OAR 150-305-0066
Discretionary Waiver of Interest

(1)

General Policy. The department does not generally waive interest because interest represents a charge for the use of money.

(2)

Interest may be waived for good and sufficient cause upon request of the taxpayer as required in OAR 150-305-0068 (Discretionary Penalty Waivers) section (4).

(a)

The department will waive interest charges if the department determines the taxpayer did not have the use of the money on which the interest is charged.
Example 1: Sue mailed her Oregon tax payment to the Internal Revenue Service (IRS) by mistake. The IRS cashed the check and six months later sent the money back to Sue as an overpayment. Two months later, Sue mailed payment to the department. The department will waive interest for the six-month period that Sue did not have use of the money.

(b)

The department will waive interest imposed for failure to pay state tax on or before the due date if the taxpayer:

(A)

Files an Oregon tax return on or before the due date of the return, excluding extensions;

(B)

Submits the Oregon tax return in the same transmission as a federal tax return, using a department-approved alternative to filing a paper return;

(C)

Pays any federal tax shown as due on the transmitted federal return on or before the due date using an electronic form of payment such as a credit card, debit card, or electronic funds transfer (ACH Debit);

(D)

Pays any tax shown as due on the Oregon return within 30 days of the date shown on the Notice of Assessment sent to the taxpayer;

(E)

Establishes to the department’s satisfaction that failure to pay Oregon tax was due to a good faith, mistaken belief of the taxpayer that the state tax had been paid; and

(F)

Has not received relief under this subsection before.

(c)

The waiver of interest provided by subsection (2)(b) of this rule applies only to interest otherwise imposed on unpaid tax and does not include interest imposed on the underpayment of estimated tax.

(3)

When interest will not be waived.

(a)

The department will not waive interest on a deficiency resulting from changes made to Oregon tax based on any adjustments reported by the Internal Revenue Service (IRS) or another state’s taxing authority, regardless of the time lapse between completion of the IRS or another state’s taxing authority adjustment and the completion of the Oregon audit report. ORS 314.380 (Furnishing copy of federal or other state return or report) and 314.410 (Time limit for notice of deficiency) require a taxpayer to report to the department a change in the taxpayer’s net income as defined under OAR 150-314-0160 (Report of Changes in Federal Taxable Income) resulting from an adjustment by the IRS or another taxing authority.

(b)

The department will not waive interest to the extent the taxpayer earned interest on the money from another taxing authority.
Example 2: Don mailed his Oregon tax payment with his Idaho return by mistake. Idaho cashed the check and three months later refunded the $1,000 plus $25 of interest. One month later, Don mailed his payment to Oregon and requested a waiver of Oregon’s interest charge of $35. The department will waive $10, which is the excess of interest charged over what Don received from Idaho.

(c)

The department will not waive interest on underpayment of tax when the taxpayer requests that a refund shown on a delinquent return be applied to a later tax year. ORS 316.583 (Effect of payment of estimated tax or installment) requires that a refund from a delinquent return that is applied to the next tax year is credited as an estimated payment as of the date the delinquent return was filed.
Example 3: Scott files his 2010 return on February 19, 2012 and requests that his tax year 2010 refund be applied to his tax year 2011 tentative tax. His 2010 tax return was due April 18, 2011. Because he filed his return late, the refund is credited as an estimated payment on February 19, 2012. The interest charged on the underpayment of 2011 estimated tax will not be waived because ORS 316.583 (Effect of payment of estimated tax or installment) requires that the payment be credited as of the date the delinquent return is filed.

Source: Rule 150-305-0066 — Discretionary Waiver of Interest, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-305-0066.

