Oregon Tax Court Denies Taxpayer’s Appeal, Imposes Penalty for Frivolous Tax Return

The Oregon Tax Court issued a decision rejecting taxpayer’s appeal and imposing a $1,000 penalty for filing a frivolous appeal. The dispute arose when taxpayer filed her 2023 tax return and claimed zero taxable income from wages earned from her employer. The court found that wages from private employers are indeed taxable under Oregon law, rejecting taxpayer’s argument that only federal employees or those engaged in privileged activities are subject to income tax. The court concluded that taxpayer’s arguments had no objective reasonable basis because they are not supported by statute or case law. [Smith v. Dep’t of Revenue, Or. ...