2021 Oregon Revised Statutes
Chapter 305 - Administration of Revenue and Tax Laws; Appeals
Section 305.295 - Cancellation of tax, penalty or interest; rules.


(a) The assessment is based upon an asserted tax deficiency calculated upon income that the state is expressly prohibited from taxing under the Oregon Constitution or the laws of the United States.
(b) The assessment is based upon an asserted tax deficiency arising from an error made by the department when reviewing the return during processing, and the information necessary to correct the error was properly reported in the return as filed as determined by the department.
(c) The assessment is against an employer for withholding tax, with respect to any full calendar quarter during which the employer had no payroll and had permanently ceased doing business. An employer shall not be considered to have ceased doing business if the employer has changed its name and the business activity continues under the same beneficial ownership.
(d) Pursuant to rules adopted by the department, the department determines that:
(A) Reasonable doubt exists as to the taxpayer’s liability for the assessment;
(B) The taxpayer has presented documentation that the department considers sufficient to support canceling the tax, penalty or interest, or any portion thereof; and
(C) The taxpayer has complied with all applicable reporting and filing requirements for all tax years for which the department maintains records.
(2) When taxes are canceled, in whole or in part, under subsection (1) of this section, the department shall make an order canceling the tax, penalties and interest. The order shall be filed in the records of the department. Upon making the order, the department also shall cause to be canceled or released any lien of record in the counties which may have been filed and entered therein.
(3) Before the department may cancel an assessment under subsection (1) of this section, the taxpayer to whom the assessment is issued shall provide any information the department deems necessary to verify the existence of one of the conditions under which the assessment may be canceled.
(4) Notwithstanding ORS 314.415, the department may refund any payments made with respect to an assessment described in subsection (1) of this section. Interest shall be paid at the rate established under ORS 305.220 for a period beginning on the date the taxpayer requests the refund.
(5) A taxpayer may appeal denial of a request for cancellation of assessment or refund to the Director of the Department of Revenue. The decision of the director is final and may not be appealed. [1987 c.758 §16; 1997 c.100 §1; 2017 c.278 §6]

Structure 2021 Oregon Revised Statutes

2021 Oregon Revised Statutes

Volume : 08 - Revenue and Taxation

Chapter 305 - Administration of Revenue and Tax Laws; Appeals

Section 305.005 - Definitions.

Section 305.025 - Department of Revenue; organization; planning; seal.

Section 305.035 - Director of Department of Revenue; appointment; confirmation; compensation and expenses; bond.

Section 305.045 - Duties of director.

Section 305.060 - Offices of department; equipment and supplies.

Section 305.063 - Department of Revenue Administration Account; use; limitation.

Section 305.075 - Employees; appointment; duties; compensation and expenses.

Section 305.078 - Authority of Department of Revenue to require fingerprints.

Section 305.081 - Definitions.

Section 305.084 - Financial institution data match system.

Section 305.086 - Delinquent child support obligor.

Section 305.088 - Disclosure of transmission prohibited.

Section 305.091 - Authorized purposes.

Section 305.094 - Rules.

Section 305.100 - Rules; forms.

Section 305.102 - Local budget and property tax law; compliance with constitutional limit; rules.

Section 305.120 - Enforcement of tax laws.

Section 305.125 - Application of administrative rules.

Section 305.127 - Means of providing notice required by department; rules.

Section 305.130 - Department as party to actions involving property subject to certain tax liens; complaint and summons.

Section 305.140 - Power to release real property from certain tax liens.

Section 305.145 - When interest required to be waived; power to waive, reduce or compromise small tax balance or penalty and interest; rules.

Section 305.150 - Closing agreements.

Section 305.155 - Cancellation of uncollectible tax; suspension of collection; filing order; releasing liens.

Section 305.157 - Extending statutory periods of limitation.

Section 305.170 - Complaints concerning tax laws; reports and recommendations to Legislative Assembly.

Section 305.180 - Effect of tax warrant for purposes of out-of-state collection.

Section 305.182 - Filing of warrants for unpaid taxes; release, cancellation and satisfaction.

Section 305.184 - Certificate of outstanding warrants; fee; rules.

Section 305.190 - Subpoenaing and examining witnesses, books and papers; application to tax court for disobeyance of subpoena.

Section 305.192 - Disclosure of books and papers relating to appraisal or assessment of industrial property.

Section 305.193 - Disclosure of tax information to designated persons; rules.

