Oregon Taxing Information
If a tax debt is not paid or satisfactory payment arrangements are not made, the Oregon Department of Revenue will collect the amount owed through such collection actions as wage or bank account garnishment, filing a tax lien against taxpayers property, seizing property or applying future tax refunds to the debt.
Corporate Taxes in Oregon
Oregon follows the federal entity classification regulations. An entity that is classified or taxed as a corporation for federal income tax purposes will be treated as a corporation for Oregon tax purposes. The State of Oregon does not have a sales tax, however, there are two types of corporate taxes: excise and income.
Excise tax is measured by net income and is a tax on the privilege of doing business in Oregon. Doing business is anything engaging in profit-seeking activity in the State of Oregon. Any corporation doing business in Oregon must file a corporate excise tax return. Income tax is for corporations not doing business in Oregon, but with income generated from an Oregon source such as tangible or intangible property or assets being used in Oregon. Any corporation with income from Oregon must file an income tax return.
Corporation Estimated Taxes
The State of Oregon requires corporations to make quarterly estimated tax payments if they are expect to owe tax of $500 or more with their return. If estimated payments are not made, the corporation may be subject to interest on underpayment of estimated tax (UND).
Garnishments & Seizures
A garnishment is the taking of property or funds held by others such as employers or banks to satisfy the tax debt. A seizure is the taking of property held directly by the taxpayer. In the event that real or personal property is seized, it may be sold to satisfy the debt. If property is seized the taxpayer has the right to a contested case hearing.
While it is best to make full payment of taxes at the time of filing or when receiving a bill, the taxpayer may be able to make installment arrangements where a proven financial hardship exists.
Penalties and Interest
The Department of Revenue may cancel certain penalties if the taxpayer is able to prove reasonable cause for the failure to comply that lead to the penalty. Interest is figured from the due date of the return and it is the general policy of the State of Oregon not to cancel interest charges.
A tax lien is a public notice of debt attached to a property and all rights of a property. A lien may prevent you from refinancing, selling, or transferring property and may also affect the taxpayer's credit.
Tax Payment Responsibilities
In the State of Oregon the taxpayer is responsible for paying the Department of Revenue the full amount of tax, penalty and/or interest owed. It is important to respond promptly to any communications from the Department of Revenue. If the taxpayer fails to respond, the Oregon Department of Revenue may take collection actions.
Taxpayer Representation & Power of Attorney
To allow the Oregon Department of Revenue to disclose your confidential tax information to whomever you designate a Tax Information Disclosure Authorization must be filed. This person will not receive original notices sent by the Department of Revenue. A qualified person may also represent the taxpayer before the Oregon State Department of Revenue. Oregon State accepts the Tax Information Authorization and Power of Attorney for Representation Form and has details about qualified representatives.