Or. Admin. R. 150-314-0199 - Interest on Deficiencies and Delinquencies

In general, interest is accrued on the unpaid tax from the due date of the return until paid. When additional tax is due as a result of a refund issued in error, a Notice of Deficiency will be issued for the tax and interest paid to the taxpayer. Interest then accrues on the total amount owed from the day after the check was issued until paid.

Example 1: John and Mary were issued a tax refund of $585 along with $11 interest on July 17, 2006. The department later determines that the refund was issued in error, and issues a Notice of Deficiency for $596 ($585 tax and $11 interest) on August 18, 2006. Interest then accrues on the $596 total amount owed beginning July 18, 2006, until the deficiency is paid.

Example 2 : Ron and Nancy were issued a tax refund of $1,185 along with $42 interest on October 17, 2006. The department later determines that $395 of the refund was issued in error, and issues a Notice of Deficiency for $409 ($395 tax and $14 interest received on the improper refund) on December 18, 2006. Interest then accrues on the $409 total ($395 tax and $14 interest) beginning October 18, 2006, until the deficiency is paid.

Notes

Or. Admin. R. 150-314-0199

12-19-75, Renumbered see 150-314.400(4); 12-19-75; 12-31-82; 12-31-83; 12-31-86, Renumbered from 150-314.400(3); RD 11-1988, f. 12-19-88, cert. ef. 12-31-88; REV 3-2006, f. & cert .ef. 7-31-06; Renumbered from 150-314.400(4), REV 32-2016, f. 8-12-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 314.400