Oregon: "Substantial Nexus" and Amnesty; Time to File?

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The Oregon Department of Revenue (DOR) encourages companies with "substantial nexus" to apply for Amnesty before it expires on November 19, 2009. See Oregon Society of Certified Public Accountant's website for the entire PRESS RELEASE.

According to the press release, Corporations that have substantial nexus with Oregon as described in the rule are required to file Oregon tax returns. Corporations with substantial nexus that have not filed Oregon tax returns are encouraged to file an amnesty application during the amnesty period of October 1, 2009 to November 19, 2009.

Tax amnesty is a one-time opportunity to file overdue or amended Oregon tax returns and pay back taxes in exchange for a waiver of all penalties and 50-percent of the interest.

To apply for amnesty:

  1. Go to http://www.oregonamnesty.com/ for an amnesty application, tax forms, and program information.
  2. Submit your completed application no later than November 19, 2009. You should receive confirmation within 30 days.
  3. File the required original or amended tax returns on or before January 19, 2010. You may also submit your returns with your application.
  4. IMPORTANT! Write "Amnesty" on the top of any check, money order, or return you send.

Penalty for NOT Participating in Amnesty

Corporations eligible for amnesty that choose not to participate may be subject to new penalties, in addition to those currently due. Penalties can be as high as 125-percent of the tax due.

For details and examples of what is "substantial nexus," please see Oregon's Admin Rules. Here is the high-level definition:

“Substantial nexus” is broad in its scope and for corporate excise and income tax jurisdiction purposes, under the Commerce Clause of the U.S. Constitution, does not require a taxpayer to have a physical presence in Oregon. Substantial nexus exists where a taxpayer regularly takes advantage of Oregon’s economy to produce income for the taxpayer and may be established through the significant economic presence of a taxpayer in the state.

If you have any questions or need assistance in determining if your company has "substantial nexus," please contact me at [email protected]. You may also want to visit Oregon's website at: http://www.oregontaxamnesty.com/.


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