From jeffrey.s.henderson at state.or.us Tue Jul 3 08:45:58 2012 From: jeffrey.s.henderson at state.or.us (HENDERSON Jeffrey S) Date: Tue, 3 Jul 2012 15:45:58 +0000 Subject: [Revenews] New Estate Transfer Tax Return - Form OR706 Message-ID: <99C1619F36AA2E4E8B09F92AD3BB5C4B0DE23C3C76@MBX14.EXCHPROD.USA.NET> Now Available: New Oregon 2012 Form OR706 - Estate Transfer Tax Return and Instructions For decedents whose date of death is on or after January 1, 2012, Form OR706, Oregon Estate Transfer Tax Return, replaces Form IT-1, Oregon Inheritance Tax Return. The 2012 Form OR706 and instructions are now available on our website at http://www.oregon.gov/dor/BUS/Pages/forms-fiduciary.aspx These related forms and schedules are also available now: * OR706-V Estate Transfer Tax Payment Voucher * Schedule NRC, Form OR706, Natural Resource Credit * Schedule OSMP, Form OR706, Oregon Special Marital Property * Request for Discharge from Personal Liability for Oregon Estate Transfer Tax * Annual Certification for Natural Resource Credit Property or Commercial Fishing Business Credit Property, for use with Form OR706 We are working on Form OR706-A, Oregon Additional Estate Transfer Tax, and will post this form to our website later. Form OR706-A is used to report the sale, disposition, or cessation of use of natural resource property inherited from a 2012 estate. Please review the new forms, instructions, schedules, and Oregon Revised Statutes (ORS) Chapter 118, http://www.leg.state.or.us/ors/118.html, to familiarize yourself with what is new and what has changed. If you are a professional tax preparer we request you do your research before requesting assistance from the Estate Tax Unit. You may contact the Estate Tax Unit at the Oregon Department of Revenue, with questions about the new Estate Transfer Tax and the new forms by sending an email to: estate.help.dor at state.or.us Please provide the following in your email: Your first and last name: Company name: Daytime telephone number: Best time to reach you: Email address: Your question: Sincerely, Estate Tax Unit Oregon Department of Revenue Estate.help.dor at state.or.us -------------- next part -------------- An HTML attachment was scrubbed... URL: From tamara.l.idsinga at state.or.us Mon Jul 9 07:49:09 2012 From: tamara.l.idsinga at state.or.us (IDSINGA Tamara L) Date: Mon, 9 Jul 2012 14:49:09 +0000 Subject: [Revenews] Tax Credit Auction Message-ID: A tax credit auction is coming! The Oregon Department of Revenue, in conjunction with the Oregon Film and Video Office, will be auctioning 12,000 income tax credit certificates, worth $500 each for a total of $6 million dollars. The sale of the tax credits will benefit the Oregon Production Investment Fund (OPIF). The minimum bid is $475 per certificate. The on-line auction begins on today at 9:00 AM and ends of Monday July 16, 2012. We would appreciate you getting the word out to any of your clients that may be interested. To find out more information, go to our website at: http://www.oregon.gov/dor/pertax/Pages/credit-auction-info.aspx Shannon Ball Personal Income Tax Policy Oregon Department of Revenue -------------- next part -------------- An HTML attachment was scrubbed... URL: From shannon.ball at state.or.us Thu Jul 12 17:02:27 2012 From: shannon.ball at state.or.us (BALL Shannon) Date: Fri, 13 Jul 2012 00:02:27 +0000 Subject: [Revenews] Partnerships filing on extension Message-ID: <16164CCBFAC1E849A49DBBB5248B71630AD3DC475B@MBX18.EXCHPROD.USA.NET> Partnerships filing on extension: The Department of Revenue has received several late Oregon Form 65 returns without the extension box checked and the extension due date entered. When these returns are more than 3 months past the due date, a late filing penalty is incurred on tax that was not paid timely. In reviewing some of the returns after processing, we have found that some have a copy of the federal extension form included. This is not the correct way to file. The extension box needs to be checked with the extended due date entered beside it to show that the entity is filing on extension. Paying timely also avoids penalty and interest. Remember that an extension to file is not an extension to pay. Tax Practitioners: When filing a partnership return on extension, please make sure the extension box is checked and the extended due date is entered on Oregon Form 65. If you do not, your client may receive a penalty for filing late and may need to show a valid federal extension to have the penalty removed. Software developers: Your software should check the extension box on Oregon Form 65 and enter the extension due date when the entity has a valid federal extension or has submitted a timely extension for