Tax Audit Protest and Appeal — Oregon

Tax Audit Protest and Appeal (OREGON)

Quick-Reference Summary

Part A — Informal Conference Request Letter

Sender Letterhead

[LAW FIRM / TAXPAYER REPRESENTATIVE]
[________________________________]
[________________________________]
[City], Oregon [Zip Code]
Phone: [________________________________]
Email: [________________________________]
OSB No.: [________________________________]

Date: [__/__/____]

SENT VIA:
☐ Certified Mail, Return Receipt Requested — Tracking No. [________________________________]
☐ Revenue Online — https://revenueonline.dor.oregon.gov
☐ Hand Delivery

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

RE: Written Objection and Request for Conference — Notice of Deficiency
Taxpayer: [________________________________]
Tax ID (last 4) / FEIN (last 4): [____]
Notice of Deficiency No.: [________________________________]
Date of Notice: [__/__/____]
Tax Type: ☐ Personal Income (ORS Ch. 316) ☐ Corporate Excise (Ch. 317) ☐ Corporate Income (Ch. 318) ☐ Corporate Activity Tax (Ch. 317A) ☐ Withholding ☐ Other: [____]
Tax Year(s) / Period(s): [________________________________]
Total Deficiency Proposed: $[____] (tax: $[____]; interest: $[____]; penalty: $[____])

To the Conference Officer:

This firm represents [TAXPAYER NAME] ("Taxpayer"). Pursuant to ORS 305.265(5), Taxpayer hereby files timely written objections to the above-referenced Notice of Deficiency and requests a conference with the Department.

I. Statement of Timeliness

The Notice of Deficiency is dated [__/__/____]. The 30th day after the Notice is [__/__/____]. These written objections are submitted on [__/__/____], within the 30-day period prescribed by ORS 305.265(5).

II. Objections to Proposed Deficiency

Taxpayer objects to the proposed deficiency on each of the following grounds:

• ☐ Statute of limitations. Assessment is barred by ORS 314.410(1) (3-year SOL).
• ☐ Factual error. DOR overstated Oregon-source income / unreported sales / disallowed deduction. Specifically: [____].
• ☐ Legal error. DOR misapplied [ORS ___ / OAR ___ / case ___]. Specifically: [____].
• ☐ Apportionment / nexus. DOR improperly asserted economic nexus / single-sales-factor apportionment producing distortion. See ORS 314.665; OAR 150-314-0435.
• ☐ Federal/state conformity error. Adjustment is inconsistent with Oregon's IRC conformity date. See ORS 316.012.
• ☐ Corporate Activity Tax (CAT) error. Misapplication of ORS 317A (exclusions, subtractions, situsing).
• ☐ Computation / sampling error. [____].
• ☐ Penalty abatement requested. Reasonable cause under OAR 150-305-0068.
• ☐ Other: [____].

III. Conference Format Requested

Taxpayer requests a conference held [☐ in person at Salem ☐ by telephone ☐ by videoconference], on a date convenient to both parties.

IV. Document Production Requested

Taxpayer requests that DOR produce: (1) complete audit narrative and workpapers; (2) auditor's name and supervisor; (3) statutes, OARs, and rulings relied upon; (4) all third-party information relied upon; and (5) any internal technical advice memoranda.

Respectfully submitted,

[Signature]
[Counsel Name], OSB No. [____]

Enclosures: Power of Attorney (Form 150-800-005); Copy of Notice of Deficiency; supporting documents.

Part B — Formal Protest / Petition (Magistrate Division)

IN THE OREGON TAX COURT

MAGISTRATE DIVISION

Filed: [__/__/____]
Filing fee paid: $[____] (☐ small claims / ☐ regular)

I. Jurisdiction

1.1. The Magistrate Division of the Oregon Tax Court has jurisdiction over this appeal pursuant to ORS 305.275, ORS 305.280, ORS 305.404, ORS 305.501, and ORS 305.560.

1.2. Plaintiff is aggrieved by and affected by the Department of Revenue's Notice of Assessment (or other final action) described in Section III, which affects Plaintiff's tax liability. There is no other statutory right of appeal — ORS 305.275(1).

II. Parties

2.1. Plaintiff is [TAXPAYER NAME], residing / having its principal place of business at [ADDRESS].

2.2. Defendant is the Oregon Department of Revenue, an agency of the State of Oregon.

III. Department Action Being Appealed

3.1. Plaintiff appeals the Notice of Assessment / Conference Decision / [Other] issued by DOR on [__/__/____], identified as [Notice No.: ____], regarding tax type [____] for tax year(s) [____], in the amount of $[____]. A copy is attached as Exhibit 1.

