Oregon Tax Court Affirms DOR’s Decision Denying Taxpayers’ Pass-Through Entity Tax Rate Election

The Oregon Tax Court Sept. 16 affirmed the Department of Revenue’s (DOR) decision denying the Pass-Through Entity (PTE) election calculation on Taxpayers’ amended 2015 individual income tax return. The DOR mailed a Notice of Proposed Refund Adjustment to Taxpayers denying the PTE tax rate election. Taxpayers contended that they were entitled to amend their return to claim the PTE tax rate based on the three-year statute of limitation. The DOR denied Taxpayers’ written objection because the election was irrevocable and was required to have been claimed on the original return. On appeal, the tax court noted that: 1) Taxpayers failed ...