2007 Oregon Code - Chapter 314 :: Chapter 314 - Taxes Imposed Upon or Measured by Net Income
Chapter 314
Taxes Imposed Upon or Measured by Net Income
2007 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
314.029 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
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
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)
314.075 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
314.088 Discharge
of tax liability when taxpayer dies while performing military service
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 PROPERTY INTEREST
314.258 Conveyance
of real property interest; withholding by authorized agent
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 organization 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
314.297 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
314.370 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
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 of 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 partners treatment of item inconsistent
with partnership treatment; rules
314.716 Basis
of partners 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
314.726 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 shareholders 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
(Temporary provisions relating to nonresident return by shareholder or
partner are compiled as notes following ORS 314.752)
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
314.845 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
(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, 2006; 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, 2006, 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
(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]
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 314.013, 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]
Note: 314.013 was repealed by section 5, chapter
533, Oregon Laws 2005. The text of 314.015 was not amended by enactment of the
Legislative Assembly to reflect the repeal. Editorial adjustment of 314.015 for
the repeal of 314.013 has not been made.
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]
Note: Chapter 99, Oregon Laws 2007, is the subject
of a referendum petition that may be filed with the Secretary of State not
later than September 26, 2007. If the referendum petition is filed with the
required number of signatures of electors, chapter 99, Oregon Laws 2007, will
be submitted to the people for their approval or rejection at the regular
general election held on November 4, 2008. If approved by the people at the
general election, chapter 99, Oregon Laws 2007, takes effect December 4, 2008.
If the referendum petition is not filed with the Secretary of State or does not
contain the required number of signatures of electors, chapter 99, Oregon Laws
2007, takes effect January 1, 2008. Sections 10 and 11, chapter 99, Oregon Laws
2007, provide:
Sec.
10. Section 11 of this 2007
Act is added to and made a part of ORS chapter 314. [2007 c.99 §10]
Sec.
11. This chapter applies to
partners in a domestic partnership, as defined in section 3 of this 2007 Act
[note under 106.990], and surviving partners as if federal income tax law
recognized a domestic partnership in the same manner as Oregon law. [2007 c.99 §11]
314.022 [Repealed by 1953 c.310 §3]
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
(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 MIAs) 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
(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]
Note: See first note under 314.033.
Note: 314.304 was repealed by section 34, chapter
21, Oregon Laws 1999. The text of 314.041 was not amended by enactment of the
Legislative Assembly to reflect the repeal. Editorial adjustment of 314.041 for
the repeal of 314.304 has not been made.
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
(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]
314.056 [Repealed by 1953 c.310 §3]
314.058 [Repealed by 1953 c.310 §3]
314.060 [Repealed by 1953 c.310 §3]
314.062 [Repealed by 1953 c.310 §3]
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
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
Discharge of tax liability when taxpayer dies while performing military
service. (1) This section
applies to a taxpayer who was a member of the Armed Forces of the United States
who was on active duty for 90 consecutive days or more or who was 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 performed service in a
status under Title 10 of the United States Code for a period of 90 consecutive
days or more, and who died during the performance of that service.
(2) If a taxpayer described in subsection
(1) of this section had a tax liability for a tax due under ORS chapter 316,
the tax liability, and all interest and penalties associated with any unpaid
portion of the tax liability, shall be discharged and shall be deemed wholly
satisfied for the taxpayer. [2005 c.519 §2]
Note: Sections 3 and 4, chapter 519, Oregon Laws
2005, provide:
Sec.
3. Section 2 of this 2005
Act [314.088] applies to deaths of taxpayers described in section 2 of this
2005 Act that occurred on or after September 11, 2001. [2005 c.519 §3]
Sec.
