Oregon Enacts Amnesty Program

The Governor of Oregon has signed legislation (SB 880) establishing an Amnesty Program for taxpayers and tax periods described below.

Amnesty Period

According to SB 880, the tax amnesty program runs from October 1, 2009 to November 19,2009.

Eligible Tax Years

The tax amnesty program applies to tax years, reporting periods and estates for which the department could issue a notice of deficiency under ORS 305.265 or 314.410, as amended and in effect on September 27, 2009.

Eligible Taxpayers

A taxpayer who meets all of the following requirements may participate in the tax amnesty program:

The taxpayer must have been required to:

1. File a tax return under ORS chapter 314, 316, 317 or 318f or a tax year that begins before January 1, 2008;
2. Pay personal income tax imposed under ORS chapter 316 for a tax year or reporting period that begins before January 1, 2008;
3. Pay tax imposed under ORS chapter 317 or 318 for a tax year or reporting period that begins before January 1, 2008;
4. File a return under ORS chapter 118 and pay any required tax, if the return was due prior to January 1, 2008; or
5. Pay any tax imposed on net earnings from self-employment pursuant to ORS 267.385, if required to do so prior to January 1,2008;

The taxpayer files a completed amnesty application with the department, signed under penalty of perjury, to participate in the tax amnesty program; and within 60 days after the conclusion of the tax amnesty program, the taxpayer does all of the following:

1. Files a completed tax return or report for all tax years or reporting periods for which the taxpayer had not previously done so;
2. Files a completed amended tax return or report for all tax years or reporting periods for which the taxpayer under reported or underpaid the tax liability of the taxpayer; and
3. Pays in full the taxes due, and 50 percent of the interest due, for all tax years or reporting periods or applies for an installment payment agreement that applies to the taxes and interest due for all tax years or reporting periods for which taxes remain unpaid.

Benefits of Amnesty

For any taxpayer who fully complies with the tax amnesty program, the Department of Revenue will waive all applicable penalties (including criminal penalties), and waive 50 percent of any interest otherwise due.

Installment Agreement Failure

If the department has entered into an installment payment agreement with the taxpayer, the failure of the taxpayer to fully comply with the terms of the installment payment agreement renders the waiver of penalties void.

Penalty for Not Taking Advantage of Amnesty Program

Taxpayers who failed to take advantage of the amnesty program and filed an original or amended return that failed to report or under reported tax liability, will become subject to a penalty equal to 25 percent of the total amount of unpaid tax that is otherwise due in addition to the amount of the outstanding tax liability.

Click on the following link to access the bill (SB 880):

http://www.leg.state.or.us/09reg/measures/sb0800.dir/sb0880.en.html

If you have any questions regarding the Oregon amnesty program, please contact me for a free consultation at leveragesalt@earthlink.net.