Oregon State Income Tax Protest and Appeal

OREGON STATE INCOME TAX PROTEST — WRITTEN OBJECTION AND TAX COURT APPEAL

TABLE OF CONTENTS

1. Overview and Stage Selection
2. Section A — Written Objection to Notice of Deficiency (ORS 305.265)
3. Section B — Complaint to the Oregon Tax Court, Magistrate Division
4. Section C — Appeal to the Regular Division (Optional Stage 3)
5. Verification and Signature
6. Certificate of Service
7. Oregon Practice Notes
8. Sources and References

1. OVERVIEW AND STAGE SELECTION

2. SECTION A — WRITTEN OBJECTION TO NOTICE OF DEFICIENCY (ORS 305.265)

[DATE]

Oregon Department of Revenue
Attn: Conference Officer / Audit Section
955 Center Street NE
Salem, OR 97301-2555

Sent via: ☐ Certified Mail, Return Receipt Requested ☐ Revenue Online (secure messaging) ☐ Hand Delivery

Re: Written Objection to Notice of Deficiency

2.1 Statement of Timeliness

Pursuant to ORS 305.265(5), this written objection is filed within thirty (30) days of the date of the Notice of Deficiency identified above. Taxpayer reserves all rights under the Oregon Taxpayer Bill of Rights, ORS 305.860 to 305.900.

2.2 Identification of Disputed Adjustments

Taxpayer objects to the following adjustment(s) in the Notice of Deficiency:

2.3 Statement of Facts

[INSERT FACTUAL NARRATIVE — chronological, paragraph-numbered, with citations to attached exhibits.]

2.4 Legal Argument

[INSERT LEGAL ANALYSIS — ORS / OAR citations, Oregon Tax Court precedent, federal authority where Oregon conforms (ORS 316.007 personal income; ORS 317.013 corporate). Address each disputed adjustment separately.]

2.5 Penalty Abatement

Taxpayer requests abatement of all proposed penalties under:

• ☐ ORS 305.145 (interest waiver — extraordinary circumstances)
• ☐ ORS 314.402(4) (substantial understatement — reasonable cause and good faith)
• ☐ ORS 314.400 (failure-to-file / failure-to-pay — reasonable cause)
• ☐ ORS 305.265(13) (penalty for negligence — reasonable basis)

2.6 Conference Request

Taxpayer requests a conference under ORS 305.265(5)(b) to be conducted: ☐ in person at [Salem / Portland / regional office] ☐ by telephone ☐ by video. Taxpayer's authorized representative is [NAME, OBA #, FIRM] acting under attached Form OR-AUTH or Power of Attorney (Form 150-800-005).

2.7 Reservation of Rights

Taxpayer reserves the right to (a) supplement this objection prior to or during the conference; (b) raise additional arguments and submit additional evidence at the conference and on appeal to the Oregon Tax Court; (c) seek refund of any amounts erroneously paid; and (d) invoke all rights under ORS 305.860 to 305.900.

2.8 Exhibits

Respectfully submitted,

[________________________________]

[TAXPAYER NAME / AUTHORIZED REPRESENTATIVE]
[FIRM NAME, if applicable]
[STREET ADDRESS]
[CITY, STATE ZIP]
Telephone: [NUMBER]
Email: [EMAIL]
Oregon State Bar No.: [####] (if attorney)

3. SECTION B — COMPLAINT TO THE OREGON TAX COURT, MAGISTRATE DIVISION

IN THE OREGON TAX COURT

MAGISTRATE DIVISION — INCOME TAX

Case No.: [ASSIGNED BY COURT]****

COMPLAINT (PERSONAL / CORPORATE INCOME TAX)

Plaintiff Taxpayer, by and through undersigned counsel, files this Complaint pursuant to ORS 305.275, 305.280, and 305.560, and alleges as follows:

3.1 Parties

3.1.1. Plaintiff [TAXPAYER NAME] is [an individual / a corporation / an LLC] with [principal residence / principal place of business] at [ADDRESS], [COUNTY] County, Oregon.

3.1.2. Defendant Oregon Department of Revenue (the "Department") is the Oregon state agency charged with administration of the income tax laws codified at ORS Chapters 314, 316, 317, and 318.

