Oregon Tax Court Upholds Additional Income Tax Assessment Against Taxpayer

The Oregon Tax Court denied the taxpayer’s motion for summary judgment and granted the Department of Revenue’s cross-motion for partial summary judgment on due process issues. Taxpayer was an 85 percent shareholder and manager of an S corporation that operated a cannabis business and reported gross receipts of $52,500 for 2018, but the Department assessed additional income tax based on its determination that the corporation underreported gross receipts by $369,777. The court found that the taxpayer’s credibility was compromised by his admitted violations to the Oregon Liquor Control Commission, including intentional misrepresentations and destruction of evidence, creating a genuine issue ...