4. Notwithstanding ORS
314.415 or any other law limiting the period for which a claim for refund of
taxes may be made, the liability discharged under section 2 of this 2005 Act
[314.088] may be allowed if filed on or before December 31, 2006. [2005 c.519 §4]
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 taxpayers 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 decedents 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 (1)]
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
(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
(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
314.257 [1995 c.556 §46; repealed by 1997 c.839 §69]
CONVEYANCE OF
REAL PROPERTY INTEREST
314.258
Conveyance of real property interest; withholding by authorized agent. (1) As used in this section:
(a) Authorized agent means an agent who
is responsible for closing and settlement services in a conveyance of a real
property interest.
(b) Closing and settlement services
means services that are provided for the benefit of a transferor or a
transferee in connection with a conveyance of a real property interest, and the
receipt or disbursement of moneys in connection with a sale, lease,
encumbrance, mortgage or deed of trust in or related to real property.
(c) Conveyance means a sale, lease,
encumbrance, mortgage or creation of a secured interest in real property.
(d) Real property interest means a
(2)(a) If there is a conveyance of a real
property interest, the authorized agent providing closing and settlement
services is required to withhold an amount equal to the least of:
(A) Four percent of the consideration for
the real property interest being conveyed;
(B) Four percent of the net proceeds
resulting from the conveyance; or
(C) Ten percent of the gain includable in
taxable income.
(b) For purposes of this subsection, a
transferor is:
(A) An individual who is not a resident of
this state at the time of both the closing date of the conveyance and the date
on which proceeds of the conveyance are disbursed; or
(B) A C corporation that, immediately
after the conveyance of the real property interest, is not doing business in
this state.
(3)(a) Notwithstanding subsection (2) of
this section, an authorized agent is not required to withhold amounts under
this section if the authorized agent obtains a written affirmation executed by
the transferor on a form prescribed by the Department of Revenue certifying
under penalty of perjury that:
(A) The consideration for the conveyance
does not exceed $100,000;
(B) The transferee is acquiring the real
property interest through foreclosure; or
(C) The transferor:
(i) If an individual, is a resident of
this state;
(ii) If a corporation, has a permanent
place of business in this state; or
(iii) Has professionally competent
knowledge or advice that the transferor will not owe tax under ORS chapter 316,
317 or 318 for the tax year because the conveyance is an exchange that
qualifies for deferral under section 1031 or 1033 of the Internal Revenue Code
or is a nontaxable transaction under
(b) If withholding is not retained and
remitted to the department pursuant to this section, the authorized agent shall
retain the written affirmation described in this subsection for six years from
the date of the closing of the conveyance transaction and shall present the
written affirmation to the department immediately upon request in writing from
the department.
(4) For purposes of this section, a
corporation is not doing business in this state if:
(a) The corporation has not been issued a
certificate of existence or a certificate of authorization by the Secretary of
State as described in ORS 60.027; and
(b) The corporation does not maintain a
permanent office with a staff of at least one employee in this state or does
not own or lease property in this state other than the property that is the
subject of the conveyance.
(5)(a) Amounts withheld pursuant to this
section are held in trust for the State of
(b) If an authorized agent fails to remit
an amount withheld or required to be withheld by the agent under this section
by the time remittance is required, the department may enforce collection in
the same manner as the department enforces the collection of amounts withheld
by employers under ORS 316.162 to 316.221.
(c) Notwithstanding paragraph (b) of this
subsection, the department may not proceed with collection actions against the
authorized agent if the authorized agent:
(A) Presents the department with the
written affirmation described in subsection (3) of this section; and
(B) Demonstrates to the department that
the authorized agent obtained the written affirmation prior to disbursal of
funds due the transferor resulting from the conveyance. [2007 c.864 §4]
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 organization 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
organization 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
(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
taxpayers 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]
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]
314.297
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
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-thru 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]
Note: 314.304 is repealed June 30, 2008. See
section 34, chapter 21, Oregon Laws 1999. 314.304 (2005 Edition) is set forth
for the users convenience.