3.2 Jurisdiction and Venue

3.2.1. The Oregon Tax Court has exclusive, statewide jurisdiction over this matter under ORS 305.410 and Article VII (Amended) of the Oregon Constitution, which establishes the Tax Court as a court of record.

3.2.2. The Magistrate Division has initial jurisdiction over this Complaint pursuant to ORS 305.501.

3.2.3. This Complaint is filed within ninety (90) days of the act, omission, order, or determination being appealed, as required by ORS 305.280(1) and 305.560(1).

3.3 Procedural History

3.3.1. On [__/__/____], the Department issued a [Notice of Deficiency / Notice of Assessment / Conference Decision / Notice of Refund Denial] (the "Notice"), a true and correct copy of which is attached as Exhibit 1.

3.3.2. [If Stage 1 was completed] On [__/__/____], Plaintiff timely filed a written objection to the Notice of Deficiency under ORS 305.265(5). A conference was conducted on [__/__/____]. The Department issued a Conference Decision on [__/__/____] sustaining [in whole / in part] the original deficiency.

3.3.3. The Notice and any subsequent Conference Decision are timely appealed to this Court within the 90-day window of ORS 305.280.

3.4 Tax Years and Amounts at Issue

3.5 Statement of Facts

[INSERT FACTUAL NARRATIVE — paragraph-numbered, chronological, citing attached exhibits.]

3.6 Issues Presented

1. Whether the Department erred in [disallowing / recharacterizing / imposing penalty for] [ITEM] for tax year [YYYY].
2. Whether Plaintiff is entitled to [deduction / credit / refund / abatement] in the amount of $[____].
3. [Additional issues].

3.7 Legal Argument

3.7.1. Burden of Proof. Plaintiff bears the burden of proving each contested adjustment by a preponderance of the evidence. ORS 305.427. Plaintiff will satisfy that burden through the documents and testimony identified in this Complaint and to be developed in discovery.

3.7.2. [Substantive arguments — cite ORS / OAR / cases.]

3.7.3. [Penalty challenges — reasonable cause; ORS 305.145, 314.402(4).]

3.8 Prayer for Relief

WHEREFORE, Plaintiff respectfully prays that this Court:

• A. Cancel or reduce the disputed assessment(s) and abate all related penalties and interest;
• B. Order the Department to issue a refund of $[____] plus statutory interest under ORS 305.220;
• C. Award Plaintiff costs and disbursements under ORS 305.490, and reasonable attorney fees if Plaintiff prevails and the Department's position lacked an objectively reasonable basis (ORS 20.105);
• D. Stay collection of the disputed amounts during the pendency of this appeal pursuant to ORS 305.565; and
• E. Grant such other and further relief as the Court deems just and equitable.

3.9 Filing Fee

Plaintiff has tendered the filing fee required by ORS 305.490 and TCR-MD 1, or alternatively has filed an Application for Deferral or Waiver under ORS 21.680 / 21.685.

4. SECTION C — APPEAL TO THE REGULAR DIVISION (OPTIONAL STAGE 3)

If a Magistrate Decision is issued and Plaintiff/Defendant elects to appeal de novo to the Regular Division, an appeal must be filed within sixty (60) days of the Magistrate Decision under ORS 305.501(5)(a). The Regular Division reviews the matter de novo, but the Magistrate's record is admissible by stipulation.

5. VERIFICATION AND SIGNATURE

STATE OF OREGON

COUNTY OF [COUNTY]

I, [TAXPAYER NAME], declare under the penalties of perjury that I have read the foregoing [Written Objection / Complaint] and that the facts stated therein are true and correct to the best of my knowledge, information, and belief, formed after reasonable inquiry.