150–305–0010
Requirement for Social Security Numbers 150–305–0014
Applicable Dates 150–305–0016
Electronic Filing 150–305–0018
Acceptance of Cash Payments 150–305–0030
Declaratory Rulings 150–305–0040
Public Notification of Delinquent Taxpayers 150–305–0050
Release of Tax Lien and Clouds on Title 150–305–0052
Release of Lien 150–305–0060
How to Appeal When the Department Denies a Request for Waiver of Penalty or Interest 150–305–0062
Discretionary Penalty Waivers for Information Returns 150–305–0064
Accrual of Interest After Waiver 150–305–0066
Discretionary Waiver of Interest 150–305–0068
Discretionary Penalty Waivers 150–305–0070
Interest Waivers Due to COVID-19 Pandemic Emergency 150–305–0080
Closing Agreements 150–305–0085
Financial Institution Data Match 150–305–0090
Settlement Offer 150–305–0092
Suspended Collection Status 150–305–0094
Cancellation of Liabilities Discharged in Bankruptcy 150–305–0100
Subpoena Issued by the Department 150–305–0110
Disclosure of Confidential Information Provided to the Department of Revenue 150–305–0120
Implied Consent 150–305–0130
When Deduction for Amounts Paid as Wages or Remuneration Permitted 150–305–0140
Interest on Deficiencies and Delinquencies 150–305–0142
Interest on Refunds 150–305–0144
Interest Rate Formula Rule 150–305–0150
Defines Order for Purposes of Interest Rate Increase 150–305–0152
Interest Rate Increase — Jurisdictional Only Appeals 150–305–0160
Penalty for Dishonored Checks 150–305–0170
Representation of Taxpayers before the Department of Revenue 150–305–0180
Designation of Oregon Tax Matters Partner 150–305–0182
Binding Actions of the Tax Matters Partner 150–305–0190
Compromise of a Disputed Liability 150–305–0192
Appeals of Interest Charged on the Underpayment of Estimated Tax 150–305–0194
“Deficiency” Defined 150–305–0196
Notices of Deficiency and Assessment Mailed When Authorization to Represent Signed 150–305–0198
Reopening an Audit 150–305–0200
Adjustments Included in Deficiency Notice When Federal Audit Report Received 150–305–0202
Language Used to Request a Conference or File Written Objections 150–305–0204
Conferences: Purpose and Procedure 150–305–0206
Written Objections: Procedures 150–305–0208
Assessing Tax on Failure to File 150–305–0210
Last Known Address 150–305–0212
Interest on Deficiency 150–305–0214
Penalties 150–305–0216
Appeal from a Notice of Deficiency: Periods of Limitation 150–305–0218
Waiver of a Conference or Written Objection 150–305–0230
Claim for Refund 150–305–0232
Notices of Proposed Refund Adjustment Mailed When Authorization to Represent Signed 150–305–0234
Written Objections to a Proposed Refund Adjustment 150–305–0236
Date of Notice 150–305–0238
Audit Period for Refunds Issued without Examination 150–305–0240
Proposed Refund Adjustment 150–305–0260
Relief for Subsequent Tax Years 150–305–0270
Beneficial Ownership 150–305–0272
Cancellation of Doubtful Liabilities 150–305–0274
Refund of Penalty and Interest 150–305–0276
Appeal Time Frame 150–305–0290
Concurrent Appeals 150–305–0300
“Methods of Collection” Defined 150–305–0302
Contracts Requiring Certificate of Compliance with Oregon Tax Laws 150–305–0304
Certificate of Compliance With Oregon Tax Laws 150–305–0306
Circumstances Not in Violation of Oregon Tax Laws 150–305–0308
Annual Certification Requirement 150–305–0320
Mediation 150–305–0330
Appeal Procedures 150–305–0340
Stay of Collection: When Collection Action Won’t Be Stayed 150–305–0350
Offset of State Debt Through U.S. Treasury Offset Program 150–305–0360
Rules Application 150–305–0362
Appearance Procedure — Local Taxes Administered by the Department of Revenue 150–305–0370
Use of Checkoff Resources 150–305–0380
Application and Signature Due Dates 150–305–0390
Certification of Nonprofit Entities for Instruction Listing 150–305–0392
Definitions of the Terms “Affiliated and “Central Office” 150–305–0394
Signatures Must Be on Department’s Form 150–305–0396
Signature Gathering Period 150–305–0410
Charitable Checkoff Financial Reporting Requirements 150–305–0420
Costs of Administration 150–305–0430
Method of Distribution from Check-off Contributions and Reimbursement of Administrative Expenses 150–305–0450
Depositing Refunds into College Savings Account 150–305–0460
Verification of Returns, Statements, or Documents Filed Under Tax Law 150–305–0470
Date When Writing or Remittance Deemed Received by Department of Revenue 150–305–0480
Returns Not Filed for Three Consecutive Years
Last Updated

Jun. 8, 2021

Rule 150-305-0066’s source at or​.us