Oregon Tax Amnesty

Oregon: Tax Amnesty Program Enacted

Gov. Ted Kulongoski has signed legislation that authorizes the Oregon Department of Revenue (DOR) to initiate a tax amnesty program for taxpayers subject to the corporation excise (income) tax, the personal income tax, the inheritance tax, and the mass transit district tax on self-employment. The program will begin on October 1, 2009, and end on November 19, 2009, and applies to tax years, reporting periods, and estates for which the DOR could issue a notice of deficiency under ORS 305.265 or ORS 314.410, as amended and in effect on September 27, 2009.

To qualify for participation in the program, a taxpayer must have been required to:

  • file an income tax return for a tax year prior to 2008;
  • pay income tax for a tax year prior to 2008;
  • file an inheritance tax return and pay any required tax if the return was due before 2008; or
  • pay the mass transit tax on self-employment, if required to do so, before 2008.

A taxpayer may not participate in the tax amnesty program if the OR DOR issued a notice of deficiency before the start of the program or assessed a tax for a tax year for which the taxpayer could otherwise apply for amnesty. However, a taxpayer who has filed a bankruptcy petition may participate in the program if the taxpayer submits an order from the bankruptcy court allowing participation.

All penalties and 50% of the interest due will be waived for all taxpayers who participate in the program, including those who enter into installment agreements with the OR DOR. However, 25% of the total amount of unpaid tax that would otherwise be due will be added to the amount of outstanding tax liability for any tax year or reporting period for which amnesty could have been sought if the taxpayer failed to apply for amnesty.

In addition, a taxpayer who participates in the OR tax amnesty program is prohibited from requesting a refund of any tax paid under the program and waives the right to appeal any such tax.

Keywords: Oregon Tax Help, Oregon Tax Relief, Oregon Tax Amnesty, Oregon tax problem resolution