Revenue Rules Notices

Rules Advisory Committee planned

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Don’t engage with text message scam

The Oregon Department of Revenue is warning taxpayers not to engage with text messages that claim to be from the department asking them to update their banking information.

If you get one of these messages, do not reply or click any link in it. The Oregon Department of Revenue will never send unsolicited texts asking for personal data.

Multiple taxpayers have reported receiving the text messages which appear to be part of a phishing scam similar to those reported this month in at least three other states.

The scam text tells taxpayers that their refund has been processed and approved and that to receive their refund they need to click the link provided in the message to update their banking information.

Taxpayers should not click the link or reply to the text, DOR emphasized. Taxpayers can find more information about protecting their private information on our website.

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DOR clarifies Paid Leave Oregon subtraction for tax year 2024

The Oregon Department of Revenue (DOR) is clarifying for taxpayers how to use the subtraction “Paid Leave Oregon benefits deducted on federal Schedule A,” code 386, for tax year 2024.

This subtraction on the Oregon return is available only to taxpayers who:

• Received Paid Leave Oregon benefits for family or safe leave during tax year 2024 (reported on Form 1099-G issued by the Oregon Employment Department);
• Are including the full amount of the benefits received in their federal income; and
• Are itemizing deductions on their 2024 federal tax return.

Taxpayers who do not itemize their deductions on the federal return should not claim the subtraction:

The 2024 instructions for federal Form 1040, Schedule 1, line 7, provide that a taxpayer receiving benefits from a “governmental paid family leave program” may reduce the amount reported as income on line 7 by their contributions to the program.

This reduction is available only to taxpayers who are not itemizing deductions on their federal return. Taxpayers who reduce their taxable benefits on line 7 by their contributions to the program will have their reduced income flow through to the Oregon return.

Taxpayers who do itemize their deductions on the federal return:

Taxpayers itemizing deductions on the federal return report the entire benefit amount on line 7. Taxpayers who report the full benefit amount may subtract on the Oregon return the amount they would have reduced the benefit by on the federal return if they weren’t itemizing. Based on the contribution rates for Paid Leave Oregon, this subtraction should not exceed $1,012 per taxpayer who received family or safe leave benefits in 2024, and in most cases will be less.

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email at prac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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Tips for tax professionals using Revenue’s new authorization forms

The Oregon Department of Revenue (DOR) reminds tax professionals to use the new authorization forms for taxpayers who require other parties to receive and handle their confidential tax information or to act and make decisions on their behalf with the DOR.

The two new forms, OR-AUTH-REP (Authorization to Represent) and OR-AUTH-INFO (Authorization to Receive Tax Information), replaced the Tax Information Authorization and Power of Attorney for Representation Form, also known as the POA form.

DOR no longer accepts the old POA form, has discontinued it, and will not accept the form if submitted.

Please see DOR’s webpage for tips on how to complete the new forms to prevent service delays:

• Confirm you and your firm are using the new forms.
• Check to confirm the taxpayer’s address on the form matches the taxpayer’s address on file with DOR. To update the taxpayer’s address, submit this change of address form.
• Complete all fields, including phone number and email, to prevent rejections.

• When completing the OR-AUTH-REP form,
  • The taxpayer and the representative must sign and date the form or it will be rejected.
  • The intended representative must include their qualifications “CPA, State Bar Number, or Oregon License Number (LTP, LTC, Agent).” The form without this information will be rejected.
• When completing the OR-AUTH-INFO form,
  • The taxpayer must sign the form, or it will be rejected.

DOR has three videos highlighting changes on the new forms.

• Learn about DOR’s new authorization forms
• Learn more about OR-AUTH-REP (Authorization to Represent)
• Learn more about OR-AUTH-INFO (Authorization to Receive Tax Information)

Tax practitioners with other tax or customer account questions can contact a dedicated practitioner specialist by email at prac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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Agricultural Employer Overtime Tax Credit applications must be received by Friday, January 31

The Department of Revenue (DOR) started accepting applications for the Agricultural Employer Overtime Tax Credit on January 1, 2025. Applications must be submitted no later than 11:59 p.m., January 31, 2025.

