Or. Admin. Code § 150-316-0450 - Decedent's Estate: Request for a Final Tax Determination
(1) The representative of a decedent's estate
has an affirmative duty to file any returns which the decedent failed to file
or was unable to file (e.g., the return required for the part of the tax year
prior to death, or returns required for previous tax years which weren't filed
due to the final illness of the decedent) and to pay the indicated tax,
penalties and interest, if any, from the funds of the estate. The state has no
duty to watch for printed notices to creditors or to file a creditor's claim
with the decedent's representative.
(2) The representative of a decedent's estate
may make an election for a final tax determination of any returns required to
be filed under chapter 316 during the period of estate administration from a
decedent or a decedent's estate. The election must be in writing and may be
made by filing Department of Revenue Form 150-101-151 "Election for Final Tax
Determination." The election is applicable to:
(a) All individual income tax returns filed
by the decedent for which the statute of limitations is open for adjustment at
the time the election is filed;
(b) The decedent's final individual income
tax return;
(c) Any individual
income tax returns the representative of a decedent's estate is required to
file on behalf of the decedent because the decedent failed to file the required
returns prior to their death; and
(d) Any fiduciary income tax returns filed
during the period of estate administration. The election must be filed with the
return(s) for which the election is applicable.
(3) The Department of Revenue may give notice
of deficiency as described in ORS
305.265 within 18 months after a
written election for final tax determination is made by the representative of
the decedent's estate. If the Department of Revenue fails to give notice of
deficiency within the 18 month period, the statute of limitations for the
returns covered by the election for final tax determination will expire, except
as described in paragraph (4). The Department of Revenue has no affirmative
duty to respond to the election for final tax determination in any way other
than the giving of notice of deficiency within 18 months.
(4) The limitations to the giving of a notice
of deficiency provided in this section shall not apply in the following
circumstances:
(a) If the department finds
that gross income equal to 25 percent or more of the gross income reported has
been omitted from the taxpayer's return, notice of deficiency may be given at
any time within five years after the return was filed;
(b) If the department finds that false or
fraudulent returns were filed, or that no returns were filed but returns were
required to be filed, notice of deficiency, or notice of assessment in the case
of failure to file, may be given at any time after the department makes that
finding;
(c) If the Commissioner
of Internal Revenue makes a correction resulting in a change of the decedent's
or the estate of the decedent's tax, then notice of deficiency may be given
within one year after the department is notified of such federal correction, or
within the applicable 18-month or five-year period, whichever period expires
later.
(5) The
representative of a decedent's estate may choose to close the estate
administration at the earliest date practicable, even though the period for
giving notice of deficiency has not expired. If the department then gives
notice of deficiency, the transferees of the money or property of the estate
shall be liable for the tax, penalties and interest imposed against the
decedent or the decedent's estate.
Notes
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 316.387
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