OAR 150-316-0020: Tax Reform Act of 1984 Adjustments

(1) Any adjustments to a taxpayer’s 1984 Oregon taxable income due to modifications required under ORS 316.021 shall be made using either of the following methods: (a) The taxpayer may amend the 1984 Oregon tax return and include such adjustments as increases or decreases to the taxpayer’s 1984 Oregon taxable income; or (b) The taxpayer may include the amount computed in (C) below as an increase or decrease in the taxpayer’s 1985 Oregon tax liability. (This method is available to taxpayers who are required to file a 1985 Oregon tax return.) (A) Compute the taxpayer’s 1984 Oregon tax liability without regard to the adjustments required in this subsection. (B) Compute the taxpayer’s 1984 Oregon tax liability with regard to the adjustments required in this subsection. (C) Subtract the amount computed in (A) from the amount computed in (B). (D) If the amount computed in (C) is less than zero then the difference computed in (C) decreases the taxpayer’s 1985 Oregon tax liability. If the amount computed in (C) is greater than zero, then the difference computed in (C) increases the taxpayer’s 1985 Oregon tax liability. (2) For purposes of this rule, “taxpayer” means any natural person, estate, trust, or beneficiary whose income is in whole or in part subject to the taxes imposed by ORS Chapter 316. (3) Any adjustments necessary to a partner’s 1984 Oregon tax return due to the provisions of this subsection, shall be reflected on the corresponding partnership return to which such adjustment applies.