Oregon only. If your software doesn't do this, please correct it to reduce these filing errors. For more information about partnership filing, see our partnership webpage. -------------- next part -------------- An HTML attachment was scrubbed... URL: From shannon.ball at state.or.us Fri Jul 13 11:54:36 2012 From: shannon.ball at state.or.us (BALL Shannon) Date: Fri, 13 Jul 2012 18:54:36 +0000 Subject: [Revenews] Tax credit auction bidding is extended until Tuesday July 17th! Message-ID: <16164CCBFAC1E849A49DBBB5248B71630AD3E43F31@MBX18.EXCHPROD.USA.NET> Tax credit auction bidding is extended until Tuesday July 17th! Due to the temporary outage of state websites, we are extending the tax credit auction until Tuesday July 17th at 5pm. The payment deadline has not changed. The Department must receive the Tax Credit Auction form (TCA) and payment in a Department of Revenue office by 5pm PDT, Friday July 20th. If the website is still down, please email your bid along with the TCA form to taxcreditauction at dor.state.or.us. If you are unable to save the TCA form, your email must include the following: * Bidder name (if a business, use business name) * Contact name (for business only) * Mailing address * Daytime telephone number * E-mail address * Last four digits of Social Security number (SSN) or the full federal employer identification number (FEIN)or business identification number (BIN) * Number of certificates you're bidding on * Bid amount per certificate (must be at least $475) * Total payment(number of certificates X bid amount) For more information about the auction go to our website at: http://www.oregon.gov/dor/pertax/Pages/credit-auction-info.aspx If you have further questions or need further assistance please leave a message on our message line, 503-945-8655. -------------- next part -------------- An HTML attachment was scrubbed... URL: From cathleen.m.tavares at state.or.us Tue Jul 24 13:30:26 2012 From: cathleen.m.tavares at state.or.us (TAVARES Cathleen M) Date: Tue, 24 Jul 2012 20:30:26 +0000 Subject: [Revenews] Payrolltax News LISTSERV July 2012 Message-ID: PayrollTax News LISTSERV July 2012 Please provide this information to anyone who may benefit from it. Important Reminders: A. iWire: As of tax year 2011, all businesses are now required to submit their W2 information electronically using the iWire system, no matter how many W2's are issued. Although the original deadline for submitting your W2's electronically has passed, you are still required to submit them if you haven't already done so, unless you have requested either an extension of time to file or a waiver. You need to submit W2 information as soon as possible using one of two methods: 1. Employers can submit their information using the same file as used for the SSA (Social Security Administration) with certain modifications for Oregon. For instructions and information on submitting W2's information through the iWire system, simply go to http://www.oregon.gov/dor/BUS/Pages/iwire-income-wage-information-return-eservices.aspx 2. Employers may also manually enter their W2 information using "iWire Direct" For instructions and additional information about the "direct file" option, go to http://www.oregon.gov/dor/BUS/Documents/iWire-manual-entry-instructions.pdf Any questions can be directed to the iWire mailbox at iWire.Dor at state.or.us or by calling 503 945-8127. Be sure to allow at least one business day for a response. B. New Payroll Reporting System: The new "Payroll Tax Reporting System" will soon be available. It is very important to be sure that you have a current Power of Attorney on file if you use a payroll service provider (such as a CPA, bookkeeper, and payroll service) to submit your quarterly reports. Also, please verify that your contact information, including mailing addresses and phone numbers is correct on your account. The Oregon Employment Department will use this information to provide additional information when launching the new system. It is also used to send any additional tax updates and filing information. For further information, contact the Employment Department by email at payroll.reporting at state.or.us C. WBF Reminder: When calculating the Workers Benefit Fund Assessment, you must include hours worked for ALL paid workers, including those hours worked by workers paid on a basis other than "by the hour". This includes commission employees as well as those paid either "by the piece" or "by the mile". To calculate these additional hours, employers need to determine the "reasonable hours" for each, and then include these hours in the total number of hours subject to the WBF Assessments each quarter. Information on how to determine what "reasonable