Or. Admin. Code § 150-314-0250
Example 1: Edward filed his 2007, 2008, 2009, 2010, and 2011 returns by their respective due dates. On March 15, 2014, Edward filed his 2012 return on which he claimed a net operating loss. The refund claims for the carryback years (2007 through 2011) must be filed by April 15, 2016, three years after the due date of the 2012 net operating loss year return.
Example 2: Assume the same facts as in Example 1 except that the original 2012 return was not filed until March 15, 2016, was filed as a paid return and did not claim a net operating loss. On June 15, 2016, Edward filed an amended return (refund claim) for 2012 to claim an additional business expense. The amended return creates a net operating loss for 2012. Edward is allowed a refund for the 2012 taxes paid within the two years preceding his refund claim. Refund claims for the net operating loss carryback years (2007 through 2011) must have been filed by April 15, 2016, three years after the due date of the 2012 net operating loss year return. The date of filing of the net operating loss claim (June 15, 2016) does not extend the date of filing of the refund claims for the carryback years beyond the three-year period.
Example 3: Jake amended his timely filed 2013 return November 1, 2017 to claim a refund for a carryback arising from a 2015 net operating loss. In addition to reducing income for the net operating loss carryback, Jake claimed a subtraction for U.S. government interest and an additional exemption credit. The refund claim is limited to the portion of the overpayment attributable to the net operating loss carryback. The subtraction for interest and the additional exemption credit are outlawed by the period of limitations under ORS 314.415(2).
Example 4: Assume the same facts as in Example 3 except that Jake paid additional tax for the 2013 taxable year on May 1, 2016. He may receive a refund for any overpayment of taxes attributable to the net operating loss carryback plus any remaining balance of overpayment, but not in excess of the amount of any taxes paid for 2013 during the two years immediately preceding November 1, 2017, the date the claim was filed.
Example 5: Chuck files his 2014 return on September 30, 2018, more than three years beyond the original due date of the return. His return showed tax liability of $500 and he requested a refund of $300 for overpayment of estimated tax. The refund was denied based on ORS 314.415(2)(a). On October 15, 2018, Chuck filed an amended 2014 return carrying back a 2017 net operating loss. Chuck requests a refund of $800 since he filed within the additional three-year period allowed by ORS 314.415(5)(a). Chuck will receive a refund of $500 that is attributable to the net operating loss carryback. The additional $300 refund is not allowable based on ORS 314.415(2)(a).
Example 6: Jay filed his original 2010 return showing a net operating loss of $20,000 on July 1, 2018. Refunds for the carryback years 2008 and 2009 and the carryforward years of 2011, 2012, 2013, and 2014 are barred by the statute of limitations. However, any portion of the net operating loss deduction not fully absorbed in those years may be used to determine Oregon taxable income for 2015 and later years in accordance with ORS 316.028 and the related rules. The limitation of the refunds for the closed years will not limit the carryover amounts to be used in subsequent years.
Or. Admin. Code § 150-314-0250
Statutory/Other Authority: ORS 305.100
Statutes/Other Implemented: ORS 314.415