(2) Except in cases described in ORS 314.125 (3)(b) and (4), an adjustment shall be made under this section only if:
(a) In case the amount of the adjustment would be credited or refunded in the same manner as an overpayment under ORS 314.135, there is adopted in the determination a position maintained by the Department of Revenue; or
(b) In case the amount of the adjustment would be assessed and collected in the same manner as a deficiency under ORS 314.135, there is adopted in the determination a position maintained by the taxpayer with respect to whom the determination is made, and the position maintained by the department in the case described in paragraph (a) of this subsection or maintained by the taxpayer in the case described in this paragraph is inconsistent with the erroneous inclusion, exclusion, omission, allowance, disallowance, recognition, or nonrecognition, as the case may be.
(3) In the case of a determination described in ORS 314.125 (3)(b) (relating to certain exclusions from income), adjustment shall be made under this section only if assessment of a deficiency for the taxable year in which the item is includable or against the related taxpayer was not barred, by any law or rule of law, at the time the department first maintained, in a notice of deficiency sent pursuant to ORS 305.265 or before the Oregon Tax Court, that the item described in ORS 314.125 (3)(b) should be included in the gross income of the taxpayer for the taxable year to which the determination relates.
(4) In the case of a determination described in ORS 314.125 (4) (relating to disallowance of certain deductions and credits), adjustment shall be made under ORS 314.105 to 314.135 only if credit or refund of the overpayment attributable to the deduction or credit described in ORS 314.125 that should have been allowed to the taxpayer or related taxpayer was not barred, by any law or rule of law, at the time the taxpayer first maintained before the department or before the Oregon Tax Court, in writing, that the taxpayer was entitled to such deduction or credit for the taxable year to which the determination relates.
(5) In case the amount of the adjustment would be assessed and collected in the same manner as a deficiency (except for cases described in ORS 314.125 (3)(b)), the adjustment shall not be made with respect to a related taxpayer unless the related taxpayer stands in such relationship to the taxpayer at the time the latter first maintains the inconsistent position in a return, claim for refund, or complaint in the Oregon Tax Court for the taxable year with respect to which the determination is made, or if such position is not so maintained, then at the time of determination. [1971 c.248 §3; 1979 c.689 §24; 1997 c.325 §33; 2005 c.94 §76]
Structure 2021 Oregon Revised Statutes
Volume : 08 - Revenue and Taxation
Chapter 314 - Taxes Imposed Upon or Measured by Net Income
Section 314.011 - Definitions; conformance with federal income tax law.
Section 314.033 - Application of federal Tax Reform Act of 1986 (P.L. 99-514).
Section 314.059 - Application of American Recovery and Reinvestment Act of 2009 (P.L. 111-5).
Section 314.075 - Evading requirements of law prohibited.
Section 314.085 - Taxable year; rules.
Section 314.091 - Abeyance of tax during periods of active duty military service.
Section 314.105 - Definitions for ORS 314.105 to 314.135.
Section 314.115 - Adjustment to correct effect of certain errors; use limited.
Section 314.125 - When adjustment may be made.
Section 314.256 - Lobbying expenditures; proxy tax; rules.
Section 314.258 - Withholding in certain conveyances of real estate; rules.
Section 314.260 - Taxation of real estate mortgage investment conduits.
Section 314.276 - Method of accounting.
Section 314.287 - Costs allocable to inventory.
Section 314.300 - Passive activity loss; determination; treatment; rules.
Section 314.306 - Income from discharge of indebtedness; bankruptcy; insolvency.
Section 314.307 - Definitions; reportable transactions.
Section 314.308 - Reportable transactions; rules.
Section 314.310 - Liability of transferee of taxpayer for taxes imposed on taxpayer.
Section 314.330 - Lien if grantor or other person determined to be owner of trust.
Section 314.360 - Information returns; penalties.
Section 314.362 - Filing return on magnetic media or other machine-readable form; rules.
Section 314.364 - Authority of department to require filing of returns by electronic means; rules.
Section 314.385 - Form of returns; time for filing; alternative filing formats; rules.
Section 314.395 - Time for payment of tax; interest on delayed return.
Section 314.402 - Understatement of net tax; penalty; cost-of-living adjustment; waiver of penalty.
Section 314.403 - Listed transaction understatement; penalty.
Section 314.404 - Penalty for failure to report reportable transaction.
Section 314.406 - Penalty for promotion of abusive tax shelter.
Section 314.415 - Refunds; interest; credits.
Section 314.419 - Foreclosure of lien.
Section 314.423 - Status of lien.
Section 314.425 - Examining books, records or persons.
Section 314.430 - Warrant for collection of taxes.
Section 314.440 - Tax as debt; termination of taxable period and immediate assessment of tax.
Section 314.505 - Estimate of tax liability by corporations; rules.
Section 314.515 - Installment schedule for payment of estimated tax.
Section 314.518 - Estimated tax payments by electronic funds transfer; phase-in; rules.
Section 314.520 - State agency authority over certain electronic funds transfer payments.
Section 314.525 - Underpayment of estimated tax; interest; nonapplicability of penalties.
Section 314.605 - Short title; construction.
Section 314.610 - Definitions for ORS 314.605 to 314.675.
Section 314.620 - When taxpayer is considered taxable in another state.
Section 314.630 - Allocation to this state of net rents and royalties.
Section 314.635 - Allocation to this state of capital gains and losses.
Section 314.642 - Allocation to this state of lottery prizes.
Section 314.645 - Allocation to this state of patent and copyright royalties.
Section 314.655 - Determination of property factor.
Section 314.660 - Determination of payroll factor.
Section 314.666 - Market for sales in this state.
Section 314.667 - Additional methods to determine extent of business activity in this state; rules.
Section 314.668 - Definitions.
Section 314.669 - Legislative findings; purposes.
Section 314.671 - Qualifying investment contract; duration; remedies.
Section 314.673 - Rules; report to Legislative Assembly.
Section 314.674 - Apportionment of broadcasting sales.
Section 314.712 - Partnerships not subject to income tax; exceptions.
Section 314.716 - Basis of partner’s interest; gain or loss on sale; election to adjust basis.
Section 314.718 - Treatment of contributions to partnership.
Section 314.720 - Treatment of distributions from partnership.
Section 314.722 - Publicly traded partnerships taxed as corporations.
Section 314.724 - Information return; penalty; rules.
Section 314.731 - Definitions.
Section 314.735 - Time limit for notice of deficiency.
Section 314.737 - Time limit for claim for refund or credit.
Section 314.765 - Employee fringe benefits; foreign income.
Section 314.766 - Tax on built-in gain.
Section 314.767 - Tax on excess net passive income.
Section 314.768 - S corporation or shareholder elections; rules.
Section 314.770 - Disclosure of S corporation items to shareholder.
Section 314.771 - Recapture of LIFO benefits.
Section 314.772 - Business tax credits; allowance to shareholders.
Section 314.775 - Definitions for ORS 314.775 to 314.784.
Section 314.781 - Withholding; required returns and statements; pass-through entity liability.
Section 314.784 - Circumstances when pass-through entity withholding is not required; rules.
Section 314.835 - Divulging particulars of returns and reports prohibited.
Section 314.840 - Disclosure of information; persons to whom information may be furnished.
Section 314.843 - Reporting of information to consumer reporting agency; rules.
Section 314.865 - Use of certain information for private benefit prohibited.
Section 314.870 - Time for performing certain acts postponed by reason of service in a combat zone.