Oregon

General Instructions

The Oregon Department of Revenue requires that you file for an extension whether you owe additional Oregon taxes or not. However, if you do not owe additional taxes and you have filed a federal extension, you are not required to file an Oregon extension. If you did not file a federal extension and you do not owe any additional Oregon tax, you are only required to file an Oregon extension as a precaution to avoid a late filing penalty. There is no late filing penalty for a refund return. An Oregon extension can be obtained by filing Form 40-EXT. Oregon grants a six month extension until October 15, 2008 to file your 2007 return.

To avoid penalties and interest, the balance due on an Oregon return must be paid on or before April 15th, 2008. Filing for an extension does not extend the time to pay your taxes. Any taxes not paid by the original due date of the return will be subject to interest charges on the unpaid balance. In addition, Oregon requires that 90% of the total tax liability be paid on or before April 15th, 2008 or there may be a late payment penalty imposed. There is also a penalty for filing your tax return late.

Penalty and Interest Charges on Tax Owed:

• If you do not pay all the tax due with your extension, you will owe Interest on the unpaid balance after April 15, 2008, until the date of your payment. The current interest rate is 9 percent per year. If the tax is not paid within 60 days after receiving a bill from Oregon, the interest rate increases to 13 percent per year.
• If you do not pay at least 90% of the total tax due on or before April 15, 2008, Oregon charges a Late Payment Penalty of 5%. To avoid this penalty, you must also pay the balance of tax due by the extension deadline and pay any interest on the balance of tax due when you file or within 30 days of receiving a bill from Oregon.
• If you do not file your return by the due date, or by the extension due date for an extended return, a 20 percent Late Filing Penalty may be added, so you will owe a total penalty of 25 percent of any tax not paid.
• A 100 percent penalty is charged if you do not file a return for three consecutive years by the due date of the third year including extensions.

If You Owe...

If you owe Oregon income taxes you may request an extension for additional time to file and pay your estimated balance due in the following ways:

1. Prepare an Oregon Extension Form 40-EXT (click here to download PDF)
2. Enclose a check or money order in the amount of the estimated tax due with the detached payment coupon.
3. Write your daytime telephone number and "2007 40-EXT" on your check or money order.
4. Mail to:
   Oregon Department of Revenue
   Extension Clerk
   PO Box 14950
   Salem, OR 97309-0980
5. Be sure to check the extension box on your Oregon tax return when you file your return.
6. Keep a copy of the extension for your records.
7. Do not attach a copy of the extension to your Oregon return.

Pay by Credit Card:

Oregon accepts payment by credit card through Official Payments Corporation. Making your payment in this way automatically qualifies you for an extension of time to file your Oregon tax return. You can do this either on the web or by telephone. After you accept the credit card transaction, you will receive a confirmation number. Keep this confirmation number as your proof of payment. You will still need to file Form 40-EXT.

1. Prepare an Oregon Extension Form 40-EXT (click here to download PDF) and write "credit card payment" directly above the payment amount box.
2. Detach and mail by April 15, 2008 to:
   Oregon Department of Revenue
   Extension Clerk
   PO Box 14950
   Salem, OR 97309-00980
3. Be sure to check the extension box on your Oregon tax return when you file your return.
4. Keep a copy of the extension for your records.
5. Do not attach a copy of the extension to your Oregon return.

Official Payments Corporation will accept Discover/NOVUS, MasterCard, Visa or American Express card to pay your personal income taxes. There is a convenience fee for this service equal to 2.5% of the tax amount being charged. The minimum fee is $1.00.

To make your payment and receive an automatic extension of time to file, have the following information ready:

• The amount you are paying in dollars and cents
• Your social security number
• Your spouse's social security number (if applicable)
• The first four letters of your last name
• The first four letters of your spouse's last name, if different from yours
• Tax year 2007
• Your home telephone number (including area code)
• Credit card number
• Credit card expiration date (MM/YYYY)
• ZIP Code for the address where your credit card bills are sent

On the Web:

Make your payment at the Official Payments Corp. web site.

By Telephone:

Use your touch-tone phone to call toll-free (800) 272-9829.

If You Do Not Owe...

There is no late filing penalty for a refund return. Oregon requires that you file for an extension even if you do not owe taxes or are expecting a refund only as a precaution to avoid a late filing penalty. You have the option to file either an Oregon extension form or to use your federal extension. You may request an extension for a refund or zero balance due Oregon return in the following ways:

• You are not required to mail anything to the Oregon Department of Revenue at this time.
• Be sure to check the extension box on your Oregon tax return when you file your return.
• You are not required to attach a copy of your completed federal extension form to your Oregon return when you file, however, you must keep a copy of the federal extension in your records.

1. Prepare an Oregon Extension Form 40-EXT (click here to download PDF) and enter -0- in the payment amount box.
2. Detach and mail Form 40-EXT by April 15, 2008 to:
   Oregon Department of Revenue
   Extension Clerk
   PO Box 14950
   Salem, OR 97309-0980
3. Be sure to check the extension box on your Oregon tax return when you file your return.
4. Keep a copy of the extension for your records.
5. Do not attach a copy of the extension to your Oregon return.

Download Extension Form(s)

Oregon

Extension for tax year 2007