1984 (P.L. 98-369) and Simplification of
Imputed Interest Rules of 1985 (P.L. 99-121) to personal income tax
314.031 Application
of Deficit Reduction Act of 1984 (P.L. 98-369) and Simplification of
Imputed Interest Rules of 1985 (P.L. 99-921) to corporate excise and
income tax
314.033 Application
of federal Tax Reform Act of 1986 (P.L. 99-514)
314.035 Application
of Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203), Family Support Act
of 1988 (P.L. 100-485) and Technical and Miscellaneous Revenue Act of 1988
(P.L. 100-647)
314.037 Application
of P.L. 101-140, Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239) and
Omnibus Budget Reconciliation Act of 1991 (P.L. 101-508)
314.039 Application
of P.L. 102-2, Comprehensive National Energy Policy Act of 1992 (P.L. 102-486),
Unemployment Compensation Amendments of 1992 (P.L. 102-318), Tax Extension Act
of 1991 (P.L. 102-227) and Emergency Unemployment Compensation Act of 1991
(P.L. 102-164)
314.041 Application
of Revenue Reconciliation Act of 1993 (P.L. 103-66), the Uruguay Round
Agreements Act (P.L. 103-465) and P.L. 104-7
314.043 Application
of ICC Termination Act of 1995 (P.L. 104-88), P.L. 104-117, Omnibus
Consolidated Rescissions and Appropriations Act of 1996 (P.L. 104-134), Small
Business Job Protection Act of 1996 (P.L. 104-188), Health Insurance
Portability and Accountability Act of 1996 (P.L. 104-191) and Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193)
314.045 Application
of Taxpayer Relief Act of 1997 (P.L. 105-34), Taxpayer Browsing Protection
Act (P.L. 105-35), Balanced Budget Act of 1997 (P.L. 105-33), Internal Revenue
Service Restructuring and Reform Act of 1998 (P.L. 105-206), Transportation
Equity Act for the 21st Century (P.L. 105-178) and Tax and Trade Relief Extension
Act of 1998 (P.L. 105-277)
314.047 Application
of Tax Relief Extension Act of 1999 (P.L. 106-170) and FSC Repeal and
Extraterritorial Income Exclusion Act of 2000 (P.L. 106-519)
314.049 Application
of Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16) and
Job Creation and Worker Assistance Act of 2002 (P.L. 107-147)
314.051 Application
of Veterans Benefit Act of 2002 (P.L. 107-330), Jobs and Growth Tax Relief
Reconciliation Act of 2003 (P.L. 108-27), Military Family Tax Relief Act of
2003 (P.L. 108-121), Working Families Tax Relief Act of 2004
(P.L. 108-311) and American Jobs Creation Act of 2004 (P.L. 108-357)
314.053 Application
of Deficit Reduction Act of 2005 (P.L. 109-171), Tax Increase Prevention
and Reconciliation Act of 2005 (P.L. 109-222) and Pension Protection Act of
2006 (P.L. 109-280)
314.055 Application
of Energy Independence and Security Act of 2007 (P.L. 110-140), Mortgage
Forgiveness Debt Relief Act of 2007 (P.L. 110-142), Tax Increase Prevention Act
of 2007 (P.L. 110-166) and Tax Technical Corrections Act of 2007
(P.L. 110-172)
314.057 Application
of Economic Stimulus Act of 2008 (P.L. 110-185), Heroes Earnings
Assistance and Relief Tax Act of 2008 (P.L. 110-245), Food, Conservation, and
Energy Act of 2008 (P.L. 110-246), Housing and Economic Recovery Act of
2008 (P.L. 110-289), Emergency Economic Stabilization Act of 2008, Energy
Improvement and Extension Act of 2008, Tax Extenders and Alternative Minimum
Tax Relief Act of 2008 (P.L. 110-343) and Fostering Connections to Success
and Increasing Adoptions Act of 2008 (P.L. 110-351)
314.059 Application
of American Recovery and Reinvestment Act of 2009 (P.L. 111-5)
314.061 Application
of Consumer Assistance to Recycle and Save Act of 2009 (P.L. 111-32) and
Worker, Homeownership, and Business Assistance Act of 2009 (P.L. 111-92)
314.063 Application
of Federal Aviation Administration Air Transportation Modernization and Safety
Improvement Act (P.L. 111-226), Patient Protection and Affordable Care Act
(P.L. 111-148), Preservation of Access to Care for Medicare Beneficiaries
and Pension Relief Act of 2010 (P.L. 111-192), Health Care and Education
Reconciliation Act of 2010 (P.L. 111-152) and Homebuyer Assistance and
Improvement Act of 2010 (P.L. 111-198)
314.075 Evading
requirements of law prohibited
314.078 Determination
of tax credit amounts
314.080 Venue
on failure to comply with law
314.085 Taxable
year; rules
314.091 Abeyance
of tax during periods of active duty military service
ADJUSTMENT OF RETURNS
314.105 Definitions
for ORS 314.105 to 314.135
314.115 Adjustment
to correct effect of certain errors; use limited
314.125 When
adjustment may be made
314.135 Computation;
method of adjustment; credit or setoff limited; recovery after payment limited
314.140 Adjustment
of returns of related taxpayers after reallocation of income or deduction on
federal return
POLLUTION CONTROL FACILITIES
314.255 Collection
of taxes due after revocation of certification of pollution control facility;
exceptions to tax relief allowed for pollution control facility
LOBBYING EXPENDITURES
314.256 Lobbying
expenditures; proxy tax; rules
CONVEYANCE OF REAL ESTATE
314.258 Withholding
in certain conveyances of real estate; rules
REMICS AND FASITS
314.260 Taxation
of real estate mortgage investment conduits
314.265 Taxation
of financial asset securitization investment trusts
METHODS OF ACCOUNTING AND REPORTING
INCOME
314.276 Method
of accounting
314.280 Allocation
of income of financial institution or public utility from business within and
without state; rules; alternative apportionment for electing utilities or
telecommunications taxpayers
314.287 Costs
allocable to inventory
314.295 Apportionment
or allocation where two or more organizations, trades or businesses are owned or
controlled by the same interests
314.296 Expense
paid to related member for use of intangible property
314.297 Election
for alternative determination of farm income; computation of income; rules
314.300 Passive
activity loss; determination; treatment; rules
314.302 Interest
on deferred tax liabilities with respect to installment obligations; rules
314.306 Income
from discharge of indebtedness; bankruptcy; insolvency
314.307 Definitions;
reportable transactions
314.308 Reportable
transactions; rules
LIABILITY OF TRANSFEREE OR OWNER OF
TRUST
314.310 Liability
of transferee of taxpayer for taxes imposed on taxpayer
314.330 Lien
if grantor or other person determined to be owner of trust
RETURNS
314.355 Returns
when tax year changed
314.360 Information
returns
314.362 Filing
return on magnetic media or other machine-readable form; rules
314.364 Authority
of department to require filing of returns by electronic means; rules
314.370 Department
requiring return or supplementary return
314.380 Furnishing
copy of federal or other state return or report; action required when return
filed or changed or tax assessed
314.385 Form
of returns; time for filing; alternative filing formats; rules
314.395 Time
for payment of tax; interest on delayed return
314.397 Manner
of payment
314.400 Penalty
for failure to file report or return or to pay tax when due; interest;
limitation on penalty
314.401 De
minimis tax payment not required
314.402 Understatement
of taxable income; penalty; waiver of penalty
314.403 Listed
transaction understatement; penalty
314.404 Penalty
for failure to report reportable transaction
314.406 Penalty
for promotion of abusive tax shelter
COLLECTING DELINQUENT TAXES; LIENS;
INTEREST AND ADDITIONS TO TAX; REFUNDS
314.407 Assessment
of taxes owing but not submitted with return; time of assessment; recording of
warrant
314.410 Time
limit for notice of deficiency; circumstances when claim for refund may be
reduced after time limit; time limit for refund or notice of deficiency for pass-through
entity items
314.412 Issuing
of notice of deficiency attributable to involuntary conversion; time limit
314.415 Refunds;
interest; credits
314.417 Unpaid
tax or withholding lien at time of assessment
314.419 Foreclosure
of lien
314.421 When
lien valid
314.423 Status
of lien
314.425 Examining
books, records or persons
314.430 Warrant
for collection of taxes
314.440 Tax
as debt; termination of taxable period and immediate assessment of tax
314.466 Audits,
deficiencies, assessments, refunds and appeals governed by ORS chapter 305
314.469 Treatment
of moneys collected under ORS 314.406
(Temporary provisions relating to tax
amnesty program are compiled as notes following ORS 314.469)
(Temporary provisions relating to
enforcement activities are compiled as notes following ORS 314.469)
ESTIMATED TAX PROCEDURE
314.505 Estimate
of tax liability by corporations; rules
314.515 Installment
schedule for payment of estimated tax
314.518 Estimated
tax payments by electronic funds transfer; phase-in; rules
314.520 State
agency authority over certain electronic funds transfer payments
314.525 Underpayment
of estimated tax; interest; nonapplicability of penalties
DIVISION OF INCOME FOR TAX PURPOSES
(General Provisions)
314.605 Short
title; construction
314.606 Status
of ORS 314.605 to 314.675 when in conflict with Multistate Tax Compact
314.610 Definitions
for ORS 314.605 to 314.675
314.615 When
allocation and apportionment of net income from business activity required
314.620 When
taxpayer is considered taxable in another state
(Allocation of Nonbusiness Income)
314.625 Certain
nonbusiness income to be allocated
314.630 Allocation
to this state of net rents and royalties
314.635 Allocation
to this state of capital gains and losses
314.640 Allocation
to this state of interest and dividends
314.642 Allocation
to this state of lottery prizes
314.645 Allocation
to this state of patent and copyright royalties
(Apportionment of Business Income)
314.647 Policy
314.650 Business
income apportionment
314.655 Determination
of property factor
314.660 Determination
of payroll factor
314.665 Determination
of sales factor; inclusions and exclusions; definitions
(Procedure Where Ordinary Determination
Not Satisfactory)
314.670 Additional
methods to determine extent of business activity in this state; rules
(Apportionment of Net Loss)
314.675 Apportionment
of net loss; net loss deduction; limitations
(Apportionment of Income of Interstate
Broadcasters)
314.680 Definitions
for ORS 314.680 to 314.690; rules
314.682 Method
of apportionment of interstate broadcaster income
314.684 Determination
of sales factor
314.686 Determination
of net income attributable to business done in state
314.688 Rules
314.690 Scope
of provisions
(Application)
314.695 Application
of ORS 314.280 and 314.605 to 314.675
EFFECT OF MULTISTATE TAX COMPACT
314.705 Computation
of tax when income reported as percentage of sales volume
314.710 Application
to allocation and apportionment of income
TAXATION OF PARTNERSHIPS AND S
CORPORATIONS
(Partnerships)
314.712 Partnerships
not subject to income tax; exceptions
314.714 Character
of partnership income; procedure if partner’s treatment of item inconsistent
with partnership treatment; rules
314.716 Basis
of partner’s interest; gain or loss on sale; election to adjust basis
314.718 Treatment
of contributions to partnership
314.720 Treatment
of distributions from partnership
314.722 Publicly
traded partnerships taxed as corporations
314.723 Electing
large partnerships subject to tax; rules
314.724 Information
return; penalty; rules
314.725 Privilege
tax applicable to partnerships
314.726 Application
of ORS 314.724
314.727 Disclosure
of partnership items to partner
(S Corporations)
314.730 “C
corporation” and “S corporation” defined for this chapter and ORS chapters 316,
317 and 318
314.732 Taxation
of S corporation; application of Internal Revenue Code; carryforward and
carryback
314.734 Taxation
of shareholder’s income; computation; character of income, gain, loss or
deduction
314.736 Treatment
of distributions by S corporation
314.738 Employee
fringe benefits; foreign income
314.740 Tax
on built-in gain
314.742 Tax
on excess net passive income
314.744 S
corporation or shareholder elections; rules
314.746 Application
of sections 1377 and 1379 of Internal Revenue Code
314.749 Disclosure
of S corporation items to shareholder
314.750 Recapture
of LIFO benefits
314.752 Business
tax credits; allowance to shareholders; rules
PASS-THROUGH ENTITIES
314.775 Definitions
for ORS 314.775 to 314.784
314.778 Composite
returns of pass-through entities; election; effect of election on nonresident
owners
314.781 Withholding;
required returns and statements; pass-through entity liability
314.784 Circumstances
when pass-through entity withholding is not required; rules
ADMINISTRATIVE PROVISIONS
314.805 Department
to administer and enforce laws; enforcement districts; branch offices
314.810 Administering
oaths and taking acknowledgments
314.815 Rules
and regulations
314.835 Divulging
particulars of returns and reports prohibited
314.840 Disclosure
of information; persons to whom information may be furnished
314.843 Reporting
of information to consumer reporting agency; rules
314.845 Certificate
of department as evidence
314.850 Statistics
314.855 Rewards
for information
314.860 Disclosure
of elderly rental assistance information to assist in recovery of public
assistance overpayments; requests for information public record
314.865 Use
of certain information for private benefit prohibited
314.870 Time
for performing certain acts postponed by reason of service in a combat zone
PENALTIES
314.991 Penalties
314.002
[Repealed by 1953 c.310 §3]
314.004
[Repealed by 1953 c.310 §3]
314.006
[Repealed by 1953 c.310 §3]
314.008
[Repealed by 1953 c.310 §3]
314.010
[Repealed by 1953 c.310 §3]
GENERAL PROVISIONS
314.011 Definitions; conformance with
federal income tax law. (1) As used in this chapter,
unless the context requires otherwise, “department” means the Department of
Revenue.
(2)
As used in this chapter:
(a)
Any term has the same meaning as when used in a comparable context in the laws
of the United States relating to federal income taxes, unless a different
meaning is clearly required or the term is specifically defined in this
chapter.
(b)
Except where the Legislative Assembly has provided otherwise, a reference to
the laws of the United States or to the Internal Revenue Code refers to the
laws of the United States or to the Internal Revenue Code as they are amended
and in effect:
(A)
On December 31, 2010; or
(B)
If related to the definition of taxable income, as applicable to the tax year
of the taxpayer.
(c)
With respect to ORS 314.105, 314.256 (relating to proxy tax on lobbying
expenditures), 314.260 (1)(b), 314.265 (1)(b), 314.302, 314.306, 314.330,
314.360, 314.362, 314.385, 314.402, 314.410, 314.412, 314.525, 314.742 (7),
314.750 and 314.752 and other provisions of this chapter, except those
described in paragraph (b) of this subsection, any reference to the laws of the
United States or to the Internal Revenue Code means the laws of the United
States relating to income taxes or the Internal Revenue Code as they are
amended on or before December 31, 2010, even when the amendments take effect or
become operative after that date, except where the Legislative Assembly has
specifically provided otherwise.
(3)
Insofar as is practicable in the administration of this chapter, the department
shall apply and follow the administrative and judicial interpretations of the
federal income tax law. When a provision of the federal income tax law is the
subject of conflicting opinions by two or more federal courts, the department
shall follow the rule observed by the United States Commissioner of Internal
Revenue until the conflict is resolved. Nothing contained in this section
limits the right or duty of the department to audit the return of any taxpayer
or to determine any fact relating to the tax liability of any taxpayer.
(4)
When portions of the Internal Revenue Code incorporated by reference as
provided in subsection (2) of this section refer to rules or regulations
prescribed by the Secretary of the Treasury, then such rules or regulations
shall be regarded as rules adopted by the department under and in accordance
with the provisions of this chapter, whenever they are prescribed or amended.
(5)(a)
When portions of the Internal Revenue Code incorporated by reference as
provided in subsection (2) of this section are later corrected by an Act or a
Title within an Act of the United States Congress designated as an Act or Title
making technical corrections, then notwithstanding the date that the Act or
Title becomes law, those portions of the Internal Revenue Code, as so
corrected, shall be the portions of the Internal Revenue Code incorporated by
reference as provided in subsection (2) of this section and shall take effect,
unless otherwise indicated by the Act or Title (in which case the provisions
shall take effect as indicated in the Act or Title), as if originally included
in the provisions of the Act being technically corrected. If, on account of
this subsection, any adjustment is required to an Oregon return that would
otherwise be prevented by operation of law or rule, the adjustment shall be
made, notwithstanding any law or rule to the contrary, in the manner provided
under ORS 314.135.
(b)
As used in this subsection, “Act or Title” includes any subtitle, division or
other part of an Act or Title. [1957 c.632 §40; 1965 c.152 §24; 1971 c.215 §8;
1977 c.870 §39; 1987 c.293 §50; 1989 c.625 §25; 1991 c.457 §16; 1993 c.726 §10;
1995 c.556 §20; 1997 c.325 §32; 1997 c.839 §48; 1999 c.90 §1; 1999 c.224 §9;
2001 c.660 §32; 2003 c.77 §10; 2005 c.94 §74; 2005 c.519 §8; 2005 c.832 §23;
2007 c.614 §10; 2008 c.45 §11; 2009 c.5 §21; 2009 c.909 §§21,22; 2010 c.82 §§21,22;
2011 c.7 §21]
314.012
[Repealed by 1953 c.310 §3]
314.013 [2003
c.704 §4; repealed by 2005 c.533 §5]
314.014
[Repealed by 1953 c.310 §3]
314.015 Soccer referees considered
independent contractors. Notwithstanding ORS 670.600, for
purposes of ORS chapter 316, a person serving as a referee or assistant referee
in a youth or adult recreational soccer match shall be considered to be an
independent contractor. [2005 c.94 §73; 2009 c.33 §12]
314.016 [Repealed
by 1953 c.310 §3]
314.018
[Repealed by 1953 c.310 §3]
314.020
[Repealed by 1953 c.310 §3]
314.021 Application of chapter.
Except where the context requires otherwise, this chapter is applicable to all
laws of this state imposing taxes upon or measured by net income. [1957 c.632 §2;
1961 c.176 §3; 1965 c.152 §25; 1971 c.215 §9; 1977 c.870 §40; 1987 c.293 §51;
1989 c.625 §26; 1995 c.79 §153; 1995 c.556 §21]
314.022
[Repealed by 1953 c.310 §3]
314.023 Application to partners in
domestic partnership and to surviving partners.
This chapter applies to partners in a domestic partnership, as defined in ORS
106.310, and surviving partners as if federal income tax law recognized a
domestic partnership in the same manner as Oregon law. [2007 c.99 §11]
314.024
[Repealed by 1953 c.310 §3]
314.026
[Repealed by 1953 c.310 §3]
314.028
[Repealed by 1953 c.310 §3]
314.029 Application of Deficit Reduction
Act of 1984 (P.L. 98-369) and Simplification of Imputed Interest Rules of
1985 (P.L. 99-121) to personal income tax. (1)(a)
Notwithstanding ORS 316.012 (1983 Replacement Part), and subject to all other
provisions of ORS chapter 316 in effect and applicable to transactions
occurring on or after January 1, 1984, the Deficit Reduction Act of 1984 (P.L.
98-369) insofar as it applies to transactions occurring on or after January 1,
1984, shall apply to the same transactions for Oregon tax purposes.
(b)
Notwithstanding ORS 316.012 (1985 Replacement Part), and subject to all other
provisions of ORS chapter 316 in effect and applicable to transactions
occurring on or after January 1, 1985, the Act described as the Simplification
of Imputed Interest Rules of 1985 (P.L. 99-121) insofar as it applies to
transactions occurring on or after January 1, 1985, shall apply to the same
transactions for Oregon tax purposes. The amendments by the Act described as
the Simplification of Imputed Interest Rules of 1985 (P.L. 99-121) to section
168 of the Internal Revenue Code apply to property placed in service after May
8, 1985, but do not apply to property to which section 105(b)(2) and (3) of the
Act (P.L. 99-121) apply.
(2)(a)
If a deficiency is assessed against any taxpayer for a tax year for which
subsection (1) of this section applies and the deficiency, or any portion thereof,
is attributable to any retroactive treatment for Oregon tax purposes given P.L.
98-369 or 99-121 under subsection (1) of this section, then any interest or
penalty assessed under ORS chapter 305, 314 or 316 with respect to the
deficiency or portion shall be canceled.
(b)
If a refund is due any taxpayer for a tax year for which subsection (1) of this
section applies and the refund or any portion thereof is due the taxpayer on
account of any retroactive treatment given P.L. 98-369 or 99-121 for Oregon tax
purposes under subsection (1) of this section, then notwithstanding ORS 314.415
or other law, the refund shall be paid without interest.
(3)(a)(A)
At the election of the taxpayer and if the taxpayer is required to file an
Oregon return for a tax year beginning in 1985, any changes required on account
of subsection (1)(a) of this section for a tax year beginning prior to January
1, 1985, may be made either by filing an amended return or be made on a tax
return filed for a tax year beginning in 1985 in the manner determined by the
Department of Revenue by rule. An election made under this paragraph shall
apply to all changes required on account of subsection (1)(a) of this section.
(B)
Any changes required on account of subsection (1)(b) of this section for a tax
year beginning prior to January 1, 1987, shall be made by filing an amended
return within the time prescribed by law.
(b)
Exercise of the election provided under paragraph (a)(A) of this subsection
shall not operate to modify any election made on the return to which the change
relates or on the return in which the change is made unless otherwise provided
by the department by rule.
(c)
For purposes of paragraph (a)(A) of this subsection, if a taxpayer is not
required to file an Oregon return for a tax year beginning in 1985, the
taxpayer shall reflect the change in an amended return for the tax year to
which the change relates.
(d)(A)
If a taxpayer fails to make an election under paragraph (a)(A) of this
subsection, the department shall make any changes under paragraph (a)(A) of
this subsection on the return to which the change or changes relate within the
period as specified for assessing a deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a 1985 return is filed, whichever period expires later.
(B)
If a taxpayer fails to file an amended return under paragraph (a)(B) of this
subsection, the department shall make any changes under paragraph (a)(B) of
this subsection on the return to which the change or changes relate within the
period as specified for assessing a deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a 1987 return is filed, whichever period expires later. [Formerly 316.021]
Note:
314.029 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
314.030 [Repealed
by 1953 c.310 §3]
314.031 Application of Deficit Reduction
Act of 1984 (P.L. 98-369) and Simplification of Imputed Interest Rules of
1985 (P.L. 99-121) to corporate excise and income tax.
(1)(a) Notwithstanding ORS 317.010, 317.013 and 317.018 (all 1983 Replacement
Part), and subject to all other provisions of ORS chapters 317 and 318 in
effect and applicable to transactions occurring on or after January 1, 1984,
the Deficit Reduction Act of 1984 (P.L. 98-369) insofar as it applies to
transactions occurring on or after January 1, 1984, shall apply to the same
transactions for Oregon tax purposes.
(b)
Notwithstanding ORS 317.010, 317.013 and 317.018 (all 1985 Replacement Part),
and subject to all other provisions of ORS chapters 317 and 318 in effect and
applicable to transactions occurring on or after January 1, 1985, the Act
described as the Simplification of Imputed Interest Rules of 1985 (P.L. 99-121)
insofar as it applies to transactions occurring on or after January 1, 1985,
shall apply to the same transactions for Oregon tax purposes. The amendments by
the Act described as the Simplification of Imputed Interest Rules of 1985 (P.L.
99-121) to section 168 of the Internal Revenue Code apply to property placed in
service after May 8, 1985, but do not apply to property to which section 105
(b)(2) and (3) of the Act (P.L. 99-121) apply.
(2)(a)
If a deficiency is assessed against any taxpayer for a tax year for which
subsection (1) of this section applies and the deficiency, or any portion
thereof, is attributable to any retroactive treatment for Oregon tax purposes
given P.L. 98-369 or 99-121 under subsection (1) of this section, then any
interest or penalty assessed under ORS chapter 305, 314, 317 or 318 with
respect to the deficiency or portion shall be canceled.
(b)
If a refund is due any taxpayer for a tax year for which subsection (1) of this
section applies and the refund or any portion thereof is due the taxpayer on
account of any retroactive treatment given P.L. 98-369 or 99-121 for Oregon tax
purposes under subsection (1) of this section, then notwithstanding ORS 314.415
or other law, the refund shall be paid without interest.
(3)(a)(A)
At the election of the taxpayer and if the taxpayer is required to file an
Oregon return for a tax year beginning in 1985, any changes required on account
of subsection (1)(a) of this section for a tax year beginning prior to January
1, 1985, may be made either by filing an amended return or be made on a tax
return filed for a tax year beginning in 1985 in the manner determined by the
Department of Revenue by rule. An election made under this paragraph shall
apply to all changes required on account of subsection (1)(a) of this section.
(B)
Any changes required on account of subsection (1)(b) of this section for a tax
year beginning prior to January 1, 1987, shall be made by filing an amended
return within the time prescribed by law.
(b)
Exercise of the election provided under paragraph (a)(A) of this subsection
shall not operate to modify any election made on the return to which the change
relates or on the return in which the change is made unless otherwise provided
by the department by rule.
(c)
For purposes of paragraph (a)(A) of this subsection, if a taxpayer is not
required to file an Oregon return for a tax year beginning in 1985, the
taxpayer shall reflect the change in an amended return for the tax year to
which the change relates.
(d)(A)
If a taxpayer fails to make an election under paragraph (a)(A) of this
subsection, the department shall make any changes under paragraph (a)(A) of
this subsection on the return to which the change or changes relate within the
period as specified for assessing a deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a 1985 return is filed, whichever period expires later.
(B)
If a taxpayer fails to file an amended return under paragraph (a)(B) of this
subsection, the department shall make any changes under paragraph (a)(B) of
this subsection on the return to which the change or changes relate within the
period as specified for assessing a deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a 1987 return is filed, whichever period expires later. [Formerly 317.021]
Note:
314.031 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
314.032 [Repealed
by 1953 c.310 §3]
314.033 Application of federal Tax Reform Act
of 1986 (P.L. 99-514). (1) For purposes of subsections
(2) to (15) of this section, “TRA” means the federal Tax Reform Act of 1986
(P.L. 99-514).
(2)
Unless the context requires otherwise, the amendments, repeals and new matter
contained in chapter 293, Oregon Laws 1987, apply generally to tax years
beginning on or after January 1, 1987, or to transactions occurring on or after
January 1, 1987, in tax years beginning on or after January 1, 1987. However,
certain changes made by the federal Tax Reform Act of 1986 (P.L. 99-514) and
adopted by the amendments to ORS 316.007, 316.012, 317.010, 317.013 and 317.018
by sections 1, 2 and 31 to 33, chapter 293, Oregon Laws 1987, apply for federal
tax purposes as follows:
(a)
To tax years beginning prior to January 1, 1987;
(b)
To transactions occurring before, on or after December 31, 1986, in tax years
ending after that date; or
(c)
To transactions occurring prior to January 1, 1987, but with tax consequences
for federal purposes only for tax years beginning after December 31, 1986.
(3)
The changes described in subsection (2)(a) of this section, if otherwise
applicable for Oregon tax purposes, shall apply to and are specifically adopted
for tax years beginning prior to January 1, 1987.
(4)
The changes described in subsection (2)(b) and (c) of this section if otherwise
applicable for Oregon tax purposes, shall apply to and are specifically adopted
for transactions occurring before, on or after December 31, 1986, in tax years
ending after December 31, 1986, or beginning after December 31, 1986, whichever
is applicable.
(5)
The changes described in subsections (3) and (4) of this section are
exemplified by, but are specifically not limited to the following:
(a)
The amendments made by section 122 of the TRA (relating to charitable and
employee achievement awards) which apply to prizes and awards granted after
December 31, 1986.
(b)
The amendments by section 123 of the TRA (relating to scholarships and
fellowships) which apply to tax years beginning after December 31, 1986, but
only in the case of scholarships and fellowships granted after August 16, 1986.
(c)
The amendments to the Internal Revenue Code relating to depreciation and the
expensing of certain depreciable business assets by sections 201 and 202 of the
TRA which apply generally for property placed in service on or after January 1,
1987, in tax years ending on or after that date. However, if an election is
made under section 203(a)(1)(B) of the TRA, that election shall be considered
to be made for Oregon tax purposes. In addition, the transitional rules
contained in sections 203 and 204 of the TRA shall apply for Oregon purposes to
the extent they can be made applicable, in the same manner as for federal tax
purposes.
(d)
Section 611 of the TRA (reducing the dividends received deduction for
corporations) which applies to dividends received or accrued after December 31,
1986, in tax years ending after that date. In conjunction with this paragraph,
the amendments to ORS 317.267 by chapter 293, Oregon Laws 1987, apply to
dividends received or accrued after December 31, 1986, in tax years ending
after that date.
(e)
Section 1103 of the TRA (relating to the deduction for a spousal IRA), which
applies to tax years beginning before, on or after December 31, 1985.
