From Shannon.BALL at oregon.gov Tue Jan 8 09:33:39 2019 From: Shannon.BALL at oregon.gov (BALL Shannon * DOR) Date: Tue, 8 Jan 2019 17:33:39 +0000 Subject: [Revenews] Qualified Business Income Reduced Tax Rate - Irrevocability Message-ID: The Qualified Business Income Reduced Tax Rate (formerly called the Pass-Through Entity (PTE) Reduced Tax Rate) can only be claimed on an original return. Previously, amended returns changing the PTE election were considered an original return only if filed before the April 15 due date. However, due to a recent decision of the Magistrate Division of the Oregon Tax Court (Ivelia v. Department of Revenue, TC-MD 180054R), if the taxpayer has an extension and the amended return changing the PTE election is filed by the October 15 extended due date, the election is considered as being made on the original return. When an amended return is received within the extension timeframe, only the Qualified Business Income Reduced Tax Rate election is treated as the original election selected. Changes to other irrevocable elections, such as the surplus refund (kicker) credit donation or changes to the federal tax subtraction, must be made on an amended return filed by April 15 regardless of whether the taxpayer had an extension or not. Additional information about the Qualified Business Income Reduced Tax Rate can be found on our website in the Frequently Asked Questions or in the instructions for Schedules OR-PTE-FY, OR-PTE-PY, or OR-PTE-NR. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Sophia.SAKOFF at oregon.gov Tue Jan 29 09:23:48 2019 From: Sophia.SAKOFF at oregon.gov (SAKOFF Sophia * DOR) Date: Tue, 29 Jan 2019 17:23:48 +0000 Subject: [Revenews] 1099-G Questions and Answers In-Reply-To: References: Message-ID: <95D8684011E94741AA54445B557E234E024D379470@WPORGEXCL02.ENTSS.OR.GOV> 1099-G Question and Answers Below is a list of the most frequently asked questions and general information regarding the Form 1099-Gs. 1099-Gs are sent to taxpayers that received refunds, credits, or offsets of $10 or more of personal income, Tri-met Transit Self-Employment, or Lane Transit Self-Employment tax during the prior year who also itemized their federal deductions. The IRS provides the Department of Revenue with a list of taxpayers that did not itemize deductions and are not required to receive a 1099-G. Q1. I did not itemize my deductions on my 2017 federal return. Will I receive a 1099-G? A1. No. If you did not itemize your deductions on your 2017 federal return, you will not receive a 1099-G. This is true even if you itemized your deductions for Oregon. Q2. I received a 1099-G showing a refund of 2017 tax, but I owed tax on my 2017 return. Is this correct? A2. Yes; taxpayers that claimed a surplus refund (kicker) credit on their 2017 return will receive a Form 1099-G for the kicker amount, even if they owed tax. Even though you did not receive a refund, the kicker was credited to the amount of tax that you owed. Q3. My software and 1099-G form are showing different amounts as the refund for state income tax for 2017. Which is correct? A3. The 1099-G form is correct. In prior years, we have received reports of software products that calculate a different amount than what is on the 1099-G you received. You may need to override your software to enter the correct amount from the 1099-G form. Q4. My 1099-G form shows a 2017 refund that is higher than what I actually received. Is this correct? A4. This can happen in a few different situations. For example, Gary received a 2017 refund of $300 and had a kicker credit of $500 on his 2017 return. Gary will receive a 1099-G for showing a 2017 refund of $500, the amount of his kicker credit and the amount of tax benefit he received. This situation also occurs if a refund is partially or wholly offset to Interest on Underpayment of Estimated tax (UND), other debt, charitable checkoff (including any kicker donated to the state school fund) or applied as an estimated tax payment to the next tax year. Q5. What if my refund exceeds the kicker credit? A5. You will receive a 1099-G form showing both the kicker credit and additional refund not attributable to the kicker. For example, Don received a 2017 refund of $600 including his kicker credit of $500. Don will receive a 1099-G form showing a 2017 refund of $600 ($500 for the kicker credit plus $100 additional refund). ***You received this message because you are subscribed to the Revenews list. To update your subscription preferences, please visit http://listsmart.osl.state.or.us/mailman/listinfo/revenews. