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petitioner in Oregon to the extent they claim. Oregon income
tax law requires nonresident taxpayers who earned income from
personal services rendered in Oregon to apportion their Oregon
income based on the ratio of the number of days worked in Oregon
for a business over the number of days worked in and out of
Oregon for that business. Or. Rev. Stat. sec. 316.127 (1993);
Or. Admin. R. 150-316.127-(A)(3)(a)(A).
Mr. Cummings and two employees testified that Mr. Cummings
spent a little more than 1 day a week in Portland. However,
Mr. Cummings did not file Oregon income tax returns in 1989 and
1990. That suggests that he did not perform services for
petitioner in Oregon during those years.
Mrs. Cummings testified that she worked in Oregon most of
the time during the years in issue. She reported in her Oregon
income tax returns that she earned $43,961 in 1989 and $20,250
in 1990. Dacor or Kadac paid her $43,961 in Oregon in 1989 and
$45,000 in 1990. This suggests that Mrs. Cummings worked full
time for Dacor or Kadac in Oregon in 1989, but only about half
time in 1990. Petitioner did not adequately explain these
apparent inconsistencies.
Mr. and Mrs. Cummings testified that they worked only for
Kadac in 1991. However, Kadac paid Mr. or Mrs. Cummings only
about half of the wage and salary income they received in 1991.
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