Applications must be filed electronically through Revenue Online. No paper applications will be accepted. For those who don’t have a Revenue Online account, please see our how-to video to get started.

Visit DOR’s webpage for program information and frequently asked questions to help employers apply for the tax credit.

For general questions about the Agricultural Employer Overtime Tax Credit, email: Ag.Overtime@dor.oregon.gov.

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email atprac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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New FAQ section for tax pros added to Voluntary Self Identification webpage

The Department of Revene has received questions from tax professionals about the Voluntary Self-Identification of Race and Ethnicity program and the requirements with respect to the new form OR-VSI. As a result, we have added a frequently asked questions section specifically for tax professionals on the Voluntary Identification of Race and Ethnicity webpage.

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email atprac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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Tax season officially opens January 27

The Oregon Department of Revenue will begin processing e-filed 2024 state income tax returns on January 27, 2025, the same day the IRSwill begin processing federal returns. Paper filed returns will be processed starting in mid-February. As a reminder, all paid tax preparers filing Oregon personal income tax returns are required to file them electronically if they are subject to the federal e-file mandate.

E-filed returns will be processed in the order they are received. However, as in years past, the department won’t be issuing personal income tax refunds until after February 15. A refund hold is part of the department’s tax fraud prevention efforts and allows for confirmation that the amounts claimed on tax returns match what employers and payers report on Forms W-2 and 1099.

Voluntary self-identification of race and ethnicity information

New for 2025, Oregon taxpayers and Oregonians can choose to voluntarily provide information about their race and ethnicity on Form OR-VSI when they file their 2024 taxes. Providing this information may be done separately from a tax return through Revenue Online.

This new option may prompt questions from your clients. Tax professionals can let their clients know:

• Voluntary Identification of Race and Ethnicity is a result of legislation passed in 2023.
• The information provided is confidential. Tax practitioners and tax preparation software vendors may only use the data to file the tax return and cannot use it for any other purpose.
• The Department of Revenue will store the data separately from the tax return and it will only be accessible by limited staff for research and analysis of revenue policy.
• Tax professionals must provide the option to fill out the form to their clients so they can make a choice. Clients can opt out of completing the form.

Tax professionals reminded to report data security breaches

The Oregon Department of Revenue is reminding tax professionals that they must report data security breaches to help prevent fraudulent tax refunds from being issued. The sooner the department can learn about a data security breach, the better we are able to protect your client and state resources.

As the tax filing season gets underway, the possibility of data breaches increases as cybercriminals try to steal sensitive tax information. The department will contact tax preparers if we suspect fraudulent filing. State law also requires tax professionals to notify the department within five days if they discover a data security breach or have reason to believe that a breach has occurred.

Suspicious activity that may indicate a possible data breach include the DOR rejecting several of your clients’ e-filed returns, receiving more e-file acknowledgements than returns you know you have filed, or your clients responding to emails that you did not send.

If you experience a data security breach, or suspect one has occurred, please contact DOR:

• DOR Identity Theft Hotline: 503-947-2000
• Email: fraud.help@dor.oregon.gov

The tax professional must provide the department with the name, address, and tax ID number of the consumer whose personal identification has been compromised. If the tax professional is unable to provide the required information within five days due to the information being unavailable, in cases such as ransomware attacks, they must contact the department again within 15 days of recovering the data to provide the required information. Details are available on our website.

For data breaches in excess of 250 consumers, reporting information is available at theOregon Department of Justice website.

The Internal Revenue Service also requires reporting data loss for federal tax returns. This IRS website provides more information.

Use Revenue Online to verify payments

Taxpayers’ estimated payments can be verified through their Revenue Online account.

Through Revenue Online, individuals can also view letters sent to them by the department, initiate appeals, make payments, and submit questions. Visit Revenue Online on the Revenue websiteto learn more.