(f)
Section 1708(a) of the TRA (relating to Vietnam MIA’s) which applies to tax
years beginning after December 31, 1982.
(6)
If the TRA allows or requires an adjustment to the federal tax return filed for
a tax year beginning prior to January 1, 1987, and such an adjustment is made,
the adjustment (if adopted for Oregon tax purposes) shall also be made to the
corresponding Oregon return notwithstanding any law or rule to the contrary, in
the manner provided under ORS 314.135.
(7)
If certain transactions are grandfathered by the TRA or the changes in the
federal law made by the TRA are otherwise made inapplicable to those
transactions, the same treatment shall be given those transactions for Oregon
tax purposes unless otherwise provided under ORS chapter 316, 317, 318 or other
law governing the determination of Oregon personal income and Oregon corporate
excise and income taxes.
(8)
Subsections (2) to (6) of this section do not apply to the amendments to ORS
316.021 and 317.021 by chapter 293, Oregon Laws 1987.
(9)
Subsections (2) to (6) of this section do not apply to the amendments to ORS
267.380, 307.380 and 310.630 made by sections 65, 66 and 69, chapter 293,
Oregon Laws 1987.
(10)
The amendments to ORS 310.630 by section 66, chapter 293, Oregon Laws 1987,
apply to property taxes billed or rent constituting property taxes paid in
calendar years beginning on or after January 1, 1987.
(11)
Subsections (2) to (6) of this section do not apply to the amendments creating
a new paragraph (c) of subsection (3) of ORS 316.680. The amendments to ORS
316.680 by section 23, chapter 293, Oregon Laws 1987, creating a new paragraph
(c) of subsection (3) of ORS 316.680 apply to tax years beginning on or after
January 1, 1986.
(12)
ORS 316.588 and the amendments to ORS 314.525, 316.579 and 316.587 by sections
22, 22a and 61a, chapter 293, Oregon Laws 1987, first apply to estimated tax
payments due for tax years beginning on or after January 1, 1988.
(13)
ORS 316.683 first applies to distributions made by regulated investment
companies or fiduciaries, including banks, savings associations or credit
unions, to the taxpayer for taxable years of the taxpayer beginning on or after
January 1, 1987.
(14)
Subsections (2) to (6) of this section do not apply to the amendments to ORS
314.385 and 314.395 by sections 59a and 59b, chapter 293, Oregon Laws 1987. The
amendments to ORS 314.385 and 314.395 by sections 59a and 59b, chapter 293,
Oregon Laws 1987, apply to tax years beginning on or after January 1, 1988.
(15)
The amendments to ORS 317.476 by section 45d, chapter 293, Oregon Laws 1987,
first apply to losses occurring in tax years beginning on or after January 1,
1987. [Formerly 316.023; 1997 c.99 §17]
Note:
314.033, 314.035, 314.037, 314.039 and 314.041 were enacted into law by the
Legislative Assembly but were not added to or made a part of ORS chapter 314 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 293, Oregon Laws 1987,” for the
words “this Act” in sections 71, 72 and 73, chapter 293, Oregon Laws 1987,
compiled as 316.023 and renumbered 314.033 in 1993. Specific ORS references
have not been substituted, pursuant to 173.160. These sections may be
determined by referring to the 1987 Comparative Section Table located in Volume
20 of ORS.
314.034
[Repealed by 1953 c.310 §3]
314.035 Application of Omnibus Budget
Reconciliation Act of 1987 (P.L. 100-203), Family Support Act of 1988 (P.L.
100-485) and Technical and Miscellaneous Revenue Act of 1988
(P.L. 100-647). (1) Except as provided in
subsections (2) to (4) of this section and sections 83 to 92, chapter 625,
Oregon Laws 1989, the amendments by chapter 625, Oregon Laws 1989, apply to
transactions or activities occurring on or after January 1, 1989, in tax years
beginning on or after January 1, 1989.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended by the Tax Reform Act
of 1986 (P.L. 99-514) and other Acts, relative to those dates, contained in the
Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203) shall apply for Oregon
personal income and corporate excise and income tax purposes, to the extent
they can be made applicable, in the same manner as they are applied under the
federal Internal Revenue Code and related federal law.
(3)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended by the Tax Reform Act
of 1986 (P.L. 99-514) and other Acts, relative to those dates, contained in the
Family Support Act of 1988 (P.L. 100-485) shall apply for Oregon personal
income and corporate excise and income tax purposes, to the extent they can be
made applicable, in the same manner as they are applied under the federal
Internal Revenue Code and related federal law.
(4)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended by the Tax Reform Act
of 1986 (P.L. 99-514) and other Acts, relative to those dates, contained in the
Technical and Miscellaneous Revenue Act of 1988 (P.L. 100-647) shall apply for
Oregon personal income and corporate excise and income tax purposes, to the
extent they can be made applicable, in the same manner as they are applied
under the federal Internal Revenue Code and related federal law.
(5)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 1989, and the deficiency, or any portion thereof, is
attributable to any retroactive treatment under chapter 625, Oregon Laws 1989,
then any interest or penalty assessed under ORS chapter 305, 314, 316, 317 or 318
with respect to the deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
1989, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under chapter 625, Oregon Laws 1989, then
notwithstanding ORS 314.415 or other law, the refund shall be paid without
interest.
(c)
Any changes required on account of chapter 625, Oregon Laws 1989, for a tax
year beginning prior to January 1, 1989, shall be made by filing an amended
return within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the change or changes relate
within the period as specified for issuing a notice of deficiency or claiming a
refund as otherwise provided by law with respect to that return, or within one
year after a 1989 return is filed, whichever period expires later. [1989 c.625 §82]
Note: See
first note under 314.033.
Note:
Legislative Counsel has substituted “chapter 625, Oregon Laws 1989,” for the
words “this Act” in section 82, chapter 625, Oregon Laws 1989, compiled as
314.035. Specific ORS references have not been substituted, pursuant to
173.160. These sections may be determined by referring to the 1989 Comparative
Section Table located in Volume 20 of ORS.
314.036
[Repealed by 1953 c.310 §3]
314.037 Application of P.L. 101-140,
Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239) and Omnibus Budget
Reconciliation Act of 1991 (P.L. 101-508). (1)
Except as provided in subsection (2) of this section and sections 25a to 32,
chapter 457, Oregon Laws 1991, the new material and amendments by chapter 457,
Oregon Laws 1991, apply to transactions or activities occurring on or after
January 1, 1991, in tax years beginning on or after January 1, 1991.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in P.L. 101-140, the Omnibus Budget Reconciliation Act of 1989
(P.L. 101-239) and the Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508)
shall apply for Oregon personal income and corporate excise and income tax
purposes, to the extent they can be made applicable, in the same manner as they
are applied under the federal Internal Revenue Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 1991, and the deficiency, or any portion thereof, is
attributable to any retroactive treatment under chapter 457, Oregon Laws 1991,
then any interest or penalty assessed under ORS chapter 305, 314, 316, 317 or
318 with respect to the deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
1991, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under chapter 457, Oregon Laws 1991, then
notwithstanding ORS 314.415 or other law, the refund or portion thereof shall
be paid without interest.
(c)
Any changes required on account of chapter 457, Oregon Laws, 1991, for a tax
year beginning prior to January 1, 1991, shall be made by filing an amended
return within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the change or changes relate
within the period as specified for issuing a notice of deficiency or claiming a
refund as otherwise provided by law with respect to that return, or within one
year after a 1991 return is filed, whichever period expires later. [1991 c.457 §25]
Note: See
first note under 314.033.
Note:
Legislative Counsel has substituted “chapter 457, Oregon Laws 1991,” for the
words “this Act” in section 25, chapter 457, Oregon Laws 1991, compiled as
314.037. Specific ORS references have not been substituted, pursuant to
173.160. These sections may be determined by referring to the 1991 Comparative
Section Table located in Volume 20 of ORS.
314.038
[Repealed by 1953 c.310 §3]
314.039 Application of P.L. 102-2, Comprehensive
National Energy Policy Act of 1992 (P.L. 102-486), Unemployment Compensation
Amendments of 1992 (P.L. 102-318), Tax Extension Act of 1991 (P.L. 102-227) and
Emergency Unemployment Compensation Act of 1991 (P.L. 102-164).
(1) Except as specifically provided otherwise, the new material enacted,
amendments and repeals made by chapter 726, Oregon Laws 1993, apply to
transactions or activities occurring on or after January 1, 1993, in tax
years beginning on or after January 1, 1993.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in P.L. 102-2, the Comprehensive National Energy Policy Act of
1992 (P.L. 102-486), the Unemployment Compensation Amendments of 1992 (P.L.
102-318), the Tax Extension Act of 1991 (P.L. 102-227) and the Emergency
Unemployment Compensation Act of 1991 (P.L. 102-164) shall apply for Oregon
personal income and corporate excise and income tax purposes, to the extent
they can be made applicable, in the same manner as they are applied under the
federal Internal Revenue Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 1993, and the deficiency, or any portion thereof, is
attributable to any retroactive treatment under chapter 726, Oregon Laws 1993,
then any interest or penalty assessed under ORS chapter 305, 314, 316, 317 or
318 with respect to the deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
1993, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under chapter 726, Oregon Laws 1993, then
notwithstanding ORS 314.415 or other law, the refund or portion thereof shall
be paid without interest.
(c)
Any changes required on account of chapter 726, Oregon Laws 1993, for a tax
year beginning prior to January 1, 1993, shall be made by filing an amended
return within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the change or changes relate within
the period as specified for issuing a notice of deficiency or claiming a refund
as otherwise provided by law with respect to that return, or within one year
after a 1993 return is filed, whichever period expires later. [1993 c.726 §53]
Note: See first
note under 314.033.
Note:
Legislative Counsel has substituted “chapter 726, Oregon Laws 1993,” for the
words “this Act” in section 53, chapter 726, Oregon Laws 1993, compiled as
314.039. Specific ORS references have not been substituted, pursuant to
173.160. These sections may be determined by referring to the 1993 Comparative
Section Table located in Volume 20 of ORS.
314.040
[Repealed by 1953 c.310 §3]
314.041 Application of Revenue
Reconciliation Act of 1993 (P.L. 103-66), the Uruguay Round Agreements Act (P.L.
103-465) and P.L. 104-7. (1) Except as provided in
subsection (2) of this section, sections 7, 7a, 28, 38 and 40, chapter 556,
Oregon Laws 1995, and the new material enacted and amendments and repeals made
by chapter 556, Oregon Laws 1995, apply to transactions or activities occurring
on or after January 1, 1995, in tax years beginning on or after January 1,
1995.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the Revenue Reconciliation Act of 1993 (P.L. 103-66), the
Uruguay Round Agreements Act (P.L. 103-465) or P.L. 104-7 shall apply for
Oregon personal income and corporate excise and income tax purposes, to the extent
they can be made applicable, in the same manner as they are applied under the
federal Internal Revenue Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 1995, and the deficiency, or any portion thereof, is
attributable to any retroactive treatment under chapter 556, Oregon Laws 1995,
then any interest or penalty assessed under ORS chapter 305, 314, 315, 316, 317
or 318 with respect to the deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
1995, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under chapter 556, Oregon Laws 1995, then
notwithstanding ORS 314.415 or other law, the refund or portion thereof shall
be paid without interest.
(c)
Any changes required on account of chapter 556, Oregon Laws 1995, for a tax
year beginning before January 1, 1995, shall be made by filing an amended
return within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the change or changes relate
within the period specified for issuing a notice of deficiency or claiming a
refund as otherwise provided by law with respect to that return, or within one
year after a 1995 return is filed, whichever period expires later. [1995 c.556 §39;
2009 c.33 §13]
Note: See
first note under 314.033.
Note:
Legislative Counsel has substituted “chapter 556, Oregon Laws 1995,” for the
words “this Act” in section 39, chapter 556, Oregon Laws 1995, compiled as
314.041. Specific ORS references have not been substituted pursuant to 173.160.
These sections may be determined by referring to the 1995 Comparative Section
Table located in Volume 20 of ORS.
314.042
[Repealed by 1953 c.310 §3]
314.043 Application of ICC Termination Act
of 1995 (P.L. 104-88), P.L. 104-117, Omnibus Consolidated Rescissions and
Appropriations Act of 1996 (P.L. 104-134), Small Business Job Protection Act of
1996 (P.L. 104-188), Health Insurance Portability and Accountability Act of
1996 (P.L. 104-191) and Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L. 104-193). (1)
Except as specifically provided otherwise, the new provisions enacted and
amendments and repeals of statutes made by chapter 839, Oregon Laws 1997, apply
to transactions or activities occurring on or after January 1, 1997, in tax
years beginning on or after January 1, 1997.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the ICC Termination Act of 1995 (P.L. 104-88), P.L.
104-117, the Omnibus Consolidated Rescissions and Appropriations Act of 1996
(P.L. 104-134), the Small Business Job Protection Act of 1996 (P.L. 104-188),
the Health Insurance Portability and Accountability Act of 1996 (P.L. 104-191)
and the Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(P.L. 104-193), shall apply for Oregon personal income and corporate excise and
income tax purposes, to the extent they can be made applicable, in the same
manner as they are applied under the federal Internal Revenue Code and related
federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 1997, and the deficiency, or any portion thereof, is attributable
to any retroactive treatment under chapter 839, Oregon Laws 1997, then any
interest or penalty assessed under ORS chapter 305, 314, 315, 316, 317 or 318
with respect to the deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
1997, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under chapter 839, Oregon Laws 1997, then
notwithstanding ORS 305.270 or 314.415 or other law, the refund or portion
thereof shall be paid without interest.
(c)
Any changes required on account of chapter 839, Oregon Laws 1997, for a tax
year beginning prior to January 1, 1997, shall be made by filing an amended
return within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the change or changes relate
within the period specified for issuing a notice of deficiency or claiming a
refund as otherwise provided by law with respect to that return, or within one
year after a 1997 return is filed, whichever period expires later. [1997 c.839 §70;
1999 c.21 §32]
Note:
314.043 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 839, Oregon Laws 1997,” for the
words “this Act” in section 70, chapter 839, Oregon Laws 1997, compiled as
314.043. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be determined
by referring to the 1997 Comparative Section Table located in Volume 20 of ORS.
314.044
[Repealed by 1953 c.310 §3]
314.045 Application of Taxpayer Relief Act
of 1997 (P.L. 105-34), Taxpayer Browsing Protection Act (P.L. 105-35),
Balanced Budget Act of 1997 (P.L. 105-33), Internal Revenue Service
Restructuring and Reform Act of 1998 (P.L. 105-206), Transportation Equity Act
for the 21st Century (P.L. 105-178) and Tax and Trade Relief Extension Act of
1998 (P.L. 105-277). (1) Except as specifically
provided in sections 4, 4b, 20 and 25b, chapter 90, Oregon Laws 1999, the new
provisions enacted and amendments to statutes made by chapter 90, Oregon Laws
1999, apply to transactions or activities occurring on or after January 1,
1999, in tax years beginning on or after January 1, 1999.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the Taxpayer Relief Act of 1997 (P.L. 105-34), the Taxpayer
Browsing Protection Act (P.L. 105-35), the Balanced Budget Act of 1997 (P.L.
105-33), the Internal Revenue Service Restructuring and Reform Act of 1998
(P.L. 105-206), the Transportation Equity Act for the 21st Century (P.L.
105-178) and the Tax and Trade Relief Extension Act of 1998 (P.L. 105-277)
shall apply for Oregon personal income and corporate excise and income tax
purposes, to the extent they can be made applicable, in the same manner as they
are applied under the federal Internal Revenue Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 1999, and the deficiency, or any portion thereof, is
attributable to any retroactive treatment under chapter 90, Oregon Laws 1999,
then any interest or penalty assessed under ORS chapter 305, 314, 315, 316, 317
or 318 with respect to the deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
1999, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under chapter 90, Oregon Laws 1999, then
notwithstanding ORS 305.270 or 314.415 or other law, the refund or portion
thereof shall be paid without interest.
(c)
Any changes required on account of chapter 90, Oregon Laws 1999, for a tax year
beginning before January 1, 1999, shall be made by filing an amended return
within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the changes relate within the
period specified for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a return for a tax year beginning on or after January 1, 1999, and before
January 1, 2000, is filed, whichever period expires later. [1999 c.90 §37]
Note:
314.045 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 90, Oregon Laws 1999,” for the
words “this 1999 Act” in section 37, chapter 90, Oregon Laws 1999, compiled as
314.045. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be
determined by referring to the 1999 Comparative Section Table located in Volume
20 of ORS.
314.046
[Repealed by 1953 c.310 §3]
314.047 Application of Tax Relief
Extension Act of 1999 (P.L. 106-170) and FSC Repeal and Extraterritorial
Income Exclusion Act of 2000 (P.L. 106-519). (1)
The amendments to statutes by sections 23 to 52, chapter 660, Oregon Laws 2001,
apply to transactions or activities occurring on or after January 1, 2001, in
tax years beginning on or after January 1, 2001.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the Tax Relief Extension Act of 1999 (P.L. 106-170) and the
FSC Repeal and Extraterritorial Income Exclusion Act of 2000 (P.L. 106-519),
apply for Oregon personal income and corporate excise and income tax purposes,
to the extent they can be made applicable, in the same manner as they are
applied under the Internal Revenue Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 2001, and the deficiency, or any portion thereof, is
attributable to any retroactive treatment under the amendments to statutes by
sections 23 to 52, chapter 660, Oregon Laws 2001, then any interest or penalty
assessed under ORS chapter 305, 314, 315, 316, 317 or 318 with respect to the
deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
2001, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under the amendments to statutes by sections 23 to
52, chapter 660, Oregon Laws 2001, then notwithstanding ORS 305.270 or 314.415
or other law, the refund or portion thereof shall be paid without interest.
(c)
Any changes required on account of the amendments to statutes by sections 23 to
52, chapter 660, Oregon Laws 2001, for a tax year beginning before January 1,
2001, shall be made by filing an amended return within the time prescribed by
law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the changes relate within the
period specified for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a return for a tax year beginning on or after January 1, 2001, and before
January 1, 2002, is filed, whichever period expires later. [2001 c.660 §53]
Note:
314.047 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 660, Oregon Laws 2001,” for the
words “of this 2001 Act” in section 53, chapter 660, Oregon Laws 2001, compiled
as 314.047. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be
determined by referring to the 2001 Comparative Section Table located in Volume
20 of ORS.
314.048
[Repealed by 1953 c.310 §3]
314.049 Application of Economic Growth and
Tax Relief Reconciliation Act of 2001 (P.L. 107-16) and Job Creation and Worker
Assistance Act of 2002 (P.L. 107-147). (1) The
amendments to statutes by sections 1 to 22, chapter 77, Oregon Laws 2003, apply
to transactions or activities occurring on or after January 1, 2003, in tax
years beginning on or after January 1, 2003.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the Economic Growth and Tax Relief Reconciliation Act of
2001 (P.L. 107-16) and the Job Creation and Worker Assistance Act of 2002 (P.L.
107-147) apply for Oregon personal income and corporate excise and income tax
purposes, to the extent they can be made applicable, in the same manner as they
are applied under the Internal Revenue Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 2003, and the deficiency, or any portion thereof, is
attributable to any retroactive treatment under the amendments to statutes by
sections 1 to 22, chapter 77, Oregon Laws 2003, then any interest or penalty
assessed under ORS chapter 305, 314, 315, 316, 317 or 318 with respect to the
deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
2003, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under the amendments to statutes by sections 1 to 22,
chapter 77, Oregon Laws 2003, then notwithstanding ORS 305.270 or 314.415 or
other law, the refund or portion thereof shall be paid without interest.
(c)
Any changes required because of the amendments to statutes by sections 1 to 22,
chapter 77, Oregon Laws 2003, for a tax year beginning before January 1, 2003,
shall be made by filing an amended return within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the changes relate within the
period specified for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a return for a tax year beginning on or after January 1, 2003, and before
January 1, 2004, is filed, whichever period expires later. [2003 c.77 §23]
Note:
314.049 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 77, Oregon Laws 2003,” for the
words “this 2003 Act” in section 23, chapter 77, Oregon Laws 2003, compiled as
314.049. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be
determined by referring to the 2003 Comparative Section Table located in Volume
20 of ORS.
314.050
[Repealed by 1953 c.310 §3]
314.051 Application of Veterans Benefit
Act of 2002 (P.L. 107-330), Jobs and Growth Tax Relief Reconciliation Act
of 2003 (P.L. 108-27), Military Family Tax Relief Act of 2003 (P.L. 108-121),
Working Families Tax Relief Act of 2004 (P.L. 108-311) and American Jobs
Creation Act of 2004 (P.L. 108-357). (1)
Except as provided in subsections (2) and (3) of this section, ORS 316.821 and
the amendments to statutes by sections 13 to 28 and 31, chapter 832, Oregon
Laws 2005, apply to transactions or activities occurring on or after January 1,
2005, in tax years beginning on or after January 1, 2005.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the Veterans Benefits Act of 2002 (P.L. 107-330), the Jobs
and Growth Tax Relief Reconciliation Act of 2003 (P.L. 108-27), the Military
Family Tax Relief Act of 2003 (P.L. 108-121), the Working Families Tax Relief
Act of 2004 (P.L. 108-311), the American Jobs Creation Act of 2004 (P.L.
108-357) and other federal law amending the Internal Revenue Code apply for
Oregon personal income and corporate excise and income tax purposes, to the
extent they can be made applicable, in the same manner as they are applied
under the Internal Revenue Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 2005, and the deficiency or any portion thereof is
attributable to any retroactive treatment under ORS 316.821 and the amendments
to statutes by sections 13 to 28 and 31, chapter 832, Oregon Laws 2005, then
any interest or penalty assessed under ORS chapter 305, 314, 315, 316, 317 or
318 with respect to the deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
2005, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under ORS 316.821 and the amendments to statutes by
sections 13 to 28 and 31, chapter 832, Oregon Laws 2005, then notwithstanding
ORS 305.270 or 314.415 or other law, the refund or portion thereof shall be
paid without interest.
(c)
Any changes required because of ORS 316.821 and the amendments to statutes by
sections 13 to 28 and 31, chapter 832, Oregon Laws 2005, for a tax year
beginning before January 1, 2005, shall be made by filing an amended return
within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the changes relate within the
period specified for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a return for a tax year beginning on or after January 1, 2005, and before
January 1, 2006, is filed, whichever period expires later. [2005 c.832 §32]
Note:
314.051 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 832, Oregon Laws 2005,” for the
words “this 2005 Act” in section 32, chapter 832, Oregon Laws 2005, compiled as
314.051. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be
determined by referring to the 2005 Comparative Section Table located in Volume
20 of ORS.
314.052
[Repealed by 1953 c.310 §3]
314.053 Application of Deficit Reduction
Act of 2005 (P.L. 109-171), Tax Increase Prevention and Reconciliation Act
of 2005 (P.L. 109-222) and Pension Protection Act of 2006 (P.L. 109-280).
(1) Except as provided in subsections (2) and (3) of this section, the
amendments to statutes by sections 1 to 14, chapter 614, Oregon Laws 2007,
apply to transactions or activities occurring on or after January 1, 2007, in
tax years beginning on or after January 1, 2007.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the Deficit Reduction Act of 2005 (P.L. 109-171), the Tax
Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222), the Pension
Protection Act of 2006 (P.L. 109-280) and other federal law amending the
Internal Revenue Code apply for Oregon personal income and corporate excise and
income tax purposes, to the extent they can be made applicable, in the same
manner as they are applied under the Internal Revenue Code and related federal
law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 2007, and the deficiency or any portion thereof is
attributable to any retroactive treatment under the amendments to statutes by
sections 1 to 14, chapter 614, Oregon Laws 2007, then any interest or penalty
assessed under ORS chapter 305, 314, 315, 316, 317 or 318 with respect to the
deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1, 2007,
and the refund or any portion thereof is due the taxpayer on account of any
retroactive treatment under the amendments to statutes by sections 1 to 14,
chapter 614, Oregon Laws 2007, then notwithstanding ORS 305.270 or 314.415 or
other law, the refund or portion thereof shall be paid without interest.
(c)
Any changes required because of the amendments to statutes by sections 1 to 14,
chapter 614, Oregon Laws 2007, for a tax year beginning before January 1, 2007,
shall be made by filing an amended return within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the changes relate within the
period specified for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a return for a tax year beginning on or after January 1, 2007, and before
January 1, 2008, is filed, whichever period expires later. [2007 c.614 §15]
Note:
314.053 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 614, Oregon Laws 2007,” for the
words “this 2007 Act” in section 15, chapter 614, Oregon Laws 2007, compiled as
314.053. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be
determined by referring to the 2007 Comparative Section Table located in Volume
20 of ORS.
314.054
[Repealed by 1953 c.310 §3]
314.055 Application of Energy Independence
and Security Act of 2007 (P.L. 110-140), Mortgage Forgiveness Debt Relief Act
of 2007 (P.L. 110-142), Tax Increase Prevention Act of 2007 (P.L. 110-166)
and Tax Technical Corrections Act of 2007 (P.L. 110-172).
(1) Except as provided in subsections (2) and (3) of this section, the
amendments to statutes by sections 1 to 17, chapter 45, Oregon Laws 2008, apply
to transactions or activities occurring on or after January 1, 2008, in tax
years beginning on or after January 1, 2008.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the Energy Independence and Security Act of 2007 (P.L.
110-140), the Mortgage Forgiveness Debt Relief Act of 2007 (P.L. 110-142), the
Tax Increase Prevention Act of 2007 (P.L. 110-166), the Tax Technical
Corrections Act of 2007 (P.L. 110-172) and other federal law amending the
Internal Revenue Code apply for Oregon personal income and corporate excise and
income tax purposes, to the extent they can be made applicable, in the same
manner as they are applied under the Internal Revenue Code and related federal
law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 2008, and the deficiency or any portion thereof is
attributable to any retroactive treatment under the amendments to statutes by
sections 1 to 17, chapter 45, Oregon Laws 2008, then any interest or penalty
assessed under ORS chapter 305, 314, 315, 316, 317 or 318 with respect to the
deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
2008, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under the amendments to statutes by sections 1 to 17,
chapter 45, Oregon Laws 2008, then notwithstanding ORS 305.270 or 314.415 or
other law, the refund or portion thereof shall be paid without interest.
(c)
Any changes required because of the amendments to statutes by sections 1 to 17,
chapter 45, Oregon Laws 2008, for a tax year beginning before January 1, 2008,
shall be made by filing an amended return within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the changes relate within the
period specified for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a return for a tax year beginning on or after January 1, 2008, and before
January 1, 2009, is filed, whichever period expires later. [2008 c.45 §18]
Note:
314.055 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 45, Oregon Laws 2008,” for the
words “this 2008 Act” in section 18, chapter 45, Oregon Laws 2008, compiled as
314.055. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be
determined by referring to the 2008 Comparative Section Table located in Volume
20 of ORS.
314.056
[Repealed by 1953 c.310 §3]
314.057 Application of Economic Stimulus
Act of 2008 (P.L. 110-185), Heroes Earnings Assistance and Relief Tax Act
of 2008 (P.L. 110-245), Food, Conservation, and Energy Act of 2008
(P.L. 110-246), Housing and Economic Recovery Act of 2008
(P.L. 110-289), Emergency Economic Stabilization Act of 2008, Energy
Improvement and Extension Act of 2008, Tax Extenders and Alternative Minimum Tax
Relief Act of 2008 (P.L. 110-343) and Fostering Connections to Success and
Increasing Adoptions Act of 2008 (P.L. 110-351).
(1) Except as provided in subsections (2) and (3) of this section, the
amendments to statutes by sections 1 to 27, chapter 5, Oregon Laws 2009, apply
to transactions or activities occurring on or after January 1, 2009, in tax
years beginning on or after January 1, 2009.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the Economic Stimulus Act of 2008 (P.L. 110-185), the
Heroes Earnings Assistance and Relief Tax Act of 2008 (P.L. 110-245), the Food,
Conservation, and Energy Act of 2008 (P.L. 110-246), the Housing and Economic
Recovery Act of 2008 (P.L. 110-289), the Emergency Economic Stabilization Act
of 2008, the Energy Improvement and Extension Act of 2008 and the Tax Extenders
and Alternative Minimum Tax Relief Act of 2008 (P.L. 110-343) and the Fostering
Connections to Success and Increasing Adoptions Act of 2008 (P.L. 110-351) and
other federal law amending the Internal Revenue Code apply for Oregon personal
income and corporate excise and income tax purposes, to the extent they can be
made applicable, in the same manner as they are applied under the Internal
Revenue Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 2009, and the deficiency or any portion thereof is
attributable to any retroactive treatment under the amendments to ORS 305.230,
305.494, 305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800,
311.689, 314.011, 315.004, 316.012, 317.010, 317.097, 458.670 and 657.010 by
sections 11 to 27, chapter 5, Oregon Laws 2009, then any interest or penalty
assessed under ORS chapter 305, 314, 315, 316, 317 or 318 with respect to the
deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
2010, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under the amendments to ORS 305.230, 305.494,
305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800, 311.689,
314.011, 315.004, 316.012, 317.010, 317.097, 458.670 and 657.010 by sections 11
to 27, chapter 5, Oregon Laws 2009, then notwithstanding ORS 305.270 or 314.415
or other law, the refund or portion thereof shall be paid without interest.
