2013 ORS § 321.560¹
Audit of returns
  • interest and penalties upon failure to file return or pay tax

(1) The provisions of ORS chapters 305 and 314 as to the audit and examination of reports and returns, determination of deficiencies, liens, assessments, claims for refund, conferences and appeals to the Oregon Tax Court, and the procedures relating thereto, apply to the determination of taxes, penalties and interest imposed under ORS 321.005 (Definitions for ORS 321.005 to 321.185, 321.560 to 321.600 and 477.440 to 477.460) to 321.185 (Forest Research and Experiment Account), 321.560 (Audit of returns) to 321.600 (Tax as debt) or 321.700 (Definitions for ORS 321.700 to 321.754) to 321.754 (Eastern Oregon Timber Severance Tax Fund), except where the context requires otherwise.

(2) If a taxpayer fails to file a return required by ORS 321.045 (Payment of tax) or 321.700 (Definitions for ORS 321.700 to 321.754) to 321.754 (Eastern Oregon Timber Severance Tax Fund), or fails to pay a tax at the time the tax becomes due, there shall be added to the amount of tax required to be shown on the return a delinquency penalty of five percent of the amount of such tax.

(3) If the failure to file a return continues for a period in excess of three months after the due date, there shall be added to the amount of tax required to be shown on the return a failure to file penalty of 20 percent of the amount of such tax. This penalty is in addition to the delinquency penalty imposed by subsection (2) of this section.

(4) If all or any part of the delinquency or deficiency for which a determination is made is due to fraud or an intent to evade the provisions of ORS 321.005 (Definitions for ORS 321.005 to 321.185, 321.560 to 321.600 and 477.440 to 477.460) to 321.185 (Forest Research and Experiment Account), 321.560 (Audit of returns) to 321.600 (Tax as debt) or 321.700 (Definitions for ORS 321.700 to 321.754) to 321.754 (Eastern Oregon Timber Severance Tax Fund), or the rules adopted thereunder, a penalty of 100 percent of such delinquency or deficiency shall be added, plus interest at the rate established under ORS 305.220 (Interest on deficiency, delinquency or refunds) for each month, or any fraction thereof, computed on the full amount of the delinquency or deficiency plus penalty, from the time the return was due.

(5) For purposes of this section, the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax that is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax that may be lawfully claimed upon the return.

(6) A delinquent tax or a deficiency shall bear interest at the rate established under ORS 305.220 (Interest on deficiency, delinquency or refunds) for each month, or any fraction thereof, from the time the return was due. [Formerly 321.055; 1991 c.459 §306; 1995 c.53 §4; 1995 c.350 §5; 1995 c.650 §95; 2003 c.454 §55; 2003 c.621 §40a]