Dear Tax Professionals –

As you have heard by now, Oregon’s tax amnesty program is in full swing.  The Department of Revenue is currently accepting applications for the program.  There is no better time for your clients to come forward and report additional tax they owe.  Time is running short, however.  The department encourages you and your clients to take advantage of this extremely rare opportunity.  Amnesty applications must be filed no later than November 19 ^th, 2009.  Once your client files an application, they have an additional 2 months (until January 19^th, 2010) to file their tax returns.

Getting the word out! – You may have noticed that the department is running television and newspaper advertisements throughout the state (including Southwest Washington and Western Idaho).  In addition, we’ve sent letters to individuals and corporations inside and outside Oregon that have been identified as possible candidates for amnesty.  We also need your help to let potential taxpayers know about this rare opportunity.  It’s important that everyone who is eligible be aware that the time is now to take action.  The legislature authorized an additional 25% penalty for those who fail to come forward during the amnesty period.  We want to help as many taxpayers as possible avoid this penalty.

How the Program Works -- As a refresher, or in case you haven’t heard, here are the nuts and bolts of the program:

• Who may apply for amnesty? Taxpayers who have not filed an Oregon tax return or who need to correct an Oregon tax return that they have already filed for tax year 2007 and prior.  If the tax and ½ the interest is paid, taxpayers will receive a waiver of 100% of the penalties and 50% of the interest otherwise due.
• Amnesty applications (available at www.oregontaxamnesty.com or by calling the department at 800-356-4222) must be completed and filed by November 19, 2009.
• Amnesty original or amended returns must be filed no later than January 19, 2010. 
• Types of tax available for amnesty: personal income tax; Lane and Tri-Met transit district self-employment taxes; corporate income and excise taxes; trust and estate income taxes; and inheritance tax

• No appeals or refunds are allowed on returns filed under the amnesty program.

25% Post Amnesty Penalty – As was mentioned above, the legislature has imposed an extra 25% penalty (in addition to all other penalties) on any additional tax that could have been reported during the amnesty period and was not.  This is an extra incentive to file for amnesty now and alleviate any worry about paying additional penalties later.

Pass-Through Entities – If you prepare tax returns for a pass-through entity such as a partnership, LLC, or S-Corporation, now is the time to review and correct these returns and issue amended K-1s to the members so the members may file for tax amnesty. The Department of Revenue will be focusing their compliance effort on these entities in the coming year.  Don’t forget that Oregon composite returns filed on behalf of Oregon nonresident owners can also be filed or corrected under the amnesty program. 

Please visit www.oregontaxamnesty.com or call us at 1-800-356-4222 (toll free from an Oregon prefix) or 503-378-4988 if you have questions.   You can also email us at Oregon.taxamnesty@state.or.us and we’ll respond to your amnesty questions.

Steve Purkeypile

Personal Income Tax Policy

Oregon Department of Revenue