Section 305.195 - Written interrogatories; contents; time and manner of service; answer; objection; order for answer; demand for information by taxpayer; order for information.

Section 305.215 - Conflicting claims for personal income tax items; notice procedure; appeal; evidence as public record.

Section 305.220 - Interest on deficiency, delinquency or refunds; adjustments in rates; rules; computation.

Section 305.222 - Determination of interest rate.

Section 305.225 - Request of assistance by law enforcement agency; disclosure of tax records.

Section 305.228 - Penalty for second dishonored payment of taxes; waiver.

Section 305.231 - Department of Revenue to transfer moneys to Drug Treatment and Recovery Services Fund.

Section 305.239 - Qualifications of persons representing taxpayer; procedure for designating representative; rules.

Section 305.242 - Representation before department or magistrate of designated partnership tax matters; designated tax partner.

Section 305.261 - Department to establish program to assist tax practitioners.

Section 305.262 - Department to establish program dedicating resources to assisting representatives of corporations.

Section 305.263 - Order requiring filing report or return; show cause; contempt; appeal.

Section 305.265 - Deficiency notice; payment of deficiency; assessment; appeal; interest; rules.

Section 305.267 - Extension of time to issue notice of deficiency or assessment.

Section 305.270 - Refund of excess tax paid; claim procedure.

Section 305.275 - Persons who may appeal due to acts or omissions.

Section 305.280 - Time for filing appeals; denial of appeal.

Section 305.286 - Potential refund credit in property tax appeals; conditions; procedure; interest.

Section 305.288 - Valuation changes for residential property substantial value error or for good and sufficient cause.

Section 305.295 - Cancellation of tax, penalty or interest; rules.

Section 305.305 - Procedure where deficiency based on federal or other state audit report; effect of appeal; interest suspension.

Section 305.330 - Tax liability of reorganized business entity.

Section 305.380 - Definitions for ORS 305.385.

Section 305.385 - Agencies to supply licensee and contractor lists; contents; effect of department determination on taxpayer status of licensee or contractor; rules.

Section 305.390 - Subpoenas of records containing information on industrial plant for use to determine value of different industrial plant.

Section 305.392 - Process for limiting scope of third-party subpoena.

Section 305.394 - When industrial plant owner may choose not to produce information sought by subpoena.

Section 305.396 - Protection of confidentiality of industrial property information obtained by subpoena.

Section 305.398 - Disclosure and use of industrial property confidential information obtained by third-party subpoena.

Section 305.400 - Payment of costs of subpoena compliance; determination of costs.

Section 305.403 - Appeal of value of state-appraised industrial property in tax court.

Section 305.405 - Oregon Tax Court; creation; jurisdiction.

Section 305.410 - Authority of court in tax cases within its jurisdiction; concurrent jurisdiction; exclusive jurisdiction in certain cases.

Section 305.412 - Jurisdiction to determine value.

Section 305.418 - When transmitted complaint or petition considered to be filed.

Section 305.419 - Tax, penalty and interest payable before appeal; dispute as to nature of tax; how determined; waiver; refund.

Section 305.420 - Issuance of subpoenas; administration of oaths; depositions.

Section 305.425 - Proceedings to be without jury and de novo; issues reviewable; rules of procedure.

Section 305.430 - Hearings to be open to public; report of proceedings; exception; confidential information.

Section 305.437 - Damages for frivolous or groundless appeal or appeal to delay.

Section 305.440 - Finality of unappealed decision of tax court; effect of appeal to Supreme Court.

Section 305.447 - Recovery by taxpayer of certain costs and expenses upon appeal to Supreme Court.

Section 305.452 - Election and term of judge; vacancy; recommendation of appointees to fill vacancy.

Section 305.455 - Qualifications of judge; inapplicability of disqualification-for-prejudice provision.

Section 305.460 - Salary, expenses, disability and retirement of judge and magistrates.

Section 305.480 - State Court Administrator as administrator and clerk; other personnel; expenses; limitation on activities of personnel.

Section 305.485 - Records.

Section 305.487 - Findings and policy.

Section 305.489 - Considerations in adopting rules.

Section 305.490 - Filing fees; fee waiver or deferral; recovery of certain costs and disbursements; additional recovery for certain taxpayers; disposition of receipts.

Section 305.493 - Fees for transcripts or copies of records.

Section 305.498 - Magistrates; appointment; qualifications; oaths; duties; dismissal; appointment of presiding magistrate.

