Oregon Taxing Information
Failure to pay or otherwise address a tax bill will result in enforced collection actions by the Department of Revenue. Such actions include the garnishing of wages or bank accounts, the filing of liens or levies on property, and the offsetting of tax refunds.
Any entity that is treated as a corporation for federal income tax purposes will be treated as such by the state. While the state does not have a sales tax, it still maintains excise and income taxes.
Corporations are required by the state to make quarterly estimated tax payments if they expect to owe $500 or more in tax with their returns. Failure to do so may result in interest on the underpayment of estimated tax.
Garnishments and Seizures
The state may seek to resolve a tax liability through garnishments or seizures. Garnishments are applied to the concerned taxpayer’s property or funds held by others, such as employers or banks. A seizure is the taking of the concerned taxpayer’s real or personal property directly, often in order to sell it to resolve that taxpayer’s liability. The taxpayer has the right to a contested case hearing regarding the seized property.
Priority One: Stopping Aggressive Enforced Collections
If a taxpayer is able to prove financial hardship as it relates to an inability to pay or file taxes on time or in full, they may be able to arrange an installment plan.
Penalties and Interest
Failure to pay or file taxes by their due dates can result in additions to the total liability in the form of penalties and interest. Each varies in amount by circumstance and the type of tax left unpaid. Some penalties may be waived if reasonable cause can be proved, but the state generally does not cancel interest charges.
A tax lien serves as a public notice of a liability, and is attached to property or the rights thereto. Liens can hinder property-related transactions and can affect credit due to their public nature.
Power of Attorney/Representation
You may choose to have a qualified person represent you before the Department of Revenue. To authorize them to do so, and to allow the DOR to disclose confidential tax information to them, the appropriate documentation must be completed and submitted.