IV. Statement of Timeliness

4.1. The action being appealed was mailed on [__/__/____]. The 90th day thereafter is [__/__/____]. This Complaint is filed on [__/__/____], within the 90-day period prescribed by ORS 305.280.

V. Statement of Facts

5.1. Plaintiff is a [Oregon resident / nonresident / domestic corporation / foreign corporation doing business in Oregon] with [describe activity].

5.2. For the tax year(s) at issue, Plaintiff filed Oregon [Form OR-40 / OR-40-N / OR-20 / OR-20-INC / OR-CAT / etc.] reporting taxable income / commercial activity of $[____] and tax of $[____].

5.3. On [DATE], DOR issued the Notice of Deficiency / Assessment proposing the following adjustments: [itemized adjustments].

5.4. Plaintiff submitted timely written objections under ORS 305.265(5) and participated in a conference on [DATE].

5.5. On [DATE], DOR issued the Notice of Assessment / Conference Decision (Exhibit 1).

VI. Errors Assigned

Plaintiff alleges the following errors:

6.1. Statute of limitations — ORS 314.410(1).
6.2. Factual error — [specifics].
6.3. Legal error — DOR's interpretation of [ORS ___ / OAR ___] is incorrect because [____].
6.4. Apportionment / sourcing error — single-sales-factor apportionment / cost-of-performance vs. market-sourcing under ORS 314.665.
6.5. Corporate Activity Tax — misapplication of ORS 317A exclusions / subtractions.
6.6. Penalty abatement under OAR 150-305-0068.
6.7. Other: [____].

VII. Burden of Proof

Plaintiff acknowledges the burden of proof rests with Plaintiff by preponderance of the evidence under ORS 305.427, and intends to discharge that burden through documentary and testimonial evidence.

VIII. Relief Requested

Plaintiff requests that the Court:

A. Reverse or modify the assessment and reduce Plaintiff's tax liability to $[____] (or $0);
B. Abate all penalties;
C. Abate interest to the extent attributable to DOR delay or reliance on DOR written advice;
D. Order DOR to refund any overpayment with statutory interest under ORS 305.220; and
E. Grant such other relief as the Court deems just.

IX. Hearing

Plaintiff requests [☐ a telephone hearing ☐ an in-person hearing at Salem], and consents/declines [____] to mediation under ORS 305.501(2).

Respectfully submitted,

[Signature]
[Counsel / Authorized Representative], OSB No. [____] (if counsel)
[Firm], [Address], [Phone], [Email]

Exhibits: 1 — Notice of Assessment; 2 — Notice of Deficiency; 3 — Written Objections; 4 — Conference Decision; 5 — Audit workpapers; 6 — Returns at issue; 7 — Supporting documentary evidence.

Part C — Appeal Cover Letter to Tax Tribunal / Court

COMPLAINT TO THE REGULAR DIVISION OF THE OREGON TAX COURT (DE NOVO APPEAL FROM MAGISTRATE DECISION)

Filed Pursuant to ORS 305.501(5)–(7) and TCR-MD 19

Date: [__/__/____]

SENT VIA:
☐ eFiling — File & Serve (Oregon Tax Court)
☐ Hand Delivery to Clerk
☐ Certified Mail to: Oregon Tax Court, Regular Division, 1163 State Street, Salem, OR 97301-2563

I. Jurisdiction and Timeliness

1.1. The Regular Division has jurisdiction over this de novo appeal from the Magistrate Division under ORS 305.501(5)–(7).

1.2. The Magistrate Division entered its Decision on [__/__/____] in TC-MD No. [____]. The 60th day thereafter is [__/__/____]. This Complaint is filed on [__/__/____], within the 60-day period.

II. Parties

Same as Magistrate Division proceeding. Plaintiff's entity status: [☐ individual ☐ partnership ☐ LLC ☐ corporation ☐ trust]. Plaintiff is represented by Oregon counsel as required by TCR 1 / ORS 9.320 for the Regular Division.

III. Magistrate Decision Below

3.1. The Magistrate's Decision sustained / modified / overturned [describe] the DOR assessment and ruled that [____]. A true copy is attached as Exhibit 1.

