OAR 150-314-0173: Time Limitations Affected by Military Service

The Provision of ORS 316.020 (1967 Replacement Part), providing a moratorium for filing returns and payment of tax for certain members of the Armed Forces, was not made a part of ORS Chapter 316 (1969 Replacement Part). Utilizing the powers of the Director given by ORS 305.145, the Department will waive penalty and interest on account of late filing and late payment of personal income tax in those cases where penalty and interest are waived by the Internal Revenue Service on account of personal income, pursuant to IRC section 7508(a). Section 7508(a) reads in part as follows: “(a) In the case of an individual serving in the Armed Forces of the United States, or serving in support of such Armed Forces, in an area designated by the President of the United States by Executive order as a ‘combat zone’ for purposes of section 112, at any time during the period designated by the President by Executive order as the period of combatant activities in such zone for purposes of such section, or hospitalized as a result of injury received while serving in such an area during such time, the period of service in such area, plus the period of continuous qualified hospitalization attributable to such injury, and the next 180 days thereafter, shall be disregarded in determining, under the internal revenue laws, in respect of any tax liability (including any interest, penalty, additional amount, or addition to the tax) of such individual: “(1) Whether any of the following acts was performed within the time prescribed therefor: “(A) Filing any return of income, estate, or gift tax (except income tax withheld at source and income tax imposed by subtitle C or any law superseded thereby); “(B) Payment of any income, estate, or gift tax (except income tax withheld at source and income tax imposed by subtitle C or any law superseded thereby) or any installment thereof or of any other liability to the United States in respect thereof;…”