Or. Admin. R. 150-308-0040

Current through Register Vol. 63, No. 6, June 1, 2024

Section 150-308-0040 - Standards for Imposition, Waiver, and Reduction of Penalty on Utilities and Designated Companies Assessed by the Department. Imposition of Penalty for Failure to File a Timely or Complete Return

(1) The department may impose a penalty under ORS 308.030 whenever an annual statement is not filed within the time fixed for filing an annual statement or by the approved extension date, or an incomplete annual statement is filed.

(a) The annual statement packets that are mailed to the taxpayer contain cover letters which specify the information that the taxpayer must include in the annual statement the taxpayer submits to the department. If a taxpayer submits an incomplete annual statement, the department will return it to the taxpayer with a notice stating the information that is required for the annual statement to be considered complete. A complete annual statement must be refiled within 14 days from the date on the notice of the incomplete filing.

(b) The taxpayer may be subject to a late-filing penalty under ORS 308.030 if the complete annual statement is not filed by the later of the original due date, the approved extension date, or 14 days from the date on the notice of the incomplete filing. Taxpayer Request for Waiver or Reduction

(2) Taxpayers who object to a late-filing penalty imposed under ORS 308.030 for late filing of an annual statement may request that the penalty be waived or reduced. The director of the department will consider all requests to waive or reduce late-filing penalties imposed under ORS 308.030 consistent with this rule.

(3) The request for waiver or reduction of a late-filing penalty must be in writing and must be signed by the taxpayer, an officer of the taxpayer, or an authorized representative of the taxpayer.

(4) The taxpayer may file a request for waiver or reduction of the late-filing penalty at any time after the taxpayer is subject to the late-filing penalty, but must be received by the department no later than July 31, of the year in which the director reviews the assessment roll for the year of delinquency.

(5) The request for waiver or reduction of a late-filing penalty must contain all the facts showing that one or more of the following factors for waiver or reduction of the late-filing penalty apply:

(a) The actions of the taxpayer resulted in the imposition of a penalty which constituted a first-time offense on the part of the taxpayer.

(b) Good and sufficient cause, as defined in ORS 305.288(5)(b), exists for a taxpayer's failure to file the annual statement required by law within the time fixed for filing or the approved extension date.

(6) Examples of situations the director may accept as good and sufficient cause for the late filing of an annual statement include:

(a) The delay was caused by the death or serious illness of the person who is solely responsible for filing the annual statement, or death or serious illness in that person's immediate family.

(b) The delay was caused by the unavoidable and unforeseen absence of the person who is solely responsible for filing the annual statement prior to the due date of the annual statement.

(c) The delay occurred because the taxpayer did not receive the annual statement packet mailed by the department to the taxpayer's last-known address, which was not the taxpayer's current address. The annual statement packet was returned to the department, remailed to a new address, and the taxpayer responded within the extended filing time.

(d) The delay was caused by the destruction by fire, natural disaster or other casualty of the taxpayer's records needed to prepare the annual statement.

(7) Examples of situations the director may not accept as good and sufficient cause for the late filing of the annual statement include:

(a) The delay was due to the taxpayer's reliance upon an individual (e.g., an accountant) to prepare the annual statement on time. The taxpayer has an affirmative duty to file timely.

(b) The delay was the result of personnel changes within the taxpayer's organization.

(c) For private railroad companies, the delay was the result of railroads not providing necessary mileage reports prior to the filing deadline or the approved extension date.

(8) The director will use the following guidelines when considering a request to waive or reduce a late-filing penalty.

(a) Non-filers No waiver of late-filing penalty.

(b) Filing delinquency 1-5 days: 6-30 days: Over 30 days.

(A) First time offense for late-filing: Waive: Waive: Waive.

(B) Good and sufficient cause established: Waive: Reduce 75%: No Waiver

(c) Promote long-term effectiveness and efficiency

(A) First delinquency in rolling three years: Waive: Reduce 75%: No Waiver

(B) Second delinquency in rolling three years Reduce 75%: Reduce 50%: No Waiver

(C) Third delinquency in rolling three years: No Waiver: No Waiver: No Waiver

(d) Days late are calculated from the later of the original due date or the approved extension date. If no delinquency has occurred within the preceding three years, any request for waiver or reduction may be considered the same as a "first delinquency in rolling three years." If a taxpayer has been subject to a late-filing penalty at any time within the preceding three years, a second delinquency will be considered a "second delinquency in rolling three years," even if a delinquency did not occur in the intervening year.

Or. Admin. R. 150-308-0040

REV 2-2005, f. 6-27-05, cert. ef 6-30-05; Renumbered from 150-308.030, REV 58-2016, f. 8-13-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100,. 308.030

Stats. Implemented: ORS 308.030