IV. Statement of Errors on De Novo Appeal

Plaintiff respectfully submits that the following issues should be retried de novo by this Court:

4.1. [Legal issue] — Oregon law properly construed requires [____].
4.2. [Factual issue] — The evidence preponderates against the Magistrate's finding regarding [____].
4.3. [Apportionment / sourcing / CAT / conformity issue] — [____].
4.4. [Penalty / interest] — [____].

V. Burden of Proof

Plaintiff again bears the burden by preponderance under ORS 305.427.

VI. Relief Requested

A. Enter judgment that Plaintiff owes tax of $[____] (or $0);
B. Order DOR to refund overpayment with statutory interest;
C. Abate penalties and interest as set forth above;
D. Award costs to the extent permitted; and
E. Grant such other relief as just.

VII. Demand for Trial / Mediation

Plaintiff demands trial before the Tax Court Judge and [☐ consents to ☐ declines] mediation under ORS 305.412.

Respectfully submitted,

[Signature]
[Counsel Name], OSB No. [____]
[Firm], [Address], [Phone], [Email]

Exhibits: 1 — Magistrate Division Decision; 2 — Notice of Assessment; 3 — record citations.

(Optional) Further Appeal to Oregon Supreme Court

A party adversely affected by the Regular Division's judgment may appeal directly to the Oregon Supreme Court under ORS 305.445 and ORS 19.255 (notice of appeal within 30 days of entry of judgment). Briefing and oral argument follow Oregon Rules of Appellate Procedure.

Part D — Pre-Filing Checklist

• ☐ Calendared 30-day written-objection deadline (ORS 305.265(5))
• ☐ Calendared 90-day Magistrate Division appeal deadline (ORS 305.275 / 305.280)
• ☐ Calendared 60-day Regular Division de novo appeal deadline from Magistrate Decision (ORS 305.501)
• ☐ Calendared 30-day Oregon Supreme Court notice-of-appeal deadline (ORS 19.255)
• ☐ Verified income-tax SOL — 3 years under ORS 314.410(1)
• ☐ Verified refund SOL — 3 years under ORS 314.415
• ☐ Obtained full audit narrative, workpapers, and Conference Decision
• ☐ Drafted written objections with factual and legal grounds
• ☐ Considered mediation request under ORS 305.501(2)
• ☐ Confirmed proper representation: ORS 305.230 in Magistrate; Oregon counsel in Regular Division
• ☐ Confirmed magistrate filing fee (small claims $50 vs. regular $265) and Regular Division fee
• ☐ Filed Power of Attorney Form 150-800-005 with DOR
• ☐ Requested penalty abatement under OAR 150-305-0068
• ☐ Requested interest waiver under ORS 305.145 (limited grounds)
• ☐ Preserved record below for de novo retrial (note: Regular Division is true de novo)
• ☐ Issued litigation hold; preserved books, records, electronic communications
• ☐ For CAT cases: verified ORS 317A exclusions, subtractions, and situsing computations
• ☐ Sent objection / complaint via tracked method; saved confirmation
• ☐ Removed all <!-- GUIDANCE --> comments and bracketed placeholders prior to filing

Sources and References

• Oregon Tax Court — Home: https://www.courts.oregon.gov/courts/tax/Pages/default.aspx
• Oregon Tax Court Handbook: https://www.courts.oregon.gov/courts/tax/help/Documents/TAX-CourtHandbook.pdf
• Oregon Tax Court Magistrate Division Rules (TCR-MD): https://www.courts.oregon.gov/courts/tax/rules/Pages/default.aspx
• Oregon Department of Revenue — Appeals: https://www.oregon.gov/dor/programs/individuals/Pages/appeals.aspx
• ORS Chapter 305 (Administration and Appeals): https://www.oregonlegislature.gov/bills_laws/ors/ors305.html
• ORS 305.275: https://oregon.public.law/statutes/ors_305.275
• ORS 305.280: https://oregon.public.law/statutes/ors_305.280
• ORS 305.501: https://oregon.public.law/statutes/ors_305.501
• ORS 305.427 (burden of proof): https://oregon.public.law/statutes/ors_305.427
• ORS 314.410 (SOL on assessment): https://oregon.public.law/statutes/ors_314.410
• ORS 314.415 (refund claims): https://oregon.public.law/statutes/ors_314.415
• OAR 150-305-0068 (penalty waiver standards)
• Revenue Online (filing portal): https://revenueonline.dor.oregon.gov