ORS 316.992: Penalty for filing incorrect return that is based on frivolous position or is intended to delay or impede administration; appeal.

(1) The Department of Revenue shall assess a penalty of $250 against any individual who files what purports to be a return of the tax imposed by this chapter but which: (a) Does not contain information on which the substantial correctness of the self-assessment may be judged; or (b) Contains information that on its face indicates that the self-assessment is substantially incorrect. (2) A penalty may be imposed under subsection (1) of this section only if the conduct referred to in subsection (1) of this section is due to: (a) A position which is frivolous; or (b) An intention, apparent on the face of the purported return, to delay or impede the administration of the income tax laws of this state. (3) The penalty imposed under this section is in addition to any other penalty imposed by law. Any person against whom a penalty is assessed under this section may appeal to the tax court as provided in ORS 305.404 to 305.560. If the penalty is not paid within 10 days after the order of the tax court becomes final, the department may record the order and collect the amount assessed in the same manner as income tax deficiencies are recorded and collected under ORS 314.430. (4) If an assessment of tax due for the taxable year with respect to which a penalty is imposed under this section is under appeal at the same time that an appeal is filed under this subsection, the tax court may consolidate the appeals into a single proceeding. (5) As used in this section, “a position which is frivolous” includes, but is not limited to: (a) Reference to a spurious constitutional argument; (b) Reliance on a “gold standard” or “war tax” deduction; (c) An argument that wages or salary are not includable in taxable income; (d) An argument that the Sixteenth Amendment to the United States Constitution was not properly adopted; or (e) An argument that “unenfranchised, sovereign, freemen or natural persons” are not subject to the tax laws. [1987 c.843 §11; 1995 c.650 §39] _______________