- A county line divides contiguous forestland tax lots. Can they be placed in different timber tax programs?
No, they must be placed in the same tax program. - After I sign up for EFT, can I make a payment by check?
Yes, but we prefer that you continue making your payments by EFT. - An employee has left and they are registered as the responsible party for our corporation's account in Revenue Online. What do I do?
Call us if you need to change the responsible party for your business. - An employee has recently left or been promoted. How do I change their access to our Revenue Online accounts?
The responsible party or administrator for your business' Revenue Online account can control which features each user can access in My Web Profile under Manage Additional Logins. Those granted access to your accounts are automatically given the ability to file and pay on your behalf unless you change their access level. - Are 401K plans subject to transit district payroll taxes (TriMet or Lane Transit)?
Yes, contributions to deferred compensation plans are subject to transit district payroll taxes. - Are any insurance companies exempt from the corporation excise tax?
Yes. Surplus lines insurance companies, fraternal benefits societies that are exempt under IRC 501(c)(8), and other insurance companies exempt for federal tax purposes are exempt from the Oregon excise tax. Profit from writing wet marine and transportation insurance is exempt and is subtracted from the insurer’s taxable income. - Are any subtractions or deductions allowed against qualifying nonpassive income if I’m using the qualified business income reduced tax rate?
The only adjustment allowed for qualifying nonpassive income is a depreciation addition or subtraction attributable to qualifying businesses [ORS 316.043(4)]. - Are household employees' wages subject to transit district payroll taxes (TriMet or Lane Transit)?
No, household employees’ wages are exempt from transit district payroll taxes. - Are logs chipped in the woods subject to the severance tax?
If the chips come from sawmill-grade or better logs, they’re subject to the severance tax. If the chips come from lower grade logs, the tax doesn’t apply. - Are non-profit organizations subject to TriMet or Lane transit taxes?
Not all non-profit organizations are exempt from these transit taxes. Only the organizations with 501(C)3 status are exempt. Non-profit organizations need to send us a copy of the IRS determination. Hospitals are not exempt. The statewide transit tax is not included in this exemption. - Are reinsurance premiums included in the insurance sales factor?
Generally, the insurance sales factor doesn’t include reinsurance accepted, and there’s no deduction of reinsurance ceded. If the exclusion of reinsurance premiums results in an apportionment formula not fairly representing the extent of an insurance company's activity in Oregon, you may petition for the inclusion of the reinsurance premiums in the sales factor. (ORS 317.660) - Are sawmill-grade or better logs subject to the severance tax? How about hardwood logs?
Yes, all logs, including hardwood logs, graded sawmill and better are subject to the severance tax, regardless of species. - Are Section 125 cafeteria plans subject to transit district payroll taxes (TriMet or Lane Transit)?
No, Section 125 cafeteria plans are exempt from transit district payroll taxes. - Are there any special provisions regarding transit self-employment returns for certain types of businesses?
Yes. See the table below.
| Farmer |
Income earned in the district is taxable. Farmers with sales both within and outside of the district may apportion their sales. |
| Insurance agent |
Insurance-related income is exempt. Self-employment activities, such as consulting or investment advice, are taxable. |
| Manufacturer |
Income earned in the district is taxable. Manufacturers with sales both within and outside of the district may apportion their sales. |
| Minister |
Compensation received for religious services is exempt. Compensation received for independent contract services, such as weddings or funerals, is taxable. |
| Real estate agent |
If you’re subject to federal self-employment tax, you’re also subject to transit district self-employment taxes. If your office is within the transit district and more than 50 percent of the work for a sale happens at your office, the earnings from that sale are taxable. If more than 50 percent of the work for a sale happens outside of the district, you may apportion your earnings. |
| Rental properties |
Not subject to tax unless you’re a real estate dealer and rental income is part of that business [IRC 1402(a)(1)]. |
| Truckers |
Income is exempt if you’re only traveling through the district (no pick-ups or deliveries). See Various service providers below for more information. |
Various service providers (includes consulting fees, director's fees, royalties, and some trucking and writing activities)
|
Income is taxable if services are performed within the district. If you perform services both within and outside of the district, all income is taxable if the majority of the cost of performance is within the district. |
| Writers |
Income is taxable if the majority of the cost of performance of creation happens within the district. See Various service providers above for more information. |
- Are there fees associated with registering my business for withholding tax?
No, there is no charge for getting an Oregon BIN. - Are tips subject to transit district payroll taxes (TriMet or Lane Transit)?
Yes, tips are subject to transit district payroll taxes. - Are transit district payroll taxes (TriMet or Lane Transit) paid by deduction from employee wages?
No, transit district payroll taxes are employer paid and based on gross wages for service performed in the transit districts. - Are wages paid to corporate officers subject to withholding?
Corporation officers are considered employees. Payments for their services are subject to withholding (S corporation or C corporation). True dividends, usually paid no more than once a year, aren’t subject to withholding. - Are wages paid to immediate family members subject to withholding? How about children under the age of 18?
Yes. Wages paid for work performed by family members are subject to withholding. This includes your spouse, parent, siblings, and children under the age of 18. - Are wages paid to nonresident employees subject to withholding?
Nonresident wages for work performed in Oregon are subject to withholding, except when these earnings for the year will be less than their standard deduction amount for their filing status. Nonresidents with wages greater than their standard deduction amount must file an Oregon nonresident return.
Nonresident employees with extra Oregon income may request withholding even if they earn less then their standard deduction.
- As an heir, when’s the right time for me to pay deferred taxes?
Unless you're a surviving spouse, all of the deferred taxes, accrued interest, and fees are due by August 15 of the year following the death. If you are a surviving spouse, you may qualify for continued deferral. Search our FAQ for the disabled and senior citizen property tax deferral program. - Can "leased" or temporary employees be used for the qualified business income reduced tax rate employee requirement?
Yes. "Leased" employees are workers who are officially employed by a professional employment organization, which is responsible for overseeing all HR-related functions, but who perform work for the contracting business. Because they're actually performing the work for the business and the business is paying their wages, those employees can make a business eligible for the reduced tax rate. - Can an employee have different withholding amounts for state than for federal?
Yes, Form OR-W-4 is for Oregon withholding only. Federal Form W-4 is for federal withholding. - Can anyone make a credit card payment through your service provider?
As long as you have the necessary information about the tax account you’re paying, you can use a payment service provider. If you’re paying for someone else, and the account is overpaid, we’re required to send refunds to the taxpayer on the account, not credit the card used for the payment. - Can I add someone to the deed or title of my home while I’m in the deferral programs?
Please contact us for details. Adding someone other than your spouse or registered domestic partner may cause your property to be disqualified. - Can I allow third-party access to more than one individual or company in Revenue Online?
Yes, more than one third party can have access to your accounts. They each need to individually validate using your tax information to get account access, or you can grant them access through My Web Profile, under the Manage Additional Logins tab. - Can I apply for Special Assessment Deferral?
No. The Special Assessment Deferral Program is ending. We aren’t accepting any new applications. - Can I cancel a personal income tax payment made through a third-party software vendor?
If you need to cancel a payment made through a third-party tax preparation software vendor for your personal income tax, click the Manage Payments link in the upper right hand corner of the I want to… section. You can only cancel payments scheduled for future dates. - Can I change my direct deposit information after I have sent in my tax returns?
No, we can't change the direct deposit information provided on your tax return. Whenever a direct deposit fails, we mail a check to the address on your return. The check takes about two weeks to reach the taxpayer after the department's attempted direct deposit date. - Can I choose which nonpassive income (or loss) to include in the pass-through entity (PTE) reduced tax rate calculation?
No. ORS 316.043 doesn't allow you to selectively choose which income or loss to include in the tax calculation. If the election is made, all qualifying income and loss must be included.
Example: Ryan and Sara are married and each have ownership in a qualifying partnership. Ryan and Sara each receive qualifying nonpassive income from the partnership. If they choose to make the election for the PTE reduced tax rate, both Ryan’s and Sara's nonpassive income must be included in the reduced tax rate calculation. They can't treat any portion of the qualifying nonpassive income as nonqualifying income. - Can I complete a financial statement through Revenue Online?
Financial statements can be filed through Revenue Online. The Financial Statement link is in the upper right hand corner in the I want to… section. Prior to filling out the form, please have all necessary documentation readily available, as the form will time out after several minutes of inactivity. - Can I control others' access to my Revenue Online accounts?
You can control access to your personal accounts and any business accounts where you’re the responsible party. Click on My Web Profile, and go to the Manage Additional Logins tab. - Can I deduct credit card service provider fees on my Oregon income tax return?
No. The payment service provider fee is a nondeductible personal expense. - Can I downsize and still qualify for the property tax deferral programs?
House Bill 2083 allows participants to downsize from one deferral home to another without having to meet the five-year residency requirement. You must meet several criteria to be eligible. Contact us for more information. - Can I file an amended transit self-employment tax return?
Yes. Complete a transit tax return for the year being amended and show the correct information. Check the box to indicate it’s an amended return.
Note: Refunds are issued within three years of the original return due date or filed date, whichever is later.
- Can I file my transit return electronically?
- Can I get my BIN by phone?
No, you can’t get your BIN by phone. You must either register online or complete the Combined Employer's Registration form. - Can I have my refund directly deposited into my bank account?
Yes. Direct deposit is available for all Oregon returns, paper or electronic. Please proofread your account information carefully because we can’t change this information once you submit your return.
We don’t notify taxpayers when a deposit is made and we aren’t responsible for overdraft fees or charges due.
- Can I import tobacco products from other countries?
You must pay the tax for any untaxed tobacco products that you bring into Oregon. Additionally, you must complete and submit an Oregon tobacco products tax return. If you are an Oregon-licensed distributor, you must file an Oregon Quarterly Tax Return for Tobacco Distributors, Form 530.
If you are not an Oregon-licensed distributor, you must file an Oregon Unlicensed Tobacco Quarterly Tax Return, Form 531.
You also need to be sure that your importing activities are approved by the Alcohol and Tobacco Tax and Trade Bureau. For more information, visit www.ttb.gov.
- Can I make a credit card payment for any tax year?
Each payment service provider decides how many years for it will accept payments for. If the payment service provider you select can’t take payment for the year you need to pay, call us to make other payment arrangements. - Can I make an EFT payment online?
Yes. You can make ACH debit payments for combined payroll or corporate income or excise taxes through Revenue Online. Your financial institution also may have an internet application you can use to initiate ACH credit payments. - Can I make credit card payments using either my Social Security number or my spouse's?
No. You need to use the Social Security number of the person listed first on your Oregon income tax return, also known as the primary taxpayer. - Can I make my corporate extension, amended, or minimum tax payment by EFT?
You can only make your corporate extension or minimum tax payments by EFT. - Can I make my penalty and interest payment by EFT?
No, you can't make penalty and interest payments by EFT. - Can I make payments through Revenue Online?
You can make electronic payments through Revenue Online, even if you filed a paper return.
To make a payment from your Revenue Online account, locate the account and/or filing period and select the Make a Payment link.
To make a payment without logging in to Revenue Online, select Make a Payment from the home screen. To use this payment option, you need to have previously filed a return with us and know the information about the account for which you’re paying.
You’ll have the option to pay by ACH debit or credit/debit card. Please note that credit card payments will direct you to an outside site to complete your transaction and there’s a fee from the service provider for using this option. Not all tax types can be paid using a credit/debit card. - Can I make payments voluntarily using EFT?
Yes. If you don't meet the mandated requirement, but you want to make your combined payroll or estimated corporation excise or income tax payments by EFT, you can. Once registered as a voluntary participant, you’re subject to the same rules established for mandatory participants. - Can I pay all Oregon payroll taxes annually?
No. Payments are due quarterly when you file your quarterly payroll tax return (Form OQ).
Employers who file IRS Form 944 may ask to be considered for annual Oregon withholding deposits. Send us a written request with a copy of your IRS notification. - Can I print a copy of my return from Revenue Online?
Yes. Find the return you'd like to open, then click View and use the browser print option to print a copy. If you need to print the accompanying schedules, select the schedules from the list and use the browser print option.
Paper copies of returns filed in Revenue Online are for your records only. Don’t mail them to us.
- Can I report tax fraud anonymously?
You don't have to provide your name or number. However, if we can't contact you, we may not have enough information to conduct a thorough review. Report fraud to us at Revenue Online. - Can I retain part of the marijuana tax to pay my costs of retaining and processing the tax?
Yes. You may retain 2 percent of the 17 percent state tax for administrative costs. Localities may or may not allow retailers to retain administrative costs. Please refer to the payment voucher for a list or contact the department at marijuanatax.dor@oregon.gov. - Can I save my bank account information in Revenue Online for future payments?
Yes. In the My Web Profile tab, select Manage Payment Channels to change or enter payment information for that account. You can also set an account as your default for making payments through Revenue Online. - Can I save my return in Revenue Online and finish it later?
Yes, you can save your work and complete the return later.
If your computer is idle for several minutes, your session will time out for security purposes and you’ll lose all of your information. If you are called away while completing the return, click Save and Finish Later to avoid this loss of data.
- Can I stop a payment in Revenue Online?
If the status of an ACH debit payment is pending, you can delete that submission. You can then resubmit your payment with the correct information. Once it's no longer pending, you can’t stop the payment. To determine if it's pending, go to Recent Items. If the payment is pending, select the hyperlink for that payment, and then select Delete.
Credit card payments can’t be cancelled once your payment information is submitted.
- Can I stop making payments by EFT?
You may be able to stop making payments by EFT if:
- You aren't mandated to make payments by EFT.
- You receive notification that you meet the mandatory requirement to pay your combined payroll or estimated corporation excise or income taxes by EFT, but you disagree with the determination.
- You make EFT payments voluntarily, but you find EFT doesn't meet your needs.
- You're eligible for a waiver.
- Can I transfer my deferral account to another property?
No. Your deferral is for the specific piece of property listed on your original application. - Can I use my federal election to group related activities under Treasury Reg. 1.469-5T(a)(1) to meet the material participation test for the purposes of the qualified business income reduced tax rate?
Yes. You must "materially participate" in the business to qualify for the reduced tax rate. "Material participation" has the same meaning in Oregon as it does in IRC 469. Taxpayers may group related business entities into one single activity in order to meet the 500-hour test for material participation in Treasury Reg. 1.469-5T(a)(1). Therefore, nonpassive income from qualified businesses that is grouped for the purposes of meeting the material participation test would qualify for the Oregon reduced tax rate, assuming the business also meets the employee requirement. - Can I withdraw my request in Revenue Online?
Certain requests can be withdrawn if done before the request is processed. For nonlogged in requests use the Lookup Request Code option. For logged in requests, select the confirmation number under the Recent Items tab. You’ll be able to withdraw the request if the Delete hyperlink is available. - Can insurance companies file a consolidated return?
Yes, if you are:
- A foreign insurance company not doing business in Oregon and not subject to Oregon tax, who is part of a group filing a consolidated federal return that also files a consolidated Oregon return, must be included in the consolidated Oregon return.
- A domestic insurance company not controlled by foreign insurers.
- An inter-insurance, or reciprocal exchange insurer [ORS 317.710(7)].
However, domestic insurance companies controlled by foreign insurers must file separate returns. A foreign insurance company doing business in Oregon must also file a separate Oregon return. - Can insurance companies make prepayments of all the tax to either Revenue or the DCBS Insurance Division?
No. Each agency collects separate taxes. Revenue collects corporation excise tax and the Insurance Division collects the retaliatory tax. Monies cannot be transferred between the agencies. You can now make payments to us electronically using Revenue Online. - Can insurance companies take a dividend deduction on Form OR-20-INS?
No. There’s no provision in ORS 317.655 for a dividend deduction in computing Oregon taxable income for insurers. - Can my spouse or other family members who aren't owners in the qualified business count toward the employee requirement?
Yes. As long as the family member is not an owner, member, or limited partner in the business and worked at least 30 hours a week, those hours can be counted toward the employee requirement for the reduced tax rate [ORS 316.043(6)]. - Can the deferral programs pay my delinquent property taxes?
Delinquent property taxes aren’t covered unless you already have a deferral account. But, you can apply for a delay of foreclosure for delinquent county taxes. This covers taxes on the real property, but not personal property such as floating homes and manufactured structures. This delay prevents the county from foreclosing while you're in the deferral program. It doesn't stop your mortgage company from foreclosing.
If you were previously granted deferral and were removed from active status because you filed late, you can submit a Request for Retroactive Deferral form to get back on the program. You can then have your property taxes paid for the years you were in inactive status. You must have met all of the eligibility criteria for every year from the last time taxes were deferred to the present.
- Can you pull my account from the collection agency if I’m willing to set up a payment plan?
No. Your debt stays with the collection agency until you pay it off. - Company Y purchases standing timber from Joe. Later, Joe puts the property in the STF Program. Company Y then harvests the timber. Is a severance tax owed?
Yes. Company Y, the timber owner, is responsible for paying it. - Do farmers and fishermen have to pay estimated tax?
Farmers and fishermen are not required to pay estimated tax if at least two-thirds of their gross income for the year, or two-thirds of their next year's estimated gross income from all sources, is from farming or fishing.
This includes oyster farming. Enter Exception #1 on your tax return. Don't use Form 10.
- Do fiduciaries need to pay estimated taxes?
You don’t need to pay estimated tax on behalf of an estate or trust. - Do I have to collect a local Marijuana tax?
It depends on where your business is located. Many municipalities passed a 3 percent local tax. Many municipalities have chosen to have the Department of Revenue administer their local tax. If the department is administering your municipality’s tax, the quarterly return available on Revenue Online will calculate your state and local taxes automatically. You will need to include both your state and local taxes with your payment.
If the department is not administering your municipality’s local tax, you will need to contact your municipality to determine how you will be filing and paying the tax.
A list of municipalities and their local tax obligations is available here. - Do I have to file a transit return for self-employment earnings of $400 or less?
No. Only report self-employment activities with net earnings more than $400. - Do I have to pay tax on the amount reported on Form 1099G or Form 1099INT?