314.304
Amortization of goodwill and other intangibles; expensing of depreciable
assets; elections before April 15, 1998. (1) Notwithstanding ORS 314.415 or other law, if a taxpayer has made
one or both elections under Treas. Reg. §1.197-1T for federal income tax
purposes, the election or elections shall apply for
(2) If, for taxable years beginning on or
after January 1, 1993, and before January 1, 1995, a taxpayer made the election
described in section 179(c) of the Internal Revenue Code, as amended by the
Revenue Reconciliation Act of 1993 (P.L. 103-66), on the taxpayers federal
income tax return, the taxpayer may amend the taxpayers corresponding Oregon
return. The amendment shall conform the return to the taxpayers federal income
tax return with respect to amounts subject to the section 179(c) election.
Notwithstanding the provisions in section 179(c) and the regulations thereunder
that set forth the time for making the election, the taxpayers amended return
must be filed on or before April 15, 1998.
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
(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
(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
(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
(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)
(a) That does business in
(b) That is owned by an
(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]
Note: Section 21, chapter 568, Oregon Laws 2007,
provides:
Sec.
21. Sections 2 [314.307], 8
[314.403], 12 [314.406] and 13 [314.469] of this 2007 Act apply to tax years
beginning on or after January 1, 1999. [2007 c.568 §21]
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 employers
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]
314.365 [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 taxpayers 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 agents report or other audit report made upon any audit or adjustment
of the taxpayers federal income tax return or income tax return of another
state.
(2)(a) The taxpayer shall report to the
department any change in the taxpayers taxable income that is subject to tax
by this state or any change in the taxpayers 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 taxpayers taxable
income, tax credit or other amount taken into account in determining the
taxpayers 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 taxpayers correct
(c) In the case of a taxpayer filing an
original or amended federal or other state return that reports a change in the
taxpayers taxable income that is subject to tax by this state or that results
in a change in the taxpayers 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 taxpayers
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 persons 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
departments 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]
Note: Section 3 (1), chapter 322, Oregon Laws
2007, provides:
Sec.
3. (1) The amendments to ORS
314.400 by section 1 of this 2007 Act apply to reports or returns required to
be filed on or after January 1, 2008. [2007 c.322 §3(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 items
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 taxpayers 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]
Note: See note under 314.307.
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
(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]
Note: See note under 314.307.
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 taxpayers 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 states 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
(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 taxpayers
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 taxpayers 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 taxpayers 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 taxpayers 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 taxpayers 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, 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 employees 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]
Note: Sections 2 and 3, chapter 605, Oregon Laws
2007, provide:
Sec.
2. (1) Notwithstanding ORS
305.270 or 314.415 or other law limiting the period of time within which a
refund of personal income tax may be made, a taxpayer may file a claim for
refund of tax paid for a tax year beginning on or after January 1, 2001, and
before January 1, 2005, if the claim for refund is based on the inclusion
within gross income of compensation described in ORS 316.791, for military
service performed on or after September 11, 2001.
(2) The Department of Revenue shall refund
amounts due for a claim described in subsection (1) of this section if the claim
is allowable and the claim has been filed with the department before July 1,
2008. [2007 c.605 §2]
Sec.
3. Section 2 of this 2007
Act is repealed on January 2, 2010. [2007 c.605 §3]
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, mechanics 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) Attorneys 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) 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 directed to the sheriff of any county of the state commanding the
sheriff to levy upon and sell the real and personal property of the taxpayer
found within that county, for the payment of the amount of the tax, with the
added penalties, interest, collection charge and the sheriffs cost of
executing the warrant, and to return such warrant to the department and pay to
it the money collected by virtue thereof by a time to be therein specified, not
less than 60 days from the date of the warrant. A copy of the warrant shall be
mailed or delivered to the taxpayer by the department at the taxpayers
last-known address.
(2) The sheriff shall, within five days
after the receipt of the warrant, record with the clerk of the county a copy
thereof, and thereupon the clerk shall enter in the County Clerk Lien Record
the name of the taxpayer mentioned in the warrant, and the amount of the tax or
portion thereof and penalties for which the warrant is issued and the date when
such copy is recorded. Thereupon the amount of the warrant so recorded shall
become a lien upon the title to and interest in property of the taxpayer
against whom it is issued in the same manner as a judgment duly recorded. The
sheriff thereupon shall proceed upon the same in all respects, with like effect
and in the same manner prescribed by law in respect to executions issued
against property upon judgment of a court of record, and shall be entitled to
the same fees for services in executing the warrant, to be added to and
collected as a part of the warrant liability.
