(1)
Refund Limitations - Time and Amount.
(a) If
the amount of the tax imposed by the statute is less than the amount paid by
the taxpayer and the taxpayer does not then owe any other tax or liability to
the State of Oregon, such overpayment must be refunded. A refund may be made
under ORS 314.415 in compliance with a
claim for refund filed by the taxpayer under ORS
305.270 or by correction of the
return by the department. To issue a refund based on an audit examination, an
auditor's report showing the amount of refund must be completed and approved
prior to the expiration of the applicable period set forth in the following
paragraph.
(b) Except as provided
in subsections (3), (4), (5) and (6) of ORS
314.415, a refund or credit may
not be granted unless a correction by the department is approved or a claim is
filed within three years after the return is filed, or within two years after
part or all of the tax is paid, whichever period expires later. Under ORS
316.417(1) and
317.504, a return filed before
the due date is considered as having been filed on the due date.
(c) If there is an amount due from the
taxpayer, the refund otherwise allowable will be applied to the balance due. An
appeal from an additional assessment paid by the taxpayer to stop the running
of interest cannot be classed as a "refund" claim. Except as provided in ORS
314.415(5), the
amount refunded cannot exceed the amount of tax paid during the applicable
period of limitation before a correction by the department is approved or the
filing of the claim.
Example: A taxpayer files a 2002 return on April
15, 2003, showing tax due in the amount of $100 and pays that amount at the
time the return is filed. On April 1, 2006, additional tax of $50 is assessed
by the department on the 2002 return and is paid by the taxpayer on May 1,
2006. Within two years the taxpayer files a claim for refund based on items not
previously adjusted on the 2002 return. The refund claim shows an overpayment
of $75 of the total $150 paid. The refund claim is limited to $50, the sum paid
within the open period preceding the filing of the claim.
(2) Interest Start Date.
(a) When a refund of individual income tax is
attributable to tax withheld by an employer, or when a refund of individual
income tax, corporate excise tax, or corporate income tax is attributable to
estimated taxes, the interest start date is 45 days after the return was due or
45 days after the return was filed, whichever is later.
(b) The interest start date for a refund of
estate tax is 45 days after the return was due, 45 days after the original
return was filed or 45 days after the tax was paid, whichever is later.
(c) The interest start date for a
refund not described in subsection (2)(a) or (2)(b) of this rule is 45 days
after the return was due or 45 days after the tax was paid, whichever is later.
(d) See OAR
150-305-0142 Interest
on Refunds for information about interest periods and interest rates.
Notes
Or. Admin. R.
150-314-0240
1958-59;
12-19;75; 12-31-77; 12-31-82; RD 10-1986, f. & cert. ef. 12-31-86; RD
12-1990, f. 12-20-90, cert. ef. 12-31-90; Renumbered from 150-314.415(1) by REV
10-2006, f. 12-27-06, cert. ef. 1-1-07; Renumbered from 150-314.415,
REV
31-2016, f. 8-12-16, cert. ef.
9/1/2016;
REV
1-2017, f. 5-31-17, cert. ef.
6/1/2017
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
314.415
