[Revenews] Tax Policy Update - Extension reminder

[PARRA Sofia]

Oregon Department of Revenue	Personal Tax and Compliance Division 
Program Services Section
Policy & Systems Unit	
Tax Policy Update
09/16/09
Extension reminder
Oregon offers the same extensions to file 2008 tax returns as the IRS.
Taxes are still due by the original due date of the return (April 15th).
An extension to file is not an extension to pay. There is a 5 percent
penalty for failure to pay taxes by the due date. The taxpayer may not
be charged the 5 percent failure-to-pay penalty if they meet certain
criteria.

Interest is also charged for payments after the due date. Oregon's
current interest rate for 2009 is 6 percent. If we send a notice that an
amount is owed and the taxpayer does not pay within 60 days, the
interest rate increases to 10 percent for 2009. See our publication
Computing Interest on Tax You Owe
<http://www.oregon.gov/DOR/PERTAX/docs/800-691.pdf>  for more
information about interest.

This is a reminder that tax must be paid on or before April 15, even in
cases where taxpayers file their actual returns on extension. Interest
and penalties (if applicable) will be assessed if the tax is not paid on
or before April 15. 

Tax preparers should make sure their clients understand that the longer
the taxpayer waits to pay, the more interest they will be charged and
they may also be charged a penalty. Tax preparers may also want to
review the information their software prints out for clients who owe, to
make sure issues regarding interest and penalties are clear. Taxpayers
can choose to avoid penalties and interest by understanding that an
extension to file is not an extension to pay. 

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