(c)
Any changes required because of the amendments to ORS 305.230, 305.494,
305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800, 311.689,
314.011, 315.004, 316.012, 317.010, 317.097, 458.670 and 657.010 by sections 11
to 27, chapter 5, Oregon Laws 2009, for a tax year beginning before January 1,
2010, shall be made by filing an amended return within the time prescribed by
law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the changes relate within the
period specified for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a return for a tax year beginning on or after January 1, 2009, and before
January 1, 2010, is filed, whichever period expires later. [2009 c.5 §28]
Note:
314.057 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 5, Oregon Laws 2009,” for the
words “this 2009 Act” in section 28, chapter 5, Oregon Laws 2009, compiled as
314.057. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be
determined by referring to the 2009 Comparative Section Table located in Volume
20 of ORS.
314.058
[Repealed by 1953 c.310 §3]
314.059 Application of American Recovery
and Reinvestment Act of 2009 (P.L. 111-5). (1)
Except as provided in subsections (2) and (3) of this section, the amendments
to statutes by sections 1 to 34, chapter 909, Oregon Laws 2009, apply to
transactions or activities occurring on or after May 1, 2009, in tax years
beginning on or after January 1, 2009.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the American Recovery and Reinvestment Act of 2009 (P.L.
111-5) and other federal law amending the Internal Revenue Code apply for
Oregon personal income and corporate excise and income tax purposes, to the
extent they can be made applicable, in the same manner as they are applied
under the Internal Revenue Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 2009, and the deficiency or any portion thereof is attributable
to any retroactive treatment under the amendments to ORS 305.230, 305.494,
305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800, 311.689,
314.011, 315.004, 316.012, 316.013, 317.010, 317.018, 317.097, 458.670 and
657.010 by sections 11 to 34, chapter 909, Oregon Laws 2009, then any interest
or penalty assessed under ORS chapter 305, 314, 315, 316, 317 or 318 with
respect to the deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
2010, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under the amendments to ORS 305.230, 305.494,
305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800, 311.689,
314.011, 315.004, 316.012, 316.013, 317.010, 317.018, 317.097, 458.670 and
657.010 by sections 11 to 34, chapter 909, Oregon Laws 2009, then
notwithstanding ORS 305.270 or 314.415 or other law, the refund or portion
thereof shall be paid without interest.
(c)
Any changes required because of the amendments to ORS 305.230, 305.494,
305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800, 311.689,
314.011, 315.004, 316.012, 316.013, 317.010, 317.018, 317.097, 458.670 and
657.010 by sections 11 to 34, chapter 909, Oregon Laws 2009, for a tax year
beginning before January 1, 2010, shall be made by filing an amended return
within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the changes relate within the
period specified for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a return for a tax year beginning on or after January 1, 2009, and before
January 1, 2010, is filed, whichever period expires later. [2009 c.909 §35]
Note:
314.059 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 909, Oregon Laws 2009,” for the
words “this 2009 Act” in section 35, chapter 909, Oregon Laws 2009, compiled as
314.059. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be
determined by referring to the 2009 Comparative Section Table located in Volume
20 of ORS.
314.060
[Repealed by 1953 c.310 §3]
314.061 Application of Consumer Assistance
to Recycle and Save Act of 2009 (P.L. 111-32) and Worker, Homeownership,
and Business Assistance Act of 2009 (P.L. 111-92).
(1) Except as provided in subsections (2) and (3) of this section, the
amendments to statutes by sections 1 to 21, 23, 24, 26, 27 and 29 to 32,
chapter 82, Oregon Laws 2010, apply to transactions or activities occurring on
or after January 1, 2010, in tax years beginning on or after January 1, 2010.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the Consumer Assistance to Recycle and Save Act of 2009
(P.L. 111-32) and the Worker, Homeownership, and Business Assistance Act of
2009 (P.L. 111-92) and other federal law amending the Internal Revenue Code
apply for Oregon personal income and corporate excise and income tax purposes,
to the extent they can be made applicable, in the same manner as they are
applied under the Internal Revenue Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 2010, and the deficiency or any portion thereof is
attributable to any retroactive treatment under the amendments to ORS 305.230,
305.494, 305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800,
311.689, 314.011, 315.004, 316.012, 316.013, 317.010, 317.018 and 317.097 by
sections 11 to 21, 23, 24, 26, 27, 29 and 30, chapter 82, Oregon Laws 2010,
then any interest or penalty assessed under ORS chapter 305, 314, 315, 316, 317
or 318 with respect to the deficiency or portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
2011, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under the amendments to ORS 305.230, 305.494,
305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800, 311.689, 314.011,
315.004, 316.012, 316.013, 317.010, 317.018 and 317.097 by sections 11 to 21,
23, 24, 26, 27, 29 and 30, chapter 82, Oregon Laws 2010, then notwithstanding
ORS 305.270 or 314.415 or other law, the refund or portion thereof shall be
paid without interest.
(c)
Any changes required because of the amendments to ORS 305.230, 305.494,
305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800, 311.689,
314.011, 315.004, 316.012, 316.013, 317.010, 317.018 and 317.097 by sections 11
to 21, 23, 24, 26, 27, 29 and 30, chapter 82, Oregon Laws 2010, for a tax year
beginning before January 1, 2010, shall be made by filing an amended return
within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this subsection,
the Department of Revenue shall make any changes under paragraph (c) of this
subsection on the return to which the changes relate within the period
specified for issuing a notice of deficiency or claiming a refund as otherwise
provided by law with respect to that return, or within one year after a return
for a tax year beginning on or after January 1, 2010, and before January 1,
2011, is filed, whichever period expires later. [2010 c.82 §33]
Note:
314.061 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 82, Oregon Laws 2010,” for the words
“this 2010 Act” in section 33, chapter 82, Oregon Laws 2010, compiled as
314.061. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be
determined by referring to the 2011 Comparative Section Table located in Volume
20 of ORS.
314.062
[Repealed by 1953 c.310 §3]
314.063 Application of Federal Aviation
Administration Air Transportation Modernization and Safety Improvement Act
(P.L. 111-226), Patient Protection and Affordable Care Act
(P.L. 111-148), Preservation of Access to Care for Medicare Beneficiaries
and Pension Relief Act of 2010 (P.L. 111-192), Health Care and Education
Reconciliation Act of 2010 (P.L. 111-152) and Homebuyer Assistance and
Improvement Act of 2010 (P.L. 111-198). (1) Except as
provided in subsections (2) and (3) of this section, the amendments to statutes
by sections 1 to 19 and 21 to 27, chapter 7, Oregon Laws 2011, apply to
transactions or activities occurring on or after January 1, 2011, in tax years
beginning on or after January 1, 2011.
(2)
The effective and applicable dates, and the exceptions, special rules and
coordination with the Internal Revenue Code, as amended, relative to those
dates, contained in the Federal Aviation Administration Air Transportation
Modernization and Safety Improvement Act (P.L. 111-226), the Patient Protection
and Affordable Care Act (P.L. 111-148), the Preservation of Access to Care for
Medicare Beneficiaries and Pension Relief Act of 2010 (P.L. 111-192), the Health
Care and Education Reconciliation Act of 2010 (P.L. 111-152), the Homebuyer
Assistance and Improvement Act of 2010 (P.L. 111-198) and other federal law
amending the Internal Revenue Code apply for Oregon personal income and
corporate excise and income tax purposes, to the extent they can be made
applicable, in the same manner as they are applied under the Internal Revenue
Code and related federal law.
(3)(a)
If a deficiency is assessed against any taxpayer for a tax year beginning
before January 1, 2011, and the deficiency or any portion thereof is
attributable to any retroactive treatment under the amendments to ORS 305.230,
305.494, 305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800,
314.011, 315.004, 316.012, 317.010 and 317.097 by sections 11 to 19 and 21 to
25, chapter 7, Oregon Laws 2011, then any interest or penalty assessed under
ORS chapter 305, 314, 315, 316, 317 or 318 with respect to the deficiency or
portion thereof shall be canceled.
(b)
If a refund is due any taxpayer for a tax year beginning before January 1,
2011, and the refund or any portion thereof is due the taxpayer on account of
any retroactive treatment under the amendments to ORS 305.230, 305.494,
305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800, 314.011,
315.004, 316.012, 317.010 and 317.097 by sections 11 to 19 and 21 to 25,
chapter 7, Oregon Laws 2011, then notwithstanding ORS 305.270 or 314.415 or
other law, the refund or portion thereof shall be paid without interest.
(c)
Any changes required because of the amendments to ORS 305.230, 305.494,
305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800, 314.011,
315.004, 316.012, 317.010 and 317.097 by sections 11 to 19 and 21 to 25,
chapter 7, Oregon Laws 2011, for a tax year beginning before January 1, 2011,
shall be made by filing an amended return within the time prescribed by law.
(d)
If a taxpayer fails to file an amended return under paragraph (c) of this
subsection, the Department of Revenue shall make any changes under paragraph
(c) of this subsection on the return to which the changes relate within the
period specified for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within one year after
a return for a tax year beginning on or after January 1, 2011, and before
January 1, 2012, is filed, whichever period expires later. [2011 c.7 §28; 2011
c.723 §27]
Note:
314.063 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
314.064
[Repealed by 1953 c.310 §3]
314.066
[Repealed by 1953 c.310 §3]
314.068
[Repealed by 1953 c.310 §3]
314.070
[Repealed by 1953 c.310 §3]
314.072
[Repealed by 1953 c.310 §3]
314.074
[Repealed by 1953 c.310 §3]
314.075 Evading requirements of law
prohibited. No person, or officer or employee of a
corporation or a member or employee of a partnership, shall, with intent to
evade any requirement of any law imposing taxes upon or measured by net income
or any lawful requirement of the Department of Revenue thereunder:
(1)
Fail to pay any tax or to make, sign or verify any return or to supply any
information required;
(2)
Make, render, sign or verify any false or fraudulent return or statement; or
(3)
Supply any false or fraudulent information. [1957 c.632 §3 (enacted in lieu of
316.025, 316.030, 317.015 and 317.020)]
314.078 Determination of tax credit
amounts. For purposes of this chapter and ORS
chapters 315, 316, 317 and 318, a taxpayer claiming a credit against tax must
claim the maximum amount of any tax credit that is allowed to the taxpayer for
the tax year, to the extent of the tax liability of the taxpayer. [2001 c.8 §2]
314.080 Venue on failure to comply with
law. The failure to do any act required by
or under any law imposing taxes upon or measured by net income shall be deemed
an act committed in part at the office of the Department of Revenue in Oregon. [1957
c.632 §3 (enacted in lieu of 316.025, 316.030, 317.015 and 317.020)]
314.085 Taxable year; rules.
(1) The taxable year of a partnership, REMIC (real estate mortgage investment
conduit), FASIT (financial asset securitization investment trust) or taxpayer
shall be the same as its taxable year for federal income tax purposes.
(2)
If the taxable year of a partnership, REMIC, FASIT or taxpayer is changed for
federal income tax purposes, that change in taxable year shall also apply for
purposes of state taxation. If a change in taxable year results in a taxable
period of less than 12 months, the personal deductions and the personal
exemption credits allowed by ORS chapter 316 shall be prorated under rules
adopted by the Department of Revenue.
(3)
Notwithstanding subsections (1) and (2) of this section, if the department
terminates the taxable year of a taxpayer under ORS 314.440, the tax shall be
computed for the period determined by such action. [1987 c.293 §55; 1997 c.839 §52]
314.088 [2005
c.519 §2; repealed by 2011 c.83 §9]
314.091 Abeyance of tax during periods of
active duty military service. (1) This
section applies to a taxpayer who is a member of the Armed Forces of the United
States who is on active duty for 90 consecutive days or more or who is a member
of the Oregon National Guard, the military reserve forces or the organized
militia of any other state or territory of the United States who performs
service in a status under Title 10 of the United States Code for a period of 90
consecutive days or more.
(2)
If a taxpayer described in subsection (1) of this section has an unpaid tax
liability for a tax due under ORS chapter 316 that arose during a period in
which service is performed as described in subsection (1) of this section, the
unpaid tax liability, and all interest and penalties associated with the unpaid
tax liability, shall be held in abeyance until a date that is six months after
the date that the taxpayer’s active duty or status under Title 10 of the United
States Code ceases. [2005 c.519 §6]
Note: Section
7, chapter 519, Oregon Laws 2005, provides:
Sec. 7.
Section 6 of this 2005 Act [314.091] applies to unpaid tax liability of
taxpayers described in section 6 of this 2005 Act that was incurred during
periods of military service that occurred on or after September 11, 2001. [2005
c.519 §7]
ADJUSTMENT OF RETURNS
314.105 Definitions for ORS 314.105 to
314.135. For purposes of ORS 314.105 to 314.135:
(1)
“Determination” means:
(a)
A decision by the Oregon Tax Court that has become final;
(b)
A closing agreement made under ORS 305.150;
(c)
A final disposition by the Department of Revenue of a claim for refund. For
purposes of this paragraph, a claim for refund shall be deemed finally disposed
of by the department as to items with respect to which the claim was allowed,
on the date of allowance of refund or credit or on the date of mailing notice
of disallowance (by reason of offsetting items) of the claim for refund, and as
to items with respect to which the claim was disallowed, in whole or in part, or
as to items applied by the department in reduction of the refund or credit, on
expiration of the time for instituting suit with respect thereto (unless suit
is instituted before the expiration of such time); or
(d)
Under regulations prescribed by the department, an agreement for purposes of
ORS 314.105 to 314.135 signed by the department and by any person, relating to
the liability of such person (or the person for whom the person acts) in
respect of a tax for any taxable period.
(2)
“Related taxpayer” means a taxpayer who, with the taxpayer with respect to whom
a determination is made, stood, in the taxable year with respect to which the
erroneous inclusion, exclusion, omission, allowance, or disallowance was made,
in one of the following relationships:
(a)
Husband and wife;
(b)
Grantor and fiduciary;
(c)
Grantor and beneficiary;
(d)
Fiduciary and beneficiary, legatee, or heir;
(e)
Decedent and decedent’s estate;
(f)
Partner;
(g)
Member of an affiliated group of corporations as defined in section 1504 of the
Internal Revenue Code; or
(h)
Shareholder of an S corporation, as defined in section 1361 of the Internal
Revenue Code.
(3)
“Taxpayer” means any person or entity subject to tax under an applicable
revenue law. [1971 c.248 §2; 1984 c.1 §15; 1985 c.602 §1; 1987 c.758 §11; 2005
c.94 §75]
314.110 [1953
c.702 §1; 1957 c.337 §4; repealed by 1971 c.248 §6]
314.115 Adjustment to correct effect of certain
errors; use limited. (1) If a determination is
described in ORS 314.125 and, on the date of the determination, correction of
the effect of the error referred to in the applicable provision of ORS 314.125
is prevented by the operation of any law or rule of law other than ORS 314.105
to 314.135 and other than ORS 305.150, then the effect of the error shall be
corrected by an adjustment made in the amount and in the manner specified in
ORS 314.135.
(2)
Except in cases described in ORS 314.125 (3)(b) and (4), an adjustment shall be
made under this section only if:
(a)
In case the amount of the adjustment would be credited or refunded in the same
manner as an overpayment under ORS 314.135, there is adopted in the
determination a position maintained by the Department of Revenue; or
(b)
In case the amount of the adjustment would be assessed and collected in the
same manner as a deficiency under ORS 314.135, there is adopted in the
determination a position maintained by the taxpayer with respect to whom the
determination is made, and the position maintained by the department in the
case described in paragraph (a) of this subsection or maintained by the
taxpayer in the case described in this paragraph is inconsistent with the
erroneous inclusion, exclusion, omission, allowance, disallowance, recognition,
or nonrecognition, as the case may be.
(3)
In the case of a determination described in ORS 314.125 (3)(b) (relating to
certain exclusions from income), adjustment shall be made under this section
only if assessment of a deficiency for the taxable year in which the item is
includable or against the related taxpayer was not barred, by any law or rule
of law, at the time the department first maintained, in a notice of deficiency
sent pursuant to ORS 305.265 or before the Oregon Tax Court, that the item
described in ORS 314.125 (3)(b) should be included in the gross income of the
taxpayer for the taxable year to which the determination relates.
(4)
In the case of a determination described in ORS 314.125 (4) (relating to
disallowance of certain deductions and credits), adjustment shall be made under
ORS 314.105 to 314.135 only if credit or refund of the overpayment attributable
to the deduction or credit described in ORS 314.125 that should have been
allowed to the taxpayer or related taxpayer was not barred, by any law or rule
of law, at the time the taxpayer first maintained before the department or
before the Oregon Tax Court, in writing, that the taxpayer was entitled to such
deduction or credit for the taxable year to which the determination relates.
(5)
In case the amount of the adjustment would be assessed and collected in the
same manner as a deficiency (except for cases described in ORS 314.125 (3)(b)),
the adjustment shall not be made with respect to a related taxpayer unless the
related taxpayer stands in such relationship to the taxpayer at the time the
latter first maintains the inconsistent position in a return, claim for refund,
or complaint in the Oregon Tax Court for the taxable year with respect to which
the determination is made, or if such position is not so maintained, then at
the time of determination. [1971 c.248 §3; 1979 c.689 §24; 1997 c.325 §33; 2005
c.94 §76]
314.120 [1953
c.702 §2; repealed by 1971 c.248 §6]
314.125 When adjustment may be made.
The circumstances under which the adjustment provided in ORS 314.115 is
authorized are as follows:
(1)
The determination requires the inclusion in gross income of an item that was
erroneously included in the gross income of the taxpayer for another taxable
year or in the gross income of a related taxpayer.
(2)
The determination allows a deduction or credit that was erroneously allowed to
the taxpayer for another taxable year or to a related taxpayer.
(3)(a)
The determination requires the exclusion from gross income of an item included
in a return filed by the taxpayer or with respect to which tax was paid and
that was erroneously excluded or omitted from the gross income of the taxpayer
for another taxable year, or from the gross income of a related taxpayer; or
(b)
The determination requires the exclusion from gross income of an item not included
in a return filed by the taxpayer and with respect to which the tax was not
paid but that is includable in the gross income of the taxpayer for another
taxable year or in the gross income of a related taxpayer.
(4)
The determination disallows a deduction or credit that should have been allowed
to, but was not allowed to, the taxpayer for another taxable year, or to a
related taxpayer.
(5)
The determination allows or disallows any of the additional deductions
allowable in computing the taxable income of estates or trusts, or requires or
denies any of the inclusions in the computation of taxable income of
beneficiaries, heirs or legatees, specified in sections 641 to 679 of the
Internal Revenue Code, or corresponding provisions of subsequent internal revenue
laws, and the correlative inclusion or deduction, as the case may be, has been
erroneously excluded, omitted or included, or disallowed, omitted or allowed,
as the case may be in respect of the related taxpayer.
(6)
The determination allows or disallows a deduction (including a credit) in
computing the taxable income (or, as the case may be, net income, normal tax
net income or surtax net income) of a corporation, and a correlative deduction
or credit has been erroneously allowed, omitted or disallowed, as the case may
be, in respect of a related taxpayer described in ORS 314.105 (2)(g).
(7)(a)
The determination determines the basis of property, and in respect of any
transaction on which such basis depends, or in respect of any transaction that
was erroneously treated as affecting such basis, there occurred, with respect
to a taxpayer described in paragraph (b) of this subsection, any of the errors
described in paragraph (c) of this subsection.
(b)
The taxpayer with respect to whom the erroneous treatment occurred must be:
(A)
The taxpayer with respect to whom the determination is made;
(B)
A taxpayer who acquired title to the property in the transaction and from whom,
mediately or immediately, the taxpayer with respect to whom the determination
is made derived title; or
(C)
A taxpayer who had title to the property at the time of the transaction and
from whom, mediately or immediately, the taxpayer with respect to whom the
determination is made derived title, if the basis of the property in the hands
of the taxpayer with respect to whom the determination is made is determined
under section 1015(a) of the Internal Revenue Code.
(c)
With respect to a taxpayer described in paragraph (b) of this subsection, there
was an erroneous inclusion in, or omission from, gross income, there was an
erroneous recognition, or nonrecognition, of gain or loss, or there was an
erroneous deduction of an item properly chargeable to capital account or an
erroneous charge to capital account of an item properly deductible. [1971 c.248
§4; 1983 c.162 §50; 1987 c.293 §52; 2005 c.94 §77]
314.130 [1953
c.702 §3; repealed by 1971 c.248 §6]
314.135 Computation; method of adjustment;
credit or setoff limited; recovery after payment limited.
(1)(a) In computing the amount of an adjustment under ORS 314.105 to 314.135
there shall first be ascertained the tax previously determined for the taxable
year with respect to which the error was made. The amount of the tax previously
determined shall be the excess of:
(A)
The sum of the amount shown as the tax by the taxpayer on the return of the
taxpayer, if a return was made by the taxpayer and an amount was shown as the
tax by the taxpayer thereon, plus the amounts previously assessed (or collected
without assessment) as a deficiency, over
(B)
The amount of refunds (as defined in ORS 314.415) made.
(b)
There shall then be ascertained the increase or decrease in tax previously
determined which results solely from the correct treatment of the item in the
computation of gross income, taxable income, and other matters under ORS
316.317 or ORS chapter 317 or 318. A similar computation shall be made for any
other taxable year affected, or treated as affected, by an Oregon net loss for
prior years (as provided by ORS 317.476 or 317.478 and section 45b, chapter
293, Oregon Laws 1987), by a net operating loss deduction (as defined in the
federal Internal Revenue Code) or by a capital loss carryback or carryover (as
defined in the federal Internal Revenue Code) determined with reference to the
taxable year with respect to which the error was made. The amount so
ascertained (together with any amounts wrongfully collected as additions to the
tax or interest, as a result of such error) for each taxable year shall be the
amount of the adjustment for that taxable year.
(2)
The adjustment authorized in ORS 314.115 (1) shall be made by assessing and
collecting, or refunding or crediting, the amount thereof in the same manner as
if it were a deficiency determined by the Department of Revenue with respect to
the taxpayer as to whom the error was made or an overpayment claimed by such
taxpayer, as the case may be, for the taxable year or years with respect to
which an amount is ascertained under subsection (1) of this section and as if
on the date of the determination one year remained before the expiration of the
periods of limitation upon assessment or filing claim for refund for such
taxable year or years. If, as a result of a determination described in ORS
314.105 (1)(d), an adjustment has been made by the assessment and collection of
a deficiency of the refund or credit of an overpayment, and subsequently such
determination is altered or revoked, the amount of the adjustment ascertained
under subsection (1) of this section shall be redetermined on the basis of such
alteration or revocation and any overpayment or deficiency resulting from such
redetermination shall be refunded or credited, or assessed and collected, as
the case may be, as an adjustment under this part. In the case of an adjustment
resulting from an increase or decrease in a net operating loss or net capital
loss which is carried back to the year of adjustment, interest shall not be
collected or paid for any period prior to the close of the taxable year in
which the net operating loss or net capital loss arises.
(3)
The amount to be assessed and collected in the same manner as a deficiency, or
to be refunded or credited in the same manner as an overpayment, under ORS
314.105 to 314.135, shall not be diminished by any credit or setoff based upon
any item other than the one which was the subject of the adjustment. The amount
of the adjustment under ORS 314.105 to 314.135, if paid, shall not be recovered
by a claim or suit for refund or suit for erroneous refund based upon any item
other than the one which was the subject of the adjustment. [1971 c.248 §5;
1983 c.162 §51; 1987 c.293 §52a]
314.140 Adjustment of returns of related
taxpayers after reallocation of income or deduction on federal return.
(1) Whenever there has been an adjustment of federal income tax liability
involving a reallocation of any item of income or deduction between related
taxpayers, and when such adjustment results in the assessment of a tax
deficiency or the issuance of a refund check or both, then for Oregon income
tax purposes, whether or not the Department of Revenue effects a similar
reallocation of income or deduction for the same tax year, said federal tax
deficiency and additions thereto shall be deducted (to the extent otherwise
provided by law) by the taxpayer paying the same, and said federal tax refund,
including interest thereon, shall be returned (to the extent otherwise required
by law) by the taxpayer receiving the same.
(2)
If, however, the related taxpayers involved (or their authorized
representatives) so elect in accordance with subsection (3), then the refund of
one, with interest thereon, shall be treated as a reduction of the deficiency
of the other, including additions thereto, so that only the net amount of
deficiency shall be deducted or the net amount of refund shall be returned, as
the case may be.
(3)
An election under subsection (2) shall be in writing, signed by each related
taxpayer or authorized representative, and filed with the department prior to
the expiration of the applicable period of limitation with respect to the
adjustment of the last open state return of either related taxpayer affected by
the federal tax deficiency or refund. Such election shall constitute a waiver
of any statute of limitations to permit the adjustment of all returns of the
related taxpayers for the purpose only of effecting a reallocation of income or
deductions similar to that made by the federal tax authorities and to adjust
the federal income tax deductions resulting therefrom. [1953 c.702 §4]
314.155 [1965
c.178 §8; 1969 c.493 §79; repealed by 1983 c.162 §57]
314.160 [1965
c.178 §9; 1969 c.493 §80; repealed by 1983 c.162 §57]
314.165 [1965
c.178 §10; 1969 c.493 §81; repealed by 1983 c.162 §57]
314.170 [1965
c.178 §11; repealed by 1969 c.493 §98]
314.175 [1965
c.178 §12; 1969 c.493 §82; repealed by 1983 c.162 §57]
314.210
[Formerly 317.605; 2003 c.46 §31; repealed by 2005 c.94 §78]
314.220
[Formerly 317.610; repealed by 2005 c.94 §78]
314.230
[Formerly 317.615; repealed by 2005 c.94 §78]
314.250 [1967
c.592 §18; 1987 c.293 §53; repealed by 1989 c.802 §8]
POLLUTION CONTROL FACILITIES
314.255 Collection of taxes due after
revocation of certification of pollution control facility; exceptions to tax
relief allowed for pollution control facility.
(1) Upon receipt of notice of the revocation of a certification of a pollution
control facility pursuant to ORS 468.185 (1), the Department of Revenue
immediately shall collect any taxes due by reason of such revocation, and shall
have the benefit of all laws of this state pertaining to the collection of
income and excise taxes. No assessment of such taxes shall be necessary and no
statute of limitation shall preclude the collection of such taxes.
(2)
No tax relief shall be allowed under ORS 307.405 or 315.304 for any pollution
control facility constructed or used by or for the benefit of any governmental
or quasi-governmental body or public corporation or form thereof, except where
such facilities are used for resource recovery. [1967 c.592 §§16,17; 1969 c.493
§83; 1979 c.531 §5]
LOBBYING EXPENDITURES
314.256 Lobbying expenditures; proxy tax;
rules. (1) If a tax is imposed upon an
organization under section 6033(e) of the Internal Revenue Code (proxy tax on
lobbying expenditures) for any tax year, a like tax is imposed for the tax year
upon the same amount as taxed for federal tax purposes, as allocated or
apportioned to Oregon. The rate of the tax shall be the rate specified in ORS
317.061. The tax shall be assessed and collected under the applicable provisions
of this chapter and ORS chapter 305.
(2)
Any organization that is required to include on a federal return the
information described in section 6033(e)(1) of the Internal Revenue Code shall
file a copy of the federal return containing the information with the
Department of Revenue.
(3)
The department may determine by rule the method by which the tax described in
subsection (1) of this section is allocated and apportioned to Oregon.
(4)
If section 6033(e) of the Internal Revenue Code (relating to the proxy tax on
lobbying expenditures) is repealed or otherwise eliminated by Act of the United
States, this section is repealed as of the applicable date of the repeal or
elimination of the proxy tax under section 6033(e) of the Internal Revenue
Code. [1995 c.556 §37; 1997 c.839 §49]
314.257 [1995
c.556 §46; repealed by 1997 c.839 §69]
CONVEYANCE OF REAL ESTATE
314.258 Withholding in certain conveyances
of real estate; rules. (1) As used in this section:
(a)
“Authorized agent” means an agent who is responsible for closing and settlement
services in a conveyance.
