ORS 315.653
Forfeiture of prior tax relief
- disallowed withdrawal or distribution
(1)
As provided in subsection (2) of this section, prior tax relief afforded a taxpayer by virtue of the credit allowed under ORS 315.650 (Higher education savings account or ABLE account contributions) shall be forfeited if any of the following are taken:(a)
A nonqualified withdrawal from an account, as defined in ORS 178.300 (Definitions for ORS 178.300 to 178.360);(b)
A withdrawal from a savings network account for higher education established under ORS 178.300 (Definitions for ORS 178.300 to 178.360) to 178.360 (Consideration of amounts in accounts for higher education expenses in benefit eligibility determinations) to pay expenses in connection with enrollment or attendance at an elementary or secondary school; or(c)
A distribution from an ABLE account that is not a qualified disability expense of the designated beneficiary as provided in ORS 178.375 (Definitions for ORS 178.375, 178.380 and 178.385) and 178.380 (Establishment of qualified ABLE program) and rules adopted by the Oregon 529 Savings Board.(2)
A taxpayer shall report the amount of a disallowed withdrawal or distribution in the tax year in which it is taken, and shall remit the taxes due as a result of the forfeited credit. The Department of Revenue shall by rule determine the calculation of forfeited credit amounts.(3)
If a taxpayer does not report a disallowed withdrawal or distribution in the tax year that it is taken, and notwithstanding ORS 314.410 (Time limit for notice of deficiency), the department shall proceed to collect those taxes, including penalties and interest, not paid by the taxpayer as a result of the tax credit allowed the taxpayer. [2019 c.579 §3]
Source:
Section 315.653 — Forfeiture of prior tax relief; disallowed withdrawal or distribution, https://www.oregonlegislature.gov/bills_laws/ors/ors315.html.
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