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A City of Cooperation

Tax Department

Tax Commissioner - Patricia Wast

City of Oregon Income Tax Ordinance

Filing Guidelines

Extensions:

Federal extensions are allowed, but the extension must be filed with the city by the original due date of the return. There is one exception. If the taxpayer is delinquent in filing city taxes, the extension is disallowed.

If an extension is granted, only the time to file the return is extended. Taxes are due on or before April 15th or, if it falls on a weekend, the first business day after April 15th. Statutory interest will be charged on payments made after the original due date.

W-2 & W-3 filing:

The Oregon income tax office now allows employers to file their W-2's on diskette. The city requires the same information and format that is required by the federal government. Please use OREG as the local entity code.

Returns:

We ask that you utilize your client's pre-printed returns as it makes processing at our end more accurate and efficient. Forms are also located on our web page. If you use a generic return, please make sure the filing year of the return, taxpayers' names, social security numbers or alternate ID's, address changes and dates moved in or out are on the return. Returns for part-year residents should not be pro-rated according to the percentage of the year they lived in Oregon. Refer to (12) Other Frequent Questions of the General Instructions page for directions on the correct preparation method. Please remember Oregon city income tax returns are due April 15th or, if it falls on a weekend, the first business day after April 15th. There is a $25.00 late filing fee and penalty and interest charges are 2% per month. If credit is taken for tax paid to another city, you must include a copy of that city's return.

NOTE: To assist in processing returns, please use minimal staples and one-sided copies.

Supporting Forms and Schedules:


As a reminder, we ask that you include ALL supporting Forms and Schedules, i.e., 1040 (1st page), 1120, 1065, W-2's, 1099's, Schedule C's, Schedule E's, K-1's, etc. Please be sure to include the second page of Schedule C showing cost of labor included in cost of goods sold. If any Forms or Schedules are missing, we will ask the taxpayer to furnish the information.

Form 2106 Business Expense:

Employee business expenses (Federal Form 2106) are deductible to the extent that they are deducted on the Federal return (subject to 2% AGI reduction per Federal Schedule A). Such expenses are further limited to the extent Oregon tax is paid. If taxpayer does not itemize on their federal return or if their business expenses do not exceed 2% of their federal adjusted gross income as explained on Federal Schedule A, they cannot take this deduction. NOTE: ALL expenses shown on Form 2106 are subject to City audit.

A copy of Federal Schedule A and Form 2106, along with copies of all W-2's of taxpayer for whom employee business expenses pertain, must be included or the deduction will be disallowed.

If unreimbursed expenses relate to work locations in multiple localities (Oregon must be one of the localities), a detailed listing of the expenses attributable to Oregon must also be included.

If claiming mileage expenses, a copy of the mileage log must also be included.

Additionally, if Line 4 of Form 2106 has a dollar amount entered, an itemized schedule of these expenses and their amounts must be included.

Estimates:

The due dates for estimated payments are:

INDIVIDUALS:   April 15, July 31, October 31, and January 31.

BUSINESSES:  April 15, June 15, September 15, and December 15.

If you have any questions, the office is open during Regular business hours: Monday through Friday from 8:00 a.m. until 4:30 p.m.

 
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