ORS Chapter 314

Chapter 314 — TaxesImposed Upon or Measured by Net Income

2009 EDITION

INCOMETAXATION GENERALLY

REVENUEAND TAXATION

GENERALPROVISIONS

314.011 Definitions;conformance with federal income tax law

314.015 Soccerreferees considered independent contractors

314.021 Applicationof chapter

314.023 Applicationto partners in domestic partnership and to surviving partners

314.029 Applicationof Deficit Reduction Act of 1984 (P.L. 98-369) and Simplification ofImputed Interest Rules of 1985 (P.L. 99-121) to personal income tax

314.031 Applicationof Deficit Reduction Act of 1984 (P.L. 98-369) and Simplification ofImputed Interest Rules of 1985 (P.L. 99-921) to corporate excise andincome tax

314.033 Applicationof federal Tax Reform Act of 1986 (P.L. 99-514)

314.035 Applicationof Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203), Family Support Actof 1988 (P.L. 100-485) and Technical and Miscellaneous Revenue Act of 1988(P.L. 100-647)

314.037 Applicationof P.L. 101-140, Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239) andOmnibus Budget Reconciliation Act of 1991 (P.L. 101-508)

314.039 Applicationof P.L. 102-2, Comprehensive National Energy Policy Act of 1992 (P.L. 102-486),Unemployment Compensation Amendments of 1992 (P.L. 102-318), Tax Extension Actof 1991 (P.L. 102-227) and Emergency Unemployment Compensation Act of 1991(P.L. 102-164)

314.041 Applicationof Revenue Reconciliation Act of 1993 (P.L. 103-66), the Uruguay RoundAgreements Act (P.L. 103-465) and P.L. 104-7

314.043 Applicationof ICC Termination Act of 1995 (P.L. 104-88), P.L. 104-117, OmnibusConsolidated Rescissions and Appropriations Act of 1996 (P.L. 104-134), SmallBusiness Job Protection Act of 1996 (P.L. 104-188), Health InsurancePortability and Accountability Act of 1996 (P.L. 104-191) and PersonalResponsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193)

314.045 Applicationof Taxpayer Relief Act of 1997 (P.L. 105-34), Taxpayer Browsing ProtectionAct (P.L. 105-35), Balanced Budget Act of 1997 (P.L. 105-33), Internal RevenueService Restructuring and Reform Act of 1998 (P.L. 105-206), TransportationEquity Act for the 21st Century (P.L. 105-178) and Tax and Trade ReliefExtension Act of 1998 (P.L. 105-277)

314.047 Applicationof Tax Relief Extension Act of 1999 (P.L. 106-170) and FSC Repeal andExtraterritorial Income Exclusion Act of 2000 (P.L. 106-519)

314.049 Applicationof Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16) andJob Creation and Worker Assistance Act of 2002 (P.L. 107-147)

314.051 Applicationof Veterans Benefit Act of 2002 (P.L. 107-330), Jobs and Growth Tax ReliefReconciliation Act of 2003 (P.L. 108-27), Military Family Tax Relief Act of2003 (P.L. 108-121), Working Families Tax Relief Act of 2004(P.L. 108-311) and American Jobs Creation Act of 2004 (P.L. 108-357)

314.053 Applicationof Deficit Reduction Act of 2005 (P.L. 109-171), Tax Increase Preventionand Reconciliation Act of 2005 (P.L. 109-222) and Pension Protection Act of2006 (P.L. 109-280)

314.055 Applicationof Energy Independence and Security Act of 2007 (P.L. 110-140), the MortgageForgiveness Debt Relief Act of 2007 (P.L. 110-142), the Tax Increase PreventionAct of 2007 (P.L. 110-166) and the Tax Technical Corrections Act of 2007(P.L. 110-172)

314.057 Applicationof Economic Stimulus Act of 2008 (P.L. 110-185), the Heroes EarningsAssistance and Relief Tax Act of 2008 (P.L. 110-245), the Food, Conservation,and Energy Act of 2008 (P.L. 110-246), the Housing and Economic RecoveryAct of 2008 (P.L. 110-289), the Emergency Economic Stabilization Act of2008, the Energy Improvement and Extension Act of 2008 and the Tax Extendersand Alternative Minimum Tax Relief Act of 2008 (P.L. 110-343) and theFostering Connections to Success and Increasing Adoptions Act of 2008 (P.L.110-351)