(3) In the discretion of the department a
warrant of like terms, force and effect may be issued and directed to any agent
authorized to collect 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.
(4) If a warrant is returned not satisfied
in full, the department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the people of the state had recovered judgment
against the taxpayer for the amount of the tax, and shall balance the
assessment record of the taxpayer by transferring the unpaid deficiency to the
taxpayers delinquent record. [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]
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
(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
taxpayers 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]
Note: See note under 314.307.
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 corporations 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 corporations 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
(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 taxpayers 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 taxpayers 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 organization means any
financial institution or trust company, as those terms are defined in ORS
706.008, any industrial bank, land bank, safe deposit company, private banker,
cooperative bank, investment company, or any type of insurance company.
(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
314.615
When allocation of 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 organization 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 organization 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]
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 taxpayers
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 taxpayers 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 taxpayers 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 partnerships 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 taxpayers 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 taxpayers 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 taxpayers
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 taxpayers 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.
(1) All business income shall be apportioned to this state by multiplying the
income by the sales factor.
(2)(a) Notwithstanding subsection (1) of
this section, the business income of a taxpayer that is in the forest products
industry, that owns and manages 300,000 or more acres in this state, but less
than 400,000 acres, and that processes at least 20 percent of the taxpayers
total wood chip supply for papermaking from sawmill residue generated within
this state, shall be apportioned to this state by multiplying the income by a
fraction, the numerator of which is the property factor plus the payroll factor
plus two times the sales factor, and the denominator of which is four.
(b) If the denominator of the property
factor, payroll factor or sales factor, as determined under ORS 314.650 to
314.665, is zero, then the denominator specified in paragraph (a) of this
subsection shall be reduced by the number of factors with a denominator of
zero. [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]
314.655
Determination of property factor. (1) As used in ORS 314.650, the property factor is a fraction, the
numerator of which is the average value of the taxpayers 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 taxpayers 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 taxpayers property. [1965 c.152 §§11,12,13; 2001 c.793 §3;
2001 c.933 §2]
314.660
Determination of payroll factor. (1) As used in ORS 314.650, 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 individuals service is performed
entirely within the state; or
(b) The individuals service is performed
both within and without the state, but the service performed without the state
is incidental to the individuals 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 individuals residence is in this state. [1965 c.152 §§14,15; 2001
c.793 §4; 2001 c.933 §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 taxpayers only activity in
(ii) The taxpayers 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 taxpayers 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
(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 taxpayers
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 taxpayers 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 taxpayers 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 taxpayers 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 taxpayers 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
taxpayers 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 taxpayers business activity
in this state; or
(d) The employment of any other method to
effectuate an equitable allocation and apportionment of the taxpayers 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
(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 broadcasters 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 broadcasters 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 taxpayers 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 partners 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 partners 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 partners distributive share of an
item of partnership income, gain, loss or deduction (or item thereof) shall be
that partners 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 partners
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 partners interest; gain or loss on sale; election to adjust basis. (1) The adjusted basis of a partners
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
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 partnerships 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 partnerships holding period includes the period during which
the property was held by the partner.
(4) Any increase in a partners 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
(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 partners share of
partnership liabilities or any decrease in a partners individual liabilities
by reason of the assumption by the partnership of the partners 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
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]
314.726
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 partners 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
(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 shareholders income; computation; character of income, gain, loss
or deduction. (1) The
shareholders 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 shareholders 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
corporations taxable year), there shall be taken into account the shareholders
pro rata share of the corporations 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 shareholders 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
(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
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 shareholders
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 corporations
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]
Note: Section 3 (2), chapter 322, Oregon Laws
2007, provides:
Sec.
