Do you have un-filed tax returns? Have you been waiting to amend an Oregon tax return but were afraid to do so because of penalties and interest? Well, now is your chance to get caught up.
What is Oregon Amnesty? Oregon Amnesty can eliminate all penalties and half of the interest you would normally owe for late filed and/or non-paid Oregon taxes. This can be a huge savings especially if you have not filed for a number of years where the penalties can be as much as 100% of the tax owed. Taxes that qualify for amnesty treatment are personal income tax, LTD and TriMet tax, corporate tax, corporate excise tax, and trust and estate income tax.
Do I qualify? You can qualify for amnesty for any year before 2008 for which you have not already been contacted by the Oregon Department of Revenue. In other words, if you have not filed 2003 – 2008 Oregon tax returns, but Oregon assessed tax on 2003 and 2004, your qualifying years would be 2005 – 2007. For the years that do qualify or for which you think you qualify, you must first file an Oregon Amnesty Application between October 1, 2009 and November 19, 2009. You do not need to file your returns with the application but can do so if you wish. You have until January 19, 2010 to file your original and/or amended returns. You also must be able to pay the entire tax due plus half of the interest in either one lump sum or by setting up a payment agreement. If you are not sure which years qualify, you should apply for amnesty for all of the years (except 2008), and the OR Department of Revenue will notify you of which years qualify.
What happens if I do not take advantage of the amnesty program but could have? You may end up with an additional 25% penalty on top of all other penalties. Depending on the amount of tax that you owe, this could be a hefty sum.
OR Department of Revenue has set up an excellent website devoted to the program. The website is: http://www.oregontaxamnesty.com. This site has the application along with lot’s of helpful information including an extensive FAQ’s page.