Individuals

Personal income tax penalties

For tax year 2019, the return due date and payment due date is July 15, 2020 for calendar year filers.

​Oregon doesn't allow an extension of time to pay, even if the IRS allows an extension.​

You will owe a 5 percent late-payment penalty on any Oregon tax not paid by the original due date of the return, even if you have filed an extension.

If you file more than three months after the due date (including extensions), a 20 percent late-filing penalty will be added. So, you will owe a total penalty of 25 percent of any tax not paid. A 100 percent penalty is also charged if you do not file a return for three consecutive years by the due date of the third year, including extensions. In some situations, additional penalties may be added. Below is a list of penalties or you can read more in Publication OR-17​.

​Classification​Reason​Penalty
​​​Failure to fileNot 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 fileNot 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 evadeFiling a return with the intent to evade tax.​100 percent of tax due.​
​Substantial understatement of net taxUnderstating net tax by more than $2,500 for all taxpayers other than C corporations. ​​20 percent.
​Frivolous returnFiling 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 transactionFailing to report a reportable transaction.​$3,300-individuals.
$16,700-corporations. ​
​Abusive tax avoidance transactionFailing to report a reportable transaction on a listed transaction.​​$33,000-individuals.
$66,000-corporations.
Abusive tax avoidance transaction​​Promoting tax shelters.100 percent of gross income from shelter promotions.​
​ ​* "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.