Mundle v. DOR
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IN THE OREGON TAX COURT MAGISTRATE DIVISION Small Claims Income Tax MAITHILY MUNDLE, Plaintiff, v. DEPARTMENT OF REVENUE, STATE OF OREGON, Defendant. ) ) ) ) ) ) ) ) ) ) TC-MD 030074F DECISION AND JUDGMENT Plaintiff appeals from a Notice of Deficiency issued by Defendant regarding tax year 2001. A case management conference was held on April 9, 2003. Maithily Mundle appeared for herself. Laurie Fery appeared for Defendant. Plaintiff is a college student studying at Oregon State University (University). She is also employed by the University. She first arrived in the United States from India on September 8, 2000, entering with a student visa. Tax year 2001 was the first year she filed tax returns in the United States. Plaintiff earned $11,762.47 in 2001, paying $438 in federal income tax. On her original Oregon return, Plaintiff subtracted $3,000 from income for federal tax liability and $4,500 in itemized deductions. After receiving the Notice of Deficiency, Plaintiff filed an amended Oregon return. On that return she claimed a standard deduction of $1,800 rather than $4,500 in itemized deductions. She also subtracted $3,000 for federal tax liability. DECISION AND JUDGMENT TC-MD 030074F 1 The subtraction for federal tax liability is limited to the smaller of the actual tax liability or $3,000. ORS 316.680(1)(b),1 ORS 316.685, and ORS 316.695(3)(a). Plaintiff erred. Her subtraction was limited to $438, the amount of her federal tax liability in 2001. Plaintiff also erred in reducing her income by the standard deduction. Plaintiff is a nonresident alien by virtue of her student visa. Consistent with federal tax law, the standard deduction in Oregon for nonresident aliens is zero.2 ORS 316.695(1)(c)(F)(ii) See also Treas Reg ยง 1.873-1 (a)(4) (1960). The court recognizes that Plaintiff filed her 2001 return in good faith. Defendant also recognized Plaintiff's good faith by not imposing a penalty. Plaintiff's errors were due to her unfamiliarity with filing a tax return in this country. Now, therefore, IT IS HEREBY ADJUDGED AND DECREED that Plaintiff's appeal is denied. Dated this _____ day of May, 2003. ______________________________________ SALLY L. KIMSEY MAGISTRATE THIS DOCUMENT WAS SIGNED BY MAGISTRATE SALLY L. KIMSEY ON MAY 5, 2003. THE COURT FILED THIS DOCUMENT ON MAY 5, 2003. 1 Unless otherwise noted, all references to the Oregon Revised Statutes (ORS) are to 2001. 2 Plaintiff could have itemized deductions; however, the only itemized deduction was her Oregon income taxes withheld which are not permitted as an itemized deduction on Oregon returns. DECISION AND JUDGMENT TC-MD 030074F 2
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