Form 1099G: Because the refund may be taxable, you may need to report some or all of the refund shown on Form 1099G on your federal return if you itemized last year. If you include the Oregon refund on line 10, federal Form 1040, you'll subtract it on the "Oregon income tax refund included in federal income" line of your Oregon Form 40.
Form 1099INT: This interest is taxable, both federally and in Oregon. You need to report the income on your returns.
- Do I have to submit a new W-4 form every quarter?
No. The information is good for the remaining quarters in the current calendar year. If an employee is claiming “Exempt,” a new W-4 should be filed by February of the new year.
- Do I include my certificates of deposit (CDs) as assets for the deferral programs?
Yes. You need to estimate the current value of your CDs based on length to maturity. - Do I include the value of the home I live in on my list of assets for the deferral programs?
No, but you need to include the value of any other real property (rental property, land, etc.) that’s not a part of your homestead. - Do I need a new BIN if I change my business structure (for example, sole proprietorship to a partnership?
- Do I need homeowner's insurance to be eligible for the deferral programs?
Yes. For your initial application and each recertification, we'll need proof of insurance that includes your:
- Insurance company's name.
- Policy number.
- Do I need separate BIN numbers for Employment Department Reporting and Worker's Benefit Fund (WBF)?
No. You only need one BIN to report and pay all payroll tax programs. These include withholding tax, unemployment tax, Workers Benefit Fund, TriMet transit tax, and Lane transit tax. - Do I need to file a tax return if my corporation is inactive?
No. You don't need to file an Oregon corporation return if your corporation didn't do business in Oregon during any part of the year and had no Oregon source income. This applies even if you're registered to do business in Oregon. - Do I need to make estimated timber tax payments?
Owners who expect to owe Forest Products Harvest Tax in excess of $1,500 for the year are required to file an Estimate of Timber Tax Liability form with us and make quarterly estimated payments. The forms and payments are due by April 30, July 31, and October 31. Contact us for the form. - Do I need to pay estate transfer or inheritance tax?
If the date of death is on or after January 1, 2012, file an estate transfer tax return. If the date of death is before January 1, 2012, file an inheritance tax return. When to file an estate transfer or inheritance tax return:
- If the total value of all estate assets was $1 million or more when the estate owner died.
- If the decedent was an Oregon resident or a nonresident who owned tangible personal property located in Oregon or real property located in Oregon.
- If the estate made estimated tax payments and the gross estate was later determined to be less than $1 million. This filing is a request to claim a refund.
- Do I need to send my W2/1099s with Form WR?
No, but you need to keep them in case we ask for them later. - Do I need to submit any substantiation for changes to Form WR?
Yes, you'll need to substantiate changes if you're reporting a significant change or requesting a large refund due to errors that occurred during the year. - Do I qualify for the deferral programs if I owe delinquent taxes?
Yes, but you’re responsible for paying any delinquent taxes and interest. The deferral program will only pay current and future taxes. - Do I report food stamps, energy bill assistance, etc., as income on my deferral program application?
No, they’re exempt from household income. - Do I still need to file a quarterly payroll tax report if I have no payroll for the quarter?
Yes. As long as your account remains active, you must submit a report even if you have no payroll. You can also file a “no payroll report” with the Employment Department using their automated phone system. - Do I withhold differently for employees who are nonresident aliens?
Generally, no. However, if the IRS grants the employee an exemption, DOR will honor the exemption. To receive an exemption, the employee must file federal Form 8233 with you. If any portion of the employee’s wages are not exempt, use the employee’s Form OR-W-4 elections to withhold on those non-exempt wages. Advise employees to follow the instructions on Form OR-W-4. - Do I withhold differently on IRAs, annuities, and compensation plans?
If you pay for commercial annuities, employer-deferred compensation plans, or retirement plans you must withhold tax, unless the employee or payee chooses to have no withholding.
The employee or payee must provide a filed federal Form W-4P or Form OR-W-4 for you to determine the withholding amount, even if they choose no withholding. Withhold as if the payments were wages. You must withhold $10 or more per employee or payee.
Oregon withholding isn’t required for a rollover from one qualifying plan to another. Oregon doesn’t follow the federal backup withholding rules for pension and annuities distributions.
You are required to use a different BIN than your payroll account BIN, because these are not payroll wages. You will need to issue 1099s to employees and payees at the end of the year and file 1099s electronically through iWire. - Do insurance companies file a return with the Department of Revenue or the DCBS Insurance Division?
File your excise tax return with us. File returns to report retaliatory tax and transition tax with the Insurance Division of DCBS. - Do out-of-state employers who are withholding as a courtesy still need to file quarterly reports?
- Do severance taxes paid while my property is under the STF Program in any way reduce my additional tax owed when the property is disqualified from STF?
No. The severance and property taxes are calculated separately. Additional taxes are levied only on property taxes. - Does a conservation easement transfer property ownership, thus affecting forest taxation?
No, a conservation easement (CE) doesn’t transfer ownership. There is usually no effect on forest taxation. However, rights to conduct various activities on the property are transferred, based on the specific CE. For example, if the CE prohibits the property owner from harvesting timber, then there would be a change in the property’s use, and that would remove it from forest use. This would affect the property’s forest taxation status. - Does a qualified joint venture qualify as a pass-through entity (PTE) for the purposes of the reduced tax rate?
No, disregarded entities treated as sole proprietorships and qualified joint ventures don't qualify for the PTE reduced tax rate. To qualify for the reduced tax rate, the income must be from an entity that is treated and files as a partnership or S corporation.
A qualified joint venture is a joint venture that conducts a trade or business where:
- The only members of the joint venture are a husband and wife who file a joint return,
- Both spouses materially participate in the trade or business, and
- Both spouses elect not to be treated as a partnership.
With that election, you don't qualify for the reduced tax rate because you're no longer treated as a partnership for tax purposes. - Does DOR require copies of Form OR-W-4 and federal Form W-4?
Yes, in the following instances (OAR 150-316-0290). Send DOR a copy of the form being used to withhold for Oregon within 20 days of the date filed, if the employee claims any of the following: - More than 10 withholding allowances on Form OR-W-4.
- An exemption from withholding and their income is expected to exceed $200 per week for state purposes.
- Exempt for Oregon withholding, but not exempt for federal withholding.
- Does nonpassive IRC 1231 gains and IRC 179 recapture taxed as ordinary income qualify for the qualified business income reduced tax rate?
Yes, the income would qualify as long as it is nonpassive income from a business that meets the employee requirement. All nonpassive income qualifies for the reduced tax rate except for income from wages, capital gains, dividends, and interest income [ORS 316.043(1)(b)]. - Does Oregon allow the filing of a composite return for nonresident shareholders of an S corporation?
- Does Oregon follow federal treatment of LLCs considered "disregarded entities"?
- Does Oregon follow the federal entity classification regulations?
Yes. If an entity is classified or taxed as a corporation for federal income tax purposes, we treat it as a corporation for Oregon tax purposes. - Does Oregon have a sales tax?
Oregon doesn't have a general sales tax or a transaction tax. However, Oregon does have a vehicle use tax or a vehicle privilege tax that applies to new vehicles purchased either in Oregon or outside of the state. The tax must be paid before the vehicle can be titled and registered in Oregon. - Does Oregon require corporate quarterly or estimated tax payments?
Yes. You must make estimated tax payments if you expect to owe tax of $500 or more when you file your return. For more information, see the instructions for the Oregon corporation form you file ( Form OR-20, OR-20-INC, OR-20-INS, or OR-20-S). You can make estimated tax payments electronically using Revenue Online. - Does Oregon require withholding on household employees?
No, you’re not required to withhold for household employees. However, you can if the household employee asks you to withhold and you agree. You must fill out the Combined Employer's Registration form and the employee must complete Form OR-W-4 or an Oregon-only federal Form W-4. - Does Oregon require withholding on pension and annuities?
Yes. Withholding taxes for commercial annuities, deferred compensation plans, and individual retirement plans is mandatory. However, an individual may elect to have no state withholding in these cases. - Does Oregon require withholding on Section 125 or Cafeteria plans?
These are considered pre-tax dollars and aren’t subject to withholding. - Does Oregon tax all interest reported?
No. Oregon doesn’t tax certain government interest. Oregon only taxes nonresidents on interest income from an Oregon business you own or that is passed through to you from an S corporation or partnership doing business in Oregon. - Does Oregon tax gambling winnings?
Yes. Oregon generally taxes gambling winnings from all sources. However, in the case of the Oregon lottery, only winnings of more than $600 per ticket or play are taxable. - Does the Department of Revenue have an accessibility policy or ADA coordinator?
- Does the estate or trust need an extension of time to file?
Oregon accepts an extension of time for filing the fiduciary tax return. Oregon doesn’t have a separate extension form, so use federal Form 7004 to request an Oregon extension to file. - Does the state lodging tax apply to just the cost of the room, or are other charges subject to the tax?
If the cost of the lodging includes amenities that aren’t optional, the entire lodging rate is taxable. Charges for other taxes and optional items offered for a separate fee aren’t included in the tax. - Does the statewide transit tax affect wage garnishments calculations?
Yes, the statewide transit tax must be deducted from gross wages to determine disposable earnings for wage garnishments. - For ACH credit, how do I get a copy of the record layout?
- For insurance companies, do the amounts entered in the wage and commission factor come from the federal 1120-L or the annual statement?
Enter the amount from the annual statement. - For insurance companies, how long after an IRS audit may Oregon issue a bill to me?
Generally, up to two years after we receive notice of a change to your federal return.
If you’re audited by the IRS and changes that were made to your federal return affect your Oregon return, you should file an amended Oregon return. Otherwise, we may send you a billing notice up to two years from the date we receive notice of a change to your federal return.
- For insurance companies, is the guaranty association assessment offset available starting in the year it’s paid or in the year after it’s paid?
The offset is available starting in the year after it’s paid (ORS 734.575 and 734.835). - For insurance companies, should the federal return be attached to the Oregon return?
No. The Form OR-20-INS isn’t based on the federal return. - For insurance companies, what is the interest rate for refunds and deficiencies? What penalties may apply to my return?
- For the 30-hour-a-week requirement for the qualified business income reduced tax rate, is that per individual employee or per position? Can employee hours be combined to meet that requirement?
The 30-hour-a-week requirement is per employee, not per position.
Example 1. Partnership B had one employee that worked a total of 1,440 hours during the year in Oregon. The employee worked 32 hours per week for 30 weeks and worked 24 hours per week for 20 weeks. Because only the weeks where the employee worked at least 30 hours are included, the employee had 960 total qualifying hours (32 hours x 30 weeks). Because there were less than 1,200 total qualifying hours worked in Oregon, the nonpassive income from Partnership B doesn’t qualify for the reduced tax rate.
Example 2. Partnership D employed three employees during the year in Oregon. One employee worked 32 hours per week for 20 weeks and the other two employees each worked 40 hours per week during the same 20 weeks. The hours for each employee qualify because each employee worked at least 30 hours a week. Therefore, the Partnership D had 2,240 total qualifying hours. - For transit self-employment tax purposes, can I offset the gain on one business against the loss on a separate business?
Yes. If you have transit district self-employment earnings from both, you may net the gain of one business against the loss of a separate business. - For transit self-employment taxes, do I need to make estimated payments? What if I want to make a payment before my transit tax is due?
You're not required to send estimated tax payments. If you do send a payment separate from your return, make sure to include the correct voucher with your check or money-order. - Form 1099G doesn't show the federal identification number for the Department of Revenue. My return preparation software is requesting it.
The federal identification number is 93-6001960. - How are collection agency fees calculated?
Collection agencies may charge between 26 percent and 31 percent of your debt amount. Debt includes tax, penalties, and interest. The fees are added to your debt and can’t be reduced or removed. - How are LLCs taxed in Oregon?
- Oregon LLCs and foreign LLCs doing business in Oregon are taxed and classified the same as for federal income tax purposes. Oregon follows federal tax treatment.
- LLCs that choose to be taxed as corporations use Form OR-20-S S Corporation, Form OR-20 excise tax, or Form OR-20-INC income tax.
- LLCs with two or more members who choose to be taxed as partnerships use Form 65.
- A single-member LLC that chooses to be taxed as a sole proprietor files federal Schedule C, Schedule E, or Schedule F with their individual income tax return.
- How are the transit district payroll taxes (TriMet or Lane Transit) determined on truck drivers, salespeople and construction?
Employees who are subject to withholding tax are subject to transit district payroll tax. If an employee only works a portion of time in the transit district, then only that portion is subject to the tax. Transit district payroll taxes are determined where the work is performed, including jobsites and home locations. - How are title insurance companies treated under the law?
Title insurance companies file the regular Form OR-20 and use the standard apportionment formula. - How can I be sure my personal and tax information are safe when using Revenue Online?
In addition to Revenue Online's built-in security, we recommend the following to help keep your information safe:
- Don't provide your user ID or password to anyone.
- Always log out of Revenue Online when you're done.
- Choose your own user ID and password when you sign up.
- Create a secure password. Passwords can't be the same as your username and must include numbers, letters, and special characters.
- Change your password regularly to ensure the security of your account.
- Never respond to an email that asks for transaction history or personal profile information. Emails from us will never ask you to provide personal information.
- How can I check the status of my refund?
You can check the status of your refund on our website (Where's My Refund?) or through our automated phone system at (503) 378-4988 or toll-free at (800) 356-4222.
To check your refund status, you'll need:
- The Social Security number of the first person listed on your return.
- The type of the tax return you filed: Form 40, Form 40N, or Form 40P.
- The amount of refund requested on your return.
- How can I correspond with Revenue staff through Revenue Online?
There is a messaging option in Revenue Online. The messages exchanged between you and Revenue staff are secure. To start a message, select the Send Us a Message hyperlink in the I Want To... section. To view your messages, go to the Recent Items tab. You'll receive an email notification when you have a new message.
- How can I find out if a company is licensed to sell me cigarettes?
- How can I find out if a company is licensed to sell me tobacco products?
- How can I find out other states’ cigarette tax rates?
- How can I find out the results of a reported fraud tip?
Confidentiality laws prohibit us from sharing with anyone the steps taken as a result of a tip.
- How can I get copies of my W-2s?
Your employer can provide a copy of your W-2 or verify your wages and Oregon withholding. - How can I verify my EFT payment was made?
ACH debit: Record your confirmation number and verify with your financial institution that the transfer is complete.
ACH credit: Your financial institution will issue a trace number that you can use to trace the transaction through the ACH network.
We'll accept a copy of your account statement or other financial institution records as proof of payment by ACH credit or debit if those records:
- Identify the Oregon Department of Revenue as the payee;
- Show a withdrawal from an account with a sufficient level of funds to cover the taxpayer's deposit; and
- Show that the payment hasn't been reversed or returned.
If you need help, call us at (503) 947-2017 for ACH debit payments initiated through the Oregon Tax Payment System. For payments initiated through Revenue Online, call (800) 356-4222.
- How do I access different Revenue Online screens?
The Menu panel on the top of your screen contains the following:
Home - Returns you to the main screen.
Back - Returns you to the last window you viewed.
Help - Opens this FAQ.
Log Out- Logs you out of Revenue Online.
View Support ID - Provides a support ID for you to provide to one of our employees. With the support ID, they can view your session and provide personalized assistance. - How do I add access to another account on Revenue Online?
From your Home screen, select Add Access to Account. Fill in the required information and click Submit. - How do I amend a return in Revenue Online?
You can amend a return that has already been filed by selecting the Amend hyperlink from the original request screen. After making your changes, submit the amended return the same way you submitted the original return. Not all return types can be amended using Revenue Online. In those cases, please follow the instructions for amendments on the return form. - How do I calculate withholding tax?
To calculate the amount of tax to withhold from an employee’s wages: - Use the Oregon Withholding Tax Tables if:
- The employee’s wages are less than $50,000 annually,
- The employee’s federal withholding is determined using a 2019 or earlier federal Form W-4, and
- The employee is claiming the same marital status and number of allowances for both federal and state withholding.
- Use the Oregon Withholding Tax Formulas in all other situations, including computer payroll systems.
If any of the following apply, withhold at 8 percent, instead of using Form OR-W-4 or federal Form W-4: - Your employee claims exempt status for Oregon only.
- DOR or IRS tells you not to permit allowances.
- The employee’s exemption status expired, and they did not submit a new Form OR-W-4.
You must withhold tax from employee wages (including draws) at the time employees are paid. Taxes are withheld and reported in the quarter the employee is paid. - How do I change my address using Revenue Online?
From the Home screen, click on the Names and Addresses hyperlink and click on the item you'd like to make changes to.
If you want to change the mailing address for a particular account only: From the Home screen, click on the account and follow the instructions provided. Only the responsible party or administrator for a business account can change this information. Certain account types don't allow this information to be changed through Revenue Online.
To change your business location address, please contact us.
- How do I change my phone number, email, or other personal information on Revenue Online?
From My Web Profile, select the Edit tab. Input your updated information into the appropriate fields. Don’t forget to save your changes. - How do I change my Revenue Online password?
From the My Web Profile screen click Change Password and follow the instructions on the screen. - How do I choose a forestland program?
Talk to your local county assessor's office about how your land is currently classified and what would be the most advantageous tax program for you. To have your land included in the new STF Program, you must apply to your county assessor between January 1 and April 1 to be included in the program for the current tax year. - How do I close my withholding account?
Submit the Business Change in Status form to the Oregon Employment Department. - How do I correct a mistake in filing my return using Revenue Online?
If the status of a return is “Pending,” you can edit or delete that submission. You can then correct your information and resubmit. Once it's no longer pending, you can only correct an error by amending the return. - How do I deactivate my Revenue Online account?
You can deactivate your account by clicking Cancel My Online Access under My Web Profile. This only removes your access. Others with access to your accounts will still be able to view your tax accounts from their login. - How do I dispute an Other Agency Accounts (OAA) debt?
Send your dispute in writing. Once received, we’ll suspend the collection action on eligible debt and notify the agency with which you have the debt.
That agency will research the debt, make a determination, and notify us of their determination within 30 days. If some or all of your disputed debt is ineligible, we'll notify you. Collection action on ineligible debt won't be suspended.
