Oregon Administrative Rules
Chapter 150 - DEPARTMENT OF REVENUE
Division 315 - PERSONAL INCOME TAX CREDITS
Section 150-315-0125 - Working Family Household and Dependent Care Penalty

Universal Citation: OR Admin Rules 150-315-0125

Current through Register Vol. 63, No. 9, September 1, 2024

(1) Definitions. For the purposes of this rule and ORS 315.264, "knowingly" means the individual claimed, attempted to claim, or assisted someone else in claiming the credit for an ineligible amount, acting with awareness that the individual or other person was ineligible for all or a portion of the credit claimed, as demonstrated by the particular facts and circumstances, including, but not limited to, facts such as that the individual:

(a) Previously received the penalty imposition,

(b) Previously claimed, attempted to claim, or assisted someone else in claiming the credit for an ineligible amount, or

(c) Forged or altered documents or knew documents were forged or altered.

(2) When a subsequent penalty is imposed, the reason for the subsequent penalty does not need to be the same reason a prior penalty was imposed.

(3) The penalty may be imposed in the following amounts:

(a) For taxpayers knowingly claiming an ineligible credit amount:
(A) For the first offense, an amount equal to 10 percent of the amount of the credit claimed; and

(B) For any subsequent offense, an amount equal to 25 percent of the amount of the credit claimed.

(b) For individuals assisting taxpayers in making an ineligible claim, an amount equal to 25 percent of the credit claimed by the taxpayers.

Example 1: Jackie claimed a credit in the amount of $2,500. She knowingly claimed the credit for an ineligible amount. The department adjusted her credit down to $1,000. The department determines that Jackie meets the penalty requirements. Because this is Jackie's first offense, she will be charged a penalty in the amount of $250 (10 percent of the amount claimed).

(4) The penalty imposed is not eligible for a discretionary penalty waiver under ORS 305.145.

(5)

(a) The department will provide notice of penalty to the individual receiving the penalty. The notice will include the penalty amount accompanied by a statement of the individual's right to appeal the penalty, along with an explanation of the procedure for written objection or conference as specified in ORS 305.265(5).

(b) Assessments and billings will be final after the expiration of the appeal period specified in ORS 305.280, excluding ORS 305.280(3).

(6) Mailing of notice to the individual at the individual's last-known address will constitute giving of notice as prescribed in this rule.

Stat. Auth.: ORS 305.100, 315.264

Stats. Implemented: ORS 315.264, 305.145

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