hours" are can be found on the WBF website at http://www.oregon.gov/DCBS/FABS/docs/assessment.pdf or by calling 503 378-2372. You may also send your questions by e-mail to wbfassess.fabs at state.or.us. NEW! The new Business Portal, "Business Express" is now open for business. This "one stop shopping" website has everything a person needs to get started doing business in Oregon! Learn about what resources are available, training and classes, tax responsibilities, and much, much more!!! The portal is located at http://cms.oregon.egov.com/business/Pages/index.aspx , or by going to "Oregon.Gov" and looking under the label "Business" in the upper right corner of the page. Educational/Outreach Opportunities: The Governor's Marketplace 2012 Road Show is starting tomorrow in Bend OR! This free single day event will have many partnering organizations providing information and resources to help you take your business to the next level. Come hear about such topics as Wage and Hour laws, Marketing, Classifying Workers, Business Resources, and so much more! Roadshow Dates and locations:: July 25th Bend OR August 8th Medford and August 9th, Roseburg Sept 18th, The Dalles, Sept 19th, Pendleton, and Sept 20 Ontario, Oct. 10th Hood River, Oct 24th Astoria and Oct 25th Newport. ***Salem event will be coming soon. For additional information, directions and to register, go to http://cms.oregon.egov.com/Gov/MWESB/Pages/index.aspx under the section, "Economic and Business Equality" ***Be sure to watch for additional classes and workshops coming soon!!***** The Payrolltax-News e-mail list provides employers with complete and up-to-date payroll tax information. Employers can self-subscribe here. Representatives in the Business Division will send information to employers through this list. Employers can request additional information by e-mailing payroll.help.dor at state.or.us. As a standard practice, e-mail sent from the department will be in text form only. Department of Revenue will not open attachments. Questions about list content and subscription problems should be directed to the list owner: Cathy Tavares Oregon Dept of Revenue Cathleen.M.Tavares at state.or.us 503-945-8762 -------------- next part -------------- An HTML attachment was scrubbed... URL: From shannon.ball at state.or.us Wed Aug 1 15:16:53 2012 From: shannon.ball at state.or.us (BALL Shannon) Date: Wed, 1 Aug 2012 22:16:53 +0000 Subject: [Revenews] Current year tax payments! Message-ID: <16164CCBFAC1E849A49DBBB5248B71630ADA502605@MBX18.EXCHPROD.USA.NET> Current year tax payments! Current year tax payments paid by check or money order need to include the Form 40-V (Oregon Income Tax Payment Voucher) to get applied to the current years taxes appropriately. Please do not confuse the Form 40-V with the Form 40-ESV (Estimated Income Tax Payment Voucher). If the Form 40-ESV is received with the payment, you have now instructed the department to put the payment into an estimated tax account. Per our administrative rule, once a payment is applied to an estimated tax account, it can't be transferred or reversed. Please make sure to give your clients the correct voucher when making payments so they can be applied appropriately. -------------- next part -------------- An HTML attachment was scrubbed... URL: From shannon.ball at state.or.us Thu Sep 6 15:09:51 2012 From: shannon.ball at state.or.us (BALL Shannon) Date: Thu, 6 Sep 2012 22:09:51 +0000 Subject: [Revenews] Another tax credit auction is coming Message-ID: <16164CCBFAC1E849A49DBBB5248B71630ADB2D9E85@MBX18.EXCHPROD.USA.NET> Another tax credit auction is coming! The Oregon Department of Revenue, in conjunction with the Oregon Film and Video Office, will be auctioning 662 income tax credit certificates, worth $500 each. The sale of the tax credits will benefit the Oregon Production Investment Fund (OPIF). The minimum bid is $475 per certificate. The on-line auction begins on Monday September 17, 2012 and ends Wednesday September 19, 2012 at 5pm. We would appreciate you getting the word out to any of your clients that may be interested. To find out more information, go to our website at: http://cms.oregon.gov/dor/PERTAX/Pages/credit-auction-info.aspx Shannon Ball Personal Income Tax Policy Oregon Department of Revenue -------------- next part -------------- An HTML attachment was scrubbed... URL: From shannon.ball at state.or.us Tue Sep 18 13:54:37 2012 From: shannon.ball at state.or.us (BALL Shannon) Date: Tue, 18 Sep 2012 20:54:37 +0000 Subject: [Revenews] How to report the PERS repayment Message-ID: <16164CCBFAC1E849A49DBBB5248B71630ADB6A3B07@MBX18.EXCHPROD.USA.NET> Was your client one of the 29,000 PERS benefit recipients that needs to repay a