- How do I figure the transit district payroll taxes (TriMet or Lane Transit)?
Multiply the gross taxable payroll paid for work performed in the transit district by the current tax rate. The rates for TriMet and Lane Transit appear below:
TriMet
| All Calendar Quarters in 2016 |
0.007337 |
| All Calendar Quarters in 2017 |
0.007437 |
| All Calendar Quarters in 2018 |
0.007537 |
| All Calendar Quarters in 2019 |
0.007637 |
| All Calendar Quarters in 2020 |
0.007737 |
| All Calendar Quarters in 2021 |
0.007837 |
| All Calendar Quarters in 2022 |
0.007937 |
| All Calendar Quarters in 2023 |
0.008037 |
| All Calendar Quarters in 2024 |
0.008137 |
| Calendar Quarters beginning on or after January 1, 2025 |
0.008237 | Lane Transit
| All Calendar Quarters in 2016 |
0.0071 |
| All Calendar Quarters in 2017 |
0.0072 |
| All Calendar Quarters in 2018 |
0.0073 |
| All Calendar Quarters in 2019 |
0.0074 |
| All Calendar Quarters in 2020 |
0.0075 |
| All Calendar Quarters in 2021 |
0.0076 |
| All Calendar Quarters in 2022 |
0.0077 |
| All Calendar Quarters in 2023 |
0.0078 |
| All Calendar Quarters in 2024 |
0.0079 |
- How do I file a protective claim for my corporate return?
Use Form OR-PCR to extend the statute of limitations for a refund request while an issue is being litigated. Don't file a protective claim on an original return. We’ll hold your protective claim until you notify us the litigation has been completed.
- How do I file a transit self-employment tax extension?
If you filed an extension on your federal or Oregon individual income tax return, it allows you to extend your time to file your transit self-employment tax return. Check the “Extension Filed” box on your transit return. Don’t include your extension with your return. Retain it with your records. - How do I file an "Oregon only" extension for my Oregon corporate return?
We don't have an extension form for Oregon; use federal extension Form 7004 instead. Complete the top information, answer questions 4 and 5, and leave the rest of the form blank. Write "For Oregon only" at the top of the form.
Include your extension when you file your Oregon return; don't send in your extension without your Oregon return. Be sure to mark the "Extension" box on the first page of your Oregon return.
- How do I file my marijuana tax return? Can I file online?
Online filing is mandatory for the retail tax (17 percent). To file, please visit Revenue Online. - How do I file my returns in Revenue Online?
Only certain tax programs and filing periods are available for filing using Revenue Online. Click on an account to view available filing periods. Only periods available for filing will display. Tax periods due prior to implementation of Revenue Online aren’t available. Periods that are not yet filed have a File Now button. Periods that are already filed show either View Request or View Return.
When you submit your return, you’ll receive a confirmation number and you can then schedule a payment, if necessary.
- How do I fix a mistake on my 2-D barcode return?
If you haven’t mailed your return, you must re-print the entire return after you make changes. Print and send to us the entire updated return to avoid unnecessary processing delays. Also be sure to follow your software’s instructions when making changes to barcode returns.
If you’ve already printed and mailed your return, you’ll need to file an amended return.
- How do I get a title report (if requested for my property tax deferral application)?
A title report can be obtained through a local title company. The title report must list all outstanding liens or judgment liens against your home. Some title companies may refer to this as an "Owner's Encumbrance Report." The department will not pay the cost of such title reports. - How do I know if I owe Lane Transit District (LTD) self-employment tax?
- How do I know if I owe TriMet (TM) self-employment tax?
- How do I know if I'm eligible for the qualified business income reduced tax rate?
You may be eligible for the qualified business income reduced tax rate if:
- You or your spouse has qualifying income from a partnership, S corporation, or sole proprietorship;
- You or your spouse materially participated in the business; and
- The business employed at least one employee in Oregon.
For more information, see the Schedule OR-PTE depending on your residency status. For full-year residents, see Schedule OR-PTE-FY. For part-year residents, see Schedule OR-PTE-PY. For Oregon nonresidents, see Schedule OR-PTE-NR. - How do I know if my credit card payment in Revenue Online processed successfully?
We only accept credit card payments through Value Payment Systems
(VPS). If you choose to pay by credit card, Revenue Online will redirect
you to the VPS website. You need to disable your pop-up blocker to allow the redirect.
If you aren't redirected to the VPS
site, then you haven't made a payment. - How do I know if you have my current address? How do I change my address?
There are many ways you can check and update your address:
* Change your address on your next tax return. Remember to check the box next to the address to indicate that your address has changed.
* Call us at (503) 378-4988. - How do I know if you sent my debt to a collection agency?
The collection agency will reach out to you within one business day of receiving your debt. Someone from the collection agency may have tried to call you. Federal law prohibits them from leaving specific information on your voice mail. - How do I know which cities and counties get marijuana tax revenue?
For cities, the distribution formula is determined 75 percent by the
city population and 25 percent by the number of marijuana licenses
(grower, processor, wholesaler, and retailer) in the city. Cites that
have opted out of any of those four license types are ineligible for the
marijuana tax revenue.
For counties, the formula is determined 50
percent by the grow canopy area and 50 percent by the total number of
marijuana licenses (grower, processor, wholesaler, and retailer).
Counties that opt out of grower licensing are ineligible for the share
of revenue determined by the grow canopy. Counties that opt out of
processor licenses, wholesaler licenses, or retailer licenses are
ineligible for the marijuana tax revenue determined by the license
count.
- How do I make an estimated payment in Revenue Online?
In your Revenue Online account, select the appropriate account number from the Account IDs list. You'll see a list of tax periods. Click the Pay link next to the year you want to pay, and you'll be directed to the payment options page.
You can schedule multiple future payments if you use your checking or savings account. You can cancel these payments up to two days before the payments is scheduled.
- How do I pay my cigarette taxes?
If you are an Oregon-licensed distributor, you must pay the tax by purchasing tax stamps. Stamps can only be ordered online by a licensed distributor. You either pay at the time of purchase or by approved payment deferral.
If you purchase cigarettes without an Oregon tax stamp and you are not an Oregon-licensed distributor, you must file an Oregon Unlicensed Cigarettes Monthly Tax Report, Form 514, and pay the tax by the 20th of the month following the month in which the distribution occurs.
You can complete and submit your tax return electronically using Revenue Online.
- How do I pay my retail marijuana tax?
We accept payments in cash, or by check or money order. If paying by cash, call us for an appointment at least 48 hours in advance at (503) 945-8050.
Mail check or money order to:
Oregon Department of Revenue
PO Box 14630
Salem OR 97309-5050
We don't accept payments for this tax program through Revenue Online. - How do I pay the tax on tobacco products that I purchase online?
Generally, the Oregon tax has not been paid when you purchase tobacco products from online retailers. You must complete and submit an Oregon Unlicensed Tobacco Quarterly Tax Return for any calendar quarter that you purchase untaxed tobacco products. Returns are due on or before the last day of the month following the end of the quarter. Payment of the tax must be made with the return. - How do I reactivate my Revenue Online account?
You can reactivate your account by contacting us during normal business hours. - How do I read my 2-D barcode?
The barcode is only machine-readable. It contains the information displayed on the lines of your tax return. The barcode also contains additional information from the following forms and schedules: Form W2, Form 37, Form 10, the Oregon Amended Schedule, Schedule OR-ASC, and Schedule AP.
If you are filing Form 40, 40N, or 40P the barcode also contains the information from your federal return needed to process your Oregon return.
- How do I register my business for withholding tax?
You can either:
Fax: (503) 947-1528 Mail: 875 Union St NE Rm 107, Salem OR 97311
Allow three weeks for processing.
- How do I remove a third party’s access to my account in Revenue Online?
You can control access to your personal accounts and any business accounts where you are the responsible party or administrator. Click on My Web Profile and go to the Manage Additional Logins hyperlink. Click the login to change their access level or remove their access. - How do I report tax fraud?
- How do I set up and submit a payment plan?
Payment plans can be submitted through Revenue Online for qualifying debt. You can't set up a payment plan through Revenue Online if:
- You have an existing payment plan.
- You've defaulted on a previous payment plan.
- You're in bankruptcy or are in collections with a third-party agency.
- We haven't assessed your debt yet. If you haven't received a notice of assessment, then your debt hasn't been assessed.
If one of these situations applies to you, please contact us for more information.
To set up a payment plan, go to Revenue Online, sign in and select Create a Payment Plan in the upper right hand corner of the I want to… section. Fill in the required fields to set up a schedule and enter your bank account information. Please note, payment plans setup online can only make payments through automatic checking or savings withdrawals.
- How do I sign up for a Revenue Online account? What information will I need?
From the login screen, select Sign Up. Enter the required information.
You'll need to provide:
- SSN, ITIN, or your business' FEIN.
- Your legal name, or the legal name of your business.
- The address on file with us.
To access a tax account, you'll need the:
- Account ID.
- Account type.
- Account information such as a recent payment amount, an entry on a recent tax return, or a letter ID from a letter we recently sent you.
For the system to validate your identity, you must have previously filed taxes in Oregon under your SSN, ITIN, or FEIN.
- How do I submit a challenge to a garnishment in Revenue Online?
Submit a challenge to a garnishment by selecting the Submit Challenge to Garnishment in the upper right corner in the I want to… section. Use the Add tab on the second page to attach any supporting documentation before submission. - How do I update my address and phone number on my withholding account?
- How do I use the Lookup Request Code link in Revenue Online?
To lookup previously submitted requests, click on the Lookup Request Code link on the home page. Then, enter your email and the six-digit alphanumeric request code provided on the confirmation page you received. - How do I view a return that has already been filed in Revenue Online?
Go to the account and/or period to review your returns. - How do I withhold taxes for an employee who refuses to complete Form OR-W-4 or a federal W-4?
Withhold using Single / 0. - How do we amend our corporate return? What form do we use?
Use the same form type you originally used for the year you are amending. For example, if you originally filed a Form OR-20, use Form OR-20 for your amended return. Be sure to check the "Amended" box on the front of the return. If you're amending because you filed the wrong form, file the amended return on the correct form and mark the amended box. For more information, see the instructions for the form you file (Form OR-20, OR-20-INC, OR-20-INS, or OR-20-S). - How do you find consumers who buy untaxed cigarettes online?
The Jenkins Act requires all interstate sales of cigarettes to be reported to the taxation department of the state to which the product has been shipped. Under the Jenkins Act, internet retailers report the names and addresses of each person buying cigarettes from that retailer.
We’ve also found names and addresses of internet purchasers during investigations done by our Tobacco Tax Program.
- How does 2-D barcoding work on my corporate tax return?
You can file your Form OR-20-S or OR-20 by using a tax preparer or an Oregon-approved tax software package that offers 2-D barcodes.
2-D barcoding is not currently available for any other type of Oregon corporate return.
- How does estimated tax apply to nonresident aliens?
Estimated tax filing requirements are the same for both United States citizens and nonresident aliens. Nonresident aliens can be either Oregon residents or nonresidents. If you or your spouse are a nonresident alien, you must file separate estimated tax forms. - How does estimated tax apply to nonresidents or part-year residents?
Nonresidents figure Oregon estimated tax only on income that is:
- Subject to Oregon withholding.
- From conducting a trade or business within Oregon.
- From single ticket Oregon lottery winnings greater than $600.
- How does estimated tax apply to S corporations, limited liability companies (LLC), or partnerships?
If you’re a shareholder in an S corporation, a member of an LLC, or in a partnership with income from Oregon sources, you may need to make estimated tax payments.
Part-year residents. For the part of the year you were a nonresident, you’re subject to Oregon tax on your share of the Oregon income reported by the S corporation, LLC, or partnership. Partners must also report guaranteed payments. For the part of the year you were a resident, you’re subject to Oregon tax on your share of all the S corporation, LLC, or partnership income.
Nonresidents. You’re subject to Oregon tax on your share of the Oregon income reported by the S corporation, LLC, or partnership. You’re also subject to Oregon tax on any guaranteed payments from the partnership. The payments are apportioned using the partnership’s percentage.
- How does interest on deferred property taxes accrue?
Deferral accounts accrue 6 percent interest yearly. Interest continues to accrue each year on the balance of deferred tax amounts paid by the department [ORS 311.674(3)]. - How does Oregon treat withholding on tip income?
Tips paid by the customer to the employee are not subject to withholding tax. Tips paid by the customer to the employer who then distributes them to the employees are subject to withholding. - How does SB 519 (2019) affect me?
SB 519 was passed by the 2019 Oregon Legislature, increasing the minimum wage exemption for garnishment and execution. This increase takes effect January 1, 2020. The minimum wage exemption is to ensure an employee receives at least a certain amount of wages, depending on their payment schedule. This increase applies to nontax garnishments but doesn’t apply to any tax garnishment from the Oregon Department of Revenue (DOR).
Employers If you are an employer and have received a nontax garnishment from the DOR, beginning January 1, 2020, you will need to calculate the minimum wage exemption amount using the new amounts. If you have questions about this, contact us at 503-945-8199.
Alternatively, you can submit garnishment payments quickly and easily through Revenue Online. You can validate your account with the letter ID number on any garnishment you’ve received from us. If you already have a Revenue Online account and are logged in, you can add access to garnishments through the "Access another account" hyperlink under the "I Want To" section on the Revenue Online homepage.
Debtors If you are a debtor and your employer has received a nontax garnishment from the DOR, there’s nothing further for you to do. Employers have been instructed to calculate the minimum wage exemption amount using the new amounts passed in SB 519, beginning January 1, 2020. This means that more of your wages may be exempt from nontax garnishment. If you have any questions, contact us at 503-945-8199. - How does the department plan to notify employers and employees about this new statewide transit tax before it starts in July?
We're sending a letter explaining the requirements of the new tax to each employer registered to file and pay income tax withholding in our system. This initial letter will include information about:
- The statewide transit tax in general.
- Reporting and paying the tax.
- Important due dates.
- How to register for Revenue Online to report and pay taxes electronically.
Additionally, the department is continually updating its website with new information related to complying with the statewide transit tax. Please check the website regularly for updated information.
- How is the state lodging tax collected?
Transient lodging providers and transient lodging intermediaries must collect and remit the tax. Whoever collects payments from lodging customers is responsible for collecting and remitting the tax.
A transient lodging intermediary is a person, other than a lodging provider, who facilitates the retail sale and charges for the occupancy of transient lodging. Examples of transient lodging intermediaries include online travel companies, travel agents, and tour outfitter companies.
- How is the state lodging tax different from the city or county lodging tax I’m also paying?
State lodging tax promotes tourism statewide. City and county taxes fund a variety of local programs. - How long after an IRS audit can Oregon issue a bill to me?
Generally, we can issue a bill up to two years after we receive notice of a change to your federal return that also affects your annual statement. If your insurance company is audited by the IRS and changes that were made to your federal return affect your annual statement and your Oregon return, you should file an amended Oregon return. - How long before I can make a payment using EFT?
You can submit your ACH debit payment at any time through Revenue Online, our self-service site.
ACH credit users must apply electronically through Revenue Online. You’ll receive a confirmation email with instructions for initiating ACH credit payments. You’ll have to work with your financial institution to initiate ACH credit transactions.
- How long do you keep copies of personal income tax returns?
Timely-filed returns are destroyed four years after the due date of the return. For example, 2009 returns are destroyed after April 15, 2014.
Delinquent (late) returns are kept four years after the returns are filed. Returns for open accounts with a balance due greater than $100 are kept indefinitely. If an account balance is less than $100, the return is destroyed, but information reported on the return is retained. - How long does an "apportionment of a refund" take?
If your refund needs to be apportioned between several accounts through our Other Agency Accounts (OAA) unit, allow four to six weeks for processing. Allow three months for all other types of apportionments. You must request your apportionment in writing within 30 days of the date of the notice telling you your refund was applied to your spouse's outstanding debt. The refund is apportioned based on your adjusted gross income. - How long does it take for payments to post to my account?
Electronic payments through Revenue Online: One to three days.
Payments by mail: About one week.
Payments through third-party providers: About two to three weeks.
Mailed payments received near April 15 may take additional time to post to your account.
- How long does it take reissue a check?
The lost check must be at least 30 days old. You must complete a Statement of Ownership form to request a new check. Allow two to four weeks for your replacement check to arrive. - How long does it take to post money to Other Agency Accounts (OAA)?
Allow one to two weeks for payments to post to OAA. Offsets applied to OAA take two to three weeks. - How long will it take my credit card payment to show on my account? Will you give me credit for my payment on the day I made it?
We’ll give you credit for your payment on the date your credit card payment is authorized by the payment service provider. Generally, it takes us three to five business days to post your payment to your account. - How long will it take to receive a replacement check if my original check was forged?
Each situation is different. Call us to discuss your specific situation. - How long will it take to receive my refund if I filed my return on the due date?
Return processing times vary depending on many factors, including complexity of the return and our verification processes. Electronically filed returns process faster. Paper returns must have all supporting documentation included to ensure smooth processing. Paper returns can also take longer as the due date approaches, when the largest number of returns are received. - How many acres must I have to qualify for the STF Program?
At least 10 acres of forestland, but fewer than 5,000 acres. - How many years can a corporation carry back or carry forward a net operating loss (NOL)?
Oregon allows corporate NOLs to be carried forward for up to 15 years. There’s no net operating loss carryback allowed. NOTE: ORS 317.665 ties insurance NOLs to corporate excise tax computation under ORS 317.476.
- How much is the state lodging tax?
The tax rate is based on the date of payment:
| Before July 1, 2016 |
1% |
| On or after July 1, 2016 |
1.8% |
| On or after July 1, 2020 |
1.5% |
- How much is the transit tax?
| TM |
.007437 |
.007337 |
.007237
|
.007237 |
.007137 |
.007018 |
.006918 |
.006818 |
|---|
| LTD |
.007200 |
.007100 |
.007000 |
.007000 |
.006900 |
.006800 |
.006700 |
.006600 |
|---|
- How much time do I have to file an amended return?