Section 305.501 - Appeals to tax court to be heard by magistrate division; exception; mediation; conduct of hearings; decisions; appeal de novo to tax court judge.

Section 305.505 - Magistrate division records; statistical reports.

Section 305.560 - Appeals procedure generally; procedure when taxpayer is not appellant; intervention.

Section 305.565 - Stay of collection of taxes, interest and penalties pending appeal; exception; bond.

Section 305.570 - Standing to appeal to regular division of tax court; perfection of appeal.

Section 305.580 - Exclusive remedies for certain determinations; priority of petitions.

Section 305.583 - Interested taxpayer petitions for certain determinations; petition contents; manner and time for filing; classification notice requirements; bond proceed use notice requirements.

Section 305.585 - Local government petitions concerning taxes of another local government under 1990 Measure 5; manner and time for filing.

Section 305.586 - Legislative findings; policy on remedies for misspent bond proceeds.

Section 305.587 - Tax court findings; orders; refunds; bond measure construction; other relief.

Section 305.589 - Judicial declarations; petition by local government; notice; intervention; appeal; remedies; costs.

Section 305.591 - Court determination that 1990 Measure 5 tax limit is inapplicable; collection of tax; appeal; stay denied.

Section 305.610 - Reciprocal recognition of tax liability; actions in other states for Oregon taxes.

Section 305.612 - Reciprocal offset of tax refunds in payment of liquidated debt or certain amounts payable; rules.

Section 305.620 - Collection and distribution of local taxes on income and sales; costs; court review of determinations and orders; appeals.

Section 305.645 - Department of Revenue to provide services to political subdivisions.

Section 305.653 - Multistate Tax Compact.

Section 305.685 - Multistate Tax Commission Revolving Account.

Section 305.690 - Definitions for ORS 305.690 to 305.753.

Section 305.695 - Oregon Charitable Checkoff Commission; qualifications; term; compensation and expenses.

Section 305.700 - Officers; meetings; quorum; director as nonvoting member.

Section 305.715 - Determination of eligibility; certification of entities to be listed on schedule of tax return.

Section 305.720 - Qualification for entity for contributions by checkoff; period of eligibility; reapplication.

Section 305.725 - Application of entity.

Section 305.730 - Financial report of entity.

Section 305.740 - Commission examination for continuing eligibility; disqualification order.

Section 305.745 - Inclusion of eligible entities on schedule of tax return.

Section 305.747 - Administrative expenses; crediting contributions to entities; rules.

Section 305.753 - State Treasurer may solicit donations to eligible entities; department rules.

Section 305.754 - Designation of contribution to political party on income tax return.

Section 305.756 - Oregon Political Party Fund.

Section 305.757 - Payments to treasurers of political parties.

Section 305.758 - Payment to political party considered contribution for purposes of campaign finance regulation.

Section 305.759 - Contribution to political party on income tax return not to be claimed as tax credit.

Section 305.762 - Election for direct deposit of personal income tax refund.

Section 305.792 - Surplus refund donations to education.

Section 305.796 - Election to contribute refund to account in Oregon 529 Savings Network; rules.

Section 305.800 - Taxpayer Advocate.

Section 305.801 - Authority of Taxpayer Advocate to issue order to department.

Section 305.802 - Report to Legislative Assembly.

Section 305.804 - Duty of tax professional to notify department of breach of security.

Section 305.806 - Posting of information about debtors with delinquent tax debt on department website.

Section 305.810 - Verification of return, statement or document filed under tax laws.

Section 305.820 - Date when writing, remittance or electronic filing deemed received by tax officials.

Section 305.822 - Prohibition on state or local tax on Internet access.

Section 305.823 - Local government tax on telephone services prohibited.

Section 305.830 - Collection of fines, penalties and forfeitures; disbursement; cost of collection.

Section 305.842 - Application of Internal Revenue Code to certain property tax laws.

Section 305.850 - Use of collection agency.

Section 305.860 - Statement of rights of taxpayers; distribution.

Section 305.875 - Rights of taxpayer in meeting or communication with department.

Section 305.890 - Right to enter into agreement to satisfy liability in installment payments.

Section 305.895 - Action against property before issuance of warrant prohibited; prerequisites for warrant.

Section 305.990 - Criminal penalties.

Section 305.992 - Civil penalty for failure to file return for three consecutive years.

Section 305.994 - Civil penalties imposed on financial institution.