OAR 150-317-0090

Policy — Application of Various Provisions of the Federal Internal Revenue Code

Official textus-or/regssecure.sos.state.or.uslast amended Sep 01, 2016

# (1)

(1) The policy of the State of Oregon is to follow the Internal Revenue Code as closely as possible relating to the computation of taxable income of corporations. Other areas, such as tax credits, special tax computations, and administrative provisions are not tied to federal law because they do not relate to the computation of taxable income.

# (2)

(2) The provisions of this rule concerning "Claim of right" apply to tax years beginning before January 1, 1998. For tax years beginning on or after January 1, 1998, a credit is allowed to a taxpayer for a claim of right income repayment under section 2, Chapter 1007, Or Laws 1999.

# (3)

(3) Claim of right: IRC section 1341 allows a deduction on the federal return for amounts repaid by a taxpayer on income previously reported under a claim of right. This deduction is also allowed on the Oregon return. If the amount repaid exceeds $3,000 in the year of repayment, IRC section 1341 allows the taxpayer to instead use a special tax computation rather than claim a deduction. If the taxpayer uses this special tax computation on the federal return, the taxpayer may not make a special tax computation for Oregon. However, the taxpayer may claim any repayments as a subtraction on the Oregon return.

Amendment history

Renumbered from 150-317.018(1), REV 67-2016, f. 8-15-16, cert. ef. 9-1-16

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