(b)
“Closing and settlement services” means services that are provided by:
(A)
A licensed escrow agent in a real estate closing escrow as provided in ORS
696.505 to 696.590; or
(B)
An attorney for the benefit of a transferor or a transferee in a conveyance,
if, simultaneously with the conveyance, the attorney deposits the unpaid
purchase price into the attorney’s client trust account for disbursal pursuant
to the written instructions of, or the agreement between, the transferor and
transferee.
(c)
“Consideration” includes the amount of cash paid for a conveyance and the
amount of any lien, mortgage, contract, indebtedness or other encumbrance
existing against the property conveyed to which the property remains subject or
which the purchaser agrees to pay or assume.
(d)
“Conveyance” means a transfer or a contract to transfer fee title to any real
estate located in the State of Oregon.
(e)
“Net proceeds” means the net amount to be disbursed to the transferor, prior to
reduction for withholding, as shown on the transferor’s settlement statement
for the conveyance.
(f)
“Transferor” means:
(A)
An individual who is not a resident of this state, as defined in ORS 316.027,
on the closing date of the conveyance; or
(B)
A corporation taxed under section 11 of the Internal Revenue Code and
subchapter C, chapter 1 of the Internal Revenue Code, that is not domiciled in
this state or that is not registered or otherwise qualified to do business in
this state on the closing date of the conveyance.
(2)
An authorized agent providing closing and settlement services in a conveyance
is required to withhold from consideration payable to a transferor an amount
equal to the least of:
(a)
Four percent of the consideration for the conveyance;
(b)
The net proceeds resulting from the conveyance; or
(c)
Eight percent of the gain includable in the transferor’s Oregon taxable income.
In arriving at this amount, the authorized agent may rely upon the transferor’s
written affirmation of the amount of includable gain.
(3)
An authorized agent is not required to withhold amounts under this section if:
(a)
The consideration for the conveyance does not exceed $100,000;
(b)
The conveyance is pursuant to a judicial foreclosure proceeding, a writ of
execution, a nonjudicial foreclosure of a trust deed or a nonjudicial
forfeiture of a land sale contract;
(c)
The conveyance is in lieu of foreclosure of a mortgage, trust deed or other
security instrument or a land sale contract with no additional monetary
consideration;
(d)
The transferor is a personal representative, executor, conservator, bankruptcy
trustee or other person acting under judicial review;
(e)
The transferor delivers to the authorized agent a written assurance as provided
in section 6045(e) of the Internal Revenue Code that the sale or exchange
qualifies for exclusion of gain under section 121 of the Internal Revenue Code;
(f)
The authorized agent obtains a written affirmation that the transferor is
unlikely to owe Oregon income tax as a result of the conveyance;
(g)
The amount that would be withheld under subsection (2) of this section is less
than $100, or less than a minimum amount established by rule by the Department
of Revenue; or
(h)
The authorized agent is an attorney and a licensed escrow agent is providing
services in the conveyance.
(4)(a)
Amounts withheld pursuant to this section are held in trust for the State of
Oregon and shall be paid to the department in the time and manner prescribed by
the department by rule.
(b)
If an authorized agent fails to remit an amount withheld by the agent under
this section by the time remittance is required, the department may recover
from the authorized agent the amount withheld with interest at the rate
established under ORS 305.220.
(c)
If an authorized agent fails to withhold when withholding is required under
this section, the department may recover a penalty not to exceed the greater
of:
(A)
$500; or
(B)
10 percent of the amount required to be withheld under this section, but not
more than $2,500.
(d)
The department may not proceed with collection actions against the authorized
agent if the authorized agent:
(A)
Withholds the required amount in connection with a conveyance and timely remits
the funds to the department;
(B)
Is not required to withhold an amount under this section; or
(C)
Demonstrates to the department that the authorized agent obtained a written
affirmation as described in this section or an assurance as provided in section
6045(e) of the Internal Revenue Code prior to disbursal of funds due the
transferor resulting from the conveyance.
(e)
A transferor may claim the amount withheld by an authorized agent on the
transferor’s personal income tax return or corporate income tax return or
excise tax return.
(f)
An authorized agent may withhold funds under this section without written
instructions to withhold from the transferor.
(g)
A written affirmation, as provided under this section, shall be executed by the
transferor or the transferor’s tax advisor under penalty of perjury and shall
contain the transferor’s taxpayer identification number. The authorized agent
shall retain for six years from the date of the closing of the conveyance any
written affirmation obtained by the agent in connection with the conveyance.
The department shall prescribe by rule the form and content of the written
affirmation and procedures for submission to the department of the information
contained in the written affirmation.
(h)
It shall be a defense to any claim by the department or by a transferor against
an agent that the agent has acted in reasonable reliance upon representations
made by the transferor or the transferor’s tax advisor. [2007 c.864 §4; 2008
c.54 §1; 2009 c.174 §13]
REMICS AND FASITS
314.260 Taxation of real estate mortgage
investment conduits. (1)(a) An entity described in
section 860D of the Internal Revenue Code (a real estate mortgage investment
conduit or REMIC) is not subject to a tax under ORS chapter 316, 317 or 318
(and may not be treated as a corporation, partnership or trust for purposes of
ORS chapter 316, 317 or 318).
(b)
If a REMIC engages in a prohibited transaction as defined in section 860F(a)(2)
of the Internal Revenue Code, the REMIC shall be subject to a tax equal to six
and six-tenths percent of the net income derived from the prohibited
transaction. The tax imposed under this paragraph shall be assessed and
collected under this chapter and ORS chapter 305 and shall be credited to the
General Fund to be made available for general governmental expenses.
(2)
The income of any REMIC shall be taxable to the holders of the interests in the
REMIC under ORS chapter 316, 317 or 318, whichever is applicable.
(3)
Taxable income or loss with respect to income received as the holder of any interest
in a REMIC shall be determined under sections 860A to 860G of the Internal
Revenue Code.
(4)
To determine the portion of the income of a REMIC that is taxable to a
nonresident holder of an interest in the REMIC, there shall be included only
that part derived from or connected with sources in this state, as such part is
determined under rules adopted by the Department of Revenue in accordance with
the general rules in ORS 316.352 (1987 Replacement Part). [1987 c.293 §63; 2005
c.94 §79]
314.265 Taxation of financial asset
securitization investment trusts. (1)(a) An
entity described in section 860L of the Internal Revenue Code (a financial
asset securitization investment trust, or FASIT) shall not be subject to a tax
under ORS chapter 316, 317 or 318 (and shall not be treated as a corporation,
partnership, trust or mortgage pool for purposes of ORS chapter 316, 317 or
318).
(b)
If a FASIT engages in a prohibited transaction as defined in section 860L(e)(2)
of the Internal Revenue Code, the FASIT shall be subject to a tax equal to 6.6
percent of the net income derived from the prohibited transaction. The tax
shall be paid by the holder of the ownership interest in the FASIT. The tax
imposed under this paragraph shall be assessed and collected under the applicable
provisions of this chapter and ORS chapter 305 and shall be credited to the
General Fund to be made available for general governmental expenses.
(2)
The income of any FASIT shall be taxable to the holders of the ownership
interests in the FASIT under ORS chapter 316, 317 or 318, whichever is
applicable.
(3)
Taxable income or loss, with respect to income received as the holder of any
interest in a FASIT, shall be determined under sections 860H to 860L of the
Internal Revenue Code, as defined in ORS 316.012 or 317.010 and 317.018, and
section 1621(e) of the Small Business Job Protection Act of 1996 (P.L.
104-188), as otherwise determined and modified under ORS chapter 316, 317 or
318, whichever is applicable, to the FASIT interest holder.
(4)
To determine the portion of the income of a FASIT that is taxable to a
nonresident holder of an interest in the FASIT, there shall be included only
that part derived from or connected with sources in this state. [1997 c.839 §51]
314.275 [1957
c.544 §2; 1969 c.493 §84; 1983 c.162 §52; repealed by 1987 c.293 §56]
METHODS OF ACCOUNTING AND REPORTING
INCOME
314.276 Method of accounting.
(1) The method of accounting of a partnership, REMIC (real estate mortgage
investment conduit), FASIT (financial asset securitization investment trust) or
taxpayer shall be the same as the method of accounting which the partnership,
REMIC, FASIT or taxpayer uses for federal income tax purposes for the taxable
year.
(2)
Notwithstanding subsection (1) of this section, if the method of accounting
used by the partnership, REMIC, FASIT or taxpayer does not clearly reflect
income, the computation of taxable income shall be made under such method as
the Department of Revenue may prescribe.
(3)
If the method of accounting is changed for federal income tax purposes, the
partnership, REMIC, FASIT or taxpayer shall adopt the same method of accounting
for purposes of ORS chapter 316, 317 or 318 and shall use that method beginning
with the return filed which corresponds to the first federal return filed which
is required to use the new method. Any adjustments required to prevent amounts
from being duplicated or omitted shall be taken into account for state tax
purposes in the same manner as for federal tax purposes.
(4)
Subsections (1) and (3) of this section shall not apply with respect to methods
of accounting which are disallowed for purposes of ORS chapter 316, 317 or 318.
[1987 c.293 §57; 1997 c.839 §53]
314.277 [1961
c.176 §§2,4; 1969 c.493 §85; repealed by 1987 c.293 §56]
314.280 Allocation of income of financial
institution or public utility from business within and without state; rules;
alternative apportionment for electing utilities or telecommunications
taxpayers. (1) If a taxpayer has income from
business activity as a financial institution or as a public utility (as defined
respectively in ORS 314.610 (4) and (6)) which is taxable both within and
without this state (as defined in ORS 314.610 (8) and 314.615), the
determination of net income shall be based upon the business activity within
the state, and the Department of Revenue shall have power to permit or require
either the segregated method of reporting or the apportionment method of
reporting, under rules and regulations adopted by the department, so as fairly
and accurately to reflect the net income of the business done within the state.
(2)
The provisions of subsection (1) of this section dealing with the apportionment
of income earned from sources both within and without the State of Oregon are
designed to allocate to the State of Oregon on a fair and equitable basis a
proportion of such income earned from sources both within and without the
state. Any taxpayer may submit an alternative basis of apportionment with
respect to the income of the taxpayer and explain that basis in full in the
return of the taxpayer. If approved by the department that method will be
accepted as the basis of allocation.
(3)(a)
Apportionment rules adopted by the department under this section must apply the
weightings used in ORS 314.650 to comparable factors used to apportion income
from business activity of taxpayers subject to this section.
(b)
Notwithstanding paragraph (a) of this subsection, a taxpayer primarily engaged
in utilities or telecommunications may elect to have income from business
activity apportioned by applying the weightings used in ORS 314.650 (1999
Edition) to comparable factors used to apportion such income.
(c)
The election shall be made in the time and manner prescribed by the department
by rule. The election shall continue in force and effect for the tax year for
which the election is made and for each subsequent tax year until the year in
which the taxpayer revokes the election.
(d)
An electing taxpayer may revoke the taxpayer’s election by filing a revocation
of election in the time and manner prescribed by the department. The revocation
shall apply to the tax year following the year in which the election is made
and to each subsequent tax year.
(e)
As used in this subsection:
(A)
“Telecommunications” means business operations that conduct, maintain or
provide for the transmission of voice data and text between network termination
points and telecommunications reselling. Transmission facilities may be based
on one technology or a combination of technologies.
(B)
“Utilities” means business operations that provide electric power, natural gas,
steam supply, water supply or sewage removal through a permanent infrastructure
of lines, mains and pipes. [1957 c.632 §4 (enacted in lieu of 316.205 and
317.180); 1963 c.319 §1; 1965 c.152 §22; 2001 c.933 §1; 2009 c.403 §5]
314.285 [1957
c.632 §5 (enacted in lieu of 316.210 and 317.185); repealed by 1987 c.293 §56]
314.287 Costs allocable to inventory.
(1) In the computation of state taxable income, costs allocable to inventory
shall be the same as those allocable to inventory under section 263A of the
Internal Revenue Code as of the close of the tax year for which a return is
filed and shall not be adjusted for any addition, subtraction, modification or
other adjustment contained in this chapter or ORS chapter 316, 317 or 318 or
other law governing the imposition of state taxes imposed upon or measured by
net income.
(2)
If any provision of ORS chapter 316, 317 or 318 appears to require an
adjustment to inventory costs contrary to the provisions of this section, that
adjustment shall not be made.
(3)
The additions, subtractions, modifications or other adjustments to federal
taxable income required in determining Oregon taxable income under ORS chapter
316, 317 or 318 shall be made to federal taxable income notwithstanding that
such adjustments are properly attributable to costs allocable to inventory. [1987
c.293 §57b]
314.290 [1957
c.102 §2; 1979 c.579 §4; 1991 c.457 §16a; 1995 c.556 §22; repealed by 2001
c.509 §19]
314.295 Apportionment or allocation where
two or more organizations, trades or businesses are owned or controlled by the
same interests. In any case of two or more
organizations, trades or businesses (whether or not incorporated, whether or
not organized in the United States and whether or not affiliated) owned or
controlled directly or indirectly by the same interests, the Department of
Revenue may distribute, apportion or allocate gross income, deductions, credits
or allowances between or among such organizations, trades or businesses, if it
determines that such distribution, apportionment or allocation is necessary in
order to prevent evasion of taxes or clearly to reflect the income of any of
such organizations, trades or businesses. [1957 c.632 §10 (enacted in lieu of
316.560 and 317.375); 1991 c.457 §16b]
314.296 Expense paid to related member for
use of intangible property. (1) As used in this section:
(a)
“Intangible expense” includes:
(A)
Expenses, losses and costs for, related to or in connection directly or
indirectly with the direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange or any other disposition of intangible
property to the extent such amounts are allowed as deductions or costs in
determining taxable income before net operating loss deductions and special
deductions for the taxable year under the Internal Revenue Code;
(B)
Amounts directly or indirectly allowed as deductions under section 163 of the
Internal Revenue Code for purposes of determining taxable income under the code
to the extent such expenses and costs are directly or indirectly for, related
to or in connection with the expenses, losses and costs described in
subparagraph (A) of this paragraph;
(C)
Losses related to, or incurred in connection directly or indirectly with,
factoring transactions or discounting transactions;
(D)
Royalty, patent, technical and copyright fees;
(E)
Licensing fees; and
(F)
Other similar expenses and costs.
(b)
“Intangible property” includes patents, patent applications, trade names,
trademarks, service marks, copyrights, mask works, trade secrets and similar
types of intangible assets.
(c)
“Related entity” means:
(A)
A stockholder who is an individual, or a member of the stockholder’s family as
defined in section 318 of the Internal Revenue Code, if the stockholder and the
members of the stockholder’s family own, directly, indirectly, beneficially or
constructively, in the aggregate, at least 50 percent of the value of the
taxpayer’s outstanding stock;
(B)
A stockholder, partnership, limited liability company, estate, trust or
corporation, if the stockholder and the stockholder’s partnerships, limited
liability companies, estates, trusts or corporations own, directly, indirectly,
beneficially or constructively, in the aggregate, at least 50 percent of the
value of the taxpayer’s outstanding stock; or
(C)
A corporation, or a party related to the corporation in a manner that would
require an attribution of stock from the corporation to the party or from the
party to the corporation under the attribution rules of the Internal Revenue
Code if the taxpayer owns, directly, indirectly, beneficially or
constructively, at least 50 percent of the value of the corporation’s
outstanding stock. The attribution rules of the code shall apply for purposes
of determining whether the ownership requirements of this definition have been
met.
(d)
“Related member” means a person that, with respect to the taxpayer during all
or any portion of the taxable year, is:
(A)
A related entity;
(B)
A component member as defined in section 1563(b) of the Internal Revenue Code;
(C)
A person to or from whom there is attribution of stock ownership in accordance
with section 1563(e) of the Internal Revenue Code; or
(D)
A person that, notwithstanding the person’s form of organization, bears the
same relationship to the taxpayer as a person described in this paragraph.
(e)
“Valid business purpose” means one or more business purposes, other than the
evasion or improper avoidance of taxation, that alone or in combination
constitute the primary motivation for a business activity or transaction, if
the activity or transaction changes in a meaningful way, apart from tax
effects, the economic position of the taxpayer. The economic position of the
taxpayer includes an increase in the market share of the taxpayer or the entry
by the taxpayer into a new business market.
(2)
To derive Oregon taxable income there shall be added to federal taxable income
amounts:
(a)
That are intangible expenses;
(b)
That are otherwise deductible;
(c)
That have been received by one or more related members that are not included in
the same state tax return as the taxpayer; and
(d)
That have been directly or indirectly paid, accrued or incurred in connection
with one or more direct or indirect transactions with one or more related
members.
(3)(a)
A taxpayer is allowed a credit against the taxes otherwise due under ORS
chapter 317 or 318 if a related member pays tax on the same income that has
been added back under subsection (2) of this section.
(b)
The amount from which the credit shall be derived shall be the greater of:
(A)
The tax paid by the related member with respect to the portion of the related
member’s income representing the intangible expense paid, accrued or incurred
by the taxpayer; or
(B)
The tax that would have been paid by the related member with respect to that
portion of the related member’s income if that portion had not been offset by
expenses or losses and the resulting tax liability had not been offset by any
other credit.
(c)
If the taxpayer is subject to apportionment, the credit shall be calculated by
multiplying the amount in paragraph (b) of this subsection by the taxpayer’s
apportionment factor provided by ORS 314.605 to 314.675.
(d)
The credit may not exceed that portion of the taxpayer’s liability that results
from the net income taxed as a result of subsection (2) of this section.
(4)
The adjustment required in subsection (2) of this section and the credit
allowed in subsection (3) of this section do not apply to any portion of the
intangible expense that the related member directly or indirectly paid, accrued
or incurred to a person that is not a related member, if the transaction giving
rise to the intangible expense was undertaken for a valid business purpose. [2009
c.402 §2]
314.297 Election for alternative
determination of farm income; computation of income; rules.
(1) As used in this section:
(a)
“Farm income”:
(A)
Means taxable income attributable to a farming business; and
(B)
Includes gain from the sale or other disposition of property (other than land)
regularly used by the taxpayer in the farming business for a substantial period
of time.
(b)
“Farming business” has the meaning given that term in section 263A(e)(4) of the
Internal Revenue Code.
(c)
“Taxable income” has the meaning given that term in ORS 316.022.
(d)
“Taxpayer” means a person subject to tax under ORS chapter 316, but does not
include an estate or trust.
(2)
A taxpayer may elect to have personal income taxes for the tax year determined
under this section in lieu of ORS chapter 316 if the individual is engaged in a
farming business for the tax year and has farm income for the tax year.
(3)
The taxpayer shall make the election in the manner provided by the Department of
Revenue. In making the election, the taxpayer shall determine the amount of
farm income that is to be considered elected farm income. The election shall
apply only to the tax year for which the election is made.
(4)
Upon making the election, the tax imposed under this section shall equal:
(a)
The tax computed under ORS chapter 316 on the taxable income of the taxpayer
reduced by the income that is elected farm income under subsection (3) of this
section; plus
(b)
The cumulative increase in the tax computed under ORS chapter 316 that would
result if the taxable income of the taxpayer for each of the three prior tax
years were increased by an amount equal to one-third of the income that is
elected farm income under subsection (3) of this section.
(5)
Any tax credit that would be allowable against the tax computed under ORS
chapter 316 may be allowed against the tax computed under this section.
(6)
The department shall:
(a)
Prescribe the manner in which an election under this section is made; and
(b)
Adopt rules on:
(A)
The order and manner in which items of income, gain, deduction, loss or
limitation on tax shall be taken into account in computing the tax under this
section; and
(B)
The treatment of a short tax year for purposes of this section. [2001 c.252 §2]
314.300 Passive activity loss; determination;
treatment; rules. For purposes of applying section
469 of the Internal Revenue Code to the laws of this state imposing taxes upon
or measured by income:
(1)
Passive activity loss shall be determined with respect to the activities of the
taxpayer under section 469 of the Internal Revenue Code and related federal law
and then shall be adjusted by the additions, subtractions, modifications and
other adjustments as allocated to passive activity loss under subsection (2) of
this section.
(2)
Those additions, subtractions, modifications and other adjustments required to
be made to federal taxable income under this chapter or ORS chapters 316, 317
and 318, or other law governing the imposition of state taxes imposed upon or
measured by income, shall be allocated to passive activity loss as provided by
rule of the Department of Revenue.
(3)
Passive activity loss, as determined under subsections (1) and (2) of this
section, shall not be allowed for the taxable year of the taxpayer. Passive
activity loss shall be treated as a deduction allocable to passive activity in
the next succeeding year, and except as otherwise adjusted under subsection (1)
of this section, shall be treated in the same manner as passive activity loss
is treated under section 469 of the Internal Revenue Code, and related
sections.
(4)
For state personal income tax purposes, in the case of a nonresident, passive
activity loss attributable to Oregon sources shall be treated in the same manner
as described under subsections (1) to (3) of this section. [1987 c.293 §64;
1995 c.556 §23]
314.302 Interest on deferred tax
liabilities with respect to installment obligations; rules.
(1) Subject to subsections (2) to (4) of this section, if interest on deferred
tax liability with respect to an installment obligation is required to be paid
for federal income tax purposes under section 453A of the Internal Revenue
Code, then interest on that same deferred tax liability shall be paid in the
same manner (including the pledging rules under section 453A(d) of the Internal
Revenue Code) for state tax purposes and shall, in the amount added, increase
the tax imposed under ORS chapter 316, 317 or 318, whichever is appropriate.
(2)
Interest added to tax pursuant to subsection (1) of this section shall be
determined in the same manner as interest is determined under section 453A(c)
of the Internal Revenue Code except that in determining the interest to be
added using section 453A(c) of the Internal Revenue Code:
(a)
The interest rate in effect under ORS 305.220 for deficiencies for the month
with or within which the taxable year of the taxpayer ends shall be substituted
for the underpayment rate referred to in section 453A(c)(2)(B); and
(b)
The maximum rate of tax in effect under ORS chapter 316, 317 or 318, whichever
is appropriate, shall be substituted for the federal rates of tax referred to
in section 453A(c)(3)(B).
(3)
The Department of Revenue shall adopt rules consistent with those adopted under
section 453A of the Internal Revenue Code and with laws of this state as may be
necessary to carry out the provisions of this section, including rules
providing for the application of this subsection in the case of contingent
payments, short taxable years, pass-through entities and derivation,
attribution or apportionment of installment obligations or income from
installment obligations.
(4)
In the case of a nonresident subject to taxation under ORS chapter 316, in
determining whether or not interest is to be added to tax under this section,
and the amount of interest to be added, only those installment obligations that
arise from dispositions of property in this state shall be taken into
consideration.
(5)
For purposes of determining interest under ORS 314.395 or penalties under ORS
314.400 or other law, and for purposes of refund, estimated and other
prepayments of tax, credits and all other purposes, the interest added under
this section shall be considered as any other increase in the tax imposed under
ORS chapter 316, 317 or 318, whichever is appropriate.
(6)
The interest added to tax imposed under this section shall be assessed and
collected under the applicable provisions of this chapter and ORS chapters 305,
316, 317 and 318 and shall be paid over to the State Treasurer and held in the
General Fund as miscellaneous receipts available generally to meet any expense
or obligation of the State of Oregon lawfully incurred. [1989 c.625 §57]
314.304 [1995
c.556 §42; 1999 c.21 §33; repealed by 1999 c.21 §34]
314.306 Income from discharge of
indebtedness; bankruptcy; insolvency. (1) If a
taxpayer excludes an amount from federal gross income by reason of the
discharge of indebtedness of the taxpayer under section 108(a)(1)(A) of the
Internal Revenue Code (relating to discharge of indebtedness in a bankruptcy
declared under U.S.C. Title 11), then, with respect to that portion of the
excluded amount that is apportioned to Oregon, the taxpayer shall apply the
rules in 11 U.S.C. 346(j), as amended and in effect on April 15, 1995.
(2)
If a taxpayer excludes an amount from federal gross income by reason of the
discharge of indebtedness of the taxpayer under section 108(a)(1)(B) or (C) of
the Internal Revenue Code (relating to discharge of indebtedness in insolvency
or discharge of qualified farm indebtedness), then, with respect to that
portion of the excluded amount that is apportioned to Oregon, the following
paragraphs shall apply, in the following order:
(a)
If the taxpayer has made the election under section 108(b)(5) of the Internal
Revenue Code to first reduce the basis of the depreciable property of the
taxpayer, the election shall also be effective for Oregon tax purposes. A
corresponding reduction in the basis of the depreciable property of the
taxpayer shall be made for Oregon tax purposes.
(b)
The amount, if any, by which the following attributes are reduced under section
108(b)(1) of the Internal Revenue Code for federal tax purposes shall be added
back for Oregon tax purposes:
(A)
Federal net operating loss.
(B)
Capital loss carryover.
(C)
Basis of the property of the taxpayer, excluding amounts subject to the
election under section 108(b)(5) of the Internal Revenue Code.
(D)
Passive activity loss carryover.
(c)
Excluding amounts subject to the election in section 108(b)(5) of the Internal
Revenue Code:
(A)
Any Oregon net operating loss of an individual or corporate taxpayer, including
a net operating loss carryover to the taxpayer, shall be reduced by the amount
of discharged indebtedness.
(B)
Any net capital loss for the taxable year of the discharge, and any capital
loss carryover to the taxable year, shall be reduced by the amount of
discharged indebtedness minus the total amount taken into account under
subparagraph (A) of this paragraph.
(C)
The basis of the property of the taxpayer shall be reduced by the amount of
discharged indebtedness minus the total amount taken into account under
subparagraphs (A) and (B) of this paragraph.
(D)
The passive activity loss carryover under section 469(b) of the Internal
Revenue Code from the taxable year of the discharge shall be reduced by the
amount of discharged indebtedness minus the total amount taken into account
under subparagraphs (A), (B) and (C) of this paragraph. [1995 c.556 §19]
314.307 Definitions; reportable
transactions. As used in this section and ORS
314.308, 314.403, 314.404, 314.406 and 314.469:
(1)
“Listed transaction” means any of the following transactions:
(a)
A listed transaction under section 6707A of the Internal Revenue Code.
(b)
A transaction without economic substance in which an Oregon taxable
corporation:
(A)
Transfers income-producing assets to a real estate investment trust owned
directly or indirectly by the corporation; and
(B)
With respect to dividends paid from the real estate investment trust, claims a
dividend-received deduction and the real estate investment trust claims a
dividend-paid deduction.
(c)
A transaction without economic substance in which an Oregon taxable
corporation:
(A)
Transfers income-producing assets to a regulated investment company owned
directly or indirectly by the corporation; and
(B)
With respect to dividends paid from the regulated investment company, claims a
dividend-received deduction and the regulated investment company claims a
dividend-paid deduction.
(2)
“Oregon taxable corporation” means a corporation:
(a)
That does business in Oregon, is organized in Oregon or has income from Oregon
sources; or
(b)
That is owned by an Oregon income or corporate excise taxpayer.
(3)
“Reportable transaction” means a transaction:
(a)
That is a reportable transaction under section 6707A of the Internal Revenue
Code; or
(b)
That is a listed transaction.
(4)
“Transaction without economic substance” means a transaction for which the
taxpayer cannot demonstrate a business purpose other than tax savings. [2007
c.568 §2]
314.308 Reportable transactions; rules.
(1) If required by rules adopted by the Department of Revenue:
(a)
Any person who engages in a reportable transaction as a buyer or transferor shall
report the transaction to the department.
(b)
Any person who, as the result of a reportable transaction, acquires an interest
in property, a present or future right to income, a present or future right to
claim a loss, deduction, credit, exemption or other tax benefit or a present or
future right to an adjustment to basis shall report the transaction to the
department.
(c)
Any person who is associated with a reportable transaction in an association
that the department has by rule identified as an association that requires
reporting shall report the transaction to the department.
(2)
A reportable transaction shall be reported to the department in the time, form
and manner prescribed by the department by rule. Rules adopted by the
department under this section may not apply to a reportable transaction
occurring in a tax year beginning before January 1, 2007. [2007 c.568 §3]
LIABILITY OF TRANSFEREE OR OWNER OF
TRUST
314.310 Liability of transferee of
taxpayer for taxes imposed on taxpayer. (1) When a taxpayer
ceases to exist or is no longer subject to the jurisdiction of this state
(although subject to the courts of a state having comity or reciprocity with
the State of Oregon), being indebted for taxes upon or measured by net income,
the transferee of the money or property of the taxpayer shall be liable for any
such tax or deficiency in tax, including penalties and interest, imposed by law
on the taxpayer and accruing or accrued upon the date of transfer, to the
extent of the amount of money or value of the property received by the
transferee. Property received by the transferee shall be valued at the fair
market value of said property at the time of transfer to the initial transferee
by the taxpayer.