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Sophia.SAKOFF at oregon.gov Wed Jan 30 07:18:52 2019 From: Sophia.SAKOFF at oregon.gov (SAKOFF Sophia * DOR) Date: Wed, 30 Jan 2019 15:18:52 +0000 Subject: [Revenews] Form OR-STI: Verify Before You File Message-ID: <95D8684011E94741AA54445B557E234E024D379C8A@WPORGEXCL02.ENTSS.OR.GOV> Form OR-STI is the new Oregon Statewide Transit Individual Tax Return for taxpayers who are required to report and pay because their out-of-state employer did not withhold the statewide transit tax (STT) from their wages. Even though tax season just started on January 28th, we are already seeing some common mistakes: * Taxpayers who work only in Oregon do not need to file Form OR-STI. This is true even if the employee's Form W-2 does not report STT withholding. Electronic returns that do not report payments on line 4, tax due on line 8, or a refund on line 9 (i.e. a "Zero Return") will be rejected. * STT withheld by an employer should be reported on line 3, not line 4. 100% of the returns we have reviewed so far have this mistake. This could potentially cause your clients to receive a bill from us because we have no record of a "payment" on their account. Oregon employers, and employers doing business in Oregon, are required to withhold STT from their employee's wages at the time wages are paid. Only employees who work for an out-of-state employer who doesn't withhold STT as a courtesy need to file Form OR-STI to report and pay tax due. Oregon nonresidents who work both inside and outside of Oregon for the same employer may choose to file Form OR-STI to claim a refund. Tax professionals should review the instructions for Form OR-STI before submitting a return to ensure the taxpayer has a filing requirement. Instructions are available at www.oregon.gov/dor/forms. If your client does have a filing requirement, review Form OR-STI before submitting to verify amounts are reported on the correct lines. ***You received this message because you are subscribed to the Revenews list. To update your subscription preferences, please visit http://listsmart.osl.state.or.us/mailman/listinfo/revenews. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Jackie.HOVEY at oregon.gov Mon Feb 11 17:18:03 2019 From: Jackie.HOVEY at oregon.gov (HOVEY Jackie * DOR) Date: Tue, 12 Feb 2019 01:18:03 +0000 Subject: [Revenews] Oregon offers UND waiver similar to IRS' Message-ID: In January, the IRS announced they'll waive the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. The IRS is waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments, or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty. Taxpayers must request the waiver from the IRS using Form 2210. The Oregon Department of Revenue is offering a similar waiver of underpayment interest, known as UND, for the 2018 tax year. This is to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to account for the impact of the changes under the federal Tax Cuts and Jobs Act on Oregon taxes. The Oregon waiver is available for individuals whose total withholding and estimated payments made on or before January 15, 2019 equal at least 85 percent, instead of the usual 90 percent, of the net tax shown on their 2018 return. To determine if a taxpayer qualifies for the waiver, first complete Part A of Form OR-10 through line 9. * If UND is not owed, do not request the waiver. File Form OR-10 if the amount on line 7 is $1,000 or more. * If UND is owed: a) Recalculate the amount on line 5 by multiplying the amount on line 4 by 85% (0.85). b) Recalculate the amount on line 6 by adding all 2018 estimated tax payments made on or before January 15, 2019 to the tax withheld from income. The waiver may be requested only if the recalculated amount on line 6 is equal to, or more than, the recalculated amount on line 5. If the recalculated amount on line 6 is less than the recalculated amount on line 5, proceed with the normal UND calculation using the original figures entered on lines 5 and 6. Do not use the recalculated figures to calculate UND. To request the waiver: 1. Enter "4" in the exception box on Form OR-10, line 1 and in box 40a on Form OR-40, box 65a on Form OR-40-P, or box 66a on Form OR-40-N. 2. Attach a statement to Form OR-10 with the label "Form OR-10 Attachment" and the statement "85% waiver." 3. File Form OR-10 and the attachment with the 2018 return. Taxpayers who have already filed their 2018 returns and would have qualified for the waiver may file an amended return with the waiver request before the April 15 due date. