Oregon Tax Amnesty Program Allows You Fifty Days to “Catch Up”
Governor Kulongoski recently signed legislation that authorizes
the Oregon Department of Revenue (“ODR”) to initiate and
administer a tax amnesty program (the “Program”) for taxpayers
subject to personal income, corporate income/excise, selfemployment
and inheritance taxes. The tax amnesty period will commence on October 1,
2009 and end on November 19, 2009
(the “Amnesty Period”).
1. Eligibility Requirements:
A. Personal Income/Corporate Income/Excise Taxes – The taxpayer
was required to fi le a tax return and pay any required tax
for a tax year beginning prior to January 1, 2008.
B. Inheritance Taxes – The taxpayer was required to fi le an
inheritance tax return, and pay any required tax, if the return was
due prior to January 1, 2008.
C. Self-Employment Taxes – The taxpayer was required to pay
self-employment taxes prior to January 1, 2008.
2. Amnesty Benefits:
Eligible taxpayers that participate in the
Program and comply with the related requirements will receive a
complete waiver of penalties and 50% waiver of all interest due.
The Program also allows taxpayers to enter into an installment
agreement for the payment of tax and interest.
3. Program Qualification Requirements:
To qualify, a taxpayer must:
A. File a completed amnesty application with ODR between
October 1, 2009 – November 19, 2009; and
B. Within 60 days after the Amnesty Period’s conclusion:
i. File completed tax returns or reports for all applicable tax years or reporting periods if the
taxpayer has not already filed returns;
ii. File completed amended returns or reports for all applicable tax years or reporting periods
for which the taxpayer underreported or underpaid tax liability; and
a. Pay in full the taxes due and 50% of the interest due for all tax years or
reporting periods; or
b. Have previously applied (at the time of fi ling the amnesty application) for an
installment payment agreement.
4. Amnesty Disqualification:
A taxpayer may not participate in the Program if, prior to October
1, 2009, ODR has:
A. Issued a notice of defi ciency to such taxpayer; or
B. Has assessed a tax for a tax year for which the taxpayer could otherwise apply for the
A taxpayer in a Chapter 11 bankruptcy protection proceeding may still participate
in the Program if the taxpayer submits an order to ODR from the United States Bankruptcy Court
6. Waiver of Refund Claims:
Taxpayers cannot request a refund with respect to any tax paid
pursuant to the Program, and all appeal rights must be waived. Please be aware that ODR is not
similarly precluded from assessing additional taxes against the taxpayer for taxes covered by these
returns or reports.
A. Penalty waiver — A taxpayer who complies with all Program terms (including participation
through use of an installment agreement, where applicable) receives a waiver of all applicable
penalties (including specified criminal penalties) that would otherwise have been due.
B. Imposition of 25% penalty — If a taxpayer applies for amnesty and previously either:
i. Failed to file a return for the tax at issue; or
ii. Filed an original or amended return that failed to report or underreported the tax due,
ODR will impose a 25% penalty in addition to all otherwise applicable taxes and penalties.
This 25% penalty also applies if the taxpayer makes a successful application to participate
in the Program and the ODR issues a notice of defi ciency after the Amnesty Period closes
with respect to a tax year covered by the taxpayer’s amnesty application.
C. The 25% penalty does not apply to any additional Oregon income taxes that result from an
adjustment to the taxpayer’s federal income tax return by the IRS.
8. Installment Agreement:
As aforementioned, the Program permits taxpayers to enter into an
installment agreement for payment of the tax and reduced interest balance.
To qualify for installment payments, a taxpayer must, at the time it applies
to participate in the Program, contemporaneously apply for installment
treatment. Under such installment agreement, all taxes and
interest must be paid on or before May 31, 2011. If the taxpayer
fails to comply with all installment agreement terms, the waiver
of penalties and interest reduction become void. Thus, the tax,
interest, and all applicable penalties become immediately due
9. ODR “Data Match” Program:
Please be aware that in the budget note attached to the ODR budget for
2009-2010 legislative session, ODR was instructed to research the viability
of developing and operating a “data match ” system that would utilize
customer records from financial institutions to locate assets
of delinquent taxpayers. ODR has been instructed to report its
findings to the 76th Oregon Legislative Assembly in 2011 as part
of its budget presentation before the Joint Committee on Ways
and Means. If the “data match” system becomes a reality, delinquent
and non-filing taxpayers will be at a significantly increased
risk of having their assets seized by ODR to cover payment of
tax, interest and penalties.
We advise that taxpayers in such position act now while they can
mitigate interest and avoid the imposition of penalties. Please
contact Jonathan D. Mishkin, LL.M. at (503) 242-0000, and he
will be glad to assist you with Oregon’s Tax Amnesty Program
Jonathan D. Mishkin, LL.M.
Direct Line: 503-417-6007
360 East 10th Avenue, Suite 300, Eugene, OR 97401-3273
1001 SW Fifth Avenue, 16th Floor, Portland, OR 97204-1116
333 High Street, NE, Suite 200, Salem, OR 97301-3632
Nothing in this communication creates or is intended to create an
attorney-client relationship with you, constitutes the provision of legal
advice, or creates any legal duty to you. If you are seeking legal advice,
you should first contact a member of the Closely Held Business
Team with the understanding that any attorney-client relationship
would be subsequently established by a specific written agreement
with Harrang Long Gary Rudnick P.C. To maintain confidentiality,
you should not forward any unsolicited information you deem to
be confidential until after an attorney-client relationship has been