3. (2) The amendments to ORS
314.750 by section 2 of this 2007 Act apply to tax years beginning on or after
January 1, 2008. [2007 c.322 §3(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 shareholders 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 shareholders 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), ORS 315.104 (forestation and reforestation), ORS
315.134 (fish habitat improvement), ORS 315.138 (fish screening, by-pass
devices, fishways), 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
315.254 (youth apprenticeship sponsorship), ORS 315.304 (pollution control
facility), ORS 315.324 (plastics recycling), ORS 315.354 and ORS 469.207
(energy conservation facilities), ORS 315.507 (electronic commerce), ORS 315.511
(advanced telecommunications facilities), ORS 315.604 (bone marrow transplant
expenses), ORS 317.115 (fueling stations necessary to operate an alternative
fuel vehicle) and ORS 315.141 (biomass production for biofuel). [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.739 §7]
Note
1: The amendments to 314.752
by section 13, chapter 625, Oregon Laws 2007, become operative January 2, 2014.
See section 15, chapter 625, Oregon Laws 2007. The text that is operative from
January 2, 2014, until January 2, 2028, is set forth for the users
convenience.
314.752. (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 shareholders 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 shareholders 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), ORS 315.104 (forestation and reforestation), ORS
315.134 (fish habitat improvement), 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 315.254 (youth apprenticeship sponsorship), ORS 315.304 (pollution
control facility), ORS 315.324 (plastics recycling), ORS 315.354 and ORS
469.207 (energy conservation facilities), ORS 315.507 (electronic commerce),
ORS 315.511 (advanced telecommunications facilities), ORS 315.604 (bone marrow
transplant expenses), ORS 317.115 (fueling stations necessary to operate an
alternative fuel vehicle) and ORS 315.141 (biomass production for biofuel).
Note
2: The amendments to 314.752
by section 3, chapter 883,
314.752. (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 shareholders 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 shareholders 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), ORS 315.134 (fish habitat improvement), 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 315.254 (youth apprenticeship
sponsorship), ORS 315.304 (pollution control facility), ORS 315.324 (plastics
recycling), ORS 315.354 and ORS 469.207 (energy conservation facilities), ORS
315.507 (electronic commerce), ORS 315.511 (advanced telecommunications
facilities), ORS 315.604 (bone marrow transplant expenses), ORS 317.115
(fueling stations necessary to operate an alternative fuel vehicle) and ORS
315.141 (biomass production for biofuel).
(Temporary
provisions relating to nonresident return by shareholder or partner)
314.760 [1989 c.625 §54; repealed by 2005 c.387 §8]
Note: Sections 7 and 9, chapter 387, Oregon Laws
2005, provide:
Sec.
7. A nonresident shareholder
of an S corporation or a nonresident partner may not join in the filing of an
Sec.
9. Nothing in the repeal of
ORS 314.760 by section 8 of this 2005 Act affects the filing of an
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, as defined in ORS 128.005, 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]
Note: 128.005 was repealed by section 128, chapter
348, Oregon Laws 2005. The text of 314.775 was not amended by enactment of the
Legislative Assembly to reflect the repeal. Editorial adjustment of 314.775 for
the repeal of 128.005 has not been made.
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
(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 owners
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
(b) One or more owners of the entity are
nonresidents and do not have other
(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
taxpayers share of the entitys distributive income from
(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 corporations share of the entitys distributive income
from
(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
(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
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 owners 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 owners
distributive share of taxable income from the pass-through entity. The
department may reject the affidavit if the taxpayer fails to comply with
(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
taxpayers 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 taxpayers 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 taxpayers 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 taxpayers 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
(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
(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
(iv) Has been or is under investigation
for possible criminal offenses under the
(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 Governors 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
(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
(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
departments 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 departments 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 state institutions as described in ORS 179.321 or the Department
of Human Services or to collect any unpaid cost of care as provided by ORS
chapter 179.
