Administration of Revenue and Tax Laws

ORS 305.270
Refund of excess tax paid

  • claim procedure


(1)

If the amount of the tax shown as due on a report or return originally filed with the Department of Revenue with respect to a tax imposed under ORS chapter 118, 308, 308A, 310, 314, 316, 317, 318 or 321, or collected pursuant to ORS 305.620 (Collection and distribution of local taxes on income and sales), or as corrected by the department, is less than the amount theretofore paid, or if a person files a claim for refund of any tax paid to the department under such laws within the period specified in subsection (2) of this section, any excess tax paid shall be refunded by the department with interest as provided in this section and ORS 314.415 (Refunds).

(2)

The claim shall be made on a form prescribed by the department, except that an amended report or return showing a refund due and filed within the time allowed by this subsection for the filing of a claim for refund, shall constitute a claim for refund. The claim shall be filed within the period specified in ORS 314.415 (Refunds) (2) for taxes imposed under ORS chapters 310, 314, 316, 317 and 318, or collected pursuant to ORS 305.620 (Collection and distribution of local taxes on income and sales) (except where any applicable ordinance specifies another period), within the period specified in ORS 118.100 (Time for filing return and paying tax) (2) for taxes imposed under ORS chapter 118 and within two years of the payment of any tax under ORS chapter 308, 308A or 321.

(3)

Upon receipt of a claim for refund, or original report or return claiming a refund, the department shall either refund the amount requested or send to the claimant a notice of any proposed adjustment to the refund claim, stating the basis upon which the adjustment is made. A proposed adjustment may either increase or decrease the amount of the refund claim or result in the finding of a deficiency. If the proposed adjustment results in a determination by the department that some amount is refundable, the department may send the claimant the adjusted amount with the notice.

(4)

(a) The notice of proposed adjustment shall be accompanied by a statement explaining the claimant’s right to make written objections to the refund adjustment, the claimant’s right to request a conference and the procedure for requesting a conference. The statement, and an accompanying form, shall also explain that conference determinations are routinely transmitted via regular mail and that a claimant desiring to have conference determinations transmitted by certified mail may do so by indicating on the form the claimant’s preference for certified mail and by returning the form with the claimant’s written objections as described in paragraph (b) of this subsection.

(b)

The claimant may, within 30 days of the date of the notice of proposed adjustment, advise the department in writing of objections to the refund adjustment and may request a conference with the department, which shall be held within one year of the date of the notice. The department shall notify the claimant of a time and place for the conference, and appoint a conference officer to meet with the claimant for an informal discussion of the claim. After the conference, the conference officer shall send a determination of the matter to the claimant. The determination letter shall be sent by regular mail, or by certified mail if the claimant has indicated a preference for transmission of the determination by certified mail. The department shall issue either a notice of refund denial or payment of any amount found to be refundable, together with any applicable interest provided by this section. If the conference officer determines that a deficiency exists, the department shall issue a notice of assessment.

(5)

If no conference is requested, and the adjustments have not resulted in the finding of a deficiency, the following shall apply:

(a)

If written objections have been made by the claimant, the department shall consider the objections, determine any issues raised and send the claimant a notice of refund denial or payment of any amount found to be refundable, together with any interest provided by this section.

(b)

If no written objections are made, the notice of any proposed adjustment shall be final after the period for requesting a conference or filing written objections has expired.

(6)

If no conference is requested, and the notice of proposed adjustment has asserted a deficiency, the department shall consider any objections made by the person denied the refund, make a determination of any issues raised, pay any refunds found due, with applicable interest, or assess any deficiency and mail a notice thereof within one year from the date of the notice of deficiency, unless an extension of time is agreed upon as described in subsection (7) of this section.

(7)

If, prior to the expiration of any period of time prescribed in subsection (6) of this section for giving of notice of assessment, the department and the person consent in writing to the deficiency being assessed after the expiration of such prescribed period, such deficiency may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period agreed upon.

(8)

If the department refunds the amount requested as provided in subsection (3) of this section, without examination or audit of the refund claim, the department shall give notice of this to the claimant at the time of making the refund. Thereafter, the department shall have one year in which to examine or audit the refund claim, and send the notice of proposed adjustment provided for in subsection (3) of this section, in addition to any time permitted in ORS 314.410 (Time limit for notice of deficiency) or 314.415 (Refunds).

(9)

The failure to hold a requested conference within the one-year period prescribed in subsection (4) of this section shall not invalidate any assessment of deficiency made within the one-year period pursuant to subsection (8) of this section or within any extension of time made pursuant to subsection (7) of this section, but shall invalidate any assessment of interest or penalties attributable to the deficiency. After an assessment has been made, the department and the person assessed may still hold a conference within 90 days from the date of assessment. If a conference is held, the 90-day period under ORS 305.280 (Time for filing appeals) (2) shall run from the date of the conference officer’s written determination of the issues.

(10)

The claimant may appeal any notice of proposed adjustment, refund denial or notice of assessment in the manner provided in ORS 305.404 (Oregon Tax Court) to 305.560 (Appeals procedure generally). The failure to file written objections or to request or have a conference shall not affect the rights of appeal so provided. All notices and determinations shall set forth rights of appeal. [1977 c.870 §4; 1979 c.691 §1; 1985 c.61 §1; 1985 c.266 §5; 1987 c.512 §3; 1989 c.626 §2; 1991 c.67 §75; 1995 c.650 §28; 1997 c.99 §§29,30; 1999 c.224 §2; 1999 c.314 §89; 2005 c.48 §2]

Notes of Decisions

Provision for notice of proposed adjustment and tendering taxpayer an opportunity to be heard prior to reducing taxpayer's claim for refund is mandatory and Department of Revenue's failure to provide notice and hearing prior to making adjustments in refund claim denied plaintiffs' procedural due process in violation of Fourteenth Amendment to United States Constitution. Kent v. Dept. of Revenue, 9 OTR 356 (1983)

Refund provisions of this section are limited to taxes "shown on a report or return filed by the person with the department" and do not act to extend period of time in which taxpayer may contest assessment. Estate of Frances Tate v. Dept. of Rev., 10 OTR 343 (1987)

Requirement that notices and determinations set forth rights of appeal does not apply to notices issued by county assessor. Ecumenical Ministries v. Dept. of Rev., 12 OTR 302 (1992), aff'd317 Or 576, 858 P2d 449 (1993)

Refund provisions do not apply to supplement special refund provisions applicable to invalidly assessed taxes under ORS 305.765. Atkins v. Dept. of Rev., 320 Or 713, 894 P2d 449 (1995)

Issuance of notice of deficiency pursuant to ORS 305.265 satisfies requirement to send claimant notice of proposed adjustment. Simson v. Dept. of Revenue, 15 OTR 89 (2000)

Date of successful garnishment by Department of Revenue is date of payment of tax for purposes of commencing period within which claim must be filed. Patton v. Dept. of Revenue, 18 OTR 111 (2004)

Except with regard to paid income taxes, appeal from Department of Revenue action and procedure for seeking refund are independent and mutually exclusive remedies. Patton v. Dept. of Revenue, 18 OTR 111 (2004)

Chapter 305

Notes of Decisions

Policy of efficient and effective tax collection makes doctrine of estoppel against government in tax cases one of rare application. Pacific Conference v. Dept. of Rev., 7 OTR 429 (1978)

Law Review Citations

9 WLJ 193-260 (1973); 48 WLR 147 (2011)


Source

Last accessed
Jun. 26, 2021