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Jackie.HOVEY at oregon.gov Tue Feb 12 14:34:33 2019 From: Jackie.HOVEY at oregon.gov (HOVEY Jackie * DOR) Date: Tue, 12 Feb 2019 22:34:33 +0000 Subject: [Revenews] REVISED - Oregon offers UND waiver similar to IRS' Message-ID: See the highlighted text below for revised instructions regarding amended returns. In January, the IRS announced they'll waive the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. The IRS is waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments, or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty. Taxpayers must request the waiver from the IRS using Form 2210. The Oregon Department of Revenue is offering a similar waiver of underpayment interest, known as UND, for the 2018 tax year. This is to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to account for the impact of the changes under the federal Tax Cuts and Jobs Act on Oregon taxes. The Oregon waiver is available for individuals whose total withholding and estimated payments made on or before January 15, 2019 equal at least 85 percent, instead of the usual 90 percent, of the net tax shown on their 2018 return. To determine if a taxpayer qualifies for the waiver, first complete Part A of Form OR-10 through line 9. * If UND is not owed, do not request the waiver. File Form OR-10 if the amount on line 7 is $1,000 or more. * If UND is owed: a) Recalculate the amount on line 5 by multiplying the amount on line 4 by 85% (0.85). b) Recalculate the amount on line 6 by adding all 2018 estimated tax payments made on or before January 15, 2019 to the tax withheld from income. The waiver may be requested only if the recalculated amount on line 6 is equal to, or more than, the recalculated amount on line 5. If the recalculated amount on line 6 is less than the recalculated amount on line 5, proceed with the normal UND calculation using the original figures entered on lines 5 and 6. Do not use the recalculated figures to calculate UND. To request the waiver: 1. Enter "4" in the exception box on Form OR-10, line 1 and in box 40a on Form OR-40, box 65a on Form OR-40-P, or box 66a on Form OR-40-N. 2. Attach a statement to Form OR-10 with the label "Form OR-10 Attachment" and the statement "85% waiver." 3. File Form OR-10 and the attachment with the 2018 return. Taxpayers who have already filed their 2018 returns and would have qualified for the waiver may file an amended return with the waiver request, or simply submit the waiver request without amending the return by mailing Form OR-10 with the attachment to us or submitting it as correspondence through Revenue Online. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Jackie.HOVEY at oregon.gov Tue Feb 12 16:16:15 2019 From: Jackie.HOVEY at oregon.gov (HOVEY Jackie * DOR) Date: Wed, 13 Feb 2019 00:16:15 +0000 Subject: [Revenews] REVISED - Oregon offers UND waiver similar to IRS' Message-ID: See the highlighted text below for revised instructions regarding returns that have already been filed. In January, the IRS announced they'll waive the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. The IRS is waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments, or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty. Taxpayers must request the waiver from the IRS using Form 2210. The Oregon Department of Revenue is offering a similar waiver of underpayment interest, known as UND, for the 2018 tax year. This is to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to account for the impact of the changes under the federal Tax Cuts and Jobs Act on Oregon taxes. The Oregon waiver is available for individuals whose total withholding and estimated payments made on or before January 15, 2019 equal at least 85 percent, instead of the usual 90 percent, of the net tax shown on their 2018 return. To determine if a taxpayer qualifies for the waiver, first complete Part A of Form OR-10 through line 9. * If UND is not owed, do not request the waiver. File Form OR-10 if the amount on line 7 is $1,000 or more. * If UND is owed: a) Recalculate the amount on line 5 by multiplying the amount on line 4 by 85% (0.85). b) Recalculate the amount on line 6 by adding all 2018 estimated tax payments made on or before January 15, 2019 to the tax withheld from income. The waiver may be requested only if the recalculated amount on line 6 is equal to, or more than, the recalculated amount on line 5. If the recalculated amount on line 6 is less than the recalculated amount on line 5, proceed with the normal UND calculation using the original figures entered on lines 5 and 6. Do not use the recalculated figures to calculate UND. To request the waiver: 1. Enter "4" in the exception box on Form OR-10, line 1 and in box 40a on Form OR-40, box 65a on Form OR-40-P, or box 66a on Form OR-40-N. 2. Attach a statement to Form OR-10 with the label "Form OR-10 Attachment" and the statement "85% waiver." 