You have three years from the date the return is originally filed or from the due date of the return, whichever is later. If you're filing an amended return claiming a refund, you have two years from the date of any tax being paid, if that is later than the three-year statute. If you were audited by the IRS, you have two years from the date of the federal audit. If you file an amended return with the IRS and the changes affect your Oregon taxable income, you must amend your Oregon return within 90 days of amending your federal return. - How often do I need to pay my withholding tax deposits?
Generally, your withholding deposits must be made at the same frequency as your federal deposit schedule. - How will I be notified if someone is granted access to my tax accounts in Revenue Online?
If you already have a login and are the responsible party for the account, we’ll send you an email. If you don’t have a login, we’ll mail you a letter. You can adjust or remove another person's access to your tax accounts through Revenue Online or by calling us. In Revenue Online, click on My Web Profile and go to Manage Additional Logins. Click on the login to change their access level or remove their access. - How will I know you have received my e-filed return?
You should receive acknowledgement from your tax preparer or the software company used to file your returns. - How will I report the new statewide transit tax in iWire?
As with prior years, there will still be three separate W-2 filing options (manual entry, spreadsheet import, and bulk file).
Manual entry—There will be two new fields: "Statewide Transit Taxable Wages" and "Statewide Transit Tax Withheld." These fields will be labeled as "Box 14" in addition to the regular "Other" Box 14 where other information can be entered.
Spreadsheet import—The updated spreadsheet template option will have two new columns in the Form W-2 worksheet labeled "Box 14": "Statewide Transit Wage" and "Statewide Transit Withholding."
Bulk file—The updated bulk file specifications are available under "File Specifications" on the iWire information page. - How will my credit card payment show on my credit card statement?
You’ll see two transactions on your credit card statement for each tax payment: one for your tax payment and one for the convenience fee you paid to the payment service provider. If you have questions about your statement, call your credit card company. - How will out-of-state payers know to withhold the statewide transit tax from retirement income (1099-R)?
As a result of HB 4059 (2018), retirement income distributed as a periodic payment under ORS 316.189 is not subject to the statewide transit tax. Therefore, payers are not required to withhold from periodic payments or report and remit the statewide transit tax. - How will the value of my home be determined?
The Department of Revenue will use
the most recent tax statement real market value (RMV) with indexing (based on
the Federal Housing Finance Agency House Price Index (FHFA HPI)) for
Oregon. Information provided by the
applicant for the use of the home value determination may be considered.
- I advertise my lodging on another company’s website, but I handle all bookings and payments. Am I responsible for remitting the state lodging tax?
Yes, because you collect lodging payments from your customers, you’re responsible for collecting and remitting the tax. - I am a tax professional and own a business. How do I remove a former employee's access in Revenue Online?
You can adjust logins if you’re the responsible party or administrator for your business. Click on My Web Profile and go to the Manage Additional Logins tab. Click on the login to inactivate their access. This will also remove their access to client accounts. - I am getting a refund from Oregon but have to pay federal taxes. Can I still have my Oregon return refund directly deposited?
Yes. Federal and Oregon returns are separate, even though they are sent in the same transmission if you file electronically. - I buy items outside of Oregon and resell them in Oregon. How can I avoid paying sales tax on these items?
Complete an Oregon Business Registry Resale Certificate and give it to the out-of-state seller at the time of purchase. The seller may accept this certificate and exempt the transaction from their state’s sales/use/transaction tax, but they aren’t required to accept it. - I correctly filed Form OQ for all four quarters. Is it necessary to file Form WR?
Yes. Like the federal form W3, Form WR verifies the actual withholding reported and matches that information with the quarterly reports. - I cut down some hazardous trees around my house. It cost more to clean up than I was paid. I then received timber tax forms? Do I have to pay tax on the trees?
You must file the return mailed to you. If you had the trees cut into logs and sold them to a mill, you're required to file a return.
If you cut the trees into firewood, then you don't owe a harvest tax. Mark the "No Harvest" box in the upper right-hand corner and write "Cut for firewood only."
Sign the return(s) and mail it to us.
- I didn't receive a Form 1099G/Form 1099 INT. What should I do?
You don’t have to attach these forms to the federal or state returns, so if you know the correct amounts, you can complete your return without them. If you don't know the amounts, contact us. - I don’t have all of the information requested on the fraud reporting form. Can I still submit the tip?
Go ahead and fill in what you do know. We can start a review based on the information provided. - I don’t have very much money, but I need legal tax help. Where can I go?
You may qualify for free legal help from one of these tax clinics:
Legal Aid Services of Oregon – 1 (888) 610-8764
Catholic Charities: El Programa Hispano – (503) 231-4866
Note: We don’t endorse or recommend any particular tax clinic or organization.
- I don't have four quarters to report because I file Form WA (or OA), how do I fill out lines 1–4 on Form WR?
Use the annual amount reported on Form WA (or OA) on line 4. - I got a confirmation number when I initiated an ACH debit transaction. What is it for?
The confirmation number is issued each time a transaction is completed successfully using either the TelePay or WebPay systems. This confirmation number is unique and identifies your transaction. It serves as proof of your payment and is required to cancel a payment made in error. Always record your confirmation number. - I have a credit on my withholding tax account. How do I report it?
Credits may be used in a future quarter for withholding or you may request a refund. Send us a written request including the account name, BIN, and instructions on how to apply the credit or the request for refund to:
Oregon Department of Revenue
PO Box 14800
Salem OR 97309-0920
- I have an employee who claims to be exempt from Oregon withholding. What do I do?
Send us a copy of the Form OR-W-4 or Form W-4 if the employee claims to be exempt for both state and federal purposes and the employee's earnings are more than $200 a week.
Send to:
W-4 Project Manager
Oregon Department of Revenue
PO Box 14560
Salem OR 97309
- I have more than one business in a transit district. How should I file my transit self-employment return?
File one return for each individual taxpayer. If an individual has separate business activities, attach a schedule for each separate business to the return. - I have multiple locations. Will I need separate Revenue Online logins for each?
No, you'll be able to access accounts for all of your locations under a single login. - I have personal income tax debt with the state of Oregon. What do I do?
You should pay any taxes owed by the due date. Pay your debt in full as soon as you can. If you can't pay in full, you may be able to set up a payment plan with us. - I just learned my electronically-filed return refund is going to be delayed. Why?
All returns are processed through our computerized processing system, regardless of how the return is prepared, or whether it is mailed or e-filed. A return with a situation that’s outside our system’s processing abilities is processed manually, which takes more time. - I just received the OTTER CD. I would prefer to file combined payroll taxes by paper. How do I get paper forms instead?
Call the Employment Department at (503) 945-8091 or (503) 378-4988. - I know I'm not eligible for the deferral program. Do I still have to return the recertification form?
Returning the recertification is encouraged so we can review your situation and make an official determination. - I made a mistake and paid too much using my credit card. How do I get it fixed?
If you completed the transaction and received your confirmation number, you need to speak with one of our representatives. They’ll help you determine what you need to do to correct your payment. Call (503) 378-4988, or toll-free from an Oregon prefix, 1 (800) 356-4222. - I made an error when I filed my quarterly withholding report. How do I correct it? Can I correct an online return by filing another one online (OTTER or SETRON)?
Make a copy of the original report, make the necessary changes on the copy, and clearly write the word “Amended” on the top of the form in blue or black ink. Be sure to include a brief explanation of why you are amending the report.
Online reports are also amended using a paper form because the system won’t accept a duplicate return. Mail amended report to:
Oregon Department of Revenue
PO Box 14800
Salem OR 97309-0920.
Be sure to include payment and a voucher, if needed.
- I moved in the middle of the year and now live in another state. Can I file both states’ returns electronically?
If you file the other state’s return electronically with the federal return, you can file the Oregon return separately. If you choose to file the Oregon return with the federal return, the other state's return must be filed according to the requirements of that state.
- I need help figuring out my software. Can you help me?
We can’t help you with any specific software questions. You should contact the software company for assistance. - I need to file an extension on my Oregon return only, how do I do that?
Oregon accepts your federal extension. If you didn’t file for a federal extension, but you need more time to file your Oregon return and you owe tax, submit a payment by check or money order using Form OR-40-V and check the "Extension payment" box on the form.
Please note: An extension to file does not mean an extension to pay. Payments must be postmarked on or before the original return due date to avoid penalty and interest. - I pay monthly. Why do I have to file a quarterly marijuana tax return?
Quarterly reporting is required by ORS 475B.710(2). The monthly tax payments help regulate the flow of payments into the Department of Revenue and assist businesses in managing operations. The return shows your tax obligation for the quarter. - I realized I made an error on my timber tax return after I mailed it. What should I do?
You'll need to file an amended return. Contact us for the form to use for your amended return. Check the "Amended Return" box and complete the return as if it were the original, but with the correct information. - I received a call from a private collection agency about my state tax debt. Is this legitimate?
Yes, we partner with private collection agencies. - I received a notice from Other Agency Accounts (OAA) about a debt I owe. How do I pay this?
- I received a Notice of Deficiency for an old tax year because you adjusted my return. What credit card payment option should I select?
Select the Personal Income Tax Assessment/Deficiency payment option. When the payment service provider asks, "This payment is in response to," select "Notice of Deficiency." Save the confirmation number from the transaction as proof of payment. - I received a timber tax return, but I didn't harvest any timber this year? What do I need to do?
On both the Forest Products Harvest Tax and Small Tract Forestland Severance Tax returns, check the "No Harvest" box in the upper right-hand corner of the form. Sign your returns and mail them to us. - I received my refund via direct deposit, but the amount deposited is less than what I expected? What’s going on?
You will receive a letter from us within 10 days of your refund deposit. Please wait until you receive the letter before contacting us. - I represent a marijuana retailer or dispensary, and I registered my business with the Central Business Registry. Am I registered for marijuana taxation?
- I requested a mailed refund originally. Can I give you my bank account number and receive deposit of my refund instead?
No, you have to select direct deposit when you file your return. Direct deposit information can’t be changed, added or removed once the form(s) is submitted. - I sold my trees to a logger who said he would pay the timber taxes. What do I do with the timber tax returns that I received?
On the return, write the name and address of the person with whom you have a contract showing that they’re responsible for filing and paying any timber taxes. Also, include a copy of the written agreement that verifies your statement. Sign and mail your return and a copy of the agreement to us. - I think I was supposed to receive a refund check for a previous year’s taxes. How can I find out if a check was issued to me?
If it’s been more than two years since your expected refund, visit the Department of State Lands website and search their unclaimed property database. Otherwise, contact us. - I thought my tax information was confidential, but now the credit card service provider is going to have access to it.
The only information the payment service providers receive is what you give them. They won’t have access to your tax account, and we won’t provide them with any of your tax information. The payment service providers will protect your credit card and tax information. They won’t forward your credit card information to us. Each payment service provider can provide you with its privacy policy. - I used a federal PIN to sign my federal electronic return. How do I sign my Oregon electronic return?
Oregon allows your federal PIN as your electronic signature on the Oregon return. - I used my credit card to pay another person's Oregon income tax bill. If you issue a refund later, will the money come to me?
By law, we must issue the refund in the name(s) and Social Security number(s) of the taxpayer(s) listed on the tax return. You’ll need to make arrangements privately with the person whose tax you are paying. - I used Oregon's State Free File last year, but I can't log into my account this year. What do I do?
Unlike other filing options, you need to create a new account each year. The sign in screen is only used if you are returning to a return you’ve already started.
Call Electronic Filing at (503) 945-8415 for assistance. - I want to own or operate a legal marijuana business. What do I do?
You’ll need to apply for a license from Oregon Liquor Control Commission (OLC). Please check out their FAQ for details. - I was supposed to receive a refund check this year, but it never arrived. What should I do?
If you moved and didn’t update your mailing address with us or the U.S. Postal Service, your tax refund check might have been returned as undeliverable. If you think this happened to you, check Revenue Online to see if your refund has been issued, or contact us. - I’m a tax preparer or I work for a software vendor. Do I need to provide the client with a copy of their return that includes the 2-D barcode?
Yes. The copy of the return you provide to your client must be an exact copy of the tax return you submit to us. - I’m an Oregon resident. Do I have to pay sales taxes in other states?
If you’re an Oregon resident working or shopping in a state with a sales tax, you need to consult that state’s tax policy regarding nonresidents. Oregon law doesn’t allow you to reduce your Oregon taxes when you file because you paid sales taxes in another state. - I’m going to retire soon. Will I need to make estimated tax payments?
If you're retired or will retire soon, you may need to make estimated tax payments. You may be able to have Oregon income tax withheld from your retirement income. Contact the payer of the income to see if this is possible.
Retirees who are Oregon residents living outside Oregon may be subject to tax on their Oregon-source pensions. This law applies to retirees who still have Oregon as their domicile but file as nonresidents.
- I’m in the deferral program. Can I deduct deferred property taxes from my income tax return?
It depends on your individual situation. Consult a tax professional for additional information. - I’m in the deferral program. Why is there a lien on my property?
The deferral program places a lien on your property as a security interest for the deferred taxes. The amount of the lien doesn’t reflect the balance owed, it’s an estimate of future taxes and accrued interest.
The lien attaches to the property on July 1 of the first year property taxes are deferred.
We’ll send a lien release document to the county when the deferral account is paid in full and closed.
- I’ve received an Other Agency Accounts (OAA) Notice of Proposed Adjustment or Distribution and disagree with the refund distribution. How do I request my share of the refund?
If the debt(s) listed in the notice belong to your spouse, you can ask us to divide the refund. We divide Oregon income tax refunds based on each spouse's share of the total adjusted gross income. If a spouse had no income, they aren’t entitled to any part of the refund. Either partner on a jointly filed return can ask us to divide the refund. - If a domestic worker is under the limit for filing a W-2 (a house cleaner for example), does the employer still have to withhold the statewide transit tax?
Domestic worker income is exempt from the statewide transit tax under ORS 316.162(2)(c). Domestic employers are NOT required to file statewide transit tax returns/reports or withhold the tax from their wages. - If a pay period starts in June 2018 but runs into July (e.g. June 25, 2018–July 6, 2018), is the employer required to withhold the statewide transit tax for the portion of the wages earned in July?
No. We recognize that there would be a significant administrative burden for employers, tax practitioners, and payroll service providers to withhold and report the new tax for only part of a pay period. Therefore, the statewide transit tax withholding requirement only applies to pay periods starting on or after July 1, 2018. - If a property is disqualified after being in the STF Program for less than 10 years, will the additional tax be calculated for the full 10 years?
No, the additional tax would only apply to the length of time the property was in the STF Program, up to a maximum of 10 years. - If an employee is subject to a transit payroll tax (Lane or Trimet), will they also be subject to the statewide transit tax?
These two taxes aren’t related. Employees are not subject to the transit payroll tax; employers are The transit payroll taxes are imposed on the employer based on the amount of payroll. The statewide transit tax is imposed on the wages of each employee. The employer is responsible for withholding, reporting, and paying the statewide transit tax just as they are for state income tax withholding. - If I become an Oregon resident, is my retirement income taxable?
Yes. If you change your residence to Oregon, your pension income, along with all other income regardless of source, is taxable in Oregon.
Depending on your age and income, you may be entitled to a retirement income credit on your Oregon return. If you receive a U.S. government pension, you may be entitled to subtract all or part of that pension on your Oregon return. Also, Oregon doesn’t tax Social Security or railroad retirement benefits. - If I didn't claim the qualified business income reduced tax rate election on my original filing, can I file an amended return to claim the election?
Yes, but only if the amended return is submitted on or before the original due date of the return (April 15, 2019 for the 2018 tax year), or if filing on an extension, on or before the extension due date (October 15, 2019 for the 2018 tax year) [ORS 316.043(5)].
Example 1. Liam filed his original return on March 1, 2019 and didn't elect to use the reduced tax rate. He filed an amended return on April 12, 2019 and made the election. The election will be allowed and his amended return will be treated as the original return.
Example 2. Maggie filed her original return on March 12, 2019 and didn't elect to use the reduced tax rate or file an extension. She filed an amended return on May 2, 2019 and made the election. The election will be denied because her amended return was filed after the original due date of April 15, 2019 and she didn't file an extension.
Example 3. Sam filed his original return on a timely-filed extension on May 3, 2019 and elected to use the reduced tax rate. The reduced tax rate election will be allowed be since it was made on his original return.
Example 4. Allen filed his original return on a timely-filed extension on May 1, 2019 and didn't elect to use the reduced tax rate. He filed an amended return on July 1, 2019 and elected to use the reduced tax rate. His reduced tax rate will be allowed since his amended return was filled before the extension due date and will be treated as the original for the reduced tax rate election. - If I file Form OA, do I also submit Form WR?
Yes. Even though you file an annual return, you're still required to submit Form WR. - If I file my withholding using Form WA, do I need to submit Form WR also?
Yes. Even though you file an annual return, you're still required to submit Form WR. - If I make the qualified business income reduced tax rate election, can I carry forward the Oregon 529 contributions subtraction I would have been able to take if it were not for that election?
No. A carryforward is only allowed for amounts that couldn't be claimed as a subtraction due to the monetary limitations imposed by that statute. Therefore, the subtraction is lost if you elect to use the qualified business income reduced tax rate and can't be carried forward. [ORS 316.699(4)]
Example. Jeff and Heather made $5,000 in contributions to an Oregon 529 plan during the 2018 tax year and only have income from a qualifying business. On their joint return, they would be allowed a subtraction of $4,750, but instead elect to use the reduced tax rate. Therefore, the $4,750 deduction is lost and can't be claimed in a later year. However, they may carry forward $250 ($5,000 minus $4,750) to their 2019 joint return because that amount couldn't be claimed due to the monetary limitations in ORS 316.699. - If I own a retail store, do I need a license to sell tobacco products to customers?
You aren’t required to have a distributor’s license to sell tobacco products to consumers in Oregon. However, you may not purchase untaxed tobacco products for resale to consumers unless you are an Oregon-licensed distributor. - If I receive nonpassive income indirectly from a qualifying pass-through entity (PTE), does it qualify for the reduced tax rate?
