The department must refund penalty and interest when it has
been determined that it has been paid but was not legally due. Interest must be
computed on the amount of tax plus penalty and interest not legally due. The
interest starting date must be 45 days after the date the deficiency was paid
or 45 days after the return was filed, whichever is later.
Example 1: The taxpayer files a delinquent
return and pays the tax, penalty and interest due. Subsequently, it is
determined that the taxpayer is not required to file an Oregon income tax
return. The amount of tax, penalty and interest paid must be refunded and
interest computed on the entire amount beginning 45 days after the date the
return was filed.
Example 2: The
taxpayer pays the tax, penalty and interest based on a Notice of Assessment.
The assessment is subsequently determined to be erroneous. The amount of tax,
penalty and interest paid must be refunded and interest computed on the entire
amount beginning 45 days after the date the assessment was paid.
Example 3: The taxpayer files a delinquent
return and pays the tax, penalty and interest due. Subsequently, the taxpayer
amends the return to claim a refund from a net operating loss carryback. The
penalty and interest paid with the delinquent return will not be refunded since
this amount was legally due.
Notes
Or. Admin. Code §
150-305-0274
RD 12-1990,
f. 12-20-90, cert. ef. 12-31-90; Renumbered from 150-305.295(4),
REV
46-2016, f. 8-13-16, cert. ef.
9/1/2016;
REV
72-2017, amend filed 12/22/2017, effective
1/1/2018
Statutory/Other Authority: ORS
305.100
Statutes/Other Implemented: ORS
305.295
