Or. Admin. Code § 150-316-0450

Current through Register Vol. 63, No. 12, December 1, 2024

Section 150-316-0450 - Decedent's Estate: Request for a Final Tax Determination

(1) The representative of a decedent's estate has an affirmative duty to file any returns which the decedent failed to file or was unable to file (e.g., the return required for the part of the tax year prior to death, or returns required for previous tax years which weren't filed due to the final illness of the decedent) and to pay the indicated tax, penalties and interest, if any, from the funds of the estate. The state has no duty to watch for printed notices to creditors or to file a creditor's claim with the decedent's representative.

(2) The representative of a decedent's estate may make an election for a final tax determination of any returns required to be filed under chapter 316 during the period of estate administration from a decedent or a decedent's estate. The election must be in writing and may be made by filing Department of Revenue Form 150-101-151 "Election for Final Tax Determination." The election is applicable to:

(a) All individual income tax returns filed by the decedent for which the statute of limitations is open for adjustment at the time the election is filed;

(b) The decedent's final individual income tax return;

(c) Any individual income tax returns the representative of a decedent's estate is required to file on behalf of the decedent because the decedent failed to file the required returns prior to their death; and

(d) Any fiduciary income tax returns filed during the period of estate administration. The election must be filed with the return(s) for which the election is applicable.

(3) The Department of Revenue may give notice of deficiency as described in ORS 305.265 within 18 months after a written election for final tax determination is made by the representative of the decedent's estate. If the Department of Revenue fails to give notice of deficiency within the 18 month period, the statute of limitations for the returns covered by the election for final tax determination will expire, except as described in paragraph (4). The Department of Revenue has no affirmative duty to respond to the election for final tax determination in any way other than the giving of notice of deficiency within 18 months.

(4) The limitations to the giving of a notice of deficiency provided in this section shall not apply in the following circumstances:

(a) If the department finds that gross income equal to 25 percent or more of the gross income reported has been omitted from the taxpayer's return, notice of deficiency may be given at any time within five years after the return was filed;

(b) If the department finds that false or fraudulent returns were filed, or that no returns were filed but returns were required to be filed, notice of deficiency, or notice of assessment in the case of failure to file, may be given at any time after the department makes that finding;

(c) If the Commissioner of Internal Revenue makes a correction resulting in a change of the decedent's or the estate of the decedent's tax, then notice of deficiency may be given within one year after the department is notified of such federal correction, or within the applicable 18-month or five-year period, whichever period expires later.

(5) The representative of a decedent's estate may choose to close the estate administration at the earliest date practicable, even though the period for giving notice of deficiency has not expired. If the department then gives notice of deficiency, the transferees of the money or property of the estate shall be liable for the tax, penalties and interest imposed against the decedent or the decedent's estate.

Or. Admin. Code § 150-316-0450

1-69; 12-70; 11-73; 12-19-75; RD 3-1987(Temp), f. & cert. ef. 4-3-87; RD 8-1987, f. & cert. ef. 6-5-87; RD 7-1989, f. 12-18-89, cert. ef. 12-31-89; RD 9-1992, f. 12-29-92, cert. ef. 12-31-92; RD 3-1995, f. 12-29-95, cert. ef. 12-31-95; Renumbered from 150-316.387(1), REV 65-2016, f. 8-15-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 316.387