3. File Form OR-10 and the attachment with the 2018 return. Taxpayers who have already filed their 2018 returns and would have qualified for the waiver may submit the waiver request without amending the return by mailing Form OR-10 with the attachment to us or submitting it as correspondence through Revenue Online. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Jackie.HOVEY at oregon.gov Fri Mar 1 09:28:09 2019 From: Jackie.HOVEY at oregon.gov (HOVEY Jackie * DOR) Date: Fri, 1 Mar 2019 17:28:09 +0000 Subject: [Revenews] UND extension for farmers and fishermen Message-ID: The IRS recently announced that it is extending the due date for farmers and fishermen to file their 2018 returns with full payment of tax in order to avoid the underpayment penalty. Because Oregon doesn't impose underpayment interest if at least two-thirds of the taxpayer's income is from fishing or farming (including oyster farming), a similar extension for Oregon isn't needed. Under ORS 316.573, taxpayers who qualify as farmers or fishermen aren't required to make estimated tax payments at all. These taxpayers simply enter exception 1 on their return when they file. For 2018, an exception is entered on Form OR-40, box 40a; Form OR-40-N, box 66a; or Form OR-40-P, box 65a. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Jackie.HOVEY at oregon.gov Fri Mar 22 12:06:23 2019 From: Jackie.HOVEY at oregon.gov (HOVEY Jackie * DOR) Date: Fri, 22 Mar 2019 19:06:23 +0000 Subject: [Revenews] UPDATED: Oregon offers UND waiver similar to IRS' Message-ID: UPDATE: On March 22, 2019, the IRS announced that it has expanded this waiver to taxpayers who paid at least 80 percent of their total tax liability during the year through withholding, estimated payments, or a combination of both. Oregon is offering the same waiver. The instructions are the same as those we announced earlier this year, using 80 percent in the calculation instead of 85 percent. See the highlighted changes to the instructions below. In January, the IRS announced they'll waive the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. The IRS is waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments, or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty. Taxpayers must request the waiver from the IRS using Form 2210. The Oregon Department of Revenue is offering a similar waiver of underpayment interest, known as UND, for the 2018 tax year. This is to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to account for the impact of the changes under the federal Tax Cuts and Jobs Act on Oregon taxes. The Oregon waiver is available for individuals whose total withholding and estimated payments made on or before January 15, 2019 equal at least 85 percent, instead of the usual 90 percent, of the net tax shown on their 2018 return. To determine if a taxpayer qualifies for the waiver, first complete Part A of Form OR-10 through line 9. * If UND is not owed, do not request the waiver. File Form OR-10 if the amount on line 7 is $1,000 or more. * If UND is owed: a) Recalculate the amount on line 5 by multiplying the amount on line 4 by 80% (0.80) [85% (0.85)]. b) Recalculate the amount on line 6 by adding all 2018 estimated tax payments made on or before January 15, 2019 to the tax withheld from income. The waiver may be requested only if the recalculated amount on line 6 is equal to, or more than, the recalculated amount on line 5. If the recalculated amount on line 6 is less than the recalculated amount on line 5, proceed with the normal UND calculation using the original figures entered on lines 5 and 6. Do not use the recalculated figures to calculate UND. To request the waiver: 1. Enter "4" in the exception box on Form OR-10, line 1 and in box 40a on Form OR-40, box 65a on Form OR-40-P, or box 66a on Form OR-40-N. 2. Attach a statement to Form OR-10 with the label "Form OR-10 Attachment" and the statement "80% waiver" [85% waiver]. 3. File Form OR-10 and the attachment with the 2018 return. Taxpayers who have already filed their 2018 returns and would have qualified for the waiver or the expanded waiver may submit the waiver request without amending the return by mailing Form OR-10 with the attachment to us or submitting it as correspondence through Revenue Online. -------------- next part -------------- An HTML attachment was scrubbed... URL: