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 15^th). 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 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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