As you know, Oregon’s reconnect legislation, SB 301, passed and was signed by the governor during the week of March 7th.  That information went out to you in a REVENEWS, that same message also went out to the software companies that week.
 
We hope you have incorporated the software company updates as they became available.  We have a connection issue for tax year 2010 which has yet to be resolved by some companies:  the modification of the calculation of the self-employment tax
 
Prior to the reconnect a filing would have subtraction code 346 on the Oregon return.  After the reconnect, we should not see code 346 as a subtraction on the Oregon return.
 
We are still receiving some professionally prepared returns which use that subtraction code.  If your software still generates that code when preparing a return for efile, that return will drop out of our automated processing system and require manual work before it can be cleared.  Filing a return coded with a 346 subtraction means that your client’s return will be delayed in processing.
 
Make sure you have stayed current with your updates; filing a return with a 346 subtraction code will delay the processing of that return.
 
Thank you
 
Mark K. Ruth
PIT electronic filing
Oregon Department of Revenue