HB 3745
Provides for the cancellation, after 10 years, of uncollected tax debt, penalties and interest.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill allows the Oregon Department of Revenue to cancel uncollected tax debt, penalties, and interest after 10 years under specific circumstances. The department must determine that the tax is wholly uncollectible, the taxpayer is unlocatable, or deceased. Additionally, the department can offer to suspend collection for taxpayers with low income and limited assets. If cancellation occurs, any related liens are also released.
Key provisions
- Tax debt, penalties, and interest are canceled after 10 years if the department determines they are uncollectible.
- The department can suspend collection for taxpayers with income below 200% of the federal poverty guidelines and less than $5,000 in assets.
- The department may cancel a portion of a tax assessment if collection and administrative costs exceed the expected recovery.
- Upon cancellation, a record of the canceled debt is filed with the department.
- Any liens related to the tax debt are also canceled.
- Interest continues to accrue during collection suspension.
- The department must review annually a taxpayer’s eligibility for collection suspension.
- The department can write off debt after more than three tax years of suspension.
Who is affected
- Taxpayers with uncollected tax debt
- The Oregon Department of Revenue
- Individuals with low income and limited assets
- Taxpayers who are deceased or unlocatable
Notable changes
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