Yes. The fact that the qualifying income first passed through a PTE before going to an owner wouldn't disqualify the nonpassive income. However, if the income is paid out as wages and reported on a Form W-2, it wouldn't qualify because wages are specifically excluded under ORS 316.043(1)(b).
Example: Bryant and Marcus are each the sole shareholders of an S corporation. The S corporations each have a 50 percent ownership in a partnership. Bryant and Marcus both materially participate in the partnership and the partnership employs 10 full-time employees in Oregon. Bryant and Marcus receive a distributive share of nonpassive income from the partnership that passes through their respective S corporations and also receive a salary for the work performed for the partnership. The distributive share of nonpassive income they receive from the partnership qualifies for the reduced tax rate since the partnership also meets the employee requirement. However, the salary received doesn't qualify for the reduced tax rate because it's excluded under ORS 316.043(1)(b).
- If I sell my home in another state after moving to Oregon, am I subject to Oregon income tax on the sale?
Oregon follows federal law as it applies to the gain on the sale of a residence. Oregon won’t tax gains of $500,000 or less (or $250,000 for married filing separately) if you meet the federal qualifications. - If I’m a lodging intermediary who only books rooms, am I responsible for paying the state lodging tax?
No. If you don’t collect payments from customers, you aren’t responsible for collecting and remitting the lodging tax. - If I’m making corporate estimated tax payments for the current year, and I amend a previous year’s return or you make an adjustment to that return that creates a tax liability, may I use funds in my estimated tax account to pay my liability?
No. Estimated tax payments can’t be used to pay a tax liability for a prior year, regardless of whether the liability is created by filing an amended return or by adjustment we make. It’s an irrevocable election to have an overpayment of a prior year’s tax applied to a current year’s estimated tax account. (ORS 314.515 and OAR 150-314-0302) - If my application is approved and accepted, when will the deferral programs start paying my property taxes?
Your taxes are paid on the next November 15. If your mortgage company holds escrow funds for property taxes, you need to inform them that the state of Oregon is paying your next year’s taxes. - If my property is placed in the STF Program for the tax year (July to June), do I pay severance tax on my harvests from the previous January 1-June 30?
Yes. Severance taxes are collected on a calendar-year basis. If your application is received by the April 1 deadline and accepted, you’ll owe severance tax on all harvests from your property for the entire calendar year. - If my spouse and I are both owners in the same qualified business, but my spouse does not materially participate, does my spouse's income qualify for the reduced tax rate?
Yes, as long as the business meets the employee requirement. For the purposes of the reduced tax rate, Oregon is tied to the federal definition of material participation under Internal Revenue Code, Section 469. Income or losses for both spouses are nonpassive even if only one spouse rises to any of the seven tests for material participation. - If part of my refund is held and used to pay an outstanding debt, how soon will I get my remaining refund?
When part of your refund is used to pay outstanding debts, the remaining balance is issued to you at the same time with a notice explaining which debts were paid. - If we file as an S corporation with the IRS, how do we file with Oregon?
We recognize your federal "S" election, so you would file Form OR-20-S. For more information, see “Subchapter S Corporations.” - I'm a consumer and I believe a marijuana retailer overcharged me marijuana tax, how do I get a refund?
If a retailer charges a consumer an incorrect amount of marijuana tax, the consumer may be entitled to a refund. The consumer must provide a written request to the marijuana retailer requesting return of the excess tax payment and provide a receipt identifying the date of purchase and proof of payment of excess tax. This request must be mailed or delivered to the retailer within 30 days of the date of the excess tax payment. If the retailer fails to provide a refund, please contact the department at marijuanatax.dor@oregon.gov. - I'm a licensed marijuana producer, processor, or wholesaler. Do I have to register for the marijuana tax program?
Oregon's marijuana tax is a direct tax on the consumer and is paid at the point of sale. Marijuana retailers are responsible for remitting the tax to the Department of Revenue. Licensed producers, processors, or wholesalers who do not perform retail sales to consumers are not responsible for paying tax on marijuana. Those businesses are responsible for other taxes, as applicable, including income taxes, payroll taxes, corporate taxes, and transit taxes. Marijuana retailers must be licensed by OLCC to sell marijuana in Oregon.
- I'm a licensed marijuana retailer and an Oregon Medical Marijuana Program (OMMP) cardholder wants to purchase marijuana. How do I handle that?
Oregon law requires that medical purchasers be able to purchase medical marijuana from licensed marijuana retailers without tax. Once the retailer can confirm that the customer is a valid Oregon Medical Marijuana Program (OMMP) cardholder, they should grant the tax exemption at the point of sale. To confirm the validity of the OMMP card, the retailer should request photo identification to ensure it matches the name on the OMMP card and check to make sure the card hasn't expired.
The retailer is also responsible for keeping detailed records of any tax-exempt sales. These records must include the:
- Date of the sale.
- OMMP card number.
- Taxed marijuana product category under ORS 475B.705 or the product category used in the seed-to-sale tracking system.
- Name of the product.
- Unit price of the marijuana product.
- Number of units sold to the cardholder.
- Total amount of the sale.
Retailers will need to report their total tax-exempt sales on their quarterly tax return and may be required to provide records of their tax exemptions. If retailers fail to provide detailed records of the tax exemptions granted, they may receive an assessment for those unremitted taxes. Retailers must retain these records for five years from the date of the sale.
The department recently updated its rules to address tax-exempt sales. - I'm a licensed marijuana retailer. When are my taxes due?
Retailers will need to file a marijuana tax return on a quarterly basis, on the last day of the month following the end of the quarter. Taxes are due monthly. Relevant due dates are below:
| 2018 |
1 |
Jan. 1, 2018 |
March 31, 2018
|
April 30, 2018
|
Feb. 28, 2018
April 2, 2018
April 30, 2018
|
| 2018 |
2 |
April 1, 2018
|
June 30, 2018 |
July 31, 2018
|
May 31, 2018
July 2, 2018**
July 31, 2018 |
| 2018 |
3 |
July 1, 2018
|
Sep. 30, 2018 |
Oct. 31, 2018
|
Aug. 31, 2018
Oct. 1, 2018**
Oct. 31, 2018
|
**All of these dates represent the first business day after the listed
due date. In each case, the expected due date falls on a weekend. - I'm getting a refund on my Oregon individual income tax return. Can I have that refund applied to my transit tax?
No. We can't apply an income tax refund to pay your transit self-employment tax. - I'm married, but only my name appears on the deed. Should I include my spouse's income on my deferral programs application?
Yes. You must report total household income, which includes your spouse's income. - I'm married, but only my name appears on the deed. Should my spouse and I apply jointly for the deferral programs?
No. You must apply individually if only one of your names is on the deed. - I'm moving. Will my refund check be forwarded to me?
If you have filed a Change of Address with the U.S. Postal Service, they’ll forward your check to your new address. You can also update your address on Revenue Online, call us, or send us a Change of Address/Name form so your check can be sent directly to your new address. - I'm on a payment plan. Can I make monthly credit card payments using a service provider?
Yes. Some payment service providers offer monthly email reminders. If you’re interested in signing up for this type of notification, please visit the payment service provider's website to learn more. - I'm required to submit my W2s electronically. Do I still need to file Form WR?
- I'm using Revenue Online. Why isn’t the filing period I need in the filing period list?
All available periods are included in the Periods tab for filing returns. Filing through Revenue Online isn’t available for all tax programs. If you want to view a prior period, click on the All Periods tab to expand your search to include older periods. Returns for periods prior to a particular tax program being added to the system won't appear in Revenue Online. - Is anyone exempt from paying the state lodging tax?
Yes, the following lodgers are exempt from paying the state lodging tax:
- Lodgers who spend 30 or more consecutive days at the same facility.
- Lodgers who occupy a dwelling unit funded by a government agency providing emergency or temporary shelter, federal employees and employees of federal instrumentalities, such as the American Red Cross, on official business.
- People with diplomatic immunity.
For more information about state lodging tax exemptions, see ORS 320.308 and OAR 150-320-0050. - Is anyone exempt from paying transit tax?
Yes.
- C corporations (Incorporated businesses).
- S corporations (The distributive share).
- Ministers—applies only to compensation received for religious services.
- Insurance agents—applies only to insurance-related income.
- Is buying cigarettes on the internet or by mail illegal?
It isn't illegal, but you're responsible for ensuring that Oregon taxes are paid on all cigarette purchases. Look at the bottom of each pack. If there's no stamp or if the stamp on the bottom of the pack doesn’t say “Oregon” on it, then the Oregon tax hasn’t been paid.
If you are not an Oregon-licensed distributor, you must file an Oregon Unlicensed Cigarettes Monthly Tax Report, Form 514 to report all purchases of untaxed cigarettes.
- Is it necessary for an owner or officer to sign Form WR?
No. However, the person completing and signing the form must be able to provide additional information. - Is it safe to file electronically?
Yes. There are very strict requirements about information storage and transmission. - Is the 1,200-hour requirement for the qualified business income reduced tax rate measured per employee or is it an aggregate for all employees meeting the 30-hours-per-week requirement?
It is the aggregate of all employees meeting the 30-hours-a-week requirement.
Example. Partnership A employed three employees during the year. During the year, two employees worked 40 hours per week for eight weeks (or 640 total hours) and one employee worked 40 hours a week for 24 weeks (or 960 total hours). The total qualifying hours for this partnership is 1,600 hours. All the hours qualify even though no single employee's hours met the requirement. - Is the Oregon corporation minimum tax a required addition on Forms OR-20 or OR-20-S?
No. Oregon minimum tax isn’t required to be added back to federal taxable income on Forms OR-20 or OR-20-S. Only state taxes on or measured by net income or profits, are required to be added back on the Oregon return. (ORS 317.314)
Yes. Insurance company filers are required to add back on Form OR-20-INS any state income taxes deducted in computing net gain from operations. This includes Oregon minimum tax. (ORS 317.655)
- Is the qualified business income reduced tax rate election a one-time election or is it done on an annual basis?
The election for the qualified business income reduced tax rate is made annually. To make the annual election, calculate the tax using the appropriate Schedule OR-PTE depending on residency status, submit it with your return, and check the "Schedule OR-PTE" box on the Oregon tax line of your return. - Is the state lodging tax subject to any rebates?
No, this tax isn’t subject to rebates. - Is the statewide transit tax withheld from bonus payments? If so, will it be taxed at the same rate?
Yes, bonus payments are considered remuneration under ORS 316.162(2). Therefore, bonus payments are subject to the statewide transit tax and are taxed at the same rate as regular wages (one-tenth of 1 percent). - Is the statewide transit tax withheld from military pension income?
As a result of HB 4059 (2018), military pension income is not subject to the statewide transit tax. - Is there a kicker this year?
No.
Personal Income Tax Refunds: Oregon law requires the state to refund excess revenue to taxpayers when actual General Fund revenues exceed the forecasted amount by more than 2 percent for a given biennial budget period. The surplus tax credit, referred to as the "kicker," is only eligible to be claimed on odd-numbered-year tax returns, and only after the percentage of the surplus credit is certified by Oregon's Office of Economic Analysis.
Business/Corporation Tax Refunds: The kicker also applies to businesses, though it's administered separately from the personal income tax kicker. A kicker is not distributed to corporate excise or income taxpayers. Instead, the kicker for corporations is retained in the General Fund and used to provide additional K-12 funding when corporate excise or income tax revenues are more than 2 percent above the forecasted amounts.
- Is there a list of other e-file and free e-file options?
- Is there a minimum dollar threshold for filing the statewide transit tax return? If so, is the threshold quarterly or yearly?
There is no minimum dollar threshold for filing and remitting the statewide transit tax, even if the amount of statewide transit tax withholding is minimal. You need to file the return and remit the amount of tax withheld each quarter unless you’re an annual filer (agricultural employers). - Is there a penalty if an employer doesn’t withhold, file a return for, or pay the statewide transit tax? What about employees who don’t include the tax when they file and pay their personal income taxes?
There are penalties for Oregon employers who don’t file and/or pay the new transit tax timely. These penalties are the same as penalties for failure to file report for or failure to pay income tax withholding. In this instance, the employee would not be penalized because they’re not the party responsible for filing or paying under the law. There is also an additional penalty that may be imposed for knowingly failing to deduct and withhold the statewide transit tax from employee wages.
However, if an Oregon resident works for an out-of-state employer who doesn’t fall under Oregon’s taxing jurisdiction, the Oregon resident is responsible for reporting and paying the tax and can be penalized for not doing so. - Is there a yearly reconciliation filing requirement for the statewide transit tax?
Yes. The current Form OR-WR (Oregon Annual Withholding Tax Reconciliation Report) was amended to include annual reporting for the statewide transit tax. The new form is now available in the “Forms” section of our website. - It's April 15 and I haven't received an Oregon e-file acknowledgment yet, and I owe money. How do I send in my payment without an acknowledgment?
You can download the Form 40-V and mail it in with your payment. Your payment must be postmarked no later than April 15 to avoid penalty and interest. - It's April 15, and I haven't received an Oregon e-file acknowledgment yet. If I don't receive it today, will I still be in compliance or do I need to send in a paper return?
We accept the date of the IRS electronic postmark as the filing date for your e-filed Oregon return. Don’t send in a paper return. - It's been a while since I had payroll. Can I reopen my old account number?
If it’s been more than a year since you last reported payroll taxes, you must complete a new Combined Employer's Registration and send it to the Oregon Employment Department. If it’s been less than a year, you can call us at (503) 945-8091 to have your account reopened. - I've discovered an error after I submitted my Form WR. How do I make a correction?
Make corrections on a copy of your previously submitted Form WR. Write "Amended" across the top in blue or black ink. Explain the reason for the correction on line 7. Include any amended OQs for each quarter you’re correcting.
You can also file an amended Form WR electronically through Revenue Online.
- I've never filed an Oregon return. Can I still use the credit card payment service provider?
Yes. When you make your payment, you’ll provide
information to the payment service provider that it will forward to us so we
can add you to our system. - My bank account was closed. How do I pay my marijuana tax?
Please call us at (503) 947-2597 if you're unable to make your payment because of a loss of banking services.
We accept check, money order, and cash. If paying by cash, you'll have to pay at our Salem office, located at 955 Center St. NE. Please call us for an appointment at least 48 hours in advance at (503) 945-8050. - My business is overseas. Do I need to worry about registering and remitting the state lodging tax?
If you conduct lodging transactions in Oregon and collect payments from customers, you must register with us and collect and remit the tax. - My computer crashed. How do I meet the online filing requirement?
If you absolutely can’t file online, please contact the Marijuana Tax Program at (503) 947-2597. Your situation may qualify for an extension to file. However, there are no extensions for payment of the tax. - My direct deposit information caused my free fillable form return to be rejected. What do I do?
Make sure you entered your routing number and your account number correctly and in the correct fields. Routing numbers are nine digits and must begin with 01 through 12, 21 through 32, or 61 through 72.
Account numbers can be up to 17 characters, both numbers and letters. Include hyphens, but do not include spaces or special symbols. If your account number is fewer than 17 characters, leave the unused boxes (on your return) blank.
Some banks may not accept direct deposits into accounts that are payable through another bank. Also, some banks don’t permit the deposit of a joint refund into an individual account. Contact your bank to make sure your deposit will be accepted.
It's your responsibility to make sure your bank information is correct. We can’t correct deposits made to an incorrect bank account that you approved, nor can we direct deposit a refund if the final destination is a foreign bank account. We’ll issue a check and send it to the mailing address shown on your return if the deposit is rejected.
Call Electronic Filing at (503) 945-8415 for assistance.
- My employer pays me in cash, is this fraudulent?
Being paid in cash is fine, as long as your employer is withholding tax from your pay. If there are no withholdings from your pay, your employer might not be reporting you properly as an employee. Your employer should provide you a pay stub showing your gross pay, withheld taxes, and net pay for the pay period. In addition, you should also receive a W-2 at the end of the year for all cash or check payments. - My employer refuses to withhold taxes from my paycheck, what can I do?
Please report this as tax fraud to us online. To protect yourself while we conduct an investigation, you should make estimated payments using Form 40-ESV. - My employer told me I am an independent contractor, but I think I'm an employee. What should I do?
- My financial institution or personal information has changed. How do I update my information for EFT payments?
If your information has changed, you’ll need to make your ACH debit payments through Revenue Online. You won’t need to submit a new application. - My property is part of an irrevocable family trust. Will that affect my eligibility in the deferral programs?
Yes. Only property in revocable trusts is allowed in the deferral program. - My return showed I owed tax. When you processed my return, my tax was increased and I now owe more. I received two bills in the mail for the amount I owe. What payment option should I select when I make my credit card payment?
You received either a combination Notice of Assessment and Notice of Deficiency billing, or a combination courtesy notice and Notice of Deficiency. Don’t pay the full amount in one credit card transaction. Your payments won’t post correctly if you do. You’ll need to make separate credit card payments for each notice. At the beginning of each transaction, select the Personal Income Tax Assessment/Deficiency payment type. When the credit card payment service provider asks, "This payment is in response to," select which notice you are paying. Pay the amount on that notice only. You’ll be asked if you want to make another payment after each transaction is complete. Save the confirmation number from each transaction as proof of payment. - My Revenue Online password may have been compromised. What do I do?
You can change your password from the My Web Profile screen in Revenue Online. - My spouse and I both have transit district self-employment earnings. Can we file a joint transit self-employment return?
No. Each taxpayer with self-employment earnings must file a separate transit self-employment return, even if you filed joint state and federal returns. - None of my estimated payments are showing in Revenue Online. How can I view estimated payments I've made?
In your Revenue Online account, select the appropriate account number from the Account IDs list. Click View Estimated Payments. Estimated payments show in Revenue Online the day after they're entered. - On the free fillable form, I accidentally checked the "Checking" or “Savings" box in the direct deposit section. Now it won't let me uncheck it. What do I do?
In order to uncheck a checkbox, double click the checkbox. This works with all other checkboxes on the form.
Call Electronic Filing at (503) 945-8415 for assistance.
- Once my property is in the STF Program, can I change back to the Forestland Program?
