[Revenews] Reminder - UND waivers for 2018

[HOVEY Jackie * DOR]

The Oregon Department of Revenue would like to remind taxpayers that a waiver of interest on an underpayment of estimated tax, known as UND, is available for tax year 2018 if the taxpayer paid at least 80 percent of their 2018 tax by January 15, 2019. This is similar to the relief offered by the IRS for tax year 2018.

The IRS announced on August 14, 2019 that it will be automatically waiving the estimated tax penalty for qualified taxpayers, including those who haven't submitted a waiver request. However, Oregon is not implementing an automatic waiver process. The department will continue to offer the UND waiver for tax year 2018 to taxpayers who submit their request using Form OR-10.

Instructions for requesting the UND waiver:

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).

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".

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. Form OR-10 is available online at www.oregon.gov/dor/forms<http://www.oregon.gov/dor/forms>.

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