(2)
The amount for which a transferee of the property of a taxpayer is liable in
respect of any such tax or deficiency in tax, including penalties and interest,
whether shown on the return of the taxpayer or determined as a deficiency in
the tax, shall be assessed against such transferee and collected and paid in
the same manner and subject to the same provisions and limitations as would
apply to the taxpayer had the taxpayer or it continued subject to the
jurisdiction of this state, except as provided in this section.
(3)
As used in this section, the term “transferee” means one not a bona fide
purchaser for value and includes an heir, legatee, devisee, distributee of an
estate of a deceased person, the shareholder of a dissolved corporation, the
assignee or donee of an insolvent person, the successor of a corporation which
is a party to a corporate reorganization, and persons acting on behalf of such
transferees in a fiduciary capacity.
(4)
The period of limitation for assessment of any such liability of a transferee
shall be as follows:
(a)
In the case of the liability of an initial transferee of the property of the
taxpayer, within one year after the expiration of the period of limitation for
assessment against the taxpayer.
(b)
In the case of the liability of a transferee of a transferee of the property of
the taxpayer, within one year after the expiration of the period of limitation
for assessment against the preceding transferee, but not more than three years
after the expiration of the period of limitation for assessment against the
taxpayer.
(c)
If, before the expiration of the period of limitation for the assessment of the
liability of the transferee, as set forth in paragraph (a) or (b) of this
subsection, a court proceeding for the collection of the tax or liability in
respect thereof has been filed against the taxpayer or last preceding
transferee, then the period of limitation for assessment of the liability of
the transferee shall expire one year after final judgment has been rendered in
the court proceedings.
(d)
If, before the expiration of the time prescribed in paragraph (a), (b) or (c)
of this subsection for the assessment of the liability, both the Department of
Revenue and the transferee have consented in writing to its assessment after
such time, the liability may be assessed at any time prior to the expiration of
the period of extension agreed upon. The period so agreed upon may be further
extended by subsequent agreements in writing made before the expiration of the
period of extension previously agreed upon.
(5)
For the purposes of this section, if the taxpayer is deceased, or in the case
of a corporation, has terminated its existence, the period of limitation for
assessment against the taxpayer shall be the period which would be in effect
had death or termination of existence not occurred.
(6)
In the absence of notice to the Department of Revenue of the existence of a
fiduciary relationship, notice of liability enforceable under this section in
respect of a tax or deficiency in tax, including penalties and interest
thereon, imposed upon or measured by net income, if mailed to the last-known
address of the person subject to the liability, shall be sufficient for the
purposes of this section even if such person is deceased, or is under a legal
disability, or, in the case of a corporation, has terminated its existence. [1955
c.367 §2; 1969 c.493 §86; 1995 c.453 §4; 1997 c.325 §35]
314.330 Lien if grantor or other person
determined to be owner of trust. (1) If a
final determination treats the grantor of a trust or any other person as the
owner of any portion of a trust pursuant to sections 671 to 679 of the federal
Internal Revenue Code or any other law, the lien of the State of Oregon imposed
by ORS 314.417 shall attach to all property and rights to property, whether
real or personal, of that portion of the trust. The lien may be foreclosed
pursuant to ORS 314.419 or collected by warrant pursuant to ORS 314.430.
(2)
For the purposes of subsection (1) of this section, “final determination”
means:
(a)
An assessment which has become final due to failure to exercise or exhaust
rights of appeal to the Oregon Tax Court.
(b)
A decision of the Oregon Tax Court which has become final.
(c)
A decision of the Oregon Supreme Court. [1985 c.149 §§2,3; 1995 c.556 §24; 1995
c.650 §31]
RETURNS
314.355 Returns when tax year changed.
If a taxpayer changes the tax year on the basis of which net income is
computed, the taxpayer shall, at the time and in the manner the Department of
Revenue prescribes, make a separate return of net income received during the
period intervening between the end of the former income year of the taxpayer
and the beginning of the new income year. [1957 c.632 §6 (enacted in lieu of
316.520); 1987 c.293 §58]
314.360 Information returns.
(1) Fiduciaries required to make returns under laws imposing tax upon or
measured by net income, proprietorships, partnerships, corporations, joint
stock companies or associations or insurance companies, having places of
business in this state, in whatever capacity acting, including lessees or mortgagors
of real or personal property, fiduciaries, employers, purchasers of stumpage
and all officers and employees of the state or of any political subdivisions of
the state, having the control, custody, disposal or payment of interest (other
than interest coupons payable to bearer), rent, dividends, salaries, fees,
wages, the purchase price of stumpage, emoluments or other fixed or
determinable annual or periodical gains, profits and income, paid or payable,
during any year to any taxpayer, shall make return thereof, under oath, to the
Department of Revenue, under such regulations and in such form and manner and
to such extent as it may prescribe.
(2)(a)
Every person doing business as a broker shall, when required by the department,
render a correct return duly verified under oath, under such rules and
regulations as the department may prescribe, showing the names of customers for
whom such person has transacted any business, with such details as to the
profits, losses, or other information which the department may require, as to
each of such customers, as will enable the department to determine whether all
income tax due on profits or gains of such customers has been paid.
(b)
Every person who is required to file a return with respect to a real estate transaction
under section 6045(e) of the Internal Revenue Code shall file a copy of that
return with the department.
(3)
The department may prescribe circumstances under which the filing requirements
under this section are waived. [1957 c.632 §7 (enacted in lieu of 316.535);
1959 c.305 §1; 1987 c.293 §59; 1987 c.366 §3; 1997 c.839 §54]
314.362 Filing return on magnetic media or
other machine-readable form; rules. (1) The
information return and the employer’s annual return, described in ORS 314.360
and 316.202 (3) shall be filed on magnetic media or other machine-readable form
if the corresponding federal return is required to be filed on magnetic media
or other machine-readable form by section 6011 (e) of the Internal Revenue Code
and the regulations, revenue rulings and revenue procedures adopted pursuant to
that section.
(2)
The Department of Revenue may, by administrative rule, adopt the regulations,
revenue rulings or revenue procedures which are adopted pursuant to section
6011 (e) of the Internal Revenue Code whenever such regulations, revenue
rulings or revenue procedures may be adopted.
(3)
The department may require that the magnetic media or other machine-readable
forms filed with it meet specifications prescribed by the department. The
department may allow an alternative method of filing if the person filing the
return is unable to meet the specifications prescribed by the department. [1987
c.366 §2; 1991 c.457 §17; 1993 c.726 §12; 1995 c.556 §25; 1997 c.839 §55]
314.363 [1975
c.760 §2; repealed by 1984 c.1 §18]
314.364 Authority of department to require
filing of returns by electronic means; rules. (1) As
used in this section:
(a)
“Electronic means” includes computer-generated electronic or magnetic media,
Internet-based applications or similar computer-based methods or applications.
(b)
“Paid tax preparer” means a person who prepares a tax return for another or
advises or assists in the preparation of a tax return for another, or who
employs or authorizes another to do the same, for valuable consideration.
(c)
“Tax return” means a return filed under ORS chapter 314, 316, 317 or 318.
(2)
The Department of Revenue may by rule require a paid tax preparer to file tax
returns by electronic means if the paid tax preparer is required to file federal
tax returns by electronic means.
(3)
The department may by rule require a corporation to file tax returns by
electronic means if the corporation is required to file federal tax returns by
electronic means.
(4)
The department may by rule establish exceptions to the electronic filing
requirements of this section. [2011 c.24 §2]
314.365 [1957
c.632 §8 (enacted in lieu of 316.550 and 317.365); 1961 c.533 §51; repealed by
1985 c.266 §6]
314.370 Department requiring return or
supplementary return. If the Department of Revenue is
of the opinion that a taxpayer has failed to file a return, or to include in a
return filed, either intentionally or through error, items of taxable income,
it may require from the taxpayer a return or supplementary return, under oath,
in such form as it shall prescribe, of all the items of income which the
taxpayer received during the year for which the return is made, whether or not
taxable under the provisions of the applicable tax law. If from a supplementary
return, or otherwise, the department finds that any items of taxable income
have been omitted from the original return it may require the items so omitted
to be disclosed under oath of the taxpayer, and to be added to the original
return. Such supplementary return and the correction of the original return
shall not relieve the taxpayer from any of the penalties to which the taxpayer
may be liable under any provisions of law whether or not the department
required a return or a supplementary return under this section. [1957 c.632 §9
(enacted in lieu of 316.555)]
314.380 Furnishing copy of federal or
other state return or report; action required when return filed or changed or
tax assessed. (1) Every taxpayer shall, upon request
of the Department of Revenue, furnish a copy of the return for the
corresponding year, which the taxpayer has filed or may file with the federal
government, showing the taxpayer’s net income and how obtained and the several
sources from which derived. Every taxpayer shall, upon request of the
department, furnish a copy of any federal revenue agent’s report or other audit
report made upon any audit or adjustment of the taxpayer’s federal income tax
return or income tax return of another state.
(2)(a)
The taxpayer shall report to the department any change in the taxpayer’s
taxable income that is subject to tax by this state or any change in the
taxpayer’s tax liability paid to or owing this state because:
(A)
The Internal Revenue Service or other competent authority has changed or
corrected the amount of a taxpayer’s taxable income, tax credit or other amount
taken into account in determining the taxpayer’s tax liability as reported on a
federal income tax return or an income tax return of another state for any
taxable year; or
(B)
The taxpayer:
(i)
Files an original or amended return that is accepted by the Internal Revenue
Service or the taxing authority of another state; or
(ii)
Is assessed tax by the Internal Revenue Service or the taxing authority of
another state for the failure to file a return as required.
(b)
In the case of a change or correction made by the Internal Revenue Service or
by the taxing authority of another state, the report shall either concede the
accuracy of the determination or state wherein the taxpayer believes it to be
erroneous. The report may be treated by the department as a claim for refund
pursuant to ORS 314.415 if the department determines that the taxpayer’s
correct Oregon tax liability is a reduction from the taxpayer’s Oregon tax
liability prior to the filing of the report. Notwithstanding the limitations of
ORS 314.415, a claim for refund under this paragraph shall be deemed timely if
received by the department within two years after the federal or other state
correction was made.
(c)
In the case of a taxpayer filing an original or amended federal or other state
return that reports a change in the taxpayer’s taxable income that is subject
to tax by this state or that results in a change in the taxpayer’s tax
liability paid to or owing this state, the report required by this subsection
shall be an amended Oregon return. The taxpayer shall file the amended return
with the department within 90 days thereafter.
(3)
For purposes of this section:
(a)
A change or correction of a taxpayer’s taxable income is deemed to be made on
the date of the audit report making the change or correction; and
(b)
The date on which an original or amended return is accepted by the Internal
Revenue Service or other state taxing authority is the date the original or
amended return is filed if the return is subsequently accepted by the Internal
Revenue Service or other state taxing authority.
(4)
The provisions of ORS 305.305 shall constitute the exclusive remedy of a person
whose notice of deficiency or assessment is based upon a change or correction
of the person’s taxable income under this section. [1957 c.632 §11 (enacted in
lieu of 316.565 and 317.380); 1963 c.509 §1; 1985 c.602 §3; 1989 c.414 §7; 1997
c.100 §2; 1999 c.74 §1; 2001 c.9 §4]
314.385 Form of returns; time for filing;
alternative filing formats; rules. (1)(a) For
purposes of ORS chapter 316, returns shall be filed with the Department of
Revenue on or before the due date of the corresponding federal return for the
tax year as prescribed under the Internal Revenue Code and the regulations
adopted pursuant thereto, except that the final return of a decedent shall be
filed at any time following the death of the decedent, to and including the
15th day of the fourth month after expiration of the regular tax year of the
decedent.
(b)
For purposes of ORS chapters 317 and 318, returns shall be filed with the
department on or before the 15th day of the month following the due date of the
corresponding federal return for the tax year, as prescribed under the Internal
Revenue Code and the regulations adopted pursuant thereto.
(c)
The department may allow further time for filing returns equal in length to the
extension periods allowed under the Internal Revenue Code and its regulations.
(d)
If no return is required to be filed for federal income tax purposes, the due
date or extension period for a return shall be the same as the due date, or
extension period, would have been if the taxpayer had been required to file a
return for federal income tax purposes for the tax year. However, the due date
for returns filed for purposes of ORS chapter 317 or 318 shall be on or before
the 15th day of the month following what would have been the federal return due
date for the tax year.
(2)
There shall be annexed to the return a statement verified as provided under ORS
305.810 by a declaration of the taxpayer making the return to the effect that
the statements contained therein are true.
(3)
Returns shall be in such form as the department may, from time to time,
prescribe. The department shall prepare blank forms for the returns and
distribute them throughout the state. Such forms shall be furnished the
taxpayer upon request, but failure to receive or secure a form shall not
relieve the taxpayer from the obligation of making any return required by law.
(4)(a)
The department may by rule authorize the filing of a return in alternative
formats to those described in subsection (3) of this section and may prescribe
the conditions, requirements and technical standards for a filing under this
subsection.
(b)
Notwithstanding subsections (1) to (3) of this section, the department may by
rule prescribe a different due date for a return filed in an alternative
format.
(c)
The policy of the Legislative Assembly in granting the department rulemaking
authority under paragraph (b) of this subsection is to have the department
prescribe due dates that mirror the due dates that apply to federal returns
filed in alternative formats for federal tax purposes. [1957 c.632 §12 (enacted
in lieu of 316.545 and 317.355); 1959 c.156 §1; last sentence of subsection (1)
derived from 1959 c.156 §3; 1963 c.281 §1; 1987 c.293 §59a; 1989 c.625 §55;
1991 c.457 §17a; 1997 c.84 §1; 1997 c.839 §56; 2003 c.77 §10a]
314.395 Time for payment of tax; interest
on delayed return. (1) The tax shall be paid to the
Department of Revenue at the time fixed by ORS 314.385 for filing the return
without regard to extensions.
(2)
When the time for filing a return of income is extended at the request of the
taxpayer, interest at the rate established under ORS 305.220 for each month or
fraction of a month from the time the return was originally required to be
filed to the time of payment shall be added and paid. [1969 c.166 §2; 1971
c.354 §3; 1973 c.402 §17; 1975 c.593 §13; 1980 c.20 §24; 1982 s.s.1 c.16 §6;
1987 c.293 §59b]
314.397 Manner of payment.
The tax may be paid with uncertified check under any rules as the Department of
Revenue shall adopt, but if a check so received is not paid by the financial
institution on which it is drawn, the taxpayer by whom the check is tendered
remains liable for the payment of the tax and for all legal penalties the same
as if the check had not been tendered. [1989 c.625 §61 (enacted in lieu of
316.407); 1997 c.631 §451]
314.400 Penalty for failure to file report
or return or to pay tax when due; interest; limitation on penalty.
(1) If a taxpayer fails to file a report or return or fails to pay a tax by the
date on which the filing or payment is due, the Department of Revenue shall add
to the amount required to be shown as tax on the report or return a delinquency
penalty of five percent of the amount of the unpaid tax.
(2)
In the case of a report or return that is required to be filed annually or for
a one-year period, if the failure to file the report or return continues for a
period in excess of three months after the due date:
(a)
There shall be added to the amount of tax required to be shown on the report or
return a failure to file penalty of 20 percent of the amount of the tax; and
(b)
Thereafter the department may send a notice and demand to the person to file a
report or return within 30 days of the mailing of the notice. If after the
notice and demand no report or return is filed within the 30 days, the
department may determine the tax according to the best of its information and
belief, assess the tax with appropriate penalty and interest plus an additional
penalty of 25 percent of the tax deficiency determined by the department and
give written notice of the determination and assessment to the person required
to make the filing.
(3)
In the case of a report or return that is required to be filed more frequently
than annually and the failure to file the report or return continues for a
period in excess of one month after the due date:
(a)
There shall be added to the amount of tax required to be shown on the report or
return a failure to file penalty of 20 percent of the amount of the tax; and
(b)
Thereafter the department may send a notice and demand to the person to file a
report or return within 30 days of the mailing of the notice. If after the
notice and demand no report or return is filed within the 30 days, the
department may determine the tax according to the best of its information and
belief, assess the tax with appropriate penalty and interest plus an additional
penalty of 25 percent of the tax deficiency determined by the department and
give written notice of the determination and assessment to the person required
to make the filing.
(4)
Notwithstanding subsections (2) and (3) of this section, if a taxpayer is
required to file a federal income tax return for a period of less than 12
months under section 443 of the Internal Revenue Code, the Oregon personal
income or corporate excise or income tax return required to be filed for that
period shall be subject to subsection (2) of this section.
(5)
If a report or return that is subject to a failure to file penalty described in
subsection (2) or (3) of this section is filed before a notice of determination
and assessment is issued by the department, the failure to file penalty
referred to in subsection (2)(a) or (3)(a) of this section shall be added to
the amount of tax shown on the report or return.
(6)
A penalty equal to 100 percent of any deficiency determined by the department
shall be assessed and collected if:
(a)
There is a failure to file a report or return with intent to evade the tax;
(b)
A report or return was falsely prepared and filed with intent to evade the tax;
or
(c)
A false claim was intentionally filed under ORS 310.635, 310.657 and 310.706.
(7)
Interest shall be collected on the unpaid tax at the rate established under ORS
305.220 for each month or fraction of a month, computed from the time the tax
became due, during which the tax remains unpaid.
(8)
Each penalty imposed under this section is in addition to any other penalty
imposed under this section. However, the total amount of penalty imposed under
this section and ORS 305.265 (13) with respect to any deficiency shall not
exceed 100 percent of the deficiency.
(9)
For purposes of subsections (1) to (3) of this section, the amount of tax
required to be shown or that is shown on the report or return shall be reduced
by the amount that is paid on or before the date prescribed for payment of the
tax and by the amount of any credit against the tax that is claimed on the
report or return. If the amount required to be shown as tax on the report or
return is less than the amount that is actually shown as tax on the report or
return, this subsection shall be applied by substituting the lower amount.
(10)
Notwithstanding subsection (1) of this section, the five percent penalty for
failure to file a report or return or pay a tax at the time the tax becomes due
may not be imposed if:
(a)
The taxpayer pays the full amount of the tax plus accrued interest within 30
days of the date shown on the department’s notice sent to the taxpayer; and
(b)(A)
The taxpayer had filed an amended individual tax return or an amended corporate
return of income or excise tax accompanied by less than full payment of the tax
shown on the return plus accrued interest; or
(B)
The department issues a notice of tax deficiency to the taxpayer under ORS
305.265. [1971 c.354 §2; 1975 c.593 §14; 1977 c.870 §41; 1980 c.7 §25; 1981
c.724 §4; 1982 s.s.1 c.16 §7; 1985 c.602 §4; 1987 c.158 §48a; 1993 c.726 §13;
1995 c.780 §5; 1997 c.170 §26; 2005 c.335 §1; 2007 c.322 §1]
314.401 De minimis tax payment not
required. Notwithstanding ORS 314.395 and
314.400, if the balance of tax due as shown on the report or return filed by
the taxpayer for the tax year is less than $1, payment of the amount shown
shall not be required. [1999 c.73 §2]
314.402 Understatement of taxable income;
penalty; waiver of penalty. (1) If the Department of Revenue
determines that there is a substantial understatement of taxable income for any
taxable year under any law imposing a tax on or measured by net income, there
shall be added to the amount of tax required to be shown on the return a
penalty equal to 20 percent of the amount of any underpayment of tax
attributable to the understatement of taxable income.
(2)
A substantial understatement of taxable income exists for any taxable year if
the amount of the understatement for the taxable year exceeds:
(a)
Except as provided in paragraph (b) of this subsection, $15,000.
(b)
In the case of a corporation other than an S corporation, as defined in section
1361 of the Internal Revenue Code, or a personal holding company, as defined in
section 542 of the Internal Revenue Code, $25,000.
(3)
In the case of any item attributable to an abusive tax shelter:
(a)
No reduction of the amount of the understatement shall be made with regard to
that item regardless of the existence of substantial authority for the
treatment of the item by the taxpayer.
(b)
No reduction of the amount of the understatement shall be made with regard to
that item regardless of the disclosure of the facts affecting the tax treatment
of the item unless, in addition to the disclosure, the taxpayer reasonably
believed that the tax treatment of the item was more likely than not the proper
treatment.
(4)
As used in this section:
(a)
“Abusive tax shelter” means any partnership, corporation or other organization
or entity, any investment plan or arrangement or any other plan or arrangement,
which has as its principal purpose the evasion or improper avoidance of federal
or state income tax. “Abusive tax shelter” includes any investment or activity
in connection with which tax benefits derived by investors are not clearly
intended under the tax laws or any investment or activity that involves little
or no economic reality, making use of unrealistic allocations of income or
expenses, inflated appraisals of asset values, losses substantially in excess
of investment, mismatching of income and expenses, financing techniques that do
not conform to standard commercial business practice or mischaracterization of
the substance of the investment or activity.
(b)
“Understatement” means the excess of the amount of the taxable income required
to be shown on the return for the taxable year over the amount of the taxable
income which is shown on the return, reduced by any portion of the
understatement that is attributable to:
(A)
The tax treatment of any item by the taxpayer if there is or was substantial
authority for such treatment; or
(B)
Any item with respect to which:
(i)
The relevant facts affecting the item’s tax treatment are adequately disclosed
in the return or in a statement attached to the return; and
(ii)
There is a reasonable basis for the tax treatment of the item by the taxpayer.
(5)
The penalty imposed under this section is in addition to any other penalty
imposed by law. A penalty imposed under this section shall be treated for all
purposes as an additional deficiency subject to the provisions of ORS 305.265,
but shall not bear interest.
(6)
The department may waive all or any part of the penalty imposed under this
section on a showing by the taxpayer that there was reasonable cause for the
understatement, or any portion thereof, and that the taxpayer acted in good
faith. [1987 c.843 §9; 1995 c.556 §25a]
314.403 Listed transaction understatement;
penalty. (1) If a taxpayer has a listed
transaction understatement for a tax year, there shall be added to the tax
liability of the taxpayer for the tax year a penalty equal to 60 percent of the
amount of the understatement.
(2)
The penalty imposed under this section applies to listed transaction
understatements discovered or reported on or after January 1, 2008, and is in
addition to and not in lieu of any other penalty.
(3)
As used in this section, “listed transaction understatement” means the sum of:
(a)
The amount determined by multiplying the highest rate of tax imposed on the
taxpayer under ORS chapter 316 or, if the taxpayer is a corporation, under ORS
chapter 317 or 318, by any net increase in taxable income that results from a
difference between the proper tax treatment of a listed transaction and the
treatment of the transaction on the return of the taxpayer; and
(b)
The amount of any decrease in the aggregate amount of credits determined for
purposes of ORS chapter 316 or, if the taxpayer is a corporation, for purposes
of ORS chapter 317 or 318, that results from the taxpayer’s treatment of a
listed transaction and the proper tax treatment of that transaction.
(4)
The Department of Revenue may by rule further define “listed transaction
understatement” consistent with ORS 314.307 and subsection (3) of this section.
[2007 c.568 §8]
314.404 Penalty for failure to report
reportable transaction. (1) If a taxpayer fails to
report to the Department of Revenue a reportable transaction as required by ORS
314.308, there shall be added to the tax liability of the taxpayer for the tax
year a penalty as follows:
(a)
Individual taxpayers, $3,300.
(b)
Corporation taxpayers, $16,700.
(2)
If the reportable transaction is a listed transaction, in lieu of the penalty
provided in subsection (1) of this section, the penalty shall be as follows:
(a)
Individual taxpayers, $33,000.
(b)
Corporation taxpayers, $66,000.
(3)
This section applies to tax years beginning on or after January 1, 2007. [2007
c.568 §9]
314.405 [1957
c.632 §13 (enacted in lieu of 316.605 and 317.405); 1959 c.212 §1; subsection
(8) derived from 1959 c.212 §3; 1961 c.504 §1; 1965 c.554 §1; 1969 c.166 §3;
1969 c.493 §87; 1971 c.333 §1; 1971 c.354 §4; 1973 c.402 §29; 1975 c.593 §15;
repealed by 1977 c.870 §22 (314.466 enacted in lieu of 314.405)]
314.406 Penalty for promotion of abusive
tax shelter. (1) A penalty shall be imposed on a
person who promotes a tax shelter if:
(a)
The person is or would be subject to a penalty for promoting an abusive tax
shelter under section 6700 of the Internal Revenue Code; and
(b)
The tax shelter satisfies any of the following conditions:
(A)
The tax shelter is organized in this state.
(B)
The tax shelter is doing business in this state.
(C)
The tax shelter derives income from sources in this state.
(D)
At least one investor in the tax shelter is an Oregon personal income taxpayer
or an Oregon corporate excise or income taxpayer.
(2)
The amount of the penalty shall equal 100 percent of the amount of gross income
derived by the person in promoting the tax shelter.
(3)
A penalty imposed under this section shall be in addition to and not in lieu of
any other penalty. [2007 c.568 §12]
COLLECTING DELINQUENT TAXES; LIENS;
INTEREST AND ADDITIONS TO TAX; REFUNDS
314.407 Assessment of taxes owing but not
submitted with return; time of assessment; recording of warrant.
For the purposes of ORS 314.407 and 314.417 to 314.423:
(1)
In the case of a return submitted to the Department of Revenue with payment of
less than the amount of tax computed to be due, the difference between the tax
computed to be owing by the taxpayer and the tax submitted with the return is considered
as “assessed” on the due date of the return (determined with regard to any
extension of time granted for the filing of the return) or the date the return
is filed, whichever is later.
(2)
The term “time of assessment” means:
(a)
In the case of an assessment made under ORS 305.265 and 314.410, 30 days after
the date the notice of assessment is mailed to the taxpayer;
(b)
In the case of an assessment made under ORS 314.440, five days after the date
the notice of assessment is mailed to the taxpayer; or
(c)
In the case of a tax assessed as described in subsection (1) of this section,
the due date of the return (determined with regard to any extension of time
granted for the filing of the return) or the date the return is filed,
whichever is later.
(3)
Unless a warrant has been recorded in the County Clerk Lien Record in the
county in which property is located, no warrant shall be considered as a lien
with respect to that property. [1971 c.215 §2; 1977 c.870 §42; 1987 c.586 §39;
1995 c.79 §154]
314.410 Time limit for notice of
deficiency; circumstances when claim for refund may be reduced after time
limit; time limit for refund or notice of deficiency for pass-through entity
items. (1) At any time within three years
after the return was filed, the Department of Revenue may give notice of
deficiency as prescribed in ORS 305.265.
(2)
If the department finds that gross income equal to 25 percent or more of the
gross income reported has been omitted from the taxpayer’s return, notice of
the deficiency may be given at any time within five years after the return was
filed.
(3)
If the department finds that a return reports or reflects the use of a listed
transaction, as defined in ORS 314.307, and that use of that listed transaction
results in a deficiency in tax paid, notice of that deficiency may be given at
any time within nine years after the return was filed.
(4)(a)
The limitations to the giving of notice of a deficiency provided in this
section do not apply to a deficiency resulting from false or fraudulent
returns, or in cases where no return has been filed.
(b)(A)
If the Commissioner of Internal Revenue or other authorized officer of the
federal government or an authorized officer of another state’s taxing authority
makes a change or correction as described in ORS 314.380 (2)(a)(A) and, as a
result of the change or correction, an assessment of tax or issuance of a
refund is permitted under any provision of the Internal Revenue Code or
applicable law of the other state, or pursuant to an agreement between the
taxpayer and the federal or other state taxing authority that extends the
period in which an assessment of federal or other state tax may be made, then
notice of a deficiency under any Oregon law imposing tax upon or measured by
income for the corresponding tax year may be mailed within two years after the
department is notified by the taxpayer or the commissioner or other tax
official of the correction, or within the applicable period prescribed in
subsections (1) to (3) of this section, whichever period expires later.
(B)
A notice of deficiency mailed pursuant to this paragraph may assert any
adjustment necessary to arrive at the correct amount of Oregon taxable income
and Oregon tax liability for the tax year for which the federal or other state
change or correction is made.
(c)
If the taxpayer files an original or amended federal or other state return as
described in ORS 314.380 (2)(a)(B), the department may reduce any claim for
refund as a result of a change in Oregon tax liability related to the original
or amended federal or other state return, but may not give notice of a
deficiency for an adjustment to Oregon tax liability following the expiration
of the applicable period prescribed in subsections (1) to (3) of this section
and paragraph (a) of this subsection.
(5)
The tax deficiency must be assessed and notice of tax assessment mailed to the
taxpayer or authorized representative, who is authorized in writing, within one
year from the date of the notice of deficiency unless an extension of time is
agreed upon as prescribed in subsection (7) of this section.
