State & Local Tax Impacts of COVID-19 for Oregon – 2020

Thoughtware Alert Published: Dec 11, 2020 | Updated: May 05, 2021
SALT GOV COVID TW - 1

Information current as of December 31, 2020.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to Oregon

  • The DOR won’t assess underpayment penalties on taxpayers making a good faith effort to estimate their first-quarter corporate activity tax payments due April 30.
    • DOR Notice, March 13, 2020.
  • The due dates for February monthly fuel tax reports are extended by two weeks; monthly use fuel user and seller reports are due April 3, and motor vehicle fuel dealer, bulk distributor, and terminal operator reports are due April 8.
    • Oregon Governor’s Office Notice, March 23, 2020.
  • Oregon officially announced an extension for Oregon income tax filing and payment deadlines. For personal income tax, transit self-employment tax, and fiduciary taxpayers the return and payment due date for tax year 2019 is automatically extended from April 15, 2020, to July 15, 2020. For corporate (excise) income taxpayers the return and payment due date for tax year 2019 is automatically extended from May 15, 2020, until July 15, 2020. Estimated tax payments for tax year 2020 are not extended.
    • Oregon DOR Revenews, March 25, 2020; and Revenue Director Order 2020-01, March 24, 2020.
  • Oregon issued an order expanding tax filing and payment relief due to COVID-19. The measures: 1) extend individual income, corporate income, and trust income tax filing deadlines until July 15 for returns that are due on or after April 1 and before July 15 for personal income, transit self-employment, estate, partnership, S corporation, and corporate excise taxpayers; 2) extend to 14 months the period within which the DOR may issue notices such as a Notice of Assessment; 3) extend the deadline to July 15 to file a claim for refund that would otherwise expire on or after April 1 and before July 15; 4) extend the deadline to June 15 for filing an application for property tax deferral for tax year 2020–2021; and 5) provide that interest and penalties will begin to accrue on July 16.
    • Oregon Revenue Director’s Order 2020–02, April 20, 2020, but applies retroactively to March 8, 2020.
  • Oregon has increased the filing threshold for corporate activity tax estimated payments to $10,000 (formerly $5,000) of current-year tax liability. Penalties won’t be assessed for underestimated quarterly payments or for not making a quarterly payment if businesses don’t have the financial ability to make the estimated payment.
    • Oregon DOR Notice, April 29, 2020.
    • Oregon Administrative Rule 150-317-1300, proposed April 27, 2020.
  • Oregon has determined that forgiven PPP loans, EIDL advances, and Small Business Administration (SBA) loan subsidies under the CARES Act aren’t commercial activity and won’t be subject to the corporate activity tax.
    • Oregon DOR Notice, May 6, 2020.
  • Oregon amended its regulation relating to the penalty for dishonored checks, authorizing the department to not impose, or waive an already imposed, NSF penalty for a dishonored payment that occurs during the state of emergency related to COVID-19 and 90 days after the emergency is lifted.
    • Oregon Admin. Reg. §150-305-0160, effective May 21, 2020, through November 16, 2020.
  • Oregon issued a temporary regulation on a penalty waiver for the underpayment of estimated corporate activity tax payments due to COVID-19 for excise tax purposes. The regulation establishes that no penalty will be assessed against taxpayers making a good faith effort to comply with estimated corporate activity tax payment deadlines for the current year and providing factors that the department will consider when determining the good faith effort.
    • Oregon Admin. Reg. §150-317-1500, effective June 5, 2020, through December 1, 2020.
  • Oregon has extended statutory time periods and time requirements during the COVID-19 state of emergency for certain appeals, cases, or proceedings and continuing for 60 days after the declaration of that state of emergency or until any extension is no longer in effect. This includes tax appeals.
    • Oregon Supreme Court Chief Justice Order No. 20-027, July 21, 2020.
  • Oregon revised guidance on various tax matters. Qualified sick leave wages and family leave wages 1) aren’t excluded from gross income as qualified disaster relief payments, 2) are taxable to Oregon employees, and 3) are subject to Oregon withholding and statewide transit tax by employers. The additional $600 a week unemployment compensation offered under the CARES Act will be taxed by Oregon. Lastly, the DOR will begin paying interest on refund returns 45 days from the July 15 extended due date or later, depending on specific tax programs.
    • Oregon DOR Revenue Director’s Order FAQ, July 27, 2020.
  • Oregon has clarified, for corporate excise (income) tax purposes, the presence of teleworking employees in Oregon between March 8, 2020, and November 1, 2020, won’t be treated as a relevant factor when making a nexus determination if the employee(s) in question is regularly based outside Oregon.
    • Oregon DOR Website Notice, July 28, 2020.
  • Oregon amended its regulation relating to the penalty for dishonored checks, authorizing the department to not impose, or waive an already imposed, NSF penalty for a dishonored payment that occurs during the state of emergency related to COVID-19 and 90 days after the emergency is lifted. This extends the prior amendment, which expired November 16, 2020.
    • Oregon Admin. Reg. §150-305-0160, effective November 17, 2020.
  • Oregon has clarified, for corporate excise (income) tax purposes, the presence of teleworking employees in Oregon between March 8, 2020, and December 31, 2020, won’t be treated as a relevant factor when making a nexus determination if the employee(s) in question is regularly based outside Oregon. This is a further extension of the prior notice on July 28, 2020.
    • Oregon DOR Website Notice, November 23, 2020.
  • Oregon is providing interest waiver relief to COVID-19-affected corporate income taxpayers who have gross receipts of less than $5 million; owe tax year 2019 income tax because of financial hardship related to the COVID-19 pandemic emergency; and have entered into a DOR-approved payment plan or pay the balance of the tax liability in full within six months of the date of assessment of the tax.
    • Oregon Admin. Reg. §150-305-0070, effective temporarily December 14, 2020, and generally expires June 11, 2021.
  • Oregon announced the following additional COVID-19 (and for wildfires) relief: 100 percent penalty waivers on 2019 income tax due from businesses affected by COVID-19; 100 percent interest waivers on 2019 income tax due from small businesses that are affected by COVID-19 and have less than $5 million in gross receipts; and continuing to provide extended payment plans of up to 36 months for any taxpayer affected by COVID-19 when entering into an approved payment plan.
    • Oregon DOR Notice, December 15, 2020.

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