No, property is only disqualified from the STF Program if:
- The property is sold.
- Ownership is transferred.
- The property is no longer forestland.
- Your ownership or holding in common ownership is more than 5,000 acres or less than 10 acres.
- Written notice is received from the State Department of Forestry that the property no longer meets the stocking and species requirements for the STF Program.
- The property is qualified for another special assessment.
- The property is recorded as a subdivision plat.
If any of these conditions are met, additional taxes apply (ORS 308A.707). - Our insurance company recently changed ownership. We retained our name and ID numbers and we still operate as the same company. Are we required to file a short-year return for Oregon?
No. You’ll file an Oregon form OR-20-INS based on the full-year annual statement you filed with the insurance commission. For example, Blue Insurance Company is bought by Green Insurance Company and they become part of Green. Blue no longer exists as a separate company from Green. Blue would not file an Oregon short year return. Green would file a full year Oregon form OR-20-INS reflecting all of the income earned by both insurance companies as reported on the annual statement filed with the insurance commission. - Our refund was garnished by a third party to pay my spouse's debt. Can I request an apportionment?
We can’t apportion your refund if it’s garnished by a debt collector. Contact the debt collector for more assistance. - Q: Does income from a sole proprietorship qualify for the reduced tax rate?
A: Yes. For tax years 2018 and forward, nonpassive income from a sole proprietorship, partnership, or S corporation qualifies for the reduced tax rate under ORS 316.043. - Revenue Online isn’t accepting my BIN. What should I do?
Your business identification number (BIN) is a nine-digit number. If the BIN you’re inputting is fewer than nine digits, add zeros to the front of your number until you reach the nine-digit requirement. - Should I file a fiduciary income tax return?
If an estate is probated, a fiduciary income tax return must be filed if the estate had any gross income during the tax year. If the estate isn't probated, file a fiduciary return with Oregon only if the Internal Revenue Service required a federal fiduciary return. Otherwise, don't file this return. The beneficiaries will report the income earned by the decedent's property that was distributed to them on their individual income tax returns. - Should I file an individual income tax return for someone who has died?
File an Oregon income tax return for the decedent if they had enough income to require filing for the part of the year they were alive or if they'/re entitled to a refund.
Use the Oregon form that would have been used if the decedent were alive. The Oregon Individual Income Tax Return, Form 40, and instructions will help you determine which form to use. Be sure to check the "deceased" box.
- The 2018 Form OR-WR, the annual withholding reconciliation report, has been updated with additional boxes to report the statewide transit tax. Will there also be changes the forms used for quarterly reporting?
There is a quarterly requirement to report the subject wages and statewide transit tax withheld for every employee. Employers will use the new statewide transit tax employee detail report that is similar to the Form 132, which captures information by employers who pay unemployment insurance and are subject to state income tax withholding. Statewide transit tax forms (quarterly return, annual return, employee detail report, and payment voucher) are on the “Forms” page of our website. - The statewide transit tax is based on gross wages, which include retirement income contributions. Wouldn’t the eventual retirement distribution from those contributions also be taxed under ORS 316.189. Isn’t this double taxation?
The new tax mirrors current income tax withholding laws and regulations. It's up to each employer or tax practitioner to ensure that pre-tax contributions are subtracted from subject employee wages prior to calculating the statewide transit tax. Some examples of pre-tax contributions are deductions for:
- Insurance, cafeteria, or flex spending plans (section 125 plans).
- Retirement plans (e.g. section 401k).
- Health savings accounts.
Additionally, as a result of HB 4059 (2018), retirement income is not subject to the statewide transit tax and the statewide transit tax applies only to wages as defined in ORS 316.162.
- Two or more people own a parcel of designated forestland. One of them also owns a contiguous parcel of forestland. If the first parcel is put in the STF Program, does the second parcel also have to be in the program?
Yes, all contiguous forestland parcels owned by any of the owners must be included in the application for the STF Program. - We are filing an Injured Spouse Claim and Allocation form, federal Form 8379, with our joint federal return. What should we do for our Oregon return?
If you want your Oregon refund apportioned between spouses, you need to request it in writing. When your return is processed, we'll notify you of our intent to apply the joint refund to any debts owed to the state of Oregon. When you receive our notice, send us a request to divide the refund. You must respond within 30 days of the date on our notice. You can use federal form 8379, Injured Spouse Allocation. We must have a copy of your federal return to process the apportionment. - We are starting a nonprofit organization. What do we need to file with you?
You don’t need to file articles of incorporation or other forms with us. If you only file a federal Form 990 with the IRS, you don’t need to file a return in Oregon. If you file a federal Form 990-T for unrelated business income, you must file an Oregon Form OR-20. - We didn't file an injured spouse form. What should I do to get my portion of the refund back?
Write to request an apportionment within 30 days of the date of the notice telling you your refund was applied to your spouse's outstanding debt. - We filed the injured spouse form with our return, but you still took our refund for my spouse's outstanding accounts. Why?
First we process the return and apply the refund to any outstanding account(s). Then we divide it and issue a check to you for your portion. - We own two contiguous parcels. One is designated forestland and one is farmland. If we place the forestland in the STF Program, must we do the same with the farmland?
No, forestland and farmland have different tax statuses. The Forestland Program and STF Program apply to forestland only. If contiguous parcels both contain forestland, both must be in either the Forestland Program or the STF Program. - We’re a corporate member of a limited liability company (LLC). How do we file in Oregon?
If the LLC is taxed as a partnership and is part of your unitary business:
Include your ownership share of the LLC income in your net income subject to apportionment. Include your ownership share of LLC property, payroll, and sales in your apportionment factors. If the LLC has Oregon activity, include its factors in both the numerators and denominators of your factors.
If the LLC is taxed as a partnership and isn’t part of your unitary business:
Your income from the LLC is nonbusiness income. You must allocate it to Oregon as provided in ORS 314.625 through 314.645.
If the LLC is taxed as a corporation and is part of your unitary business:
Include the income of the LLC in net income subject to apportionment. Include the factors of the LLC, as appropriate, in both the numerators and denominators of the apportionment factors.
If the LLC is taxed as a corporation and isn’t part of your unitary business:
Subtract the income of the LLC from the consolidated net income as income from a nonunitary corporation. If the LLC does business in Oregon or has income from an Oregon source, the LLC is required to file its own Oregon return and calculate its Oregon tax based on its Oregon activities. - We’re a limited liability company (LLC). How do we file in Oregon?
File the same way for Oregon as you did for federal. For example, if you filed a partnership return for federal, then file a partnership return for Oregon. - What about employers located outside of Oregon? Are they required to withhold for Oregon residents working out of state?
It isn’t required, but we do ask employers to register and withhold taxes as a convenience to the employee. - What additional information will I need to provide with my deferral application if applying with a reverse mortgage acquired from 7/1/2011 through 12/31/2016?
Include the
following with your application:
- The most recent mortgage statement with current balance due.
- Most recent statements showing current balances of other debts or judgments against the home.
- The reverse mortgage worksheet from the application booklet.
Homes with reverse mortgages entered into on or after January 1, 2017 cannot qualify for deferral.
- What are requests in Revenue Online?
Every return, payment, or account change that you submit to us is referred to as a "request." You’ll receive a confirmation number for each. Use the Activity Center tab to view a list of all requests waiting to be processed and completed requests. Requests are processed at various times, including overnight. Requests requiring manual processing will be in “Received” status, but may take longer to process. - What are the important dates for the deferral program?
January 1 to April 15—Submit application form to your county.
Mid-February to April 15—Submit recertification form to the Department of Revenue.
July 1—Liens attach to newly-approved properties.
August 31—Last day to notify us that you don’t want your property taxes paid for the current year.
November 15—Property taxes paid to the county.
December 15—Annual statements sent to participants.
- What are these penalties added to my tax-due balance?
| Failure to file |
Not filing a return within 3 months of due date
|
20 percent of unpaid tax.
|
| Failure to file |
Not filing a return that is required to be filed.
|
50 percent of unpaid tax. |
| Failure to file |
Not filing returns for three consecutive years by the due date of the third year.
|
100 percent of unpaid tax for each tax year. |
| Intent to evade |
Filing a return with the intent to evade tax. |
100 percent of tax due. |
| Substantial understatement of net tax |
Understating net tax by more than $2,400 for all taxpayers other than C corporations.
|
20 percent. |
| Frivolous return |
Filing a return meant to deliberately delay or block tax law administration.*
|
$250. |
| Abusive tax avoidance transaction |
Understating a listed transaction. |
60 percent of listed transaction. |
Abusive tax avoidance transaction
|
Failing to report a reportable transaction. |
$3,300 - individuals.
$16,700 - corporations. |
| Abusive tax avoidance transaction |
Failing to report a reportable transaction on a listed transaction. |
$33,000 - individuals.
$66,000 - corporations.
|
*"Frivolous" includes, but is not limited to: - An argument, without any factual basis, that your constitutional rights were violated.
- Reliance on a "gold standard" or "war tax" deduction.
- An argument that wages or salary aren't taxable income.
- An argument that the 16th Amendment to the U.S. Constitution wasn't properly adopted.
- An argument that "unenfranchised, sovereign, freemen, or natural persons" aren't subject to tax laws.
- What authority does DOR have to request employee’s personal information?
DOR is authorized to request information to administer Oregon tax laws (ORS 314.425). Oregon law requires withholding of tax from employees’ wages by their employer (ORS 316.167).
Employers are required to send DOR copies of withholding certificates in certain situations (OAR 150-316-0290). DOR may request verification of information provided. - What do I do if a transient lodging intermediary collects payments from customers, but sends the state lodging tax to me?
If you are in possession of lodging taxes collected by a transient lodging intermediary, you’re considered to be holding the taxes in trust for the state of Oregon. If you’re unable to return those funds to the transient lodging intermediary, remit them directly to us. - What do I do if I forgot my password?
From the Login page, click Forgot Password. Enter your username and answer your secret question. You’ll receive an email with a link to enter a new password. You’ll also get a new authorization code to use when you log in for the first time with your new password. - What do I do if I receive a first-time harvester letter and circular?
The letter is to verify that the name and address we have on file are correct and to provide you with your account identification number that you'll use when you contact us. The circular provides information about timber taxes and how to calculate the tax. You'll receive the timber tax return form and instructions in mid-December. - What do I do if my free fillable form return is rejected due to an "XML Validation Error"?
- Check to make sure you don't have an amount of zero on your Oregon return lines and resubmit.
- If you're requesting direct deposit, make sure you select "Checking" or "Savings" and mark whether or not you're requesting a transfer into a foreign account.(Bullet) Review all your additional schedules, making sure your dependent(s), spouse, etc. information has been completed fully and accurately, for example, no numbers in name fields, codes in an incorrect place, or required fields left blank.
If these suggestions don't work, please forward your rejection email to electronic.filing@oregon.gov and we'll help you identify and correct the error. Call Electronic Filing at (503) 945-8415 for assistance. - What do I do if my Revenue Online account is locked?
We review locked accounts and generally unlock them by the next business day. If you need immediate access, contact us during normal business hours. - What do I need to send to the Oregon Dept. of Revenue with my 2-D barcode return?
- A copy of your federal return to your 2-D barcode return just as you would to a regular Oregon return.
- Form 40-V, Oregon Income Tax Payment Voucher, and your payment to the front of your return if you have tax to pay. Exception: Don't attach Form 40-V if you pay with a credit card.
- All Oregon forms and schedules required to be attached to a traditional Oregon return.
- What do I need to take the Identity Verification Quiz?
You'll need the following:
- The Request for Identity Verification letter we sent.
- Your Social Security number.
The quiz takes five minutes to complete. Visit Revenue Online and take the identity verification quiz.
- What do the field colors in Revenue Online mean?
You can input information in the white fields. If the white field has a “Required” watermark, you must enter information in the field to continue.
Fields will turn red if there’s an error, such as the information provided doesn’t meet requirements. When you move your cursor over a red field, there will be a short message describing the error.
The information in grey fields can’t be changed.
- What does "doing business" mean?
"Doing business" means carrying on or being engaged in any profit-seeking activity in Oregon. A taxpayer having one or more of the following in this state is doing business in Oregon:
- A stock of goods.
- An office.
- A place of business, other than an office, where affairs of the corporation are regularly conducted.
- Employees or representatives providing services to customers as the primary business activity (such as accounting or personal services), or services incidental to the sale of tangible or intangible personal property (such as installation, inspection, maintenance, warranty, or repair of a product).
- An economic presence through which the taxpayer regularly takes advantage of Oregon's economy to produce income.
- What does ACH mean?
The Automated Clearing House, or ACH, is the financial network run by the Federal Reserve. It’s widely used by the financial community to transfer funds between accounts. - What fees are involved in using EFT?
There are no fees if you use the ACH debit method. If you use ACH credit, you must contact your financial institution to determine what ACH origination services they offer and their fees. - What form do I file for fiduciary income tax?
File Form OR-41, Oregon Fiduciary Income Tax Return and include a complete copy of federal Form 1041, U.S. Income Tax Return for Estates and Trusts. - What form do my employees use to claim allowances for Oregon?
Employees can use Form OR-W-4 if they are claiming or changing their withholding after January 1, 2020 or they revise their federal Form W-4 after January 1, 2019.
If they’ve filed an "Oregon-only" federal Form W-4 or Form OR-W-4 before January 1, 2019, they don’t need to change their allowances for Oregon. - What form do we insurance companies use?
- What happens if I acquire a tract of forestland that’s in the STF Program?
If you want it to remain in the STF program, you must apply to the assessor in the county where the property is located within 30 days of the date of the county assessor's letter of intent to disqualify. If you don’t apply, the property will be transferred back into the Forestland Program. You may be subject to rollback taxes for up to 10 years of the difference between property tax at 100 percent of the forestland value and property tax at 20 percent of the forestland value. - What happens if I file my marijuana tax return or pay my taxes late?
Penalties and interest will be applied as required by ORS 475B.710. Penalties of up to 100 percent may be imposed by law. Owners and operators of marijuana retailers that fail to file quarterly returns or pay marijuana taxes may be found personally liable for any deficiencies. - What happens if I move off of my property while I’m in the deferral programs?
Moving for a non-medical reason disqualifies your property. If you move for medical reasons, you must provide us with a statement from your doctor on their letterhead or prescription pad paper.
- What happens to my transit self-employment if I'm audited by the IRS?
If changes are made that affect your transit self-employment earnings, file an amended return with us to report and pay any additional tax due. If the change reduces your transit tax, you have two years from the date of the audit report to amend and claim a refund. - What if a business activity is done both inside and outside the transit district?
You may apportion your self-employment earnings for those business activities that are both in and out of the district by using Schedule OR-TSE-AP, Transit Self-Employment Tax Apportionment, 150-500-051. - What if both my county and city have a local tax? Do I have to pay both?
No business will need to pay more than one local tax. Every marijuana retailer in the state of Oregon is located in either an incorporated city or an unincorporated area of a county. If a marijuana retailer is located in a city, they would be subject to the 3 percent local tax only if the city established the local tax. Similarly, if a marijuana retailer is located in an unincorporated area of a county, they would be subject to the 3 percent local tax only if the county established the local tax.
Also important to note is that some businesses have mailing addresses in cities while the store is physically located in an unincorporated area of a county. Because the marijuana tax is based on the physical location of the retailer, it is important to verify each marijuana retailer's location. Please check with your city or county if you are unsure whether your location is in a city or an unincorporated area of a county.
- What if I am under the 25 MBF exemption for the Forest Products Harvest Tax?
Complete the return with the volume harvested. Line 8 subtracts the 25 MBF. - What if I buy my cigarettes in another state and bring them into Oregon?
If you purchase unstamped cigarettes, you are responsible for paying the tax. Consumers can bring up to 199 untaxed cigarettes into Oregon for personal use. However, a consumer who brings in more than 199 cigarettes must pay the Oregon tax. For example, if you bring one full carton (200 cigarettes) and one carton with 199 cigarettes into Oregon, you would need to pay the tax on 399 cigarettes.
Additionally, you must apply with us for a Permit for Transportation of Unstamped Cigarettes to possess or transport unstamped cigarettes in Oregon.
You can complete and submit your permit application electronically using Revenue Online.
- What if I can´t access the WebPay or TelePay systems?
If you have trouble accessing either the WebPay or TelePay systems, call us at (503) 947-2017. - What if I can't make a payment on time?
Please call us at (503) 945-8200 before your payment due date. - What if I cut firewood? Is it taxable?
No, but on the return you should mark the "No Harvest" box. Write under the box, "Firewood only." - What if I don’t have an email address and want to sign up for Revenue Online?
An email address is required to sign up for Revenue Online. There are a number of options available online for free email accounts. - What if I don’t have copies of the employee’s W-4 forms?
If you have a fax from an electronic payroll system, you’ll need to recreate the form. If you don’t have a copy or fax of the form, a report will substitute if it contains the employee’s: - Name.
- Social Security number (SSN).
- Date of birth.
- Date of withholding statement or exemption certificate submission.
- Election of married or single status.
- Number of withholding allowances claimed by the employee, if applicable.
- Election of exemption status.
- Reason for claiming the exemption status.
Send copies or reports to: W-4 Project Manager
Oregon Department of Revenue
PO Box 14560
Salem, OR 97309
- What if I don't receive my coupons in time for my first payment?
You can send in a payment with a payment voucher, make a onetime payment online, or give us a call (503-945-8200) to make a payment over the phone. - What if I forget the answer to my Revenue Online secret question or want to change my secret question?
If you can log in to Revenue Online, you can update your secret question and answer. Select My Web Profile, then Edit, then select the Change Secret Question hyperlink. After selecting a new question or inputting a new answer, save your changes.
If you don’t remember your log in information and have forgotten the answer to your secret question, please call us at (503) 378-4988 during normal business hours to have your account reset.
- What if I haven’t filed taxes previously in Oregon? How can I access Revenue Online?
If you are a new Oregon taxpayer, contact us to determine if you can use Revenue Online. Otherwise, you'll be able to use it after you've filed your first return. - What if I make a mistake on my EFT payment?