(6)
Notwithstanding other provisions of this section, 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, as provided in section 1034
of the Internal Revenue Code (as in effect prior to the repeal of section 1034
of the Internal Revenue Code by the Taxpayer Relief Act of 1997 (P.L. 105-34)),
does not expire prior to the expiration of three years from the date the
department is notified by the taxpayer of:
(a)
The cost of purchasing the new residence which the taxpayer claims results in
nonrecognition of any part of such gain;
(b)
The taxpayer’s intention not to purchase a new residence; or
(c)
A failure to purchase a new residence within the period prescribed in section
1034 of the Internal Revenue Code (as in effect prior to the repeal of section
1034 of the Internal Revenue Code by the Taxpayer Relief Act of 1997 (P.L.
105-34)).
(7)
If, prior to the expiration of any period of time prescribed in this section
for giving of notice of deficiency or of assessment, the department and the
taxpayer consent in writing to the notice of deficiency being mailed or
deficiency being assessed after the expiration of such prescribed period,
notice of such deficiency may be mailed or the deficiency assessed at any time
prior to the expiration of the period agreed upon. The period so agreed upon
may be extended by subsequent agreements in writing made before the expiration
of the period agreed upon.
(8)
In the case of a deficiency attributable to the application to the taxpayer of
a net operating loss carryback, notice of such deficiency may be mailed at any
time before the expiration of the period within which notice of a deficiency
for the taxable year of the net operating loss which results in such carryback
may be mailed.
(9)
Notwithstanding the other provisions of this section, if any taxpayer agreed
with the United States Commissioner of Internal Revenue or the taxing authority
of another state for an extension, or renewals thereof, of the period for
giving notices of deficiencies and assessing deficiencies in income tax for any
year, the period for mailing notices of deficiencies of tax for such years and
the period for filing a claim for refund under ORS 314.380 (2)(b) shall expire
on the later of:
(a)
The expiration of an applicable period described in subsections (1) to (8) or
(10) of this section; or
(b)
Six months after the date of the expiration of the agreed period for assessing
a deficiency.
(10)(a)
Notwithstanding the other provisions of this section and ORS 314.415, the
period for claiming a refund or giving a notice of deficiency with respect to
an item that is shown or required to be shown on a taxpayer’s return and that
is attributable to a pass-through entity does not expire prior to three years
from the date of the filing of the pass-through entity return to which the item
on the taxpayer’s return relates.
(b)
As used in this subsection, “pass-through entity” means any entity that is
recognized as a separate entity for federal income tax purposes, for which the
owners are required to report income, gains, losses, deductions or credits from
the entity for federal income tax purposes. [1957 c.632 §14 (enacted in lieu of
316.610 and 317.410); 1959 c.212 §2; 1959 c.591 §20; subsection (8) derived
from 1959 c.212 §3 and 1959 c.591 §21; 1963 c.509 §2; 1963 c.627 §1 (referred
and rejected); 1969 c.405 §1; 1969 c.493 §§88,88a; 1971 c.507 §1; 1977 c.870 §43;
1983 c.162 §53; 1985 c.602 §5; 1993 c.726 §14; 1997 c.100 §3; 1999 c.74 §3;
1999 c.90 §4a; 2001 c.9 §5; 2005 c.54 §1; 2007 c.568 §18]
314.412 Issuing of notice of deficiency
attributable to involuntary conversion; time limit.
Notwithstanding ORS 314.410, the period for issuing any notice of deficiency
attributable to any part of the gain realized upon an involuntary conversion as
provided in the federal Internal Revenue Code which applies to the Personal
Income Tax Act of 1969 or as provided in the corporate excise tax or corporate
income tax laws, shall not expire prior to the expiration of three years from
the date the Department of Revenue is notified by the taxpayer of:
(1)
The replacement of the converted property which the taxpayer claims results in
nonrecognition of any part of such gains; or
(2)
The taxpayer’s intention not to replace such property; or
(3)
A failure of the taxpayer to replace the property within the period prescribed
in the federal Internal Revenue Code which applies to the Personal Income Tax
Act of 1969, in the corporation excise tax laws or in the corporation income
tax laws, whichever is applicable. [1975 c.705 §2; 1989 c.626 §3]
314.415 Refunds; interest; credits.
(1) If the Department of Revenue determines pursuant to ORS 305.270 that the
amount of the tax due is less than the amount theretofore paid, the excess
shall be refunded by the department with interest at the rate established under
ORS 305.220, for each month or fraction of a month during a period beginning 45
days after the due date of the return or the date the tax was paid, or, in the
case of a return filed under ORS 118.100, the date that the return is filed,
whichever is the later, to the time the refund is made.
(2)(a)
The department may not allow or make a refund after three years from the time
the return was filed, or two years from the time the tax (or a portion of the
tax) was paid, whichever period expires later, unless before the expiration of
this period a claim for refund is filed by the taxpayer in compliance with ORS
305.270. In any case, if the original return is not filed within three years of
the due date, excluding extensions, of the return, the department may allow or
make a refund only of amounts paid within two years from the date of the filing
of the claim for refund. If a refund is disallowed for the tax year during
which excess tax was paid for any reason set forth in this subsection, the
department may not allow the excess as a credit against any tax occurring on a
return filed for a subsequent year.
(b)
The department may not make a refund if the tax owed after offsets for all
amounts owed the state, or a county pursuant to a judgment obtained under ORS
169.151, is less than $1.
(c)
If a taxpayer would qualify under section 6511(h) of the Internal Revenue Code
for a suspension of the running of the periods specified for filing a claim for
refund of federal income tax, the period specified in paragraph (a) of this
subsection shall also be suspended.
(d)
The department may not pay an employee interest on a refund of a tax withheld
by an employer if the interest would be for any period prior to the time the
employee files a personal income tax return for the tax year involved or for
any period prior to the day that is 45 days after the date when the employee’s
annual return for that year was filed or was due, whichever is later.
(e)
The department may not pay interest on a refund of estimated tax paid under ORS
314.505 to 314.525 or 316.557 to 316.589 if the interest would be for any
period prior to the time the taxpayer files a tax return for the tax year
involved or for any period prior to the day that is 45 days after the date when
the tax return for that year was filed or was due, whichever is later.
(f)
The amount of the refund, exclusive of interest on the refund, may not exceed
the portion of the tax paid during the period preceding the filing of the claim
or, if no claim is filed, then during the period preceding the allowance of the
refund during which a claim might have been filed. Where there has been an
overpayment of any tax imposed, the amount of the overpayment and interest on
the overpayment shall be credited against any tax, penalty or interest then due
from the taxpayer, and only the balance shall be refunded.
(g)
Except as provided in ORS 305.265 (12), if, pursuant to a notice of deficiency
or assessment, the taxpayer pays the amount specified in the notice, or any
part thereof, and if, upon appeal, the Oregon Tax Court or the Oregon Supreme
Court orders that all or any part of the deficiency amount specified in the
notice and paid by the taxpayer be refunded, the amount so ordered to be
refunded shall bear interest at the rate established for refunds in ORS
305.220. Interest shall be computed from the date of payment to the department.
Nothing in this subsection shall require that interest be paid upon any amount
for any period for which interest upon the same amount for the same period is
required to be paid under ORS 305.419.
(3)(a)
Notwithstanding any provision to the contrary in ORS 305.265 or 305.270 or
subsection (1) or (2) of this section, if, prior to the expiration of the
period prescribed in subsection (2) of this section, the department and the
taxpayer consent in writing to the refund of tax after the expiration of the
period prescribed:
(A)
The department shall make the refund prior to the expiration of the period
agreed upon; and
(B)
The department may not make or allow a refund after the expiration of the
period agreed upon unless a claim for refund is filed by the taxpayer before
the expiration of the period agreed upon in compliance with the manner
prescribed by the department. The period so agreed upon may be extended by
subsequent agreements in writing made before the expiration of the period
previously agreed upon.
(b)
The department may consent to extend the period during which a refund may be
made only if the taxpayer has consented to the assessment of additional tax, if
additional taxes are determined upon audit, after the expiration of the
applicable period prescribed in ORS 314.410 (1) to (3).
(4)(a)
If the claim for credit or refund relates to an overpayment on account of the
deductibility by the taxpayer, or by a partnership, of the worthlessness of a
share of stock in a corporation, of the right to subscribe for or to receive a
share of stock in a corporation, or of a debt, in lieu of the three-year period
of limitation prescribed in subsection (2) of this section, the period shall be
seven years from the date prescribed by law for the filing of the return for
the year with respect to which the claim is made.
(b)
If the claim described in paragraph (a) of this subsection is made after the
expiration of the three-year period prescribed in subsection (2) of this
section, the department may not allow interest with respect to any credit or
refund determined to be due upon the claim for the period beginning at the
close of the three-year period prescribed in subsection (2) of this section and
ending at the expiration of six months after the date on which the claim is
filed.
(5)(a)
If the claim for credit or refund relates to an overpayment attributable to a
net operating loss carryback or a net capital loss carryback, in lieu of the
three-year period of limitation prescribed in subsection (2) of this section,
the period shall be the period that ends three years after the time prescribed
by law for filing the return (including extensions) for the taxable year of the
net operating loss or net capital loss that results in such carryback. In the
case of such a claim, the amount of the credit or refund may exceed the portion
of the tax paid within the period provided in subsection (1), (2) or (3) of
this section, whichever is applicable, to the extent of the amount of the
overpayment attributable to the carryback. If the allowance of a credit or
refund of an overpayment of tax attributable to a net operating loss carryback
or a net capital loss carryback is otherwise prevented by the operation of any
law or rule of law other than ORS 305.150, relating to closing agreements, the
credit or refund may be allowed or made if the claim for credit or refund is
filed within the period provided in this subsection. To the extent that the
carryback was not an issue in any proceeding in which the determination of a
court, including the Oregon Tax Court, has become final, the claimed credit or
refund applicable to that carryback may be allowed or made under this
subsection.
(b)
For purposes of subsection (1) or (2) of this section, if any overpayment of tax
results from a carryback of a net operating loss or net capital loss, the
overpayment shall be deemed not to have been made prior to the later of:
(A)
The due date of the return for the taxable year in which such net operating
loss or net capital loss arises;
(B)
The date the return for the year in which the net operating loss or net capital
loss arises is filed; or
(C)
The date of filing of the return for the year to which the net operating loss
or net capital loss is carried back.
(6)
Notwithstanding any provision to the contrary in ORS 305.265 or 305.270 or this
section, if the taxpayer has agreed with the United States Commissioner of
Internal Revenue for an extension, or a renewal of an extension, of the period
for proposing and assessing deficiencies in federal income tax for any year,
the period within which a claim for credit or refund may be filed or credit or
refund allowed or made if no claim is filed shall be the period provided within
subsections (1) to (5) of this section or six months after the date of the
expiration of the agreed period for assessing deficiency in federal income tax,
whichever period expires later.
(7)
If a joint return is filed, the department may make separate refunds at the
request of either spouse. The separate refunds shall bear the same proportion
to the total refund as the adjusted gross income of each spouse bears to the
adjusted gross income of both spouses, or as otherwise determined by the
department.
(8)
If a taxpayer entitled to a refund under subsection (1) of this section dies,
the department may issue a draft for payment of such refund under the terms and
conditions set out in ORS 293.490 to 293.500 exercising the same powers and
subject to the same restrictions pursuant to which the State Treasurer is authorized
to pay the amounts of warrants, checks or orders under those statutes. [1957
c.632 §15 (enacted in lieu of 316.615 and 317.415); 1969 c.166 §4; 1969 c.405 §2;
1971 c.354 §5; 1971 c.507 §2; 1975 c.593 §16; 1977 c.870 §44; 1982 s.s.1 c.16 §8;
1983 c.162 §54; 1985 c.61 §3; 1985 c.602 §6; 1985 c.603 §1; 1985 c.802 §19;
1987 c.293 §60; 1987 c.647 §1; 1989 c.626 §4; 1991 c.457 §17b; 1993 c.726 §16;
1995 c.650 §32; 1999 c.73 §4; 1999 c.90 §1a; 2001 c.641 §3; 2005 c.48 §1; 2005
c.210 §2; 2007 c.568 §20; 2011 c.526 §25]
Note:
Section 30, chapter 526, Oregon Laws 2011, provides:
Sec. 30. (1)
Sections 27 [118.540] and 28 [118.165] of this 2011 Act, the amendments to ORS
111.025, 114.075, 116.083, 116.173, 116.303, 116.343, 118.005, 118.007,
118.010, 118.013, 118.016, 118.100, 118.140, 118.160, 118.171, 118.225,
118.260, 118.280, 118.300, 118.350, 118.525, 129.250, 305.490 and 314.415 by
sections 1 to 15 and 17 to 25 of this 2011 Act and the repeal of ORS 118.009,
118.019, 118.220, 118.240, 118.470, 118.810, 118.820, 118.830, 118.840,
118.855, 118.860, 118.865, 118.870, 118.875 and 118.880 and section 3, chapter
806, Oregon Laws 2003, by section 29 of this 2011 Act apply to estates of
decedents who die on or after January 1, 2012.
(2)
The amendments to ORS 105.645 by section 16 of this 2011 Act apply to estates
of decedents who die on or after January 1, 2010. [2011 c.526 §30]
314.417 Unpaid tax or withholding lien at
time of assessment. If any person neglects or
refuses to pay an income tax at the time of assessment, or fails to pay to the
Department of Revenue any amount required to be withheld under ORS 316.167 and
316.172, the amount of the unpaid tax including interest and penalty thereon
shall be a lien in favor of the State of Oregon upon all property and rights to
property, whether real or personal, belonging to the person. The lien shall
arise at the time of assessment or the time the amount withheld is to be paid
to the department and the lien shall continue until the liability for the
taxes, with interest and penalty, is satisfied. [1971 c.215 §3; 1981 c.546 §1]
314.419 Foreclosure of lien.
In addition to any other remedy provided by law the lien created by ORS 314.417
may be foreclosed in the following manner:
(1)
The Director of the Department of Revenue shall issue an order directed to the
sheriff of the county in which the property or interest in property subject to
the lien is located, describing the property subject to the lien, and
commanding the sheriff to seize the property specified and sell it to pay the
amount shown on the order to be due. In the discretion of the director an order
of like terms, force and effect may be issued and directed to any agent
authorized to collect income taxes, and in the execution thereof the agent
shall have all the powers conferred by law upon sheriffs but is entitled to no
fee or compensation in excess of actual expenses paid in the performance of
such duty.
(2)
If the property seized by the sheriff is personal property the sheriff shall
utilize the procedures under ORS 311.640 to effect collection of the amount
due.
(3)
If the property seized by the sheriff is real property the sheriff shall
proceed to sell the real property in the same manner that real property is sold
under a writ of execution.
(4)
Any property which has been sold under this section may be redeemed from the
purchaser by the taxpayer or any junior lienor within 120 days from the date of
the sale by paying to the purchaser the full purchase price paid plus an
additional 20 percent of the purchase price.
(5)
In any proceeding under this section to sell property to foreclose a lien, the
taxpayer may claim any exemption to which the taxpayer is entitled under the
laws of this state relating to property exempt from execution. [1971 c.215 §4]
314.420 [1957
c.632 §16 (enacted in lieu of 316.620, 317.370 and 317.420); 1969 c.166 §5;
repealed by 1971 c.354 §7]
314.421 When lien valid.
The lien imposed by ORS 314.417 shall not be valid as against any purchaser,
holder of a security interest, mechanic’s lienor or judgment creditor until a
warrant is issued and recorded under ORS 314.430. [1971 c.215 §5; 1987 c.586 §40]
314.423 Status of lien.
(1) After a warrant has been recorded under ORS 314.430, the lien imposed by
ORS 314.417 shall be subordinate to:
(a)
Any interest in real property to the same extent that a judgment recorded in
the County Clerk Lien Record under ORS 18.152 at the same time the warrant was
recorded would be subordinate to the interest; and
(b)
Any interest in personal property to the same extent that a security agreement
filed under the Uniform Commercial Code at the same time the warrant was filed
would be subordinate to the interest.
(2)
After a warrant has been recorded under ORS 314.430, the lien imposed by ORS
314.417 shall not be valid as to a purchaser, security interest holder or
lienholder in a sale, security agreement or lien arising out of the following
types of property or property transactions unless the purchaser, security
interest holder or lienholder had actual knowledge of the lien:
(a)
Securities as defined in ORS 78.1020;
(b)
Retail purchases in the ordinary course of business;
(c)
Casual sales of personal property;
(d)
Attorney’s liens;
(e)
Insurance contract loans; or
(f)
Passbook loans. [1971 c.215 §§6,7; 1987 c.586 §41; 1997 c.325 §36; 2003 c.576 §230]
314.425 Examining books, records or
persons. (1) The Department of Revenue, for the
purpose of ascertaining the correctness of any return or for the purpose of
making an estimate of the taxable income of any taxpayer, may examine or cause
to be examined by an agent or representative designated by it for the purpose,
any books, papers, records or memoranda bearing upon the matter required to be
included in the return, and may require the attendance of the taxpayer or
officer or agent or any other person having knowledge in the premises, and may
take testimony and require proof material for the information, with power to
administer oaths to such persons. The department shall have authority, by order
or subpoena to be served with the same force and effect and in the same manner
that a subpoena is served in a civil action in the tax court, to require the
production at any time and place it may designate of any books, papers,
accounts or other information necessary to the carrying out of any law imposing
tax on or measured by net income.
(2)
If any person fails to comply with any subpoena or order of the department or
to produce or permit the examination or inspection of any books, papers or
documents pertinent to any investigation or inquiry under this section, or to
testify to any matter regarding which the person may be lawfully interrogated,
the department may apply to the tax court for the county in which the person
resides for an order to the person to attend and testify, or otherwise comply
with the demand or request of the department. The application to the court
shall be by ex parte motion upon which the court shall make an order requiring
the person against whom it is directed to comply with the request on demand of
the department within 10 days after service of the order (or such further time
as the court may grant) or to justify the failure within that time. The order
shall be served upon the person to whom it is directed in the manner required by
this state for service of process, which service shall be required to confer
jurisdiction upon the court. Failure to obey any order issued by the court
under this section is contempt of court. The remedy provided by this section
shall be in addition to other remedies, civil or criminal, existing under the
tax laws or other laws of this state. [1957 c.632 §17 (enacted in lieu of
316.625 and 317.425); 1995 c.650 §33]
314.430 Warrant for collection of taxes.
(1) If any tax imposed under ORS chapter 118, 316, 317 or 318 or any portion of
the tax is not paid within 30 days after the date that the written notice and
demand for payment required under ORS 305.895 is mailed (or within five days
after the tax becomes due, in the case of the termination of the tax year by
the Department of Revenue under the provisions of ORS 314.440), or any amount
payable by a transferee under ORS 311.695 is not paid as required under ORS
311.686, and no provision is made to secure the payment thereof by bond,
deposit or otherwise, pursuant to regulations promulgated by the department,
the department may issue a warrant for the payment of the amount of the tax or
amount payable under ORS 311.695, with the added penalties, interest and any
collection charge incurred. A copy of the warrant shall be mailed or delivered
to the taxpayer or transferee by the department at the taxpayer’s or transferee’s
last-known address.
(2)
At any time after issuing a warrant under this section, the department may
record the warrant in the County Clerk Lien Record of any county of this state.
Recording of the warrant has the effect described in ORS 205.125. After
recording a warrant, the department may direct the sheriff for the county in
which the warrant is recorded to levy upon and sell the real and personal
property of the taxpayer or transferee found within that county, and to levy
upon any currency of the taxpayer or transferee found within that county, for
the application of the proceeds or currency against the amount reflected in the
warrant and the sheriff’s cost of executing the warrant. The sheriff shall
proceed on the warrant in the same manner prescribed by law for executions
issued against property pursuant to a judgment, and is entitled to the same
fees as provided for executions issued against property pursuant to a judgment.
The fees of the sheriff shall be added to and collected as a part of the
warrant liability.
(3)
In the discretion of the department a warrant under this section may be
directed to any agent authorized by the department to collect taxes, and in the
execution of the warrant the agent has all of the powers conferred by law upon
sheriffs, but is entitled to no fee or compensation in excess of actual
expenses paid in the performance of such duty.
(4)
Until a warrant issued under this section is satisfied in full, the department
has the same remedies to enforce the claim for taxes against the taxpayer or
for amounts payable by the transferee as if the state had recovered judgment
against the taxpayer for the amount of the tax or against the transferee for
the amount payable under ORS 311.695. [1957 c.632 §18 (enacted in lieu of
316.630 and 317.430); 1959 c.74 §1; 1959 c.234 §1; 1975 c.593 §17; 1983 c.696 §12;
1985 c.85 §12; 1985 c.761 §15; 1987 c.586 §42; 1989 c.625 §62; 1997 c.99 §52;
2011 c.389 §1; 2011 c.723 §29]
Note: See
note under 311.666.
314.432 [1989
c.1036 §2; 1995 c.53 §2; renumbered 305.182 in 1995]
314.434 [1989
c.1036 §3; 1995 c.53 §3; renumbered 305.184 in 1995]
314.435 [1957
c.632 §19 (enacted in lieu of 316.635 and 317.435); 1959 c.147 §1; repealed by
1961 c.573 §2 (305.140 enacted in lieu of 314.435, 315.635 and 321.085)]
314.440 Tax as debt; termination of
taxable period and immediate assessment of tax.
(1) Every tax imposed by any law imposing a tax upon or measured by net income,
and all increases, interest and penalties thereon shall become, from the time
such liability is incurred, a personal debt, due the State of Oregon, from the
person or persons liable therefor.
(2)
If the Department of Revenue finds that a taxpayer designs quickly to depart
from the state or to remove the property of the taxpayer therefrom, or to do
any other act tending to prejudice or to render wholly or partially ineffectual
proceedings to collect the tax for any past tax year or the tax year then
current unless such proceedings be brought without delay, the department shall
declare the current taxable period for such taxpayer immediately terminated and
shall cause notice of such finding and declaration to be given the taxpayer.
Simultaneously, the department, on the basis of the best information available
to it, shall assess a tax for such terminated period and for the preceding tax
year (if no return has been filed therefor, whether or not the time otherwise
allowed by law for filing such return and paying the tax has expired), and
shall assess additional tax for any years open to assessment under the
provisions of the applicable law. The department shall give notice to the
taxpayer of all taxes so assessed. Such taxes shall thereupon become
immediately due and payable as soon as the notice and findings are issued to
the taxpayer or mailed to the last-known address of the taxpayer. In any
proceeding in court brought to enforce payment of taxes made due and payable by
virtue of the provisions of this section the findings of the department, made
as provided in this section, whether made after notice to the taxpayer or not,
shall be for all purposes presumptive evidence of the taxpayer’s design and the
certificate of the department of the mailing or issuing of the notice and
findings specified in this section is presumptive evidence that the notice and
findings were mailed or issued. [1957 c.632 §20 (enacted in lieu of 316.640,
317.440 and 317.445)]
314.445 [1957
c.632 §21 (enacted in lieu of 316.650 and 317.455); 1959 c.234 §2; repealed by
1973 c.402 §30]
314.450
[Subsections (1) and (2) enacted as 1957 c.632 §22 (enacted in lieu of 316.655
and 317.460); subsection (3) enacted as 1957 c.545 §2; 1959 c.650 §1; 1969
c.520 §40; 1971 c.418 §11; repealed by 1973 c.402 §30]
314.455 [1957
c.632 §23 (enacted in lieu of 316.660 and 317.465); 1971 c.507 §3; repealed by
1977 c.870 §22 (314.466 enacted in lieu of 314.455)]
314.460 [1957
c.632 §24 (enacted in lieu of 316.665 and 317.470); 1961 c.533 §52; 1967 c.78 §2;
1975 c.381 §4; repealed by 1977 c.870 §22 (314.466 enacted in lieu of 314.460)]
314.465 [1957
c.632 §25 (enacted in lieu of 316.670 and 317.475); 1961 c.533 §53; repealed by
1977 c.870 §22 (314.466 enacted in lieu of 314.465)]
314.466 Audits, deficiencies, assessments,
refunds and appeals governed by ORS chapter 305.
The provisions of ORS chapter 305 as to the audit and examination of reports
and returns, determination of deficiencies, assessments, claims for refund, conferences
and appeals to the Oregon Tax Court, and the procedures relating thereto, shall
apply to the determination of taxes, penalties and interest imposed under this
chapter and ORS chapters 315, 316, 317 and 318, except where the context
requires otherwise. [1977 c.870 §23 (enacted in lieu of 314.405, 314.455,
314.460 and 314.465); 1995 c.650 §34]
314.469 Treatment of moneys collected
under ORS 314.406. Moneys collected under ORS
314.406 shall be considered net revenue from the tax imposed under ORS chapter
316 for purposes of ORS 316.502. [2007 c.568 §13]
(Temporary provisions relating to tax
amnesty program)
Note:
Sections 1 to 5 and 7, chapter 710, Oregon Laws 2009, provide:
Sec. 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 [September 28, 2009] 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. [2009 c.710 §1]
Sec. 2. (1) A
taxpayer who meets all of the following requirements during the period
described in section 1 (2), chapter 710, Oregon Laws 2009, 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:
(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), chapter 710, Oregon Laws 2009, 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)
Except as provided in paragraph (e) of this subsection, under any installment
payment agreement entered into under this subsection, all outstanding taxes and
interest must be paid on or before May 31, 2011.
(e)
For good cause shown, the department may extend beyond May 31, 2011, the time
for a taxpayer to make payments under an installment payment agreement entered
into under this subsection. [2009 c.710 §2; 2011 c.17 §1]
Sec. 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 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. [2009 c.710 §3]
Sec. 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. [2009 c.710 §4]
Sec. 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. [2009 c.710 §5]
Sec. 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.
(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. [2009 c.710 §7]
(Temporary provisions relating to
enforcement activities)
Note:
Sections 4 and 9, chapter 93, Oregon Laws 2010, provide:
Sec. 4. (1)
The Department of Revenue is directed to expand its enforcement activities to
improve the compliance of employers and other businesses with income and
corporate excise tax laws.
(2)
Not later than January 2, 2011, the department shall report on its progress in
implementing this section to the interim legislative committees on revenue. The
report must include the results of the expansion of the enforcement activities
under this section.
(3)
The department may adopt rules necessary to administer this section. [2010 c.93
§4]
Sec. 9.
Sections 2 to 4, chapter 93, Oregon Laws 2010, are repealed on June 30, 2013.
[2010 c.93 §9; 2011 c.630 §89]
314.470 [1957
c.632 §26 (enacted in lieu of 316.675 and 317.480); repealed by 1961 c.20 §1]
ESTIMATED TAX PROCEDURE
314.505 Estimate of tax liability by
corporations; rules. (1) Every corporation expecting
to have a tax liability under either ORS chapter 317 or 318 of $500 or more
shall make an estimate of tax liability for the corporation’s tax year and pay
the amount of tax determined as provided in ORS 314.515.
(2)
The Department of Revenue shall by rule provide for the payment of estimated
tax liability by a group of affiliated corporations filing a consolidated
return.
(3)
As used in ORS 314.505 to 314.525, the term “estimated tax liability” means the
tax computed under ORS chapter 317 or 318 less the credits allowed for purposes
of ORS chapter 317 or 318. [1973 c.292 §1; 1984 c.1 §16; 1993 c.730 §41; 1997
c.299 §5]
314.515 Installment schedule for payment
of estimated tax. (1) A corporation required under
ORS 314.505 to make payments of estimated tax shall make the payments to the
Department of Revenue in installments as follows:
(a)
One-quarter or more of the estimated tax shall be paid on or before the 15th
day of the fourth month of the taxable year.
(b)
One-quarter or more of the estimated tax shall be paid on or before the 15th
day of the sixth month of the taxable year.
(c)
One-quarter or more of the estimated tax shall be paid on or before the 15th
day of the ninth month of the taxable year.
(d)
The balance of the estimated tax shall be paid on or before the 15th day of the
12th month of the taxable year.
(2)
Any payment of estimated tax received by the department for which the corporation
has made no designation of the quarterly installment to which the payment is to
be applied, shall first be applied to underpayments of estimated tax due for
any prior quarter of the taxable year. Any excess amount shall be applied to
the installment that next becomes due after the payment was received. [1973
c.292 §2; 1981 c.678 §4; 1985 c.603 §2]
314.518 Estimated tax payments by
electronic funds transfer; phase-in; rules. (1) A
corporation required to make a payment of estimated tax under ORS 314.505 to
314.525 shall make the payment by means of electronic funds transfer if:
(a)
For payment periods beginning on or after July 1, 2001, and before January 1,
2002, the corporation’s annual total amount of estimated tax liability exceeds
$50,000.