portion of their PERS back they received between April 2000 - April 2004? The repayment option they choose, will determine how to report the income on their taxes (see below). Monthly benefit deducted Once PERS begins the recovery process, the client will receive a Form 1099-R from PERS each year reporting the benefits paid in that calendar year. Report the amount on the 1099-R on your client's tax return each year. You will not make any adjustments on your client's tax return. Lump sum payment If your client paid Oregon tax on PERS income they received in April 2000 through April 2004 and are now paying a portion back, they qualify for a claim of right. For Oregon, you can claim a subtraction or credit the year the client makes the repayment. On the federal return, you can also deduct the repayment or claim a credit. See Oregon Publication 17 ? for further explanation and to determine if the subtraction or the credit is more beneficial. (http://www.oregon.gov/dor/PERTAX/Pages/pubs.aspx) Claim of right subtraction - If the credit was claimed on the federal return, report the amount paid back to PERS this year as an "other subtraction" - subtraction code 302. If the repayment was deducted on the federal return, it will flow through and no additional subtraction is required on the Oregon return. * Example 1: Sally retired June 2000. Sally received a letter from PERS and chose the lump sum payment option. Sally owes $6,500 to PERS (overpayment amount from June 2000 to April 2004). She paid PERS the full amount by check on September 5, 2012. On Sally's 2012 federal return she claimed the credit, so for Oregon she claims an "other subtraction" of $6,500. Claim of right credit - If the repayment was deducted on the federal return, add it back on the Oregon return before claiming the credit for Oregon. To claim the credit enter the amount, as computed using the worksheet in the publication 17 ?, on the estimated tax payment line in the year it was repaid. For tax years 2012 and later, check the "claim of right" box below the estimated tax line and include the credit amount on the estimated tax line. For prior years, see form instructions. * Example 2: Bob retired August 1, 2001. Bob received a letter from PERS and chose the lump sum payment option. Bob owes $5,600 to PERS (overpayment amount from August 2001 to April 2004). To calculate the claim of right credit, Bob needs to figure out what his tax would have been in 2001, 2002, 2003, and 2004 with the correct PERS amount. PERS does not tell Bob the repayment amount for each year but rather the total repayment. To calculate the credit, Bob needs to calculate how much of the $5,600 overpayment was received in each year. Bob is paying back 33 months of overpayments (August 2001 to April 2004). Bob was overpaid $169.70 each month ($5,600/33 months). Bob recalculates his 2001 Oregon tax as if his income was $849 lower (5 months), his 2002 and 2003 Oregon tax as if his income was $2,036 lower each year and his 2004 Oregon tax as if his income was $679 lower. Payment arrangements If your client chose the payment arrangement with PERS to pay back the overpayment, they will qualify for a claim of right for the amount repaid each year. See Oregon Publication 17 ? for further explanation to determine if the subtraction or the credit is more beneficial. Claim of right subtraction -If the credit was claimed on the federal return, report the amount paid back to PERS as an "other subtraction" - subtraction code 302. If the repayment was deducted on the federal return, it will flow through and no additional subtraction is required on the Oregon return. Claim of right credit - If the repayment was deducted on the federal return, add it back on the Oregon return before claiming the credit for Oregon. To claim the credit enter the amount, as computed using the worksheet in the publication 17 ?, on the estimated tax payment line in the year it was repaid. For tax years 2012 and later, check the "claim of right" box below the estimated tax line and include the credit amount on the estimated tax line. For prior years, see form instructions. You can use any reasonable method to determine which year's distribution the client is paying back (first in first out, last in first out, average, etc). * Example 3: Dianna retired August 1, 2001 and chose the payment arrangement option. Dianna owes a total of $5,600 to PERS (overpayment amount from August 2001 to April 2004). Dianna agreed with PERS to pay $150 a month starting September 1, 2012. In 2012, Dianna pays a total of $600 to PERS ($150 * 4). Dianna is paying back 33 months of overpayments (August 2001 to April 2004). Dianna was overpaid $169.70 each month ($5,600/33 