2017 ORS 118.260¹
Penalties for delinquency, failure to file and fraud
  • interest
  • deposit where tax not determined

(1) If no return has been filed as required by this chapter, 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.

(2) 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 as tax 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 (1) of this section, or, if applicable, to the delinquency penalty imposed by subsection (4) of this section.

(3) If any part of any deficiency is due to fraud with intent to evade tax, then 100 percent of the total amount of the deficiency shall be assessed and collected.

(4) Except for a deferral of payment pursuant to an extension granted under ORS 118.225 (Extension of time for payment) or a timely election made under ORS 118.300 (Deferred payment election), if the taxes imposed by ORS 118.005 (Definitions for ORS 118.005 to 118.540) to 118.540 (Department agreements with taxing officials of other states) are not paid on or before the date on which payment of the tax is required to be made under ORS 118.100 (Time for filing return and paying tax), 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. This penalty is in lieu of any delinquency penalty applicable under subsection (1) of this section.

(5)(a) Except as provided in subsection (6) of this section and paragraph (b) of this subsection, if the tax imposed by ORS 118.005 (Definitions for ORS 118.005 to 118.540) to 118.540 (Department agreements with taxing officials of other states) is not paid on or before the date on which payment of the tax is required to be made under ORS 118.100 (Time for filing return and paying tax), interest shall be charged and collected thereon at the rate established under ORS 305.220 (Interest on deficiency, delinquency or refunds) from the time when the tax became due and payable.

(b) If payment of the tax or deficiency is extended under ORS 118.225 (Extension of time for payment), interest shall be charged and collected on any amount for which extension is granted from the date the tax or deficiency is otherwise due and payable to the date of payment at the rate established under ORS 305.220 (Interest on deficiency, delinquency or refunds), without regard to ORS 305.222 (Determination of interest rate).

(6) In all cases in which a bond is given, under the provisions of ORS 118.300 (Deferred payment election), interest shall be charged at the rate established under ORS 305.220 (Interest on deficiency, delinquency or refunds), without regard to ORS 305.222 (Determination of interest rate), from the time when the tax became due and payable, until the date of payment.

(7) If the tax has not been determined, a deposit may be made to avoid interest. Should the amount of such payment exceed the sum subsequently determined to be due, the Department of Revenue shall refund the excess with interest at the rate established under ORS 305.220 (Interest on deficiency, delinquency or refunds) for a period beginning 45 days after the due date of the return or on the date that the return is filed, whichever is later, and ending at the time the refund is made.

(8) Payments made on the tax shall be applied first to penalty and interest and then to the principal.

(9) 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 which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be lawfully claimed upon the return. [Amended by 1971 c.732 §2; 1973 c.332 §1; 1975 c.593 §2; 1977 c.666 §13b; 1982 s.s.1 c.16 §3; 1993 c.726 §1; 1997 c.99 §12; 2011 c.526 §11; 2017 c.182 §1; 2017 c.278 §2]

Chapter 118

Law Review Cita­tions

9 WLJ 254 (1973); 13 WLJ 1 (1976); 57 OLR 309 (1978)

1 Legislative Counsel Committee, CHAPTER 118—Estate Tax, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors118.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 118, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano118.­html (2017) (last ac­cessed Mar. 30, 2018).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.