Or. Admin. Code § 150-316-0487

Current through Register Vol. 63, No. 11, November 1, 2024

Section 150-316-0487 - Estimated Tax: Underpayment Interest Not Imposed if There is a Casualty, Disaster or Other Unusual Circumstances

(1) No interest for underpayment of estimated tax will be imposed on any portion of the underpayment that is caused by reason of casualty, disaster or other unusual circumstances where it would be against equity and good conscience to impose interest. The determination of whether unusual circumstances exist is made on a case-by-case basis, taking into account all pertinent facts and circumstances. The most important factor is the extent of the effort required by the taxpayer to comply with the law and make the required installments.

(2) The following are examples of situations that will be accepted by the department as unusual circumstances for not imposing interest.

(a) Where the failure to make the necessary estimated tax payment was caused by death or serious illness of the taxpayer, or death or serious illness in the taxpayer's immediate family.

(b) Where the taxpayer's books and records are destroyed by fire, flood or other natural disaster and therefore, the taxpayer is unable to determine the correct estimated tax payment.

(c) Where the disaster is so overwhelming that the taxpayer neglects to make the necessary estimated tax payment.

(d) Where the failure to make the necessary estimated tax payment was caused by the unavoidable and unforeseen absence of the taxpayer from the state immediately prior to the due date of the estimated tax payment.

(3) Example: Sharon filed her 2003 Oregon income tax return and had tax to pay of $2,500. Interest on underpayment of estimated tax was imposed. Sharon's house was destroyed by fire on August 5, 2003 and all of her tax records were destroyed. The department will not impose the interest on underpayment of estimated tax for the third and fourth installment periods due to the casualty.

Or. Admin. Code § 150-316-0487

RD 7-1991, f. 12-30-91, cert. ef. 12-31-91; REV 11-2004, f. 12-29-04, cert. ef. 12-31-04; Renumbered from 150-316.587(5)(b), REV 65-2016, f. 8-15-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 316.587