ACH debit through the Oregon Tax Payment System: The easiest way to correct a mistake is to cancel the payment through our WebPay system and initiate a new transaction. In order to cancel a payment, the cancellation must be initiated at least one day prior to the payment date. If the payment has already posted, contact us at (503) 947-2017 for assistance. Refunds aren’t issued electronically.
ACH debit through Revenue Online: If the payment status is "pending," you can withdraw it.
ACH credit: It’s harder to correct a mistake within an ACH credit transaction. First, check with your financial institution to see if you can cancel the payment. If not, contact us at (503) 947-2017 for assistance. Refunds aren’t issued electronically. You can then resubmit your payment with the correct information. If it's no longer pending, you can't stop the payment. To see your payment status, go to Requests. If the payment is pending, select the hyperlink for that payment and select Withdraw.
- What if I need more than 12 months to pay off my debt?
- What if I need to add an attachment in Revenue Online?
There is an option for document submission through Revenue Online. The Document Submission link is in the upper right hand corner in the I want to… section. Select what letter your document is in response to and then use the add link to add the document. The document types that can be submitted through this are JPG, JPEG, PNG, PDF, DOC/DOCX, XLS/XLSX, ZIP, and TXT, but the document types we accept are subject to change. - What if I need to change my return after I file electronically?
You need to amend your return. We accept amended returns electronically, but your software provider may not support this option.
- What if I receive a determination letter for an employee?
A determination letter requires you to withhold based upon marital status and number of allowances for an employee. You will need to change the employee’s withholding accordingly. The employee will also receive a copy of the letter.
The determination stays in effect until you receive a new determination letter or the employee files a new Form OR-W-4 increasing their withholding. If the employee wants to lower their withholding, they need to follow the instructions and refile Form OR-W-4. - What if I want 4 payments and they only offer 3 or 6?
We only offer three options online: six, nine, and 12 months. If you need a different length of time, call us at (503) 945-8200. - What if my payment is posted to the wrong account or filing period?
If you made a payment that wasn’t applied to the filing period or the tax account you intended, you can send us a secure message through Revenue Online or contact us during normal business hours. - What if my spouse dies while we’re in the deferral programs?
You have the option of individually applying for the program as a surviving spouse. Please contact us for more information. - What if Revenue Online says my email address is already in use?
If you receive a message stating that your email address is already in use, you should stop the registration process and complete the account recovery steps.
To perform account recovery, click Forgot Username or Forgot Password on the Login screen.
If you’re unable to recover your account, please contact us.
- What if the IRS or another state has audited me?
If adjustments on your federal return or another state’s return affect your Oregon return, you should amend your Oregon return as soon as possible.
If you filed an appeal with the IRS or the other state and you get a notice from us, send a copy of the IRS or other state appeal notification. We’ll suspend further action until your case is resolved.
- What if there's a difference between what I filed on Form OQ (line 5) and the W2/1099s (line 6)?
Report any difference between line 5 (total withholding tax reported) and line 6 (total tax shown on the W2s or 1099s) on line 7. If line 6 is larger than line 5, you’ll owe additional tax. If line 6 is smaller than line 5, you've overpaid and will have a credit balance. - What interest rate does DOR charge on taxes owed?
The annual interest rate is 5 percent for interest periods beginning on or after January 1, 2017, and 6 percent for interest periods beginning on or after January 1, 2019. The interest rate may change once a calendar year. Interest rates are the same for taxes owed and refunds. Interest is charged and paid on tax only; penalties are not included. - What is a board foot?
A unit of measurement representing a board one-foot long, one-foot wide, and one-inch thick. - What is a cigarette tax stamp? How do the stamps get on the pack?
A cigarette tax stamp is a wax stamp that shows that the state tax has been paid for a specific pack of cigarettes. Each state uses its own tax stamp design.
Oregon-licensed distributors purchase stamps from us. A machine opens the cigarette cartons, heats the stamps, sticks a stamp to each cigarette pack, then reseals the cartons.
- What is a Forest Products Harvest Tax (FPHT)?
It's a tax on timber cut from any land in Oregon. - What is a legal description?
A description of the land that describes where it’s located. The legal description is the exact location of the parcel of land according to an established system. - What is a notification of operations?
It’s a notice of intent to harvest timber that you give to the Oregon Department of Forestry, which they send to us. Timber tax forms are mailed to the party listed as the timber owner on the notification of operations. - What is a request status in Revenue Online?
The request status tells you what stage of processing your request is in. It tracks the stage of the request, not the specific payment, form, or appeal that you submitted. For example, if you used Revenue Online to submit a form and the request is "Processing," it means we're processing the request, not the form.
Pending: This is the status for new requests that haven't started processing yet.
Processing: We're reviewing your request.
Received: Processing is complete.
Denied: Your request wasn't accepted. You should submit the request again or contact us.
Expired: Your saved request is no longer valid and can't be submitted.
Not submitted: You saved the request but didn't submit it.
Deleted: You deleted the request and no action was taken by us.
- What is an authorization code?
When you log in for the first time or after changing your password, you’ll need an authorization code, which isn’t the same as the confirmation number. Within a few minutes of your first time logging in, you’ll receive an email or text message, depending on which delivery method you chose when you signed up. Once you receive your authorization code, return to Revenue Online to finish logging in. - What is fiduciary income tax?
Fiduciary income tax is the tax due on income earned by an estate. The estate is a taxable entity, separate from the decedent and the beneficiary. For example, the estate may earn interest or dividend income, or rental income from estate assets. The fiduciary income tax return must report:
- Income from property held.
- Income received by the estate on behalf of the decedent, such as salaries or fees owed to the decedent but unpaid at the time of death.
- Installment gains from sales completed before death.
- What is MBF?
MBF is 1,000 board feet (bf). - What is net volume?
Net volume is gross volume minus defect. This measurement is used in tax calculations for the STF Severance Tax. - What is stumpage?
Stumpage is timber in unprocessed form as found in the woods. - What is the Corporate Activity Tax (CAT)?
The Corporate Activity Tax (CAT) is imposed on businesses for the privilege of doing business in Oregon. The amount of the CAT is based on taxable commercial activity. You can find more information and a list of frequently asked questions on the CAT webpage. - What is the difference between "disqualified" and "inactivated" for deferral programs?
Disqualified means the property was sold or changed ownership, the participant moved away from the property, or the participant died. The deferred taxes are due on August 15 of the year after the event. Disqualified can also mean the manufactured structure or floating home was moved out of state. If this happens, the deferred balance is due five days before the move. If a property is disqualified, we'll no longer defer the taxes. There will be collections activity if the balance isn't paid in full by the due date.
Inactivated means the participant no longer meets eligibility requirements and the program won't pay future property taxes. The participant must reapply to get back in the program. While an account is inactive, the taxes already paid by the state aren't due, but they continue to earn interest.
- What is the difference between a corporate excise tax return and a corporate income tax return?
Every corporation doing business in Oregon must file a corporate excise tax return (Form OR-20, OR-20-INS, or OR-20-S) and pay the computed tax or the minimum excise tax, whichever is greater. Corporations not doing business in Oregon, but with income from an Oregon source, must file a corporate income tax return (Form OR-20-INC or OR-20-S). There is no minimum tax for income tax filers.
See the instructions for Forms OR-20, OR-20-INC, OR-20-INS, OR-20-S for more information.
- What is the difference between Form 1099G and Form 1099INT?
Form 1099G: A 1099G is an informational statement reporting refunds we issued to you during the year on the form.
Form 1099INT: A 1099INT is an informational statement reporting interest we paid you on refunds issued to you during the tax year on the form.
- What is the difference between TriMet Excise Tax and TriMet Self-Employment Tax?
Employers pay the excise, and self-employed individuals pay the self-employment. - What is the due date of the Oregon corporation return when I have a federal extension?
Oregon accepts the federal extension to extend the due date for filing your federal and state return. If you have an extension of time to your federal return, your Oregon return is due the 15th day of the month following your extended federal due date.
Be sure to include a copy of the federal extension when you file your Oregon return and mark the "Extension" box on the first page of the Oregon return. Don't send your extension to us until you file your Oregon return.
- What is the fire insurance gross premiums tax credit? Is there a carryover to other years for the portion of the credit not used this year?
The credit is equal to the amount of tax paid to the Insurance Division for fire insurance premiums for the tax year. For example, you would enter a credit on Form OR-20-INS for the amount of tax shown on your State Fire Marshal report for the same year. There is no carryover. (ORS 317.122 and 731.820). - What is the maximum net worth for participants in the deferral program?
Your net worth limit is $500,000. Net worth is the total of the current market value of all of your assets minus any debts. It doesn't include the value of the home for which you're claiming property tax deferral, the cash value of your life insurance policies, or tangible personal property, such as vehicles, furniture, appliances, or clothing. Assets include:
- Real property other than the property for deferral.
- Cash.
- Checking and savings accounts.
- Bonds.
- Other investments minus any debts.
- What is the pass-through entity (PTE) reduced tax rate election?
For tax years beginning on or after January 1, 2015, you can elect to use the PTE reduced tax rate if you have qualifying income from a partnership or S corporation. The reduced tax rate can be claimed for qualifying income up to $5 million. - What is the retail tax for marijuana?
The retail tax is a point-of-sale tax of 17 percent of the retail sales price of:
Marijuana
- Leaves.
- Flowers.
- Immature plants.
Cannabinoid - Edibles.
- Concentrates.
- Extracts.
- Products that are intended to be used by applying to the skin or hair.
- Other products.
- What is the Small Tract Forestland (STF) Severance Tax?
It's a tax on timber harvested from lands classified as STF by the county assessor. - What is the statute of limitations for filing an amended corporation return?
Generally, the statute of limitations is three years from the date the return is filed or the due date of the return, whichever is later. For an amended return claiming a refund based on federal or another state's audit adjustments, the statute of limitations is generally two years from the date of the auditor's report, if that’s later than the three-year statute.
If you file an amended return with the IRS and the changes affect Oregon taxable income, you must amend your Oregon return within 90 days of amending your federal return. - What is the tax rate and minimum tax for C corporations?
C corporation excise tax filers, including insurance companies, pay the calculated tax or minimum tax, whichever is greater.
C corporation income tax filers pay calculated tax, but not minimum tax.
Minimum Tax
For tax years beginning on or after January 1, 2009:
Minimum tax table—C corporations only
| under $500,000 |
$150 |
$500,000 to $999,999
|
$500 |
| $1,000,000 to $1,999,999 |
$1,000 |
| $2,000,000 to 2,999,999 |
$1,500 |
$3,000,000 to $4,999,999
|
$2,000 |
$5,000,000 to $6,999,999
|
$4,000 |
| $7,000,000 to $9,999,999 |
$7,500 |
| $10,000,000 to $24,999,999 |
$15,000 |
| $25,000,000 to $49,999,999 |
$30,000 |
| $50,000,000 to $74,999,999 |
$50,000 |
| $75,000,000 to $99,999,999 |
$75,000 |
For tax years beginning prior to January 1, 2009: C corporation excise tax filers—the minimum tax is $10. Income tax filers don't pay minimum tax. Consolidated returns—the minimum tax is $10 multiplied by the total number of corporations doing business in Oregon and included in the consolidated return. Calculated tax For tax years beginning January 1, 2013 and later: If Oregon taxable income is $1 million or less, multiply Oregon taxable income by 6.6 percent (not below zero). If Oregon taxable income is more than $1 million, multiply the amount that is more than $1 million by 7.6 percent, and add $66,000.
For tax years beginning January 1, 2011 and before January 1, 2013:
If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).
If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.6 percent, and add $16,500.
For tax years beginning January 1, 2009 and before January 1, 2011:
If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).
If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.9 percent, and add $16,500.
For tax years beginning prior to January 1, 2009:
Multiply Oregon taxable income by 6.6 percent.
- What is the tax rate and minimum tax for S corporations?
S corporation excise tax filers pay the calculated tax, if any, or minimum tax, whichever is greater.
S corporation income tax filers pay the calculated tax, if any.
Minimum tax
For tax years beginning on or after January 1, 2009, S corporation minimum tax for excise filers is $150.
For tax years beginning prior to January 1, 2009, S corporation minimum tax for excise filers is $10.
Calculated taxS corporation taxpayers without federal taxable income, built-in gains, or excess net passive income do not have a calculated tax.
S corporation taxpayers with federal taxable income, built-in gains, or excess net passive income compute calculated tax as stated for the applicable tax year below.
- For tax years beginning January 1, 2013 and later:
If Oregon taxable income is $1 million or less, multiply Oregon taxable income by 6.6 percent (not below zero).
If Oregon taxable income is more than $1 million, multiply the amount that is more than $1 million by 7.6 percent, and add $66,000.
- For tax years beginning January 1, 2011 and before January 1, 2013:
If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).
If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.6 percent, and add $16,500.
- For tax years beginning January 1, 2009 and before January 1, 2011:
If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).
If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.9 percent, and add $16,500.
- For tax years beginning prior to January 1, 2009:
Multiply Oregon taxable income by 6.6 percent.
- What is the transit self-employment earnings exclusion?
The maximum exclusion for all of your self-employment earnings is $400.
Individuals: Enter $400 or the amount of your self-employment earnings, whichever is less. If the exclusion was partially or completely used on another transit self-employment tax return filed by your partnership, you may only use the unused amount.
Partnerships: Enter $400 for only those partners whose share of positive earnings are included in the net self-employment earnings on the transit self-employment tax return. If any partner's exclusion was partially or completely used on another transit self-employment tax return for that year, include only that partner's unused amount. Each partner is responsible for ensuring that the total of all exclusions does not exceed $400.
- What is timber?
Timber is uncut, merchantable logs and trees. - What is utility cull?
Utility cull refers to logs that don't meet the minimum requirements for peeler or sawmill grades, but are suitable for producing firm, usable pulp chips. Utility cull is included in the definition of adjusted gross volume. - What methods are available for making payments by EFT?
Either ACH debit or ACH credit. We don’t accept Fedwire transactions. - What programs are available for forestland owners?
In addition to the Forestland Program, which is available to all forestland owners, the 2003 Legislature passed House Bill 2197. This bill created a new Small Tract Forestland (STF) Program for people who own at least 10, but less than 5,000 acres of forestland. The new STF Program took effect in 2004. To obtain STF Program benefits, eligible owners must apply with their county assessor. The new STF Program allows small woodland owners to continue to pay the majority of their forestland taxes at the time of timber harvest. - What should I do if I don't receive an Oregon e-file acknowledgment?
If you don't receive an acknowledgement after three business days, contact your tax preparer or your software company. It’s their responsibility to pass this information on to you. - What should I do if Revenue Online doesn’t accept my payment or return?
Make sure all fields are filled and that you’re using the correct information, then try processing your request again. If you still experience a problem with the system, contact us during normal business hours. - What type of land is in the Forestland Program?
Highest and best use and designated forestlands. - What types of audit reviews does DOR do?
Processing adjustments. Processing adjustments are corrections we make to a return while we process it.
Federal audits. These audits are based on information from the Internal Revenue Service (IRS). If you receive an audit report from the IRS and the changes made affect your Oregon return, you should amend your Oregon return as soon as possible. Interest charges accrue from the due date of the return until all tax is paid.
Correspondence audits. These are written letters asking you to confirm items on a return. The letter explains what items we’re reviewing and what we need from you to verify them.
Field audits. These are in-depth audits that include the review of income and expenses from businesses, farms, partnerships, corporations, or rentals.
- What types of documentation are considered as substantiation for Form OR-WR?
Substantiation includes:
- A detailed explanation on line 7.
- W-2 C and/or W-3 transmittals showing the correct information reported to the IRS for state withholding taxes.
- Company reconciliation reports (other than the W-3 transmittal) verifying what had been reported to the IRS for Oregon withholding.
- A record of when withholding was corrected because an employee relocated.
- Form OR-W-4 or W-4 showing the corrected number of allowances claimed.
- Any other documentation verifying the changes.
- What wages are subject to Oregon withholding?
- Salaries, commissions, bonuses, wages, tips, fees, prizes, separation allowances, guaranteed wages payments, and vacation and holiday pay.
- Payments by a corporation to a corporate officer for services.
- Remuneration paid in an employer-employee relationship with spouses, domestic partners, or a parent and child.
A list of exempt wages can be found in the Oregon Employer’s Guide. - What’s “tax professional access” in Revenue Online?
Requesting access as a tax professional allows you to file returns (if available for that tax account), make payments, and view information for client accounts. - What’s a confirmation number in Revenue Online?
We’ll email you a confirmation number when you complete your initial sign up and for every subsequent request made in Revenue Online. Every return, payment, or account change that you submit to us is referred to as a "request." The confirmation number confirms that we’ve received your submission. You can view confirmation numbers received in the Activity Center tab. - What’s a letter ID?
The letter ID is a unique number printed on all correspondence. The letter ID is always in the upper right corner of the letter. If you contact us about a letter, always refer to that letter’s identifying number. The person working your issue can view an exact copy of the letter. - What’s a period or filing period in Revenue Online?
A period or filing period is the reporting time for your tax return. If you file a monthly return, the period is the first day of the month through the last day of that month. If you file annually, the period is the first day of the tax year to the last day of the tax year.
Generally you will see only the last day of the period listed as the date of the filing period. For example, a quarterly filing period of March 31, 2014, represents the quarterly filing period for January through March 2014.
- What’s a request code in Revenue Online?
The request code is a six-digit alphanumeric code that acts as confirmation for requests submitted. You can use this code along with your email to lookup requests that were submitted outside of a login. This number can also be used to identify your request when calling us. - What’s a routing number?
A routing number is a nine-digit number identifying a financial institution. At the bottom left of a check, the routing number is the first set of numbers. Your financial institution may also provide its routing numbers on its website. - What’s the deadline for filing my elderly rental assistance claim?
The deadline for filing all ERA claims was July
1, 2016. No new claims are being accepted. This program was repealed by the
Legislative Assembly in 2015. There will be a new program through Oregon Housing
and Community Services beginning in 2017.
- What's 2-D barcode filing?
