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<p class="MsoNormal"><b><span style="font-size:11.0pt;color:black">See the <span style="background:yellow;mso-highlight:yellow">
highlighted text below</span> for revised instructions regarding returns that have already been filed.<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"> </span><span style="font-size:11.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"> </span><span style="font-size:11.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">To determine if a taxpayer qualifies for the waiver, first complete Part A of Form OR-10 through</span><span style="font-size:11.0pt;color:red"> </span><span style="font-size:11.0pt;color:black">line
9. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.25in;text-indent:-.25in"><span style="font-size:11.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">If
UND is <b>not</b> owed, do <b>not</b> request the waiver. File Form OR-10 if the amount on line 7 is $1,000 or more.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.25in;text-indent:-.25in"><span style="font-size:11.0pt;color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><b><span style="font-size:11.0pt;color:black">If
UND is owed:</span></b><span style="font-size:11.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in"><span style="font-size:11.0pt;color:black">a)</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">Recalculate
the amount on line 5 by multiplying the amount on line 4 by 85% (0.85).<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in"><span style="font-size:11.0pt;color:black">b)</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">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.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in"><span style="font-size:11.0pt;color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">The waiver may be requested <b>only if the recalculated amount on line 6 is equal to, or more than, the recalculated amount on line 5</b>. If the recalculated amount on line 6 is less than the
recalculated amount on line 5, proceed with the normal UND calculation using the <b>original</b> figures entered on lines 5 and 6. <b>Do not use the recalculated figures to calculate UND</b>.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in"><span style="font-size:11.0pt;color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">To request the waiver:<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in"><span style="font-size:11.0pt;color:black">1.</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">Enter
“4” in the exception box on Form OR-10, line 1 <b>and</b> in box 40a on Form OR-40, box 65a on Form OR-40-P, or box 66a on Form OR-40-N.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in"><span style="font-size:11.0pt;color:black">2.</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">Attach
a statement to Form OR-10 with the label “Form OR-10 Attachment” and the statement “85% waiver.”<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in"><span style="font-size:11.0pt;color:black">3.</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="font-size:11.0pt;color:black">File
Form OR-10 and the attachment with the 2018 return.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Taxpayers who have already filed their 2018 returns and would have qualified for the waiver may
<span style="background:yellow;mso-highlight:yellow">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</span><span style="background:yellow;mso-highlight:yellow">.</span><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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