4/27/2020 Governor Brown issues direction to DOR regarding waiving 1st quarter penalties for the CAT

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April 27, 2020
GOVERNOR BROWN ISSUES DIRECTION TO DOR REGARDING WAIVING FIRST QUARTER PENALTIES FOR THE CAT
 

Last week Governor Brown stated that she will not delay implementation of the Corporate Activity Tax (CAT). Her office released the following statement in response to questions regarding whether she would take action before the April 30 deadline for payments:
 
_"During this public health crisis, Governor Brown's first concern is protecting the health and safety of Oregonians. It's more important than ever to preserve Oregon's schools and other essential services, especially for vulnerable Oregonians who have had their lives and livelihoods threatened during this pandemic. Preserving the Corporate Activities Tax is one of the best ways to do that, and to help protect small businesses and middle class taxpayers."_
 
While the Governor has elected not to support delayed implementation of the CAT, she did issue a letter late Friday, clarifying that some businesses will be held harmless from penalties, as long as they can prove hardship. In her letter [1], the Governor:
 
                * Directed DOR to raise the threshold for making estimated tax payments from $5,000 of annual tax liability to $10,000 of annual tax liability for the first year of the tax.
                * Clarified that businesses that are struggling or who shuttered due to the COVID-19 crisis, and have no ability to determine whether they will owe a tax this year, will not be penalized. However, these entities must retain documentation showing:
 
                * Their inability to pay a quarterly payment because of insufficient funds due to COVID-19
                * Their inability to reasonably calculate a quarterly payment or annual tax liability due to their business being impacted by COVID-19.
                * That the taxpayer is unclear at this time whether the business will owe CAT in April 2020 due to COVID-19 impacts, after taking into consideration exclusions and subtractions in the law.
 
On Monday, Senator Mark Hass responded with a letter [2], asking the Governor to take away the discretion for DOR to waive penalties and simply clarify that there will be no penalties during this difficult time.  OSCC ECHOES SENATOR HASS'S CALL FOR SIMPLICITY AND CERTAINTY FOR BUSINESSES DURING THIS CHALLENGING TIME.
 
Oregon State Chamber of Commerce (OSCC), 991 Liberty Street SE, Salem, OR 97302
 

 
 
 
Links:
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[1]
http://r20.rs6.net/tn.jsp?f=001xuvMtSoceV4qIFuSb-O3d2NrZ6-2BxThcppkAUdWg1okEMJe8GBnhlahwsKnz5FfJUvIIVrWvkHHcrkP6HxHKWLx-HhMwMsmyZVSAyXdaviHfOcX2WKxbtMR4eJuIBHG3MyzIgErgyMF8FWhpgIGWUKbuv8WicABE-t-LXPI3ECVGr3_K9OdIZJOUM5DelU16EfkPARPSClBx2MQxm9tHiWZ89cDMra40zCyiFu6a34Rqo0qEIdgj_l_AjVihKGi&c=EjokCcJAi0NrWArTXH-GTQ_Xf-c2XfsYftmCwYC9M-exThVXN_IeMg==&ch=icWlxXoBG5cJlzvb8XO5dYXd6-FLGdXFvk9TqAhZkZtJSKqQ_6Ihcw==
[2]
http://r20.rs6.net/tn.jsp?f=001xuvMtSoceV4qIFuSb-O3d2NrZ6-2BxThcppkAUdWg1okEMJe8GBnhlahwsKnz5FfNdFwtcg6SrG0I9RcUZr5WllfuB5PIbjQ4lvqha8B4DSkII3Tk6TWBh9t5s9JFrU5QYGtSo9bbnIrQB1rPEJRqcVY1XRF-OprkiP9ybJWb1I8gWSBLboXiepkEFcTXRqg3-MlzFPAj1KHVCWlHrf9Y2EQhiU2Rw9cTiF-Jeg_hdRWHwq5dvJhNBx4Bk1TvEGE&c=EjokCcJAi0NrWArTXH-GTQ_Xf-c2XfsYftmCwYC9M-exThVXN_IeMg==&ch=icWlxXoBG5cJlzvb8XO5dYXd6-FLGdXFvk9TqAhZkZtJSKqQ_6Ihcw==
[3]
https://visitor.constantcontact.com/do?p=un&m=001X50f1HRdkdYTR2MJ5djxTQ%3D%3D&ch=f79dd380-284c-11e6-92c5-d4ae528e486a&ca=2756920b-e3a1-403f-96a9-a41b48a4070d
[4]
http://ui.constantcontact.com/sa/fwtf.jsp?llr=ebuewawab&m=1123157168164&ea=danielle%40keizerchamber.com&a=1134234373656
[5]
https://visitor.constantcontact.com/do?p=oo&m=001X50f1HRdkdYTR2MJ5djxTQ%3D%3D&ch=f79dd380-284c-11e6-92c5-d4ae528e486a&ca=2756920b-e3a1-403f-96a9-a41b48a4070d
[6]
http://www.constantcontact.com/legal/service-provider?cc=about-service-provider
[7]
http://www.constantcontact.com/index.jsp?pn=publicaffairscounsel&rmc=VF19_V8