Oregon Statutes - Chapter 316 - Personal Income Tax - Section 316.881 - Sale or disposition of reinvestment interest; period for assessment of deficiency; failure to reinvest after declaration filed.

(1) If a taxpayer sells or otherwise disposes of a qualified business interest or qualified business asset, the statutory period prescribed in ORS 314.410 for assessing a deficiency attributable to any part of the gain deferred under ORS 316.873 to 316.884 shall not expire prior to the expiration of three years after the latest of the following dates:

(a) The date of receipt by the Department of Revenue of the statement described in ORS 316.877 (2).

(b) The date of receipt by the department of a statement from the taxpayer declaring an intent not to reinvest.

(c) The date that is six months after the date of sale or disposition resulting in possible deferred gain.

(2) Any gain deferred under ORS 316.873 to 316.884 that is later required to be added to federal taxable income under ORS 316.873 to 316.884 shall be added to federal taxable income for the tax year in which the event causing the addition occurs. Any deficiency attributable to any portion of deferred gain may be assessed before the expiration of the latest date described under subsection (1) of this section.

(3) A taxpayer who files a declaration of intent to reinvest but fails to reinvest as required by ORS 316.874 shall be liable for unpaid taxes on the deferred amount and for interest at the rate established under ORS 305.220 for deficiencies from the date that the tax on the deferred gain would have been due had the declaration not been filed to the date of payment. [1995 c.809 §8]

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Last modified: August 7, 2008