The department shall have the periods of limitation as provided
in ORS 314.410 or one year from the
date the refund check is issued, whichever period expires the later, to examine
or audit the refund claim and issue a notice of deficiency. The refund claim
can be adjusted to -0- but a deficiency in excess of the refund previously
issued or requested cannot be asserted if the statute of limitations has
expired. This subsection applies to amended returns filed on or after September
20, 1985 (the effective date of Chapter 266, OR Laws 1985).
Example 1
: Benjamin files a
timely 1982 income tax return on April 15, 1983. He later files an amended
return on August 30, 1985. The department issues the refund check two months
later. Because the amended return is filed before September 20, 1985, ORS
305.270(8)
doesn't apply.
Example 2
: Use the same facts that appear in Example 1, except that
Benjamin files his amended return on September 30, 1985. The department issues
the refund check on January 15, 1986, without having audited or examined the
refund claim. Because the amended return is filed after September 20, 1985, ORS
305.270(8)
applies. The department may examine or audit Benjamin's return until January
15, 1987, one year after the refund check is issued. The audit period is open
until January 15, 1987 because it is later than the expiration of the
three-year period in ORS
314.410(1). If
Benjamin's return is adjusted prior to April 16, 1986, a deficiency may be
asserted in excess of the refund previously issued. If the return is adjusted
after April 15, 1986, a deficiency shall not exceed the refund previously
issued.
Example 3
:
Rob files a timely 1984 income tax return on April 15, 1985. He later files an
amended return on January 15, 1987 and the department issues a refund check on
March 15, 1987, without having audited or examined the refund claim. The
department may examine or audit Rob's return until April 15, 1988, the
expiration of the three-year period in ORS
314.410(1). The
audit period is open until April 15, 1988, because it expires later than one
year after the refund check date. A deficiency may be asserted during this
period in excess of the refund previously issued.
Notes
Or. Admin. Code §
150-305-0238
RD 12-1985,
f. 12-16-85, cert. ef. 12-31-85; RD 15-1987, f. 12-10-87, cert. ef. 12-31-87;
RD 11-1988, f. 12-19-88, cert. ef. 12-31-88; Renumbered from 150-305.270(8),
REV
46-2016, f. 8-13-16, cert. ef.
9/1/2016
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
305.270
