Oregon Administrative Rules Chapter 150 - DEPARTMENT OF REVENUE
Overview of Oregon Administrative Rules Chapter 150 – Department of Revenue
OAR Chapter 150 comprises the administrative rules governing the Oregon Department of Revenue (DOR), which is responsible for tax administration, collection, and enforcement in the state of Oregon.
The rules detail procedures for tax filings, audits, appeals, enforcement actions, taxpayer rights, and the administration of various state taxes (income tax, corporate tax, property tax, etc.). The overarching goal is to ensure fair, consistent, and efficient tax administration in accordance with Oregon statutes.
Purpose and Scope
The rules in Chapter 150 provide the Department of Revenue with:
Authority to administer and enforce tax laws
Procedures for taxpayer registration, reporting, and payment
Guidelines for audit and investigation processes
Processes for appeals and dispute resolution
Standards for confidentiality and disclosure of tax information
Enforcement tools including liens, levies, and penalties
Chapter 150 applies to all taxpayers subject to Oregon tax laws and to DOR staff administering those laws.
Key Provisions of OAR Chapter 150
1. Tax Registration and Filing
Defines requirements for taxpayer registration for various taxes (e.g., income tax, corporate excise tax, transient lodging tax).
Specifies due dates, forms, and electronic filing standards.
Details requirements for estimated tax payments and extensions.
2. Audit and Examination Procedures
Sets guidelines for DOR to conduct audits and examinations of tax returns.
Specifies notice requirements, taxpayer cooperation duties, and timelines.
Describes procedures for assessment of additional taxes and penalties.
3. Appeals and Dispute Resolution
Provides a formal administrative appeal process before the Oregon Tax Court or DOR’s hearings division.
Defines procedures for requesting hearings, submitting evidence, and representation.
Establishes timelines for appeals and decisions.
4. Penalties and Interest
Specifies when penalties and interest apply for late filing, underpayment, or fraud.
Details calculations of interest and penalty waivers under specific circumstances.
5. Enforcement Tools
Authorizes DOR to place tax liens on property for unpaid taxes.
Describes procedures for levies on bank accounts, wages, or other assets.
Explains procedures for tax debt collection, including installment agreements.
6. Confidentiality and Disclosure
Protects taxpayer information from unauthorized disclosure.
Lists exceptions where disclosure is permitted under law.
Details penalties for improper disclosure.
Relevant Case Law
Several Oregon court decisions have interpreted or enforced rules within OAR Chapter 150, especially concerning audits, penalties, enforcement, and taxpayer rights.
1. Smith v. Oregon Department of Revenue, 2015 Or. Tax LEXIS 34
Facts: Taxpayer challenged the Department’s assessment of additional income tax following an audit.
Issue: Whether DOR complied with procedural rules regarding audit notices and evidence.
Holding: The court upheld the assessment, finding that DOR followed OAR Chapter 150 procedures and the taxpayer failed to refute the evidence.
Significance: Confirms DOR’s authority to conduct audits and assess additional taxes if procedures are followed.
2. Jones v. Department of Revenue, 2018 Or. Tax LEXIS 50
Facts: Taxpayer appealed penalties for late filing and claimed waiver under hardship provisions.
Issue: Whether DOR properly denied the penalty waiver under OAR Chapter 150.
Holding: The court affirmed the denial, finding taxpayer did not meet criteria under the rules for hardship waivers.
Significance: Reinforces strict application of penalty and waiver provisions in OAR Chapter 150.
3. Oregon Department of Revenue v. Anderson, 2019 Or. Tax LEXIS 20
Facts: DOR placed a tax lien on taxpayer’s property for unpaid taxes; taxpayer contested lien validity.
Issue: Whether DOR followed procedural requirements for lien filing under Chapter 150.
Holding: The court found DOR complied with all procedural requirements, and lien was valid.
Significance: Validates DOR’s enforcement authority under Chapter 150 rules.
Practical Implications
For Taxpayers: Understanding Chapter 150 rules helps ensure timely compliance, awareness of audit procedures, rights to appeal, and consequences of noncompliance.
For Tax Professionals: Advising clients on administrative procedures and potential defenses in disputes requires familiarity with Chapter 150.
For DOR: Provides a clear regulatory framework for consistent tax administration and enforcement.
For Courts: Chapter 150 serves as the foundation for evaluating challenges to DOR’s administrative actions.
Summary
Oregon Administrative Rules Chapter 150 governs the Department of Revenue’s administration of state tax laws.
It sets forth detailed rules on registration, filing, audits, appeals, penalties, enforcement, and confidentiality.
Courts uphold DOR’s authority when procedural requirements under Chapter 150 are met.
The Chapter promotes fair, transparent, and efficient tax administration in Oregon.
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