(m) Employees of the Employment Department
to the extent the Department of Revenue deems disclosure or access to
information on a combined tax report filed under ORS 316.168 is necessary to
performance of their duties in administering the tax imposed by ORS chapter
657.
(n) The State Fire Marshal to assist the
State Fire Marshal in carrying out duties, functions and powers under ORS
453.307 to 453.414, the employer or agent name, address, telephone number and
standard industrial classification, if available.
(o) Employees of the Department of State
Lands for the purposes of identifying, locating and publishing lists of
taxpayers entitled to unclaimed refunds as required by the provisions of
chapter 694, Oregon Laws 1993. The information shall be limited to the taxpayers
name, address and the refund amount.
(p) In addition to the disclosure allowed
under ORS 305.225, state or local law enforcement agencies to assist in the
investigation or prosecution of the following criminal activities:
(A) Mail theft of a check, in which case
the information that may be disclosed shall be limited to the stolen document,
the name, address and taxpayer identification number of the payee, the amount
of the check and the date printed on the check.
(B) The counterfeiting, forging or
altering of a check submitted by a taxpayer to the Department of Revenue or
issued by the Department of Revenue to a taxpayer, in which case the information
that may be disclosed shall be limited to the counterfeit, forged or altered
document, the name, address and taxpayer identification number of the payee,
the amount of the check, the date printed on the check and the altered name and
address.
(q) The United States Postal Inspection
Service or a federal law enforcement agency, including but not limited to the
United States Department of Justice, to assist in the investigation of the
following criminal activities:
(A) Mail theft of a check, in which case
the information that may be disclosed shall be limited to the stolen document,
the name, address and taxpayer identification number of the payee, the amount
of the check and the date printed on the check.
(B) The counterfeiting, forging or
altering of a check submitted by a taxpayer to the Department of Revenue or
issued by the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the counterfeit, forged
or altered document, the name, address and taxpayer identification number of
the payee, the amount of the check, the date printed on the check and the
altered name and address.
(r) The United States Financial Management
Service, for purposes of facilitating the reciprocal offsets described in ORS
305.612.
(s) A municipal corporation of this state
for purposes of assisting the municipal corporation in the administration of a
tax of the municipal corporation that is imposed on or measured by income,
wages or net earnings from self-employment. Any disclosure under this paragraph
may be made only pursuant to a written agreement between the Department of
Revenue and the municipal corporation that ensures the confidentiality of the
information disclosed.
(3)(a) Each officer or employee of the
department and each person described or referred to in subsection (2)(a), (e)
to (k) or (m) to (p) of this section to whom disclosure or access to the tax
information is given under subsection (2) of this section or any other
provision of state law, prior to beginning employment or the performance of
duties involving such disclosure or access, shall be advised in writing of the
provisions of ORS 314.835 and 314.991, relating to penalties for the violation
of ORS 314.835, and shall as a condition of employment or performance of duties
execute a certificate for the department, in a form prescribed by the
department, stating in substance that the person has read these provisions of
law, that the person has had them explained and that the person is aware of the
penalties for the violation of ORS 314.835.
(b) The disclosure authorized in
subsection (2)(q) of this section shall be made only after a written agreement
has been entered into between the Department of Revenue and the person
described in subsection (2)(q) of this section to whom disclosure or access to
the tax information is given, providing that:
(A) Any information described in ORS
314.835 that is received by the person pursuant to subsection (2)(q) of this
section is confidential information that may not be disclosed, except to the
extent necessary to investigate or prosecute the criminal activities described
in subsection (2)(q) of this section;
(B) The information shall be protected as
confidential under applicable federal and state laws; and
(C) The United States Postal Inspection
Service or the federal law enforcement agency shall give notice to the
Department of Revenue of any request received under the federal Freedom of
Information Act, 5 U.S.C. 552, or other federal law relating to the disclosure
of information.
(4) The Department of Revenue may recover
the costs of furnishing the information described in subsection (2)(k), (L) and
(n) to (p) of this section from the respective agencies. [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]
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.
314.845
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 persons 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
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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