(b)
For payment periods beginning on or after January 1, 2002, the corporation is
required to make federal estimated tax payments electronically.
(2)
The Department of Revenue may adopt rules that provide exemptions from the
requirement that estimated tax be paid by electronic funds transfer when the
taxpayer is disadvantaged by required payment by electronic funds transfer.
(3)
The Department of Revenue may accept electronically filed payments voluntarily
submitted by a corporation that is not required to pay by means of electronic
funds transfer.
(4)
As used in this section, “electronic funds transfer” has the meaning given that
term in ORS 293.525. [1997 c.299 §4; 1999 c.21 §35; 2001 c.28 §5; 2001 c.114 §30]
314.520 State agency authority over
certain electronic funds transfer payments. ORS
314.505, 314.518 and 316.198 do not alter the authority under ORS 293.525 of a
state agency to require by rule that certain payments to the agency be made by
electronic funds transfer. [1997 c.299 §6; 2001 c.114 §39; 2005 c.28 §2]
Note:
314.520 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
314.525 Underpayment of estimated tax;
interest; nonapplicability of penalties. (1) An
underpayment of estimated tax under ORS 314.505 to 314.525 will be considered
to have occurred if the estimated tax is not paid as required.
(2)
Notwithstanding subsection (1) of this section, there shall be no underpayment
of estimated tax if the estimated tax paid equals or exceeds the amount
described in any one of the following paragraphs:
(a)
The amount which would be required to be paid if the estimated tax liability
were equal to 100 percent of the tax shown on the return for the taxable year
or, if no return was filed, 100 percent of the tax for such taxable year.
(b)
The amount which would be required to be paid if the estimated tax liability
were equal to 100 percent of the tax shown on the return for the preceding
taxable year, and the preceding taxable year was a taxable year of 12 months.
(c)(A)
An amount equal to 100 percent of the tax for the taxable year computed by
placing on an annualized basis the taxable income:
(i)
For the first three months of the taxable year, in the case of the installment
required to be paid in the fourth month;
(ii)
For the first three months or for the first five months of the taxable year, in
the case of the installment required to be paid in the sixth month;
(iii)
For the first six months or for the first eight months of the taxable year in
the case of the installment required to be paid in the ninth month; and
(iv)
For the first nine months or for the first 11 months of the taxable year, in
the case of the installment required to be paid in the 12th month of the
taxable year.
(B)
For purposes of this paragraph the taxable income shall be placed on an
annualized basis by:
(i)
Multiplying by 12 the taxable income referred to in subparagraph (A) of this
paragraph; and
(ii)
Dividing the resulting amount by the number of months in the taxable year (3,
5, 6, 8, 9 or 11, as the case may be) referred to in subparagraph (A) of this
paragraph.
(d)
An amount equal to 100 percent of the amount obtained by applying section
6655(e) (3)(C) of the Internal Revenue Code to Oregon taxable income.
(e)
An election made under section 6655(e) (2)(C) of the Internal Revenue Code
(relating to annualization periods) for federal tax purposes shall also apply
for purposes of estimated tax under ORS 314.505 to 314.525.
(3)
Interest shall accrue on the underpayment of estimated tax under ORS 314.505 to
314.525 at the rate established under ORS 305.220, for each month or fraction
thereof during which period the estimated tax or any installment thereof
remains unpaid. The penalty provisions contained in this chapter and ORS
chapters 317 and 318 for underpayment of tax shall not apply to underpayments
of estimated tax under ORS 314.505 to 314.525.
(4)
For purposes of subsection (3) of this section, the underpayment of estimated
tax shall be the excess of:
(a)
The amount of the installment which would be required to be paid if the
estimated tax were equal to the lowest of the payments required under
subsection (2) of this section (and allowed to be made by the taxpayer under
subsection (5) of this section), over
(b)
The amount, if any, of the installment paid on or before the last date
prescribed for payment.
(5)
In the case of a large corporation, subsection (2)(b) of this section shall
apply only to determine the amount of the first required installment for any
taxable year. Any reduction in the first installment by reason of this
subsection shall be added to the amount of the next required installment
determined without regard to subsection (2)(b) of this section. For purposes of
this subsection, a “large corporation” is any corporation that had federal
taxable income, determined without regard to any amount carried to any of the
three taxable years under section 172 or 1212(a) of the Internal Revenue Code,
of $1 million or more in any of the three taxable years immediately preceding
the taxable year involved.
(6)
The application of this section to taxable years of less than 12 months shall
be in accordance with rules adopted by the Department of Revenue. [1973 c.292 §3;
1981 c.678 §5; 1982 s.s.1 c.16 §9; 1983 c.162 §78; 1985 c.603 §3; 1987 c.293 §61a;
1989 c.625 §63; 1995 c.556 §26; 1997 c.839 §57; 2001 c.660 §33]
DIVISION OF INCOME FOR TAX PURPOSES
(General Provisions)
314.605 Short title; construction.
(1) ORS 314.605 to 314.675 may be cited as the Uniform Division of Income for
Tax Purposes Act.
(2)
ORS 314.610 to 314.670 shall be so construed as to effectuate its general
purpose to make uniform the law of those states which enact it. [1965 c.152 §§20,21]
314.606 Status of ORS 314.605 to 314.675
when in conflict with Multistate Tax Compact. In any
case in which the provisions of ORS 314.605 to 314.675 are inconsistent with
the provisions of ORS 305.655, the provisions of ORS 314.605 to 314.675 shall
control. [1993 c.726 §20]
314.610 Definitions for ORS 314.605 to
314.675. As used in ORS 314.605 to 314.675,
unless the context otherwise requires:
(1)
“Business income” means income arising from transactions and activity in the
regular course of the taxpayer’s trade or business and includes income from
tangible and intangible property if the acquisition, the management, use or
rental, and the disposition of the property constitute integral parts of the
taxpayer’s regular trade or business operations.
(2)
“Commercial domicile” means the principal place from which the trade or
business of the taxpayer is directed or managed.
(3)
“Compensation” means wages, salaries, commissions and any other form of
remuneration paid to employees for personal services.
(4)
“Financial institution” means a person, corporation or other business entity
that is any of the following:
(a)
A bank holding company under the laws of this state or under the federal Bank
Holding Company Act of 1956, 12 U.S.C. 1841 et seq., as amended.
(b)
A savings and loan holding company under the National Housing Act, 12 U.S.C.
1701 et seq., as amended.
(c)
A national bank organized and existing as a national bank association under the
National Bank Act, 12 U.S.C. 21 et seq., as amended.
(d)
A savings association, as defined in 12 U.S.C. 1813(b)(1), as amended.
(e)
A bank or thrift institution incorporated or organized under the laws of any
state.
(f)
An entity organized under the provisions of 12 U.S.C. 611 to 631, as amended.
(g)
An agency or branch of a foreign bank, as defined in 12 U.S.C. 3101, as
amended.
(h)
A state credit union with loan assets that exceed $50,000,000 as of the first
day of the taxable year of the state credit union.
(i)
A production credit association subject to 12 U.S.C. 2071 et seq., as amended.
(j)
A corporation, more than 50 percent of the voting stock of which is owned,
directly or indirectly, by a person, corporation or other business entity
described in paragraphs (a) to (i) of this subsection, provided that the
corporation is not an insurer taxable under ORS 317.655.
(k)
An entity that is not otherwise described in this subsection, that is not an
insurer taxable under ORS 317.655 and that derives more than 50 percent of its
gross income from activities that a person, corporation or entity described in
paragraph (c), (d), (e), (f), (g), (h), (i) or (L) of this subsection is
authorized to conduct, not taking into account any income derived from
nonrecurring extraordinary sources.
(L)
A person that derives at least 50 percent of the person’s annual average gross
income, for financial accounting purposes for the current tax year and the two
preceding tax years, from finance leases, excluding any gross income from incidental
or occasional transactions. For purposes of this paragraph, “finance lease”
means:
(A)
A lease transaction that is the functional equivalent of an extension of credit
and that transfers substantially all of the benefits and risks of the ownership
of the leased property;
(B)
A direct financing lease or a leverage lease that meets the criteria of
Financial Accounting Standards Board Statement No. 13; or
(C)
Any other lease that is accounted for as a financing by a lessor under
generally accepted accounting principles.
(5)
“Nonbusiness income” means all income other than business income.
(6)
“Public utility” means any business entity whose principal business is
ownership and operation for public use of any plant, equipment, property,
franchise, or license for the transmission of communications, transportation of
goods or persons, or the production, storage, transmission, sale, delivery, or
furnishing of electricity, water, steam, oil, oil products or gas.
(7)
“Sales” means all gross receipts of the taxpayer not allocated under ORS
314.615 to 314.645.
(8)
“State” means any state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, any territory or possession of the United States,
and any foreign country or political subdivision thereof. [1965 c.152 §2; 1997
c.631 §452; 2009 c.403 §1]
314.615 When allocation and apportionment
of net income from business activity required.
Any taxpayer having income from business activity which is taxable both within
and without this state, other than activity as a financial institution or
public utility or the rendering of purely personal services by an individual,
shall allocate and apportion the net income of the taxpayer as provided in ORS
314.605 to 314.675. Taxpayers engaged in activities as a financial institution
or public utility shall report their income as provided in ORS 314.280 and
314.675. [1965 c.152 §3; 2001 c.793 §6; 2001 c.933 §5; 2009 c.403 §6]
314.620 When taxpayer is considered taxable
in another state. For purposes of allocation and
apportionment of income under ORS 314.280 and 314.605 to 314.675, a taxpayer is
taxable in another state if:
(1)
In that state the taxpayer is subject to a net income tax, a franchise tax
measured by net income, a franchise tax for the privilege of doing business, or
a corporate stock tax; or
(2)
That state has jurisdiction to subject the taxpayer to a net income tax
regardless of whether, in fact, the state does or does not. [1965 c.152 §4]
(Allocation of Nonbusiness Income)
314.625 Certain nonbusiness income to be
allocated. Rents and royalties from real or
tangible personal property, capital gains, interest, dividends, patent or
copyright royalties, or prizes awarded by the Oregon State Lottery, to the
extent that they constitute nonbusiness income, shall be allocated as provided
in ORS 314.625 to 314.645. [1965 c.152 §5; 1995 c.79 §155; 1999 c.143 §1]
314.630 Allocation to this state of net
rents and royalties. (1) Net rents and royalties from
real property located in this state are allocable to this state.
(2)
Net rents and royalties from tangible personal property are allocable to this
state (a) if and to the extent that the property is utilized in this state, or
(b) in their entirety if the taxpayer’s commercial domicile is in this state
and the taxpayer is not organized under the laws of or taxable in the state in
which the property is utilized.
(3)
The extent of utilization of tangible personal property in a state is
determined by multiplying the rents and royalties by a fraction, the numerator
of which is the number of days of physical location of the property in the
state during the rental or royalty period in the taxable year and the
denominator of which is the number of days of physical location of the property
everywhere during all rental or royalty periods in the taxable year. If the
physical location of the property during the rental or royalty period is
unknown or unascertainable by the taxpayer, tangible personal property is
utilized in the state in which the property was located at the time the rental
or royalty payer obtained possession. [1965 c.152 §6]
314.635 Allocation to this state of
capital gains and losses. (1) Capital gains and losses
from sales of real property located in this state are allocable to this state.
(2)
Capital gains and losses from sales of tangible personal property are allocable
to this state if (a) the property had a situs in this state at the time of the
sale, or (b) the taxpayer’s commercial domicile is in this state and the
taxpayer is not taxable in the state in which the property had a situs.
(3)
Except in the case of the sale of a partnership interest, capital gains and
losses from sales of intangible personal property are allocable to this state
if the taxpayer’s commercial domicile is in this state.
(4)
Gain or loss from the sale of a partnership interest is allocable to this state
in the ratio of the original cost of partnership tangible property in the state
to the original cost of partnership tangible property everywhere, determined at
the time of the sale. In the event that more than 50 percent of the value of a
partnership’s assets consists of intangibles, gain or loss from the sale of the
partnership interest shall be allocated to this state in accordance with the
sales factor of the partnership for its first full tax year immediately
preceding its tax year during which the partnership interest was sold. [1965
c.152 §7; 1989 c.625 §64]
314.640 Allocation to this state of
interest and dividends. Interest and dividends are
allocable to this state if the taxpayer’s commercial domicile is in this state.
[1965 c.152 §8]
314.642 Allocation to this state of
lottery prizes. (1) Prizes awarded by the Oregon
State Lottery are allocable to this state.
(2)
A prize awarded by a multistate lottery association of which the Oregon State
Lottery is a member is allocable to this state if the ticket upon which the
prize is awarded was sold in this state. [1999 c.143 §2]
314.645 Allocation to this state of patent
and copyright royalties. (1) Patent and copyright
royalties are allocable to this state (a) if and to the extent that the patent
or copyright is utilized by the payer in this state, or (b) if and to the
extent that the patent or copyright is utilized by the payer in a state in
which the taxpayer is not taxable and the taxpayer’s commercial domicile is in
this state.
(2)
A patent is utilized in a state to the extent that it is employed in
production, fabrication, manufacturing, or other processing in the state or to
the extent that a patented product is produced in the state. If the basis of
receipts from patent royalties does not permit allocation to states or if the
accounting procedures do not reflect states of utilization, the patent is
utilized in the state in which the taxpayer’s commercial domicile is located.
(3)
A copyright is utilized in a state to the extent that printing or other
publication originates in the state. If the basis of receipts from copyright
royalties does not permit allocation to states or if the accounting procedures
do not reflect states of utilization, the copyright is utilized in the state in
which the taxpayer’s commercial domicile is located. [1965 c.152 §9]
(Apportionment of Business Income)
314.647 Policy.
The Legislative Assembly finds and declares it to be the policy of this state
to carry out a comprehensive review of business income apportionment whenever
federal legislation changes the nexus standard for state imposition of taxes
based on business activity within state borders. [2001 c.793 §12]
Note:
314.647 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
314.650 Business income apportionment.
All business income shall be apportioned to this state by multiplying the
income by the sales factor. [1965 c.152 §10; 1989 c.626 §5; 1989 c.1088 §1;
1995 c.79 §156; 2001 c.793 §1; 2003 c.739 §§1,5; 2005 c.832 §§48,49; 2009 c.842
§1]
314.655 Determination of property factor.
(1) For purposes of ORS 317.391, the property factor is a fraction, the
numerator of which is the average value of the taxpayer’s real and tangible
personal property owned or rented and used in this state during the tax period
and the denominator of which is the average value of all the taxpayer’s real
and tangible personal property owned or rented and used during the tax period.
(2)
Property owned by the taxpayer is valued at its original cost. Property rented
by the taxpayer is valued at eight times the net annual rental rate. Net annual
rental rate is the annual rental rate paid by the taxpayer less any annual
rental rate received by the taxpayer from subrentals.
(3)
The average value of property shall be determined by averaging the values at
the beginning and ending of the tax period but the Department of Revenue may
require the averaging of monthly values during the tax period if reasonably
required to reflect properly the average value of the taxpayer’s property. [1965
c.152 §§11,12,13; 2001 c.793 §3; 2001 c.933 §2; 2009 c.842 §2]
314.660 Determination of payroll factor.
(1) For purposes of ORS 317.391, the payroll factor is a fraction, the
numerator of which is the total amount paid in this state during the tax period
by the taxpayer for compensation, and the denominator of which is the total
compensation paid everywhere during the tax period.
(2)
Compensation is paid in this state if:
(a)
The individual’s service is performed entirely within the state;
(b)
The individual’s service is performed both within and without the state, but
the service performed without the state is incidental to the individual’s
service within the state; or
(c)
Some of the service is performed in the state and (A) the base of operations
or, if there is no base of operations, the place from which the service is
directed or controlled is in the state, or (B) the base of operations or the
place from which the service is directed or controlled is not in any state in
which some part of the service is performed, but the individual’s residence is
in this state. [1965 c.152 §§14,15; 2001 c.793 §4; 2001 c.933 §3; 2009 c.842 §3]
314.665 Determination of sales factor;
inclusions and exclusions; definitions. (1) As used
in ORS 314.650, the sales factor is a fraction, the numerator of which is the
total sales of the taxpayer in this state during the tax period, and the
denominator of which is the total sales of the taxpayer everywhere during the
tax period.
(2)
Sales of tangible personal property are in this state if:
(a)
The property is delivered or shipped to a purchaser, other than the United
States Government, within this state regardless of the f.o.b. point or other
conditions of the sale; or
(b)
The property is shipped from an office, store, warehouse, factory, or other
place of storage in this state and the purchaser is the United States
Government or the taxpayer is not taxable in the state of the purchaser. For
purposes of this paragraph:
(A)
The sale of goods shipped from a public warehouse is not considered to take
place in this state if:
(i)
The taxpayer’s only activity in Oregon is the storage of the goods in the
public warehouse prior to shipment; or
(ii)
The taxpayer’s only activities in Oregon are the storage of the goods in the
public warehouse prior to shipment and the presence of employees within this
state solely for purposes of soliciting sales of the taxpayer’s products; and
(B)
“Taxpayer” means a taxpayer as defined in section 7701 of the Internal Revenue
Code, an affiliate of the person storing goods in a public warehouse or a
person that is related under section 267 of the Internal Revenue Code to the
person storing goods in a public warehouse.
(3)
Subsection (2)(b) of this section shall not apply to sales of tangible personal
property if:
(a)
The sales are included in the numerator of a formula used to apportion business
income to another state of the United States, a foreign country or the District
of Columbia; and
(b)
The other state, a foreign country or the District of Columbia has imposed a
tax on or measured by the apportioned business income.
(4)
Sales, other than sales of tangible personal property, are in this state if (a)
the income-producing activity is performed in this state; or (b) the
income-producing activity is performed both in and outside this state and a
greater proportion of the income-producing activity is performed in this state
than in any other state, based on costs of performance.
(5)
Where the sales apportionment factor is determined by administrative rule
pursuant to ORS 314.682, 314.684, 317.660 or other law, the Department of
Revenue shall adopt rules that are consistent with the determination of the
sales factor under this section.
(6)
For purposes of this section, “sales”:
(a)
Excludes gross receipts arising from the sale, exchange, redemption or holding
of intangible assets, including but not limited to securities, unless those
receipts are derived from the taxpayer’s primary business activity.
(b)
Includes net gain from the sale, exchange or redemption of intangible assets
not derived from the primary business activity of the taxpayer but included in
the taxpayer’s business income.
(c)
Excludes gross receipts arising from an incidental or occasional sale of a
fixed asset or assets used in the regular course of the taxpayer’s trade or
business if a substantial amount of the gross receipts of the taxpayer arise
from an incidental or occasional sale or sales of fixed assets used in the
regular course of the taxpayer’s trade or business. Insubstantial amounts of
gross receipts arising from incidental or occasional transactions or activities
may be excluded from the sales factor unless the exclusion would materially
affect the amount of income apportioned to this state.
(7)
The department may determine that a warehouse that meets the definition of “public
warehouse” under this section may not be treated as a public warehouse if the
warehouse is being used primarily for tax avoidance purposes or if transactions
related to the use of the warehouse are primarily for tax avoidance purposes.
(8)
As used in this section, “public warehouse”:
(a)
Means a warehouse owned or operated by a person that does not own the goods
stored in the warehouse; and
(b)
Does not include a warehouse that is owned by a person that is related to the
person that owns goods that are stored in the warehouse, as determined under
section 267 of the Internal Revenue Code, or an affiliate of the person that
owns goods that are stored in the warehouse. [1965 c.152 §§16,17,18; 1993 c.813
§4; 1995 c.176 §1; 1999 c.143 §8; 2001 c.793 §5; 2001 c.933 §4; 2005 c.832 §3]
(Procedure Where Ordinary Determination
Not Satisfactory)
314.670 Additional methods to determine
extent of business activity in this state; rules.
(1) If the application of the allocation and apportionment provisions of ORS
314.605 to 314.675 do not fairly represent the extent of the taxpayer’s
business activity in this state, the taxpayer may petition for and the
Department of Revenue may permit, or the department may require, in respect to
all or any part of the taxpayer’s business activity:
(a)
Separate accounting;
(b)
The exclusion of any one or more of the factors;
(c)
The inclusion of one or more additional factors which will fairly represent the
taxpayer’s business activity in this state; or
(d)
The employment of any other method to effectuate an equitable allocation and
apportionment of the taxpayer’s income.
(2)
The department may adopt rules to promote uniformity and consistency with other
states in the application of the Uniform Division of Income for Tax Purposes
Act. [1965 c.152 §19; 1984 c.1 §17; 1995 c.79 §157; 1999 c.143 §9]
(Apportionment of Net Loss)
314.675 Apportionment of net loss; net loss
deduction; limitations. 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 Oregon income pursuant to this section shall then become the net
loss deduction for subsequent years which may be deducted from apportioned net
income in the same manner as set forth in the Personal Income Tax Act of 1969,
and in ORS chapters 317 and 318. The limitations as to the amount deductible
and the time limitations in those statutes shall apply to the apportioned net
loss deduction computed pursuant to this section. [1965 c.152 §23; 1969 c.493 §89;
1983 c.162 §55]
(Apportionment of Income of Interstate
Broadcasters)
314.680 Definitions for ORS 314.680 to
314.690; rules. As used in ORS 314.680 to
314.690, unless the context requires otherwise:
(1)
“Broadcasting” means the activity of transmitting any one-way electronic signal
by radio waves, microwaves, wires, coaxial cables, wave guides or other
conduits of communications.
(2)
“Gross receipts from broadcasting” means all gross receipts of an interstate
broadcaster from transactions and activities in the regular course of its trade
or business except receipts from sales of real or tangible personal property.
(3)
“Interstate broadcaster” means a taxpayer that engages in the for-profit
business of broadcasting to subscribers or to an audience located both within
and without this state. The audience or subscribers ratio shall be determined
by rule of the Department of Revenue. [1989 c.792 §3; 1995 c.79 §159]
314.682 Method of apportionment of interstate
broadcaster income. (1) Notwithstanding any
provisions of ORS 314.605 to 314.675 to the contrary, ORS 314.680, 314.684 and
314.686 shall apply to the apportionment of the income of an interstate
broadcaster.
(2)
Except as provided in subsection (1) of this section, all other provisions of
ORS 314.605 to 314.675 shall apply to the apportionment of the income of an
interstate broadcaster. [1989 c.792 §2; 1995 c.79 §160]
314.684 Determination of sales factor.
(1) The sales factor for an interstate broadcaster shall be determined as
provided in this section.
(2)
The denominator of the sales factor shall include the total gross receipts
derived by the interstate broadcaster from transactions and activities in the
regular course of its trade or business, except receipts excluded under rules
of the Department of Revenue.
(3)
The numerator of the sales factor shall include all gross receipts attributable
to this state, with gross receipts from broadcasting to be included as
specified in subsection (4) of this section.
(4)
Gross receipts from broadcasting of an interstate broadcaster which engages in
income-producing activity in this state shall be included in the numerator of
the sales factor in the ratio that the interstate broadcaster’s audience or
subscribers located in this state bears to its total audience and subscribers
located both within and without this state. [1989 c.792 §4]
314.686 Determination of net income
attributable to business done in state. If an
interstate broadcaster has gross receipts from broadcasting, the determination
of net income taxable by this state shall be based upon the business activity
within this state, and the Department of Revenue shall require either the
segregated method of reporting or the apportionment method of reporting
described in ORS 314.680 to 314.690, under the rules adopted by the department,
so as fairly and accurately to reflect the net income of the interstate
broadcaster’s business done within this state. [1989 c.792 §5; 1995 c.79 §161]
314.688 Rules.
The Department of Revenue may adopt such rules as it deems necessary for the
administration and enforcement of ORS 314.680 to 314.690. [1989 c.792 §6; 1995
c.79 §162]
314.690 Scope of provisions.
The provisions of ORS 314.680 to 314.688 are not intended to change the meaning
of the terms “income-producing activity,” “sources within this state,” “business
activity” taxable in this state or “doing business” in this state contained in
this chapter or ORS chapter 317 or 318. [1989 c.792 §7]
(Application)
314.695 Application of ORS 314.280 and
314.605 to 314.675. 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 Personal Income Tax Act of 1969. [1967 c.60 §2; 1969 c.493 §90]
EFFECT OF MULTISTATE TAX COMPACT
314.705 Computation of tax when income
reported as percentage of sales volume. Any taxpayer
electing in any year to report and pay an income tax on the basis of a
percentage of sales volume, pursuant to Article III, section 2 of the
Multistate Tax Compact, shall pay a tax computed at one-fourth of one percent
of the dollar volume of gross sales in Oregon, except that if the taxpayer’s
return on sales for its business is less than five percent, it shall pay a tax
computed on the basis of one-eighth of one percent of such volume. [1967 c.242 §2]
314.710 Application to allocation and
apportionment of income. The provisions of Articles III
and IV of the Multistate Tax Compact apply to the allocation and apportionment
of the income of corporations and nonresident individuals and do not apply to
income of resident individuals, resident estates and resident trusts, taxable
as provided in the Personal Income Tax Act of 1969. [1967 c.242 §7; 1969 c.493 §91]
TAXATION OF PARTNERSHIPS AND S
CORPORATIONS
(Partnerships)
314.712 Partnerships not subject to income
tax; exceptions. (1) Except as provided in ORS
314.722 or 314.723, 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
subtractions provided in this chapter and ORS chapter 316. Persons carrying on
business as partners are liable for the tax imposed by ORS chapter 316, 317 or
318 on their distributive shares of partnership income only in their separate
or individual capacities.
(2)
If a partner engages in a transaction with a partnership other than in the
partner’s capacity as a member of the partnership, the transaction shall be
treated in the manner described in section 707 of the Internal Revenue Code.
(3)
If a partnership is an electing large partnership under section 775 of the
Internal Revenue Code, the modifications of law applicable to an electing large
partnership for federal tax purposes are applicable to the electing large
partnership for purposes of the tax imposed by this chapter or ORS chapter 316,
317 or 318. [1989 c.625 §28 (enacted in lieu of 316.342); 1999 c.90 §5]
314.714 Character of partnership income;
procedure if partner’s treatment of item inconsistent with partnership
treatment; rules. (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 source from which realized by the partnership or incurred in
the same manner as incurred by the partnership.
(2)
A partner’s distributive share of an item of partnership income, gain, loss or
deduction (or item thereof) shall be that partner’s distributive share of
partnership income, gain, loss or deduction (or item thereof) for federal
income tax purposes as determined under section 704 of the Internal Revenue
Code and adjusted for the modifications, additions and subtractions provided in
this chapter and ORS chapters 316, 317 and 318.
(3)
A partner shall, on the partner’s return, treat a partnership item in a manner
that is consistent with the treatment of the partnership item on the
partnership return, unless the partner notifies the Department of Revenue of
the inconsistency. The department shall prescribe by rule the method for
notification of an inconsistency. A partner of an electing large partnership
under section 775 of the Internal Revenue Code must treat a partnership item in
a manner that is consistent with the treatment of the partnership item on the
partnership return. [1989 c.625 §30 (enacted in lieu of 316.347); 1993 c.726 §22;
1999 c.90 §6]
314.716 Basis of partner’s interest; gain
or loss on sale; election to adjust basis. (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 or 318, whichever is applicable.
(2)
Upon the sale or exchange of an interest in a partnership, gain or loss shall
be recognized to the transferor partner pursuant to section 741 of the Internal
Revenue Code.
(3)
If a partnership elects to adjust the basis of its assets under section 754 of
the Internal Revenue Code, then upon a transfer of an interest in the
partnership by sale or exchange or upon a death of a partner, that election
shall also be effective for Oregon income tax purposes. [1989 c.625 §36; 1991
c.457 §19]
314.718 Treatment of contributions to
partnership. (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, unless allowed
pursuant to section 721(b) of the Internal Revenue Code.
(3)
The partnership’s basis in property contributed to it by a partner is the
adjusted basis of the property to that partner at the time of the contribution,
plus the amount (if any) of gain recognized by that partner as a result of the
transfer of property to the partnership. The partnership’s holding period
includes the period during which the property was held by the partner.
(4)
Any increase in a partner’s share of partnership liabilities shall be
considered as a contribution of money by the partner to the partnership,
pursuant to section 752 of the Internal Revenue Code.
(5)
Section 724 of the Internal Revenue Code shall be applied in determining the
character of gain or loss recognized by a partnership upon the disposition of
contributed unrealized receivables, inventory items and capital loss property. [1989
c.625 §37]
314.720 Treatment of distributions from
partnership. (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 receivables or inventory items shall be determined pursuant to
section 735 of the Internal Revenue Code.