Those who don’t have a Revenue Online account can sign up on the agency’s website.

Forms 1099-G available on Revenue Online

As a reminder, the department no longer mails Forms 1099-G reporting state tax refunds to taxpayers. Only taxpayers who itemized deductions on the federal return for tax year 2023 will need a Form 1099-G to file their tax year 2024 return. Taxpayers with a Revenue Online account will receive an email to let them know their 1099-G is available to view and download. Practitioners can also look up 1099-G information without logging into their client’s Revenue Online account using their client’s last name, Social Security number, and filing status. The department will mail a postcard to taxpayers who have a 1099-G to let them know to check online for their 1099-G information. Remember: 1099-Gs reporting unemployment compensation are sent by the Employment Department, not the Department of Revenue.

New authorization forms

The Oregon Department of Revenue has updated authorization forms for taxpayers who require other parties to receive and handle their confidential tax information or to act and make decisions on their behalf with the agency.

The new forms,OR-AUTH-REP(Authorization to Represent) andOR-AUTH-INFO(Authorization to Receive Tax Information), replaced the Tax Information Authorization and Power of Attorney for Representation Form, also known as the POA form.

The old POA form is no longer accepted and is permanently discontinued. Any previous authorization using the old form remains valid until the taxpayer revokes it in writing.

Visit the Tax Professionals page on our website

The Tax Professionals page on our website has quick links to the information you need to serve your clients. Resources such as information about tax professional liaison meetings, how to access client accounts in Revenue Online, information on reporting data breaches, new law updates, and contact information for your dedicated practitioner specialist can be found on this page. Make sure to bookmark it in your browser as a quick informational resource.

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email atprac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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DOR reminds tax professionals about new authorization forms for taxpayers

The Oregon Department of Revenue (DOR) wants to remind tax professionals about its recently updated authorization forms for taxpayers who require other parties to receive and handle their confidential tax information or to act and make decisions on their behalf with the agency.

The new forms, OR-AUTH-REP (Authorization to Represent) and OR-AUTH-INFO (Authorization to Receive Tax Information), replaced the Tax Information Authorization and Power of Attorney for Representation Form, also known as the POA form.

The old POA form is no longer accepted as of today, January 2, 2025, and is permanently discontinued.

The new forms respond to taxpayer concerns and create a clearer and easier experience for taxpayers who may need to have representation or have other parties receive their confidential taxpayer information.

DOR’s webpage provides additional resources for taxpayers that may need to use either form. DOR also has published three videos highlighting the changes found on the new forms.

• Learn about DOR’s new authorization forms
• Learn more about OR-AUTH-REP (Authorization to Represent)
• Learn more about OR-AUTH-INFO (Authorization to Receive Tax Information)

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email at prac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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Agricultural Employer Overtime Tax Credit application period opens January 1, 2025

Starting January 1, 2025, the Oregon Department of Revenue (DOR) will begin accepting applications for the Agricultural Employer Overtime Tax Credit. The application period will run through January 31, 2025.

All applicants will need to have an account with Revenue Online to apply electronically.

No paper applications will be accepted.

See our video for a demonstration of how to file an application through Revenue Online. Those without a Revenue Online account can visit our how-to video to get started.

The DOR’s webpage provides program information and frequently asked questions to help employers apply for the tax credit.

For general questions about the Agricultural Employer Overtime Tax Credit, email: Ag.Overtime@dor.oregon.gov.

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email at prac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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Agricultural Employer Overtime Tax Credit filing period approaches on January 1, 2025

The Oregon Department of Revenue (DOR) will begin accepting applications in January 2025 for the Agricultural Employer Overtime Tax Credit.

Eligible taxpayers who plan to file must have a Revenue Online account prior to filling out an application with access to their Personal, Partnership, Corporation, or Fiduciary account. All applications must be filed electronically and will be available by January 1, 2025. DOR will not accept paper applications. The application filing window closes January 31, 2025.