2-D barcode filing is an alternative way to file an Oregon return on paper. Oregon-approved tax software packages are required to print a 2-D barcode on forms 40, 40N, and 40P. The 2-D barcode on the tax return is a "picture" of the information on the return, which is printed on the return's front page. A machine reads the barcode information so it doesn't have to be entered manually into our computer system.
Don't make handwritten corrections or changes because the machine will reject your return. Make the changes on your tax preparation software and reprint your whole return including the updated 2-D barcode.
- What's a prenote?
A prenote is a zero-dollar transaction used to verify your routing and account numbers. We initiate ACH debit prenotes. Your financial institution initiates ACH credit prenotes. - What's the difference between ACH debit and ACH credit?
The difference between ACH debit and ACH credit is the way the transaction is initiated.
With an ACH debit transaction, you initiate the payment by notifying the state through Revenue Online or the Oregon Tax Payment System that you’d like to make a payment. The state then debits your account. The state doesn’t charge for ACH debit transactions.
With an ACH credit transaction, you request that your financial institution initiates the payment. Your financial institution then transmits the funds to the state´s account. The state doesn’t charge for ACH credit transactions, but your financial institution may charge various fees for initiating ACH credit transactions.
- What's the difference between an S corporation and a C corporation?
An S corporation is the incorporation of an ordinary business formed and operated under a state's general corporation law, but the corporation has applied to and been approved by the IRS for taxation as an S corporation. An S corporation is generally treated like a partnership for federal income tax purposes. It files an "information" tax return to report its income and expenses, and isn't separately taxed.
Income and expenses of an S corporation flow through to the shareholders in proportion to their share holdings, and those profits are taxed at their individual tax rates for each shareholder. If an S corporation has shareholders that aren’t Oregon residents, then the nonresident portion of the corporate income may be subject to a withholding tax for the nonresident shareholders.
- When are insurance companies prepayments due?
Revenue has four payments and Insurance Division has three, which are due as follows:
| Apr 15 |
1st |
|
| Jun 16 |
2nd |
1st |
| Sep 15 |
3rd |
2nd |
| Dec 15 |
4th |
3rd |
You can now make payments to us electronically using Revenue Online.
- When are my timber taxes due?
Timber taxes are due by January 31 of the year following harvest. - When are partnership fiscal year transit self-employment returns due?
This return is due the 15th day of the fourth month after the end of the fiscal year.
Exception: When a partnership tax year ends within a calendar year, the partnership files on a calendar-year basis, with the return due the following April 15. - When can an employee claim exempt?
An employee can claim exempt from Oregon withholding if: - Their compensation is exempt under a provision of federal or state law.
- They had a refund of all state income tax withheld from the previous tax year and expect to have a refund of all state income tax withheld for the current year.
An employee must provide a new Form OR-W-4 to claim an exemption for each year. Exemptions expire on February 15 for the prior year. Exemptions on IRAs, annuities, and compensation plans don’t expire until revoked. - When can I expect my ACH debit tax payment to be debited from my financial institution?
Your financial institution should debit your account on the next banking day following the date of payment that you entered for the transaction. - When completing boxes 1–4 on Form WR, do I include employment and WBF payments along with my quarterly withholding totals?
No. Boxes 1–4 should only have the tax actually reported on Form OQ for withholding each quarter. You then enter the total in box 5. - When completing Form WR, is the amount I put in box 5 the same as box 6?
Not necessarily. Box 5 is the total withholding reported on your OQ, WA, or OA reports for the year. Line 6 is the actual amount of withholding you reported on all W2/1009s issued to your employees. These numbers aren’t always be the same. - When do I become a resident of Oregon?
You are considered an Oregon resident if all of the following are true:
- You think of Oregon as your permanent home.
- Oregon is the center of your financial, social, and family life.
- Oregon is the place you intend to come back to when you are away.
For more details, read our information on residency. - When do I need to recertify for the deferral programs?
You need to recertify every two years. We'll send you a recertification form in early February of the year your recertification is due. - When does the state start paying interest on refunds?
We begin paying interest on your Oregon refund 45 days after the filing due date or 45 days after your return was filed (whichever is later). No interest is paid on reissued checks (including forged checks). - When is fiduciary income tax due?
Returns for an estate or trust are due on or before the 15th day of the fourth month following the close of the tax year of the estate or trust. - When is Form WR due?
Form WR is due by February 28. If submitting W2s electronically, you can submit form WR by the extended due date of March 31. However, if you stop business anytime during the year, Form WR is due within 30 days after your final payroll. - When is my 2-D barcode return due?
The due date for 2-D barcode returns is the same as for other types of returns. - When is my transit return due?
Your transit return is due the same day as your federal and Oregon individual income tax returns, usually April 15. - When is our corporate tax return due?
The 15th day of the month following the federal due date. For most taxpayers, that's the 15th day of the fifth month following the end of your tax year. When the 15th falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Don't file your return before the end of the year. NOTE: Insurance companies must file on a calendar-year basis. - When should I initiate my ACH debit payment to make sure it is timely?
For ACH debit payments initiated through the Oregon Tax Payment System: You must complete your transaction no later than 6 p.m. Pacific Time (PT) one banking day before the requested date of payment. You can initiate the payment up to 45 banking days prior to the due date.
For ACH debit payments initiated through Revenue Online: You must complete your transaction no later than 11:59 p.m. PT on the day you want your payment to post.
- When using the Oregon free fillable form, why can't I enter a value on Oregon Form 40, line 8 (federal adjusted gross income)?
This field is automatically filled in for you once you provide us with your federal return information. Click the "Fed Attach" button to the left of the entry field to go to the federal form. When you finish entering your federal return information, click "Done With This Form" and line 8 on your Oregon form will be completed for you.
Call Electronic Filing at (503) 945-8415 for assistance.
- When will I receive my timber tax returns?
Timber tax returns are mailed in mid-December. If you haven't received your form by December 30, contact us with the following information:
- Your name.
- Phone number, including area code.
- The tax year.
- Account identification number, Social security number, or notification of operations number, if available.
- When will my Revenue Online payment process?
Payments are verified by the bank before posting to your account. This may take a few days. The processing time doesn't affect the date the payment is effective. Your payment will post with an effective date of the day you submitted the payment, even if that's on a weekend or holiday, regardless of the amount of time it takes to process the payment.
You can’t date a payment for a day in the past, but you can specify a future payment date (up to one year from the current date). Using a future date means the payment is effective on that future date. Your payment will be late if you use a date after the due date. - Where can I drop off my tax form or payment in person?
Non-cash payments can be made in person at our Bend, Eugene, Gresham, Medford, and Portland Field Offices. Cash and non-cash payments can be made at our main office in Salem.
View our office addresses and contact information.
- Where can I get a copy of my property tax statement for the deferral program?
Contact the assessor for the county in which your property is located. Some counties allow you to download a copy from their website. - Where do I find my deferral program account number?
Your deferral account number is located near the top your annual statement or on your most recent application or recertification approval letter. - Where do I find my self-employment earnings?
Net self-employment earnings are on your federal Schedule SE, line 3. This is the amount you'll put on line 1 of your transit self-employment tax return.
The net self-employment earnings on your federal Schedule SE may include those earnings reported on your:
- Federal Schedule C or C-EZ.
- Schedule F.
- Schedule K-1 from a partnership return (Form 1065).
- Where do I get a W-2 and W-4 forms?
Request these federal forms from the IRS. - Where do I get an Oregon withholding allowance certification?
Download Form OR-W-4, Oregon's withholding certificate, or contact us for copies. Use what the employee claims for federal purposes for Oregon only if the employee doesn't submit Form OR-W-4 or a separate federal Form W-4 with "Oregon Only" written on it. - Where do I report the new statewide transit tax on the Form W-2?
The department amended OAR 150-316-0359 in the fall of 2018 to require reporting of statewide transit tax withheld in Box 14 of the Form W-2. The reporting requirement will be enforced starting with Form W-2 filing for tax year 2019 (due date of January 31, 2020).
- Where does the marijuana tax revenue go?
We'll use marijuana tax revenue to cover our costs for administering the tax. We also use the money to pay for OLCC's enforcement costs and beginning July 1, 2018, the Oregon Criminal Justice Commission's Illegal Marijuana Market Enforcement Grant Program. After that, state tax revenue will be distributed as follows:
- State School Fund: 40 percent.
- Oregon Health Authority, for mental health treatment or for alcohol and drug abuse prevention, early intervention and treatment: 20 percent.
- State Police: 15 percent.
- Cities: 10 percent.
- Counties: 10 percent.
- Oregon Health Authority, for alcohol and drug abuse prevention, early intervention, and treatment services: 5 percent.
- Who can file a return on behalf of someone that has died?
The person responsible for the decedent's finances should file and sign the return as the "personal representative." If it’s a joint return, the spouse must also sign. If no personal representative has been appointed, the surviving spouse should sign the joint return as "surviving spouse."
If you are the decedent's spouse, you may file a joint income tax return for the year of your spouse’s death. Indicate on the return that your spouse is deceased. Only report your spouse’s income up to the date of death.
If you remarried before the end of the tax year that your spouse died, you may file jointly with your new spouse. Your deceased spouse's filing status is "married filing separately" for that year.
- Who can represent me in an audit?
You can represent yourself, have someone accompany you, or designate someone to represent you. If your case is hard to understand or involves many issues, you may want someone to help you. If someone else prepared the return, you may also want their help.
People who can represent include: - Oregon-licensed lawyers.
- Oregon-licensed public accountants or certified public accountants.
- Oregon-licensed tax consultants.
- Oregon-licensed enrolled agents.
- Out-of-state CPAs, if they meet substantial equivalency requirements. (ORS 673.010)
- If you own a business, the employee who does your tax work.
You must give written authorization to a person you want to represent you. Download the Tax Information Authorization and Power of Attorney form. - Who do I contact about transit district boundaries?
You may contact TriMet and LTD directly:
TriMet District
503-962-6466
Lane Transit District
541-682-6100 or e-mail ltd@ltd.org
- Who handles paying real estate tax payments?
Escrow agents, and in some cases attorneys (authorized agents), are usually required to withhold and remit tax payments for any taxes that may be due when a nonresident sells Oregon property. There are exceptions to this requirement. For more information, see the instructions for Form OR-18-WC. - Who has to pay Oregon income estimated tax?
In most cases, you must make estimated tax payments if you expect to owe $1,000 or more when you file your Oregon income tax return. That’s tax you owe after you subtract your credits and the tax withheld from your income, but before you subtract any prior year refund you applied to your current year estimated tax.
Download the estimated tax payment voucher, or call us for information on how to calculate your estimated payments.
Note: Estimated tax payments are not a substitute for withholding Oregon income tax from wage income.
- Who is eligible for elderly rental assistance?
Oregon Housing and Community Services will provide
eligibility guidelines for the elderly rental assistance program. Visit www.oregon.gov/ohcs for more information. - Who is required to make payments using EFT?
You must pay your Oregon combined payroll and estimated corporation excise or income taxes using EFT if you are federally mandated to use the Electronic Federal Tax Payment System (EFTPS). - Who is responsible for paying the additional tax after a property has been disqualified from the STF Program because the property was sold and the new owner didn’t apply to keep the property in the STF Program?
The current property owner is responsible for paying the additional tax in the year following disqualification. - Who is the timber owner?
The timber owner is whoever owned the timber at the time the logs were first measured. The timber owner and the landowner may be the same person.
The owner may also be one person or group of people, a partnership, a firm, a corporation, or an association of any nature holding title to harvested timber at first measurement. The owner is responsible for the timber taxes.
- Who must pay estimated tax?
In most cases, you must make estimated tax payments if you expect to owe $1,000 or more when you file your Oregon income tax return. There are some exceptions, such as for farmers and fishermen. - Who must pay the state lodging tax?
You must pay this tax when you stay in a “dwelling unit used for temporary overnight human occupancy” for business, pleasure, or recreational purposes. This includes overnight rental of parking spaces for recreational vehicles during periods of human occupancy. - Who needs to file Form OR-W-4?
Employees who: - Were hired on or after January 1, 2020.
- Have had a financial situation change.
- Want to change their withholding amounts.
- Want to claim exemption from their Oregon withholding.
- Have relocated from another state.
- Who needs to sign the STF application?
Everyone with an interest in the property must sign the application. - Why am I being charged penalty and interest on my unpaid transit taxes when I have a valid extension?
More time to file does not mean more time to pay. If you have an extension, you still must make your payment by the original due date of the return to avoid a penalty and interest charge. - Why can't I get the e-file button to work on the free fillable form?
If you have W-2s or 1099s, make sure you have your first name filled out on the W-2 or 1099 form.
If you don't have W-2s or 1099s, make sure you've checked the box that says, "Check the box if you do not have any of the above."
Call Electronic Filing at (503) 945-8415 for assistance.
- Why did I receive two timber tax forms?
When you harvest timber in Oregon, you’re required to file a Forest Products Harvest Tax (FPHT). In addition, harvests may be subject to the Small Tract Forestland (STF) Severance Tax (western or eastern Oregon) if the county assessor classifies the land as STF. Landowners must apply to the county assessor and meet certain criteria to have their land classified and taxed under the STF Program. - Why do I need to recertify for the deferral programs?
We need to make sure you still meet all the eligibility requirements.
If eligibility requirements aren’t met, or if the recertification form isn’t submitted within 65 days of receipt, the account is inactivated and the program won’t pay future property taxes. To reactivate your account, you must either submit a Retroactive Deferral Request form or reapply for the program between January 1 and April 15.
- Why do the forms generated by my third-party software look different than the forms on the department's website?
The substitute forms created by third-party software vendors might be slightly different than our printable forms. This won't impact the processing of your return. We have a list of third-party software vendors whose forms we've approved. - Why do you need a physical location for the Oregon employees on my withholding?
Depending on where your employees perform their work (office, job site, home, etc.), they could be subject to either the TriMet Transit Payroll Tax or the Lane Transit Payroll Tax. For more information, see publication Oregon Transit Taxes for Employers. - Why do you need the Social Security number(s) of the owner or officer(s) on my withholding account?
You must withhold Oregon tax from all wages paid to employees who are Oregon residents. This includes wages earned outside of Oregon. Employers may not have to withhold Oregon tax if they can show the employee will receive wages of $300 or less for the calendar year. - Why doesn't my letter ID work for Revenue Online account validation?
If you file jointly, only the primary taxpayer (the one listed first on the return) can use the letter ID for validation. Call us at (503) 378-4988 to request a separate letter ID for the secondary taxpayer. - Why hasn’t my request processed in Revenue Online?
Some requests, such as applying for a permit to transport unstamped cigarettes, may take longer to process because they require approval. Your confirmation number lets you know we have received your request and that it’s being processed. - Why haven't I received an email to reset my Revenue Online password?
First, try your request again. You may have misspelled your username. If that doesn't work, you might not have a Revenue Online account.
If you had a login for our previous application, My Account, it won't work in Revenue Online.
You can set up an account by visiting Revenue Online and clicking the Sign up now button.
- Why haven't I received my authorization code for Revenue Online?
Some phone companies don't allow you to receive authorization codes via text. Call us at (503) 378-4988 and we'll change your Revenue Online authorization code delivery method.
- Why is my "How much do I owe?" balance more than what shows in my "Payment plan" total?
Usually because you have outstanding debts that don’t qualify for the online payment plan program. For example, if you file your previous tax year return and owe $500, if that total hasn't made it through all of our internal processes and into the "assessed" state, it won’t show up in the payment plan total. - Why was my ACH debit rejected by the bank?
Contact your bank if you have questions about an ACH debit rejection. If you have a block on your bank account, you must inform your financial institution of our company identification number or originator ID or they may not allow the payment. Our numbers are 9302015035 for corporate taxes, and 9302015091 for all other taxes. - Why would I need to submit a power of attorney form?
Power of attorney allows:
- Us to share your confidential tax information with another person.
- Authorization for another person to represent you and act on your behalf, such as a family member, employer, lawyer, tax preparer, or other individual.
You may file a power of attorney through Revenue Online or submit a paper Power of Attorney form.
- Will I receive notification before I receive my direct deposit?
No. We don’t notify you when the deposit has been made, so you’ll have to monitor your bank account.
You should receive your direct deposit refund in seven to 10 days. If your return was selected for review, your direct deposit may be delayed.
- Will I receive verification of my BIN?
You’ll receive a registration notice, including your Oregon BIN, once the business is registered. The BIN is also printed on your payment coupons. - Will my 2-D barcode return be reviewed?
We may review any return, no matter how it is filed. However, the 2-D barcode tax software helps check your return for errors before you send it to us. - Will the collection agency report my debt to credit bureaus?
No, the collection agencies don’t report your debt to credit bureaus. - Will the estate owe property taxes?
The estate may owe property taxes due to delinquencies or deferred taxes. Either the personal representative of the estate or the person succeeding to the decedent's property should check with the assessor and the tax collector in each county where the decedent owned real or personal property. If the estate is probated, any taxes due will be paid out of the estate before anything is distributed to the beneficiaries. - Would I have a tax basis in my individual retirement account (IRA) distributions for Oregon tax purposes as a result of paying tax on the contributions because I elected the qualified business income reduced tax rate?
No, neither the PTE reduced tax rate statute nor any other statutes provide for an Oregon subtraction if the contributions are taxed and not allowed as a deduction. Therefore, even though the income could be double-taxed by Oregon (both the IRA contributions and as part of the IRA distributions), there’s no subtraction to allow for amounts previously taxed to be subtracted from Oregon income. - Would I qualify for property tax deferral if I refinanced my reverse mortgage in years 2011-2016?
If you entered into a reverse
mortgage on or after July 1, 2011 and before January 1, 2017, you may qualify
for property tax deferral under 2019 House Bill 2587 (Oregon Laws Chapter 591). Homes
with reverse mortgages entered into on or after January 1, 2017 cannot qualify
for property tax deferral. Deferral applications are accepted between January 1
and April 15.
- You requested additional information to process my return. I sent that information. How long will it take before my refund arrives?
Allow an additional 10 weeks beyond the standard refund processing time.
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