(3)
The basis of property (other than money) distributed by a partnership to a
partner shall be determined pursuant to sections 704(c)(1)(B)(iii) and 732 of
the Internal Revenue Code, and shall be increased or decreased as provided in
ORS chapter 316.
(4)
If a partnership makes the election to adjust the basis of its assets under
section 754 of the Internal Revenue Code, then upon a distribution of property
to a partner, that election shall also be effective for Oregon income tax
purposes.
(5)
Payments made by a partnership in liquidation of the interest of a retiring
partner or a deceased partner shall be accorded the treatment provided under
section 736 of the Internal Revenue Code.
(6)
Any decrease in a partner’s share of partnership liabilities or any decrease in
a partner’s individual liabilities by reason of the assumption by the
partnership of the partner’s individual liabilities, shall be considered to be
a distribution of money to the partner by the partnership under section 752 of
the Internal Revenue Code. [1989 c.625 §38; 1991 c.457 §20; 1995 c.556 §29]
314.722 Publicly traded partnerships taxed
as corporations. (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 are
not subject to tax under ORS chapter 316, 317 or 318 on their distributive
shares of partnership income, but the publicly traded partnership is taxable as
a corporation under ORS chapter 317 or 318 as provided under ORS chapter 317 or
318. [1989 c.625 §39]
314.723 Electing large partnerships
subject to tax; rules. (1) If a partnership is an
electing large partnership under section 775 of the Internal Revenue Code and
an adjustment is made with respect to a partnership item for federal tax
purposes that results in partnership liability to the United States Internal
Revenue Service for payment of the federal tax under section 6242 of the
Internal Revenue Code, the amount subject to federal tax at the partnership
level shall also be subject to a state tax, to the extent the amount is
allocated or apportioned to the State of Oregon.
(2)
The rate of tax shall be the highest marginal rate of tax applicable to
personal income taxpayers under ORS 316.037 for the tax year for which the
adjustment is taken into account for federal tax purposes under section 6242 of
the Internal Revenue Code.
(3)
The Department of Revenue may determine by rule the method by which the amount
described in this section is allocated and apportioned to the State of Oregon. [1999
c.90 §3]
314.724 Information return; penalty;
rules. (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, loss and deduction, and the names and addresses of the
individuals (whether residents or nonresidents) who would be entitled to share
in the net income, if distributed, and the amount of the distributive share of
each individual, and such other pertinent information as the Department of
Revenue may prescribe by regulations and instructions. Such return shall be
filed on or before the 15th day of the fourth month following the close of each
taxable year. For purposes of this section, “taxable year” means a year or
period which would be a taxable year of the partnership if it were subject to
tax under ORS chapter 316.
(2)
If a partnership transacting business in this state is required to make a
return under subsection (1) of this section and fails to file the return or
files a return which fails to show the information required under subsection
(1) of this section, the Department of Revenue shall assess a penalty against
the partnership in the amount specified in subsection (3) of this section for
each month or part of a month during which the failure continues.
(3)
The amount of the penalty imposed under subsection (2) of this section shall be
determined by the department by rule. However, the amount of the penalty
imposed for each month shall not exceed the product of $50 multiplied by the
number of persons who were partners in the partnership during any part of the
taxable year, and the total amount of the penalty shall not exceed five times
the monthly penalty.
(4)
The penalty imposed under this section is in addition to any other penalty
provided by law. Any partnership against which a penalty is assessed under this
section may appeal to the tax court as provided in ORS 305.404 to 305.560. If
the penalty is not paid within 10 days after the order of the tax court becomes
final, the department may record the order and collect the amount assessed in
the same manner as income tax deficiencies are recorded and collected under ORS
314.430.
(5)
The department may waive all or any part of the penalty imposed under this
section if the failure was due to reasonable cause. [Formerly 316.467; 1995
c.650 §35]
314.725 Privilege tax applicable to
partnerships. 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]
314.726 Application of ORS 314.724.
ORS 314.724 shall apply to both corporate and noncorporate partners. [1989
c.625 §34]
314.727 Disclosure of partnership items to
partner. 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 disclosure necessary to facilitate the audit of the partner’s
income or excise tax return. [1997 c.100 §5]
(S Corporations)
314.730 “C corporation” and “S corporation”
defined for this chapter and ORS chapters 316, 317 and 318.
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 under section 1362(a) of the Internal Revenue Code is in
effect for such year. [1989 c.625 §41]
314.732 Taxation of S corporation;
application of Internal Revenue Code; carryforward and carryback.
(1) Except as otherwise provided in ORS 314.740, 314.742 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 pursuant to section 1363(b) of the Internal
Revenue Code, with the modifications, additions and subtractions provided in
this chapter and ORS chapter 316.
(b)
Except as otherwise provided under this chapter and ORS chapter 316, 317 or
318, and except as inconsistent with ORS 314.730 to 314.752, subchapter C,
chapter 1, Internal Revenue Code, shall apply to an S corporation and its
shareholders for Oregon tax purposes. For Oregon tax purposes, the provisions
of section 1371 of the Internal Revenue Code shall apply, subject to the
modifications, additions and subtractions under this chapter or ORS chapter
316, 317 or 318 and any provisions to the contrary in this chapter or ORS
chapter 316, 317 or 318.
(c)
Notwithstanding ORS 317.476, 317.478 or 317.479, no carryforward, arising for a
taxable year for which a corporation is a C corporation, may be carried to a
taxable year for which such corporation is an S corporation.
(d)
Notwithstanding ORS 317.476 or other law, no carryforward, and no carryback,
shall arise at the corporate level for a taxable year for which a corporation
is an S corporation. [1989 c.625 §42; 1991 c.457 §21]
314.734 Taxation of shareholder’s income;
computation; character of income, gain, loss or deduction.
(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 final taxable year of a
shareholder who dies, or of a trust or estate that terminates, before the end
of the corporation’s taxable year), there shall be taken into account the
shareholder’s pro rata share of the corporation’s separately stated items of
income, loss or deduction and nonseparately computed income or loss, as
determined under or for purposes of section 1366 of the Internal Revenue Code
(including but not limited to section 1366(d) and (e) of the Internal Revenue
Code), with the modifications, additions and subtractions provided under this
chapter and ORS chapter 316.
(2)
Each item of shareholder income, gain, loss or deduction has the same character
for a shareholder under this chapter and ORS chapter 316 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 shareholder as if realized directly
from the source from which realized by the S corporation or incurred in the
same manner as incurred by the S corporation.
(3)
In any case where it is necessary to determine the gross income of a
shareholder for purposes of ORS chapter 316, such gross income shall include
the shareholder’s pro rata share of the gross income of the S corporation.
(4)
If any tax is imposed under ORS 314.740 for any taxable year on an S
corporation, for purposes of subsection (1) of this section, the amount of each
recognized built-in gain for such taxable year shall be reduced by its
proportionate share of such tax.
(5)
If any tax is imposed under ORS 314.742 on an S corporation, for purposes of
subsection (1) of this section, each item of passive investment income shall be
reduced by an amount which bears the same ratio to the amount of such tax as
the amount of such item bears to the total passive investment income for the
taxable year. [1989 c.625 §43; 1991 c.457 §22; 1997 c.839 §60]
314.736 Treatment of distributions by S
corporation. 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. [1989 c.625 §44]
314.738 Employee fringe benefits; foreign
income. (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 foreign income, 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
1373 of the Internal Revenue Code shall apply to an S corporation and its
shareholders. [1989 c.625 §45]
314.740 Tax on built-in gain.
(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 shall be
computed by applying the rate of tax specified in ORS 317.061 to the net
recognized built-in gain of the S corporation for the taxable year.
(3)
The tax imposed under subsection (1) shall be considered a tax imposed under
ORS chapter 317 or 318, whichever is applicable, and shall be returned,
estimated, assessed and collected and otherwise treated in the same manner as
the tax imposed under ORS chapter 317 or 318. The allocation and apportionment
rules of this chapter and ORS chapter 305 apply to the income subject to the
tax imposed under this section. The proceeds from the tax shall be distributed
in the same manner as the tax imposed under ORS chapter 317 or 318, whichever
is applicable.
(4)
ORS 317.476, 317.478 and 317.479 shall not apply to the tax imposed under this
section. Notwithstanding ORS 314.732 (2)(c), any net operating loss
carryforward arising in a taxable year for which the corporation was a C
corporation shall be allowed for purposes of the tax imposed under this section
as a deduction against the net recognized built-in gain of the S corporation
for the taxable year. For purposes of determining the amount of any such loss
which may be carried to any of the 15 subsequent taxable years, the amount of
the net recognized built-in gain shall be treated as taxable income.
(5)(a)
Except for estimated and other advance tax payments and except as provided
under paragraph (b) of this subsection, no credits shall be allowed against the
tax imposed under this section.
(b)
Notwithstanding ORS 314.732 (2)(c), any credit carryforward under ORS chapter
317 or 318 arising in a taxable year for which the corporation was a C corporation
shall be allowed as a credit against the tax imposed under this section in the
same manner as if it were the tax imposed under ORS chapter 317 or 318.
(6)
To the extent applicable, the definitions, special rules and interpretations
and other provisions of section 1374 of the Internal Revenue Code that relate
to the measurement of built-in gain shall apply to the tax imposed under this
section. [1989 c.625 §46; 1997 c.839 §61]
314.742 Tax on excess net passive income.
(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 are passive investment income.
(2)
The tax imposed under subsection (1) of this section shall be computed by
multiplying the excess net passive income by the rate specified under ORS
317.061.
(3)
The tax imposed under subsection (1) shall be considered a tax imposed under
ORS chapter 317 or 318, whichever is applicable, and shall be returned,
estimated, assessed and collected and otherwise treated in the same manner as
the tax imposed under ORS chapter 317 or 318. The allocation and apportionment
of income rules of this chapter and ORS chapter 305 apply to the income subject
to the tax imposed under this section. The proceeds from the tax shall be
distributed in the same manner as the tax imposed under ORS chapter 317 or 318,
whichever is applicable.
(4)
Notwithstanding subsection (6) of this section, the amount of passive
investment income shall be determined by not taking into account any recognized
built-in gain or loss of the S corporation for any taxable year in the
recognition period. Terms used in the preceding sentence shall have the same
respective meanings as when used in ORS 314.738.
(5)
Except for estimated and other advance tax payments, no credits shall be
allowed against the tax imposed under this section.
(6)
To the extent applicable, the definitions, special rules and interpretations
and other provisions of section 1375 of the Internal Revenue Code that relate
to the measurement of excess net passive income shall apply to the tax imposed
under this section.
(7)
Section 1375(d) shall apply to the tax imposed under this section, except that “department”
shall be substituted for the word “secretary” wherever that word appears. [1989
c.625 §47; 1997 c.839 §62]
314.744 S corporation or shareholder
elections; rules. (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 election or revocation to be made by a shareholder or shareholders
of an S corporation, then that election or revocation shall apply for Oregon
tax purposes.
(2)
The Department of Revenue may adopt rules that contravene subsection (1) of
this section if the election or revocation does not carry out the purposes of
this chapter and ORS chapter 305, 316, 317 or 318. [1989 c.625 §48]
314.746 Application of sections 1377 and
1379 of Internal Revenue Code. The
definitions and special and transitional rules of sections 1377 and 1379 of the
Internal Revenue Code apply for Oregon tax purposes. [1989 c.625 §49]
314.748 [1989
c.625 §50; repealed by 1997 c.839 §69]
314.749 Disclosure of S corporation items
to shareholder. 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 disclosure necessary to facilitate the audit of the
shareholder’s income tax return. [1997 c.100 §6]
Note:
314.749 was added to and made a part of ORS chapter 314 by legislative action
but was not added to any smaller series therein. See Preface to Oregon Revised
Statutes for further explanation.
314.750 Recapture of LIFO benefits.
(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 year for which the corporation was a C corporation
and the three succeeding installments shall be paid on or before the due date
for the corporation’s return for the three succeeding taxable years.
(b)
For purposes of this subsection, the due date for returns shall be determined
without regard to extensions.
(3)
Notwithstanding ORS 314.400 (7), for purposes of ORS 314.400 (7), interest on
each installment that is not paid on or before the date prescribed under
subsection (2) of this section for payment of that installment shall accrue
only from the due date for that installment.
(4)
This section applies in the case of S corporation elections made after December
17, 1987. No refund or interest shall accrue to any taxpayer on account of the
retroactive application under this subsection. [1989 c.625 §58; 2007 c.322 §2]
314.752 Business tax credits; allowance to
shareholders; rules. (1) Except as provided in ORS
314.740 (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 are allowable to the shareholders of the S corporation.
(2)
In determining the tax imposed under ORS chapter 316, as provided under ORS
314.734, on income of the shareholder of an S corporation, there shall be taken
into account the shareholder’s pro rata share of business tax credit (or item
thereof) that would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or item thereof),
recapture or recovery shall be passed through to shareholders in pro rata
shares as determined in the manner prescribed under section 1377(a) of the
Internal Revenue Code.
(3)
The character of any item included in a shareholder’s pro rata share under
subsection (2) of this section shall be determined as if such item were
realized directly from the source from which realized by the corporation, or
incurred in the same manner as incurred by the corporation.
(4)
If the shareholder is a nonresident and there is a requirement applicable for
the business tax credit that in the case of a nonresident the credit be allowed
in the proportion provided in ORS 316.117, then that provision shall apply to
the nonresident shareholder.
(5)
As used in this section, “business tax credit” means a tax credit granted to
personal income taxpayers to encourage certain investment, to create
employment, economic opportunity or incentive or for charitable, educational,
scientific, literary or public purposes that is listed under this subsection as
a business tax credit or is designated as a business tax credit by law or by
the Department of Revenue by rule and includes but is not limited to the
following credits: ORS 285C.309 (tribal taxes on reservation enterprise zones
and reservation partnership zones), ORS 315.104 (forestation and
reforestation), ORS 315.138 (fish screening, by-pass devices, fishways), ORS
315.141 (biomass production for biofuel), ORS 315.156 (crop gleaning), ORS
315.164 and 315.169 (farmworker housing), ORS 315.204 (dependent care
assistance), ORS 315.208 (dependent care facilities), ORS 315.213 (contributions
for child care), ORS 315.304 (pollution control facility), ORS 315.326
(renewable energy development contributions), ORS 315.331 (energy conservation
projects), ORS 315.336 (transportation projects), ORS 315.341 (renewable energy
resource equipment manufacturing facilities), ORS 315.354 and 469B.151 (energy
conservation facilities), ORS 315.507 (electronic commerce), ORS 315.533 (low
income community jobs initiative) and ORS 317.115 (fueling stations necessary
to operate an alternative fuel vehicle). [1991 c.877 §36; 1993 c.730 §5; 1997
c.170 §34; 1997 c.534 §2; 1999 c.21 §36; 2001 c.674 §11; 2001 c.868 §9; 2001
c.932 §10; 2001 c.957 §18; 2005 c.80 §1; 2005 c.94 §80; 2007 c.625 §13; 2007
c.739 §7; 2007 c.883 §3; 2009 c.33 §§14,15,16; 2010 c.76 §26; 2011 c.83 §11;
2011 c.474 §32; 2011 c.730 §19; 2011 c.732 §9]
314.760 [1989
c.625 §54; repealed by 2005 c.387 §8]
PASS-THROUGH ENTITIES
314.775 Definitions for ORS 314.775 to
314.784. 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 by another pass-through entity.
(3)
“Nonresident” means:
(a)
An individual who is not a resident of this state;
(b)
A corporation, partnership or other business entity that has a commercial
domicile, as defined in ORS 314.610, that is outside this state; or
(c)
A trust that is not a resident trust or qualified funeral trust under ORS
316.282.
(4)
“Owner” means a person that owns an interest in a pass-through entity.
(5)
“Pass-through entity” means any entity that is recognized as a separate entity
for federal income tax purposes, for which the owners are required to report
income, gains, losses, deductions or credits from the entity for federal income
tax purposes. “Pass-through entity” does not include any trust except a form of
trust that the Department of Revenue has determined by rule to have been
established or maintained primarily for tax avoidance purposes.
(6)
“Upper-tier pass-through entity” means a pass-through entity that owns an
interest in another pass-through entity. [2005 c.387 §1; 2009 c.33 §17]
314.778 Composite returns of pass-through
entities; election; effect of election on nonresident owners.
(1) 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.
(2)
A pass-through entity shall file a composite return under this section only if
one or more owners that are nonresidents make an election under this section.
(3)
The election shall be made by owners in the time, form and manner prescribed by
the Department of Revenue.
(4)
The composite return shall report the share of distributive income of each
electing owner, the share of distributive income from Oregon sources of each electing
owner, the amount of tax withheld under ORS 314.781 on behalf of each electing
owner and any other information required by the department. The composite
return shall be filed with the department in the time, form and manner
prescribed by the department.
(5)(a)
An electing owner may file a nonresident personal income tax return or a
corporate excise or income tax return for the tax year of the electing owner in
which the electing owner’s share of distributive income reported on the
composite return is properly reportable.
(b)
An electing owner that files a return under this subsection shall receive
credit for any tax paid on behalf of the owner by the pass-through entity. [2005
c.387 §2]
314.781 Withholding; required returns and
statements; pass-through entity liability. (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 described in subsection (1)(b) of this section who is subject
to tax under ORS chapter 316, the entity shall withhold tax at the highest
marginal rate applicable for the tax year under ORS 316.037. The withheld tax
shall be computed based on the taxpayer’s share of the entity’s distributive
income from Oregon sources for the entity’s tax year.
(3)
For each corporation described in subsection (1)(b) of this section, the entity
shall withhold tax at the rate applicable for the tax year under ORS 317.061
and 318.020. The tax shall be computed based on the corporation’s share of the
entity’s distributive income from Oregon sources for the entity’s tax year.
(4)
A pass-through entity that is required to withhold tax under this section shall
file a withholding return or report with the Department of Revenue setting
forth the share of Oregon source distributive income of each nonresident owner,
the amount of tax withheld under this section and any other information required
by the department. The return shall be filed with the department on the form
and in the time and manner prescribed by the department. Taxes withheld under
this section shall be paid to the department in the time and manner prescribed
by the department.
(5)
A pass-through entity that is required to withhold tax under this section shall
furnish a statement to each owner on whose behalf tax is withheld. The
statement shall state the amount of tax withheld on behalf of the owner for the
tax year of the entity. The statement shall be made on a form prescribed by the
department and shall contain any other information required by the department.
(6)
The department shall apply taxes withheld under this section by a lower-tier
pass-through entity on distributions to an upper-tier pass-through entity to
the withholding required by the upper-tier pass-through entity under this
section.
(7)
A pass-through entity is liable to the State of Oregon for amounts of tax
required to be withheld and paid under this section. A pass-through entity is
not liable to an owner of the pass-through entity for amounts required to be
withheld under this section that were paid to the department as prescribed in
this section. [2005 c.387 §3]
314.784 Circumstances when pass-through
entity withholding is not required; rules. (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 pursuant to a rule adopted under this section;
(c)
The owner makes a timely election under ORS 314.778 to have taxes on the owner’s
distributive share of income paid and reported on the composite return
described in ORS 314.778, and the composite return is filed by the pass-through
entity;
(d)
The pass-through entity is a publicly traded partnership, as defined in section
7704(b) of the Internal Revenue Code, that is treated as a partnership for
federal tax purposes and that agrees to file an annual information return on
the form and in the time and manner prescribed by the Department of Revenue and
containing the information required by the department, including but not
limited to the name, address and taxpayer identification number of each person
with an ownership interest in the entity that results in the person receiving
Oregon source income of more than $500; or
(e)
The nonresident owner files an affidavit with the department, in the form and
manner prescribed by the department, under which the nonresident owner agrees
to allow the department and the courts of this state to have personal
jurisdiction over the nonresident owner for the purpose of determining and
collecting any taxes imposed under ORS chapter 316, 317 or 318 that are
attributable to the nonresident owner’s distributive share of taxable income
from the pass-through entity. The department may reject the affidavit if the
taxpayer fails to comply with Oregon law requiring the filing of a tax return
or the payment of any tax.
(2)
The department may adopt rules setting forth circumstances under which
pass-through entities are not required to withhold taxes under ORS 314.781. [2005
c.387 §4]
ADMINISTRATIVE PROVISIONS
314.805 Department to administer and
enforce laws; enforcement districts; branch offices.
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 to time, change the
limits of such districts. [1957 c.632 §27 (enacted in lieu of 316.705 and
317.505)]
314.810 Administering oaths and taking
acknowledgments. 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 or report required by statute or the rules and
regulations of the department. [1957 c.632 §29 (enacted in lieu of 316.715);
1999 c.21 §37]
314.815 Rules and regulations.
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)]
314.820 [1957
c.632 §31 (enacted in lieu of 316.725 and 317.520); 1969 c.97 §2; repealed by
1973 c.402 §30]
314.825 [1957
c.632 §32 (enacted in lieu of 316.730 and 317.525); repealed by 1973 c.402 §30]
314.830 [1957
c.632 §33 (enacted in lieu of 316.735 and 317.530); repealed by 1965 c.44 §1]
314.835 Divulging particulars of returns
and reports prohibited. (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, exclusion or credit or any particulars set forth or
disclosed in any report or return required in the administration of ORS 310.630
to 310.706, required in the administration of any local tax pursuant to ORS
305.620, or required under a law imposing a tax upon or measured by net income.
It shall be unlawful for any person or entity to whom information is disclosed
or given by the department pursuant to ORS 314.840 (2) or any other provision
of state law to divulge or use such information for any purpose other than that
specified in the provisions of law authorizing the use or disclosure. No
subpoena or judicial order shall be issued compelling the department or any of
its officers or employees, or any person who has acquired information pursuant
to ORS 314.840 (2) or any other provision of state law to divulge or make known
the amount of income, expense, deduction, exclusion or credit or any
particulars set forth or disclosed in any report or return except where the
taxpayer’s liability for income tax is to be adjudicated by the court from
which such process issues.
(2)
As used in this section:
(a)
“Officer,” “employee” or “person” includes an authorized representative of the
officer, employee or person, or any former officer, employee or person, or an
authorized representative of such former officer, employee or person.
(b)
“Particulars” includes, but is not limited to, a taxpayer’s name, address,
telephone number, Social Security number, employer identification number or
other taxpayer identification number and the amount of refund claimed by or
granted to a taxpayer. [1957 c.632 §34 (enacted in lieu of 316.740 and
317.535); 1971 c.682 §1; 1975 c.789 §13; 1979 c.690 §1; 1993 c.726 §25; 1999
c.580 §1; 2003 c.541 §4]
314.840 Disclosure of information; persons
to whom information may be furnished. (1) The
Department of Revenue may:
(a)
Furnish any taxpayer, representative authorized to represent the taxpayer under
ORS 305.230 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 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
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 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 Eastern Oregon Training
Center or the Department of Human Services to collect any unpaid cost of care
as provided by ORS chapter 179.
(m)
The Director of the Oregon Health Authority to determine that a person has the
ability to pay for care that includes services provided by the Blue Mountain
Recovery Center or the Oregon State Hospital or the Oregon Health Authority to
collect any unpaid cost of care as provided by ORS chapter 179.
(n)
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.
(o)
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.
(p)
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.
(q)
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.
(r)
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 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.
(s)
The United States Financial Management Service, for purposes of facilitating
the offsets described in ORS 305.612.
(t)
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.
(u)
A consumer reporting agency, to the extent necessary to carry out the purposes
of ORS 314.843.
(v)
The Public Employees Retirement Board, to the extent necessary to carry out the
purposes of ORS 238.372 to 238.384, and to any public employer, to the extent
necessary to carry out the purposes of ORS 237.637 (2).
(3)(a)
Each officer or employee of the department and each person described or
referred to in subsection (2)(a), (e) to (k) or (n) to (q) 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)(r) 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)(r) 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)(r) 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)(r) 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) to (m) and (o) to (q) of this section from the
respective agencies. [1957 c.632 §35 (enacted in lieu of 316.745 and 317.540);
1959 c.114 §1; 1971 c.682 §2; 1973 c.106 §1; 1975 c.368 §9; 1975 c.789 §19;
1977 c.430 §3; 1979 c.690 §2; 1981 c.827 §1; 1985 c.605 §20; 1987 c.94 §102;
1987 c.647 §9; 1987 c.884 §1; 1989 c.348 §15; 1989 c.901 §6; 1991 c.362 §3;
1991 c.374 §1; 1991 c.882 §14; 1993 c.18 §76; 1993 c.694 §42; 1993 c.726 §26;
1997 c.170 §43; 1999 c.224 §3; 1999 c.580 §2; 1999 c.656 §1; 2001 c.3 §1; 2001
c.28 §4; 2003 c.541 §5; 2007 c.321 §1; 2009 c.595 §203; 2009 c.640 §2; 2011
c.476 §2; 2011 c.653 §10]
Note:
Legislative Counsel has substituted “chapter 694, Oregon Laws 1993,” for the
words “this 1993 Act” in section 42, chapter 694, Oregon Laws 1993, which
amended 314.840. Specific ORS references have not been substituted, pursuant to
173.160. These sections may be determined by referring to the 1993 Comparative
Section Table located in Volume 20 of ORS.
314.843 Reporting of information to
consumer reporting agency; rules. (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 when the department’s records show that the taxpayer
no longer owes delinquent taxes. [2009 c.640 §7]
314.845 Certificate of department as evidence.
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 the tax has not been paid, that
the return has not been filed or that the information has not been supplied. [1957
c.632 §36 (enacted in lieu of 316.750 and 317.545)]
314.850 Statistics.
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 lieu of 316.755)]
314.855 Rewards for information.
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 the net amount of tax,
penalty and interest recovered by suit or otherwise and shall be paid only in
cases where such evasions of tax would not be disclosed by the audit of returns
or from other information available to the department. [1957 c.632 §38 (enacted
in lieu of 316.760 and 317.550)]
314.860 Disclosure of elderly rental
assistance information to assist in recovery of public assistance overpayments;
requests for information public record. (1) The
Department of Revenue may disclose certain information relative to applicants
for elderly rental assistance to the Director of Human Services or to employees
of the Department of Human Services. The information disclosed by the
Department of Revenue shall be confined to the names, addresses and Social
Security numbers of applicants under ORS 310.630 to 310.706 for the current and
preceding calendar year. The information requested shall be confined to those
names, addresses and Social Security numbers which will assist in the
collection of debts due and owing to the State of Oregon arising from
client-caused overpayments of public assistance and shall be used solely for such
purpose and shall not be used or disclosed for any other purpose. Any person
who violates this prohibition against disclosure, upon conviction, is
punishable as provided in ORS 314.991 (2).
(2)
Disclosure under this section shall be given only upon written request of the
Director of Human Services. The form for the request shall be prescribed by the
Director of Human Services and approved by the Director of the Department of
Revenue.
(3)
The Department of Revenue shall keep on file the requests for disclosure made
pursuant to this section. The requests constitute a public record within the
meaning of ORS 192.410 to 192.505. [1979 c.690 §18; 1997 c.170 §27]
Note:
314.860 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
314.865 Use of certain information for private
benefit prohibited. A person granted access to
information described in ORS 314.835 under ORS 314.840 (2)(a)(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 the use is private pecuniary benefit for the person or
for a member of the person’s household. [1981 c.827 §2]
Note:
314.865 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 314 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
314.870 Time for performing certain acts
postponed by reason of service in a combat zone.
(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 combat zone, or is hospitalized as
a result of injury received while serving in such area, shall apply as
appropriate to the same or similar acts for purposes of the tax imposed by this
chapter and ORS chapter 316.
(2)
If an individual is entitled to the benefits of subsection (1) of this section
with respect to any return and if the return is timely filed (determined after
the application of subsection (1) of this section), then notwithstanding ORS
314.415 or other law, any overpayment of tax with respect to such return shall
bear interest from the due date of the return (determined without the
application of subsection (1) of this section).
(3)
If the federal income tax liability of any taxpayer is forgiven under section
692 of the Internal Revenue Code for any tax period, then the Oregon income tax
liability for the same tax period shall be forgiven in the same manner. [1991
c.177 §4; 1997 c.839 §63; 1999 c.224 §10]
314.875 [1995
c.780 §2; repealed by 1999 c.532 §3]
PENALTIES
314.990
[Repealed by 1953 c.310 §3]
314.991 Penalties.
(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 jurisdiction, and is also guilty of a Class
C felony. The penalties provided in this subsection shall be additional to all
other penalties in this chapter.
(2)
Violation of ORS 314.835 is a Class C felony. If the offender is an officer or
employee of the state the offender shall be dismissed from office and shall be
incapable of holding any public office in this state for a period of five years
thereafter. [1957 c.632 §39 (enacted in lieu of 316.990 and 317.990); 1971
c.682 §3; 1973 c.402 §26; 1981 c.724 §1]
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