Oregon law requires agricultural employers to pay certain workers for overtime hours worked and provides for a refundable personal or corporate income tax credit for employers for a percentage of wages paid as overtime pay.

Information for the tax credit program for the approaching filing period is available on DOR’s webpage. Please check the frequently asked questions section for our latest updates for the upcoming filing period.

The department provides a YouTube video about how to set up and log in to your Revenue Online account.

For general questions about the employer tax credit for agricultural worker overtime, email: Ag.Overtime@dor.oregon.gov.

Tax practitioners with other tax or customer account questions are encouraged to contact a DOR dedicated practitioner specialist by email at prac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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Department of Revenue releases new authorization forms for taxpayers

The Oregon Department of Revenue (DOR) has updated its authorization forms and instructions for taxpayers who require other parties to receive and handle their confidential tax information or to act and make decisions on their behalf with the agency.

The new forms, OR-AUTH-REP (Authorization to Represent) and OR-AUTH-INFO (Authorization to Receive Tax Information), will replace the current Tax Information Authorization and Power of Attorney for Representation Form, also known as the POA form.

The two new forms can be used effective today, November 1, 2024. The current POA form will still be accepted until January 1, 2025, when it will be permanently discontinued.

The two new forms respond to concerns taxpayers shared with DOR about what form to use when seeking representation or information.

DOR worked with the public and tax professionals to create a clearer and easier experience for taxpayers who may need to have representation or have other parties receive their confidential taxpayer information.

DOR’s webpage provides additional resources for taxpayers that may need to use either form. DOR also has published three videos highlighting the changes found on the new forms.

• Learn about DOR’s new authorization forms
• Learn more about OR-AUTH-REP (Authorization to Represent)
• Learn more about OR-AUTH-INFO (Authorization to Receive Tax Information)

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email at prac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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October 15 Pass-Through Entity Elective Tax deadline approaching

The Department of Revenue (DOR) is providing reminders to taxpayers and tax professionals for the Pass-Through Entity Elective (PTE-E) Tax program as the October 15, 2024 tax filing extension deadline approaches.

Please make sure that Form OR-21 Oregon Pass-Through Entity Elective Tax Return has been filed for each entity to ensure timely processing of individual returns. Returns filed after the October 15, 2024 due date will not be accepted.

If no PTE-E return will be filed because there is no distributive income, request a refund of payments made on Revenue Online.To request a refund of the taxes paid on PTE-E accounts, login to the correct Revenue Online account. Next to the PTE elective account is a blue hyperlink for “Request a Refund.” Click on that link and follow the prompts.

Questions? Contact the department at: BusinessAlternative.IncomeTax@dor.oregon.gov.

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email atprac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

Opportunities for Feedback

Newsletter subscribers can help DOR improve service for Oregon taxpayers

As part of the Department of Revenue’s vision to create a clear and easy experience for our customers, we are creating a new process for input and feedback from the public about our processes, outreach, and taxpayer communications.

You can now subscribe to our new Opportunities for Feedback email list. Subscribers to the list will be provided with opportunities to tell us what they think about things like how easy or difficult it is to use our website, Revenue Online, and the effectiveness of our public outreach efforts.

Subscribers to the list will be sent sample communications and asked to help us improve them; surveys about our customer service; and other requests for input and suggestions on our direct connection with taxpayers.

First up: In the coming weeks we’re going to ask for input from you, our customers, about our letters to taxpayers. Are they easy to read? Simple to understand? What can we do better to make sure taxpayers understand why they are receiving a letter and what they need to do in response?

We hope you will take the first step toward improving DOR’s customer experience by signing up for the Opportunities for Feedback email list.

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Filing extension deadline approaching

The Oregon Department of Revenue wants to provide important information to taxpayers and tax professionals who still have personal income tax returns to file before the October 15 extension deadline.

Be prepared. Use Revenue Online.

