Current through Register Vol. 63, No. 9, September 1, 2024
(1)
Definition. As used in this rule:
(a)
"Information return," as used in ORS
314.360(4) and
sections (7) and (8) of this rule, means a federal form W-2 or 1099.
(b) "Payer" means any person required to
issue a 1099-MISC, 1099-G, 1099-R, W-2G, 1099-K, or a 1099-NEC.
(2) In general, taxpayers are
required to file information returns as described in ORS
314.360 except as provided in
this rule.
(3) Any person that
issues one or more information returns, where the recipient, winner, or the
payer has an Oregon address, is required to file the information returns
electronically with the department by the federal due dates. For purposes of
this rule, information returns required to be filed electronically include:
(a) 1099-MISC Miscellaneous Income;
(b) 1099-G Certain Government
Payments;
(c) 1099-R Distributions
from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
etc.;
(d) W-2G Certain Gambling
Winnings;
(e) 1099-K Payment Card
and Third-Party Network Transactions;
(f) 1099-NEC Non-Employee
Compensation.
(4) For
information regarding the reporting requirements of salaries and wages, see ORS
316.202 and related
rules.
(5) The department may grant
an exception to this filing requirement in section (3) upon a showing of undue
hardship. Undue hardship is based on the facts and circumstances specific to
each payer and determined on a case-by-case basis.
(6) For persons issuing fewer than 11
information returns:
(a) The requirement to
file electronically begins with tax year 2017 forms due in 2018; and
(b) For information returns due before
January 1, 2018, the department may require the filing of the return(s) as it
deems necessary. If requested under this section, an information return that is
due before January 1, 2018 must be provided within 30 days of the date of the
department's written request to be considered timely under ORS
305.217.
(7) Penalties. The department will assess
penalties, as described in ORS
314.360(4), if
a payer fails to file an information return with the department by the due date
as required under subsections (3)(a) through (3)(d) of this rule or files an
incorrect or incomplete information return. Penalties will be assessed if a
payer fails to file an information return or files an incorrect or incomplete
information return under subsections (3)(e) and (3)(f) of this rule beginning
in tax year 2021 forms due in 2022.
(a) An
information return is incorrect or incomplete if one or more of the following
circumstances exist:
(A) Identifying employee
information is missing from the information return, such as first or last name
or social security number.
(B) The
information return contains an incorrect statement of state income tax
withheld, federal income, or state income amounts. Obvious math or clerical
errors are not considered an incorrect statement for this purpose.
(C) Other information is incorrect or missing
on the information return.
(b) A payer knowingly fails to file an
information return by the due date if:
(A) The
information return was not received by the department on or before the due date
of the corresponding federal return for the tax year under
consideration;
(B) The payer has
been assessed the penalty under ORS
314.360(4)(a)
for one or more filing periods preceding the period at issue; and
(C) The payer fails to file the information
return upon written request to file the information return by the department;
or
(D) The department determines
that the facts and circumstances in the particular case warrant penalty
assessment.
(c) A payer
knowingly files an incomplete, false or misleading information return if one or
more of the following occur:
(A) A pattern of
conduct exists by the payer of repeatedly filing incorrect information
returns;
(B) The payer failed to
correct the information return upon discovering incorrect
information;
(C) The payer
corrected the information return only upon written request to correct the
information return by the department;
(D) The amount of the potential information
return penalty is less than the cost of complying with the requirement to
include correct information on the information return;
(E) The department determines that the facts
and circumstances in the particular case warrant penalty assessment.
(d) A penalty may be assessed
under ORS 314.360(4)(b)
even though a prior penalty assessed under ORS
314.360(4)(a)
was waived under OAR 150-305-0062.
(e) Payers issuing fewer than 11 information
returns will not be assessed penalties imposed by this section for failing to
file information returns due before January 1, 2018.
(8) If the payer fails to produce
documentation to support the information return, as requested by the
department, the department will use the best information available to determine
the appropriate penalty assessment amount.
Statutory/Other Authority: ORS
305.100 &
314.360
Statutes/Other Implemented: ORS
314.360
