SALEM, OR – In a recent development, the Oregon Department of Revenue has announced significant changes to the inheritance tax extension deadlines. Effective from October 1, 2023, these changes are detailed in the newly implemented Permanent Administrative Order REV 13-2023, Chapter 150, under the Department of Revenue’s Archives Division.
Under the revised rules, estate transfer tax return deadlines have been adjusted, and the process for requesting extensions has been modified. The amendments aim to streamline the process while ensuring that estates have reasonable opportunities to meet their tax obligations.
Key Changes:
1. Filing Deadline: The new rules state that an estate transfer tax return must be filed and the tax paid no later than 12 months following the date of the decedent’s death. This deadline is based on the calendar month of the decedent’s death, and it allows for exceptions in the case of a leap year.
2. Weekend and Holiday Deadline Extensions: When the filing deadline falls on a Saturday, Sunday, or a legal holiday, the due date is moved to the next business day. Legal holidays are those recognized statewide in Oregon or in the District of Columbia.
3. Extension Requests: Estates can request an extension of time to file an estate transfer tax return by submitting a prescribed form. Notably, estates that receive an extension from the IRS for filing a federal estate transfer tax return are not required to request an extension from the Oregon Department of Revenue separately. Instead, they need to submit a copy of federal forms 4768 and 706 with their Oregon estate transfer tax return.
4. Extension Durations: The length of an Oregon extension is determined by adding the IRS extension to the original Oregon return due date. If the request is made on or before the original due date, the department shall grant an extension of six months. If the request is made after the original due date, the department may grant an extension only if the estate provides good and sufficient cause for not requesting an extension earlier.
5. Additional Extensions: An additional six-month extension may be granted if the executor is located outside the United States when the return is due. However, this extension is only approved if an extension as described in the previous steps has already been granted. The request must provide reasons why it’s impossible or impractical for the executor to file the return during the initial extension.
6. Extension Consequences: An extension of time to file, without an extension of time to pay, does not waive the five percent penalty for late tax payment. Interest continues to accrue during the extension period.
7. Provisions for Pre-October 1, 2023 Estates: Estates of decedents with a date of death before October 1, 2023, can still request extensions based on the previous rules.
These changes are intended to provide clarity and fairness in the inheritance tax extension process in Oregon, ensuring that estates have the necessary time and support to meet their tax obligations. Estate administrators and tax professionals should familiarize themselves with these revised rules to navigate the new procedures effectively.
For more information and guidance, individuals and estates are encouraged to contact the Oregon Department of Revenue.
For media inquiries, please contact Katie McCann at 503-509-9787 or RulesCoordinator.dor@oregon.gov.
Effective Date: October 1, 2023
Approved Date: September 18, 2023
Filed By: Katie McCann, Rules Coordinator
Disclaimer: This news article is based on publicly available information as of September 2021. For the most current and accurate details on the Oregon inheritance tax extension deadlines, please refer to the official sources and contact the Oregon Department of Revenue.