• Tax professionals are urged plan ahead and make sure that clients (and themselves) have access to Revenue Online. Taking care of any password resets ahead of the deadline will make for a smoother filing and payment experience.
• Use Revenue Online to verify your clients’ estimated payment balances before you file.

Don’t wait until the last minute.

• Revenue officials expect a large number of returns on the due date. Filing even a week earlier can make a big difference in how long it takes to process a return.
• Phone lines are expected to be busy on both Monday, October 14, and Tuesday, October 15. Seeking assistance earlier can ease the anxiety and stress of filing in the final hours.

Electronic filing and payment are best.

• E-filed returns and payments take less time to process. On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund sooner than those who file paper returns and request paper refund checks.

Pass-Through Entity Elective (PTE-E) Tax

• PTE-E returns must be filed electronically by October 15 in order to allocate credits to partners and shareholders.

Oregon recognizes federal income tax filing extensions, but the department reminds taxpayers and professionals alike that an extension to file is not an extension to pay. Anyone who has not filed and has tax to pay should file and pay as soon as possible to avoid additional penalties and interest.

Even for taxpayers who are due a refund, it’s still a good idea to file a late return as soon as possible. Filing can also help taxpayers recoup any money due back from refundable tax credits like the Oregon Kids Credit and other credits for low- to moderate-income families.

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email atprac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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Early PTE-E Tax filers may have incorrect interest on underpayment

The Department of Revenue has identified an error in the calculation of underpayment of estimated tax (UND) for certain Pass-through Entity Elective Tax (PTE-E) filers. Filers whose prior year tax liability is less than 90 percent of the current year tax liability were charged UND based on the higher current year amount in error.

As a reminder, estimated payments are required when PTE-E tax is $1,000 or more unless you meet an exception. The required annual payment is the lesser of 90 percent of tax after credits shown on your 2023 PTE-E return or 100 percent of the tax after credits shown on your 2022 PTE-E return (also known as “safe harbor”). UND is charged for each installment period when estimated tax is underpaid or paid late.

While the department works to resolve our system issue, if you receive a notice of adjustment and believe you were charged UND in error, submit an appeal on Revenue Online. To submit an appeal, login to your Revenue Online account and select the “Submit an appeal or waiver” link and follow the instructions. You will need the letter ID and notice type from the adjustment notice that you are appealing.

You can find more information about PTE-E tax on our website.

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Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email at prac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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Agricultural Employer Overtime Tax Credit deadline approaching on January 31

Employers eligible to apply for the Agricultural Employer Overtime Tax Credit have until January 31, 2024 to submit their applications. Agricultural employers who may qualify will need a Revenue Online account to apply.

Applications can only be filed electronically. No paper applications will be accepted.

See our video for a demonstration of how to file an application through Revenue Online. For those who don’t have a Revenue Online account, please see our how-to video to get started.

Visit the Department of Revenue’s webpage for program information and frequently asked questions (FAQs) to help employers apply for the tax credit.

The Oregon Legislature approved House Bill (HB) 4002 in 2022. The measure requires agricultural employers to pay certain workers for overtime hours worked and creates a refundable personal or corporate income tax credit for employers based on a percentage of wages paid as overtime pay, starting with the 2023 tax year.

For general questions about the Agricultural Employer Overtime Tax Credit, email: Ag.Overtime@dor.oregon.gov.

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email atprac.revenue@dor.oregon.gov, or by phone at 503-947-3541.

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OAR amendment provides guidance

The Department of Revenue has filed a temporary amendment to Oregon Administrative Rule (OAR) 150-316-0084, effective immediately. This rule provides guidance for computing the credit for income taxes paid to another state.

The department has amended the definition of “net tax” in OAR 150-316-0084(2)(f) to clarify that the Oregon surplus credit (“kicker”) is not included in “all other credits” for the purpose of this computation.

The department will start a permanent rulemaking process for this change within the next few months.

Publication OR-17 has also been updated to reflect this change.

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email atprac.revenue@dor.oregon.gov, or by phone at 503-947-3541.