ORS 316.801
Addition for certain amounts withdrawn; penalty; exceptions


(1)

There shall be added to federal taxable income the amount of funds a taxpayer withdraws from a first-time home buyer savings account established under ORS 316.797 (First-time home buyer savings account), if:

(a)

Those funds were used for a purpose other than eligible costs;

(b)

In this tax year or a previous tax year, those funds were subtracted or exempted from federal taxable income under ORS 316.798 (Subtraction for contributions); and

(c)

Those funds were not deposited into another first-time home buyer savings account held by the taxpayer.

(2)

There shall be added to federal taxable income the amount of funds a taxpayer holds in a first-time home buyer savings account not expended on eligible costs by December 31 of the last year of the 10-year period described under ORS 316.798 (Subtraction for contributions) (3) if in a previous tax year those funds were subtracted or exempted from federal taxable income under ORS 316.798 (Subtraction for contributions).

(3)

The Department of Revenue shall assess a penalty against the taxpayer in the amount of five percent of the funds withdrawn from a taxpayer’s first-time home buyer savings account, if:

(a)

The withdrawal of funds occurs during the 10-year period set forth in ORS 316.798 (Subtraction for contributions) (3); and

(b)

The withdrawn funds are not used for eligible costs or deposited into another first-time home buyer savings account held by the taxpayer.

(4)

The penalty described in subsection (3) of this section does not apply to any funds withdrawn from a first-time home buyer savings account of:

(a)

A taxpayer who is deceased;

(b)

A taxpayer who has filed for protection under the United States Bankruptcy Code (11 U.S.C. 101 et seq.); or

(c)

A taxpayer whose loss of use or function of any portion of the body permanently incapacitates the taxpayer from regularly performing work at a gainful and suitable occupation. [2018 c.109 §7]
Chapter 316

Notes of Decisions

Unless the divorce decree specifically designates that payments are for child support, payments will be treated as alimony. Henderson v. Dept. of Rev., 5 OTR 153 (1972)

The goal of this chapter is to incorporate all of the provisions of the federal Internal Revenue Code; taxable income should be adjusted whenever the result of the adjustment is to give effect to the policies or principles of the federal Internal Revenue Code, even though no express authority for the adjustment is present in the statutes. Christian v. Dept. of Rev., 269 Or 469, 526 P2d 538 (1974); Smith v. Dept. of Rev., 270 Or 456, 528 P2d 73 (1974)

By its enactment of this chapter, the legislature intended to adopt §172 of the federal Internal Revenue Code allowing for the carryback and carryforward of net operating losses. Christian v. Dept. of Rev., 269 Or 469, 526 P2d 538 (1974)

Where plaintiff failed to appeal timely as required by this section, appeal rights were not preserved so that cause could be considered on merits. Dela Rosa v. Dept. of Rev., 11 OTR 201 (1989), aff’d 313 Or 284, 832 P2d 1228 (1992)

Where taxpayers paid foreign income taxes on foreign income and claimed foreign taxes paid as federal tax credit and as state business expense deduction, taxpayers who claim federal foreign tax credit are entitled only to foreign tax deduction provided in ORS 316.690. Whipple v. Dept. of Rev., 309 Or 422, 788 P2d 994 (1990)

For purposes of claim preclusion, all issues regarding taxpayer’s income tax liability for tax year constitute same claim. U.S. Bancorp v. Dept. of Revenue, 15 OTR 13 (1999)

Atty. Gen. Opinions

Political contributions as credit against Oregon tax return, (1974) Vol 37, p 159

Law Review Citations

57 OLR 309 (1978); 16 WLR 373 (1979)


Source
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May. 15, 2020