Oregon Legislature Passes Tax Amnesty Bill

Senate Bill 880, authorizing the Oregon Department of Revenue (DOR) to administer a tax amnesty program (“Program”) for corporate income and excise tax, personal income tax, inheritance tax, and transit district (self-employment) taxes, passed both houses of the Legislature. The Program will begin on October 1, 2009 and end on November 19, 2009 and will apply to reporting periods prior to September 27, 2009.

To be eligible for the Program, a taxpayer would have been required to do one of the following:

• 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.

If a taxpayer has received notice of deficiency prior to the start of the Program or has been assessed a tax for a tax year for which the taxpayer could be eligible for amnesty, the taxpayer is unable to participate in the Program.

The DOR will waive all penalties and reduce the interest by fifty percent (50%) for those taxpayers who participate in the Program. A twenty-five percent (25%) penalty will be added to the amount of outstanding tax liability if an eligible taxpayer fails to apply for the Program. In addition, a taxpayer who participates in the Program waives the right to file for refund of any tax paid under the amnesty and would also waive the right to appeal.

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