<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=us-ascii">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:#0563C1;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:#954F72;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal-compose;
font-family:"Calibri",sans-serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="#0563C1" vlink="#954F72">
<div class="WordSection1">
<p class="MsoNormal"><b><span style="color:black">UPDATE: On March 22, 2019, the IRS announced that it has expanded this waiver to taxpayers who paid at least 80 percent of their total tax liability during the year through withholding, estimated payments, or
a combination of both. Oregon is offering the same waiver. The instructions are the same as those we announced earlier this year, using 80 percent in the calculation instead of 85 percent. See the
<span style="background:yellow;mso-highlight:yellow">highlighted</span> <span style="background:yellow;mso-highlight:yellow">
changes</span> to the instructions below.<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="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="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="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="color:#1F497D"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">To determine if a taxpayer qualifies for the waiver, first complete Part A of Form OR-10 through</span><span style="color:red"> </span><span style="color:black">line 9. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.25in;text-indent:-.25in"><span style="color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="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="color:black">·</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><b><span style="color:black">If UND is owed:</span></b><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in"><span style="color:black">a)</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="color:black">Recalculate the amount on line 5 by multiplying
the amount on line 4 by <b><span style="background:yellow;mso-highlight:yellow">80% (0.80)</span>
</b>[<i>85% (0.85)</i>].<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in"><span style="color:black">b)</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="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="color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="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="color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">To request the waiver:<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in"><span style="color:black">1.</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="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="color:black">2.</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="color:black">Attach a statement to Form OR-10 with the
label “Form OR-10 Attachment” and the statement <span style="background:yellow;mso-highlight:yellow">
“<b>80% waiver”</b></span><b> </b>[<i>85%</i> <i>waiver</i>].<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in"><span style="color:black">3.</span><span style="font-size:7.0pt;font-family:"Times New Roman",serif;color:black"> </span><span style="color:black">File Form OR-10 and the attachment with
the 2018 return.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">Taxpayers who have already filed their 2018 returns and would have qualified for the waiver
<b><span style="background:yellow;mso-highlight:yellow">or the expanded waiver</span>
</b>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.<o:p></o:p></span></p>
</div>
</body>
</html>