Date: [__/__/____]

[________________________________]

[TAXPAYER NAME]

Respectfully submitted,

[________________________________]

[ATTORNEY NAME], Oregon State Bar No. [####]
Counsel for Plaintiff Taxpayer
[FIRM NAME]
[STREET ADDRESS]
[CITY, STATE ZIP]
Telephone: [NUMBER]
Email: [EMAIL]

6. CERTIFICATE OF SERVICE

I certify that on [__/__/____], I served a true and correct copy of the foregoing [Written Objection / Complaint] on the parties listed below by the method indicated:

[________________________________]

[ATTORNEY NAME]

7. OREGON PRACTICE NOTES

• Article VII court. The Oregon Tax Court is a specialized state court of record established under Article VII (Amended), § 1 of the Oregon Constitution. Its jurisdiction is exclusive and statewide. ORS 305.410. It hears no jury trials. ORS 305.435.
• Two-division structure. All appeals begin in the Magistrate Division, which is informal and inexpensive. ORS 305.501. A Magistrate Decision may be appealed de novo to the Regular Division, where Tax Court Rules (TCR) govern and proceedings resemble civil litigation.
• Direct review by Oregon Supreme Court. Regular Division judgments are reviewed directly by the Oregon Supreme Court, bypassing the Court of Appeals. ORS 305.445; Or. Const. Art. VII (Amended), § 2.
• 30/90 deadlines are jurisdictional. Missing the 30-day window under ORS 305.265 forfeits the conference and triggers an automatic Notice of Assessment. Missing the 90-day window under ORS 305.280 / 305.560 generally bars Tax Court review entirely. Calendar both clocks immediately upon receipt of any Department notice.
• Burden of proof. Taxpayer carries burden by a preponderance of the evidence. ORS 305.427.
• Federal conformity. Oregon's personal and corporate income tax laws conform substantially to the Internal Revenue Code (rolling conformity for personal income — ORS 316.012; static reference dates for some provisions). Federal RARs are routinely adopted by the Department under ORS 305.305; protests should engage the federal determination as well.
• Collection stay. Filing a timely Tax Court complaint generally stays collection of the disputed liability. ORS 305.565. Bond may be required for trust-fund taxes.
• Costs and fees. Costs and disbursements are recoverable under ORS 305.490. Attorney fees may be awarded under ORS 20.105 where the Department's position lacks an objectively reasonable basis or under ORS 305.490(3) for certain refund cases.
• Practice mechanics. Filings may be made by paper or via the Oregon Tax Court's eFiling portal. Address: 1241 State Street, Salem, OR 97301; mailing 1163 State Street, Salem, OR 97301.
• Taxpayer Bill of Rights. Invoke ORS 305.860–305.900 in every protest. Taxpayers have rights to representation, recording, written explanation, and conference de novo within the Department.

8. SOURCES AND REFERENCES

• ORS Chapter 305 (Administration of Revenue and Tax Laws; Appeals) — https://www.oregonlegislature.gov/bills_laws/ors/ors305.html
• ORS 305.265 (Notice of deficiency; objection; conference) — https://oregon.public.law/statutes/ors_305.265
• ORS 305.501 (Magistrate Division proceedings) — https://oregon.public.law/statutes/ors_305.501
• ORS 305.560 (Filing of complaint with Tax Court) — https://oregon.public.law/statutes/ors_305.560
• ORS 305.860 to 305.900 (Taxpayer Bill of Rights) — https://oregon.public.law/statutes/ors_305.860
• Oregon Tax Court (procedures, rules, forms) — https://www.courts.oregon.gov/courts/tax/
• Tax Court Rules — Magistrate Division (TCR-MD) — https://www.courts.oregon.gov/rules/Documents/TAX-MagistrateRulesJan2022AndOut-of-Cycle.pdf
• Tax Court Rules — Regular Division (TCR) — https://www.courts.oregon.gov/rules/Documents/TAX-RegularRules.pdf
• Tax Court Handbook — https://www.courts.oregon.gov/courts/tax/help/Documents/TAX-CourtHandbook.pdf
• Oregon Department of Revenue — https://www.oregon.gov/dor/
• Oregon Taxpayer Bill of Rights (DOR page) — https://www.oregon.gov/dor/Pages/taxpayer-bill-of-rights.aspx
• OAR Chapter 150 (DOR rules) — https://secure.sos.state.or.us/oard/displayChapterRules.action?selectedChapter=84

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Oregon must review and customize this document before filing. Statutes, rules, and procedures change frequently; verify all citations and deadlines before use. Tax appeal deadlines are jurisdictional and cannot generally be extended.