314.059 Applicationof American Recovery and Reinvestment Act of 2009 (P.L. 111-5)

314.075 Evadingrequirements of law prohibited

314.078 Determinationof tax credit amounts

314.080 Venueon failure to comply with law

314.085 Taxableyear; rules

314.088 Dischargeof tax liability when taxpayer dies while performing military service

314.091 Abeyanceof tax during periods of active duty military service

ADJUSTMENTOF RETURNS

314.105 Definitionsfor ORS 314.105 to 314.135

314.115 Adjustmentto correct effect of certain errors; use limited

314.125 Whenadjustment may be made

314.135 Computation;method of adjustment; credit or setoff limited; recovery after payment limited

314.140 Adjustmentof returns of related taxpayers after reallocation of income or deduction onfederal return

POLLUTIONCONTROL FACILITIES

314.255 Collectionof taxes due after revocation of certification of pollution control facility;exceptions to tax relief allowed for pollution control facility

LOBBYINGEXPENDITURES

314.256 Lobbyingexpenditures; proxy tax; rules

CONVEYANCEOF REAL ESTATE

314.258 Withholdingin certain conveyances of real estate; rules

REMICSAND FASITS

314.260 Taxationof real estate mortgage investment conduits

314.265 Taxationof financial asset securitization investment trusts

METHODSOF ACCOUNTING AND REPORTING INCOME

314.276 Methodof accounting

314.280 Allocationof income of financial institution or public utility from business within and withoutstate; rules; alternative apportionment for electing utilities ortelecommunications taxpayers

314.287 Costsallocable to inventory

314.295 Apportionmentor allocation where two or more organizations, trades or businesses are ownedor controlled by the same interests

314.296 Expensepaid to related member for use of intangible property

314.297 Electionfor alternative determination of farm income; computation of income; rules

314.300 Passiveactivity loss; determination; treatment; rules

314.302 Intereston deferred tax liabilities with respect to installment obligations; rules

314.306 Incomefrom discharge of indebtedness; bankruptcy; insolvency

314.307 Definitions;reportable transactions

314.308 Reportabletransactions; rules

LIABILITYOF TRANSFEREE OR OWNER OF TRUST

314.310 Liabilityof transferee of taxpayer for taxes imposed on taxpayer

314.330 Lienif grantor or other person determined to be owner of trust

RETURNS

314.355 Returnswhen tax year changed

314.360 Informationreturns

314.362 Filingreturn on magnetic media or other machine-readable form; rules

314.370 Departmentrequiring return or supplementary return

314.380 Furnishingcopy of federal or other state return or report; action required when returnfiled or changed or tax assessed

314.385 Formof returns; time for filing; alternative filing formats; rules

314.395 Timefor payment of tax; interest on delayed return

314.397 Mannerof payment

314.400 Penaltyfor failure to file report or return or to pay tax when due; interest;limitation on penalty

314.401 Deminimis tax payment not required

314.402 Understatementof taxable income; penalty; waiver of penalty

314.403 Listedtransaction understatement; penalty

314.404 Penaltyfor failure to report reportable transaction

314.406 Penaltyfor promotion of abusive tax shelter

COLLECTINGDELINQUENT TAXES; LIENS; INTEREST AND ADDITIONS TO TAX; REFUNDS

314.407 Assessmentof taxes owing but not submitted with return; time of assessment; recording ofwarrant

314.410 Timelimit for notice of deficiency; circumstances when claim for refund may bereduced after time limit; time limit for refund or notice of deficiency forpass-through entity items

314.412 Issuingof notice of deficiency attributable to involuntary conversion; time limit

314.415 Refunds;interest; credits

314.417 Unpaidtax or withholding lien at time of assessment

314.419 Foreclosureof lien

314.421 Whenlien valid

314.423 Statusof lien

314.425 Examiningbooks, records or persons

314.430 Warrantfor collection of taxes

314.440 Taxas debt; termination of taxable period and immediate assessment of tax

314.466 Audits,deficiencies, assessments, refunds and appeals governed by ORS chapter 305

314.469 Treatmentof moneys collected under ORS 314.406

(Temporaryprovisions relating to tax amnesty program are compiled as notes following ORS314.469)

ESTIMATEDTAX PROCEDURE

314.505 Estimateof tax liability by corporations; rules

314.515 Installmentschedule for payment of estimated tax

314.518 Estimatedtax payments by electronic funds transfer; phase-in; rules

314.520 Stateagency authority over certain electronic funds transfer payments

314.525 Underpaymentof estimated tax; interest; nonapplicability of penalties