months). Dianna will recalculate her 2001 Oregon tax as if her income was $600 lower. In 2013, Dianna pays a total of $1,800 to PERS ($150 * 12). Dianna will recalculate her 2001 Oregon tax as if her income was $249 lower ($169.70 x 5 months = $849 overpaid reduced by $600 repaid in 2012). Then she will recalculate her 2002 Oregon tax as if her income was $1,551 lower ($1,800 - $249 for 2001 repayments). Dianna will continue to claim a credit (or subtraction) each year until she completes her payment plan. Shannon Ball Personal Income Tax Policy Coordinator Oregon Department of Revenue Phone: 503-945-7938 Fax: 503-945-8649 shannon.ball at dor.state.or.us -------------- next part -------------- An HTML attachment was scrubbed... URL: From jeffrey.s.henderson at state.or.us Mon Sep 24 14:52:11 2012 From: jeffrey.s.henderson at state.or.us (HENDERSON Jeffrey S) Date: Mon, 24 Sep 2012 21:52:11 +0000 Subject: [Revenews] Multistate Tax Compact Apportionment Election - Protective Refund Claim Message-ID: <99C1619F36AA2E4E8B09F92AD3BB5C4B1DBAA09F58@MBX14.EXCHPROD.USA.NET> Hello Tax Professionals, This release is intended for those of you with corporate clients that apportion income. Per Oregon Revised Statute (ORS) 314.606, the income apportionment election provided in Article III of the Multistate Tax Compact (Compact) is not available on an Oregon tax return. However, similar to the Gillette Company v. California Franchise Tax Board appeal in California, the Compact apportionment election is currently being challenged in Oregon tax court. All corporation tax returns will be processed based on the department?s long-standing position that the Compact apportionment election is not available, but taxpayers may file a protective claim to secure the right to a refund. The department will defer action on all protective claims for refund until the outcome of the litigation is known. Protective claims for refund generally must be filed with the department by the later of three years from the due date of the original return, or the date the original return was filed ? otherwise the statute of limitations for refund may expire. Filing original tax returns: All original tax returns filed using the Compact apportionment election will be adjusted. To preserve your right to a refund, file a protective claim after your original return is filed. Protective refund claim filing instructions: * Use the same form (i.e. Form 20) as originally filed, check the "Amended" box, and show computation of refund claim, or * Send a letter with authorized signature that includes: * Taxpayer name, FEIN, and BIN as shown on original return,?? * Tax years involved, * The amount of the refund claim for each year, * The detail of the apportionment formula used, and * Name of person to contact, phone number, and fax number.??? * Write the words "Protective Claim for Refund?Compact Apportionment Election" at the top in ink. Do not use red ink.??? * Mail to: REFUND, PO Box 14777, Salem, Oregon 97309-0960 * Retain a copy of the protective claim for your files. IMPORTANT: Amended tax returns that use the Compact apportionment election will be denied unless identified and filed as a protective claim for refund as instructed above. If you have any questions regarding this issue feel free to contact us by phone at 503-378-4988 or by e-mail at corp.help.dor at state.or.us. Jeff Henderson Corporation Tax Policy Coordinator Business Division/Corporation and Estate Section Oregon Department of Revenue (503) 947-2124 jeffrey.s.henderson at dor.state.or.us -------------- next part -------------- An HTML attachment was scrubbed... URL: From shannon.ball at state.or.us Thu Sep 27 09:40:44 2012 From: shannon.ball at state.or.us (BALL Shannon) Date: Thu, 27 Sep 2012 16:40:44 +0000 Subject: [Revenews] Another tax credit auction is coming Message-ID: <16164CCBFAC1E849A49DBBB5248B71630CD3F55D1B@MBX18.EXCHPROD.USA.NET> Another tax credit auction is coming! The Oregon Department of Revenue, in conjunction with the Oregon Department of Energy, will be auctioning 3,000 income tax credit certificates, worth $500 each. The sale of the tax credits will benefit the Oregon Renewable Energy Development Fund. The minimum bid is $475 per certificate. The on-line auction begins on Monday October 8, 2012 and ends Friday October 12, 2012 at 5pm. We would appreciate you getting the word out to any of your clients that may be interested. To find out more information, go to our website after October 1st at: http://www.oregon.gov/dor/PERTAX/Pages/credit-auction-info.aspx Shannon Ball Personal Income Tax Policy Coordinator Oregon Department of Revenue -------------- next part -------------- An HTML attachment was scrubbed... URL: