TC-MD 250060G•Harpole v. Dept. of Rev.
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DECISION TC-MD 250060G 1 of 4 IN THE OREGON TAX COURT MAGISTRATE DIVISION Income Tax CANDACE A. HARPOLE, ) ) ) ) ) ) ) ) ) ) Plaintiff, TC-MD 250060G v. DEPARTMENT OF REVENUE, State of Oregon, DECISION Defendant. This matter came before the court on Defendant’s Motion for Summary Judgment. Plaintiff seeks a refund of an overpayment of her 2020 personal income tax. Defendant argues it is time-barred from issuing the refund by ORS 314.415.1 For the reasons set forth below, the court grants Defendant’s Motion for Summary Judgment. I. FACTS AND LEGAL BACKGROUND Plaintiff filed her 2020 personal income tax return on August 8, 2024, requesting a refund. Defendant denied that refund request pursuant to ORS 314.415(2)(a) because the return was received more than three years after the due date. In March 2020, both the Governor of Oregon and the President of the United States had declared an emergency due to the public health threat posed by COVID-19. Revenue Director Order 2020-01, March 24, 2020. Pertinent governmental directives issued during that time are discussed in the analysis below. Also beginning in 2020 and continuing in the years that followed, Plaintiff endured personal hardships that contributed to her delay in filing her 2020 return. 1 The court’s references to the Oregon Revised Statutes (ORS) are to 2023.
DECISION TC-MD 250060G 2 of 4 Plaintiff asks the court to allow a refund of her 2020 overpayment; Defendant asks the court to uphold its adjustment. II. ANALYSIS The issue is whether Defendant is barred by ORS 314.415(2)(a) from refunding a 2020 overpayment to Plaintiff. Under ORS 314.415(2)(a), Defendant may not allow a refund “if the original return is not filed within three years of the due date, excluding extensions, of the return” except for amounts paid within two years before the refund claimed.2 Plaintiff argues that her 2020 return was filed within three years of its due date because of alterations to the filing deadline made during the COVID-19 emergency.3 The due date for Oregon personal income tax returns is “the due date of the corresponding federal return for the tax year as prescribed under the Internal Revenue Code and the regulations adopted pursuant thereto.” ORS 314.385(1)(a). For calendar year returns, that date is generally “the 15th day of April following the close of the calendar year[.]” IRC § 6072(a).4 However, the federal filing deadline may be postponed by the Secretary of the Treasury due to disaster, fire, terrorism, or military action, and it is automatically postponed for servicemembers in combat zones and for anyone living or working in a disaster area. IRC § 2 ORS 314.415(2)(a) states: “The department may not allow or make a refund after three years from the time the return was filed, or two years from the time the tax (or a portion of the tax) was paid, whichever period expires later, unless before the expiration of this period a claim for refund is filed by the taxpayer in compliance with ORS 305.270. In any case, if the original return is not filed within three years of the due date, excluding extensions, of the return, the department may allow or make a refund only of amounts paid within two years from the date of the filing of the claim for refund. If a refund is disallowed for the tax year during which excess tax was paid for any reason set forth in this subsection, the department may not allow the excess as a credit against any tax occurring on a return filed for a subsequent year.” 3 Plaintiff relates in her Complaint that she was severely injured in January 2021 and spent four months recovering, but she does not develop an argument based on that injury in her summary judgment briefing. The court notes that a four-month recovery from a January 2021 injury would have been completed more than three years before her return was filed on August 8, 2024. 4 Internal Revenue Code (IRC)
DECISION TC-MD 250060G 3 of 4 7508(a); 7508A(a) (2021). On the state level, Defendant’s director has authority to extend tax deadlines where Internal Revenue Service (IRS) action or a state-declared emergency impairs Oregonians’ ability to comply. ORS 305.157(1). Because of the COVID-19 state of emergency, both the Secretary of the Treasury and Defendant’s director extended the filing deadlines for 2020 returns until May 17, 2021. IRS Notice 2021-21, IRB 986 (2021); Revenue Director’s Order 2021-01, April 1, 2021. Because Plaintiff filed her refund claim August 8, 2024, more than three years after May 17, 2021, it appears prima facie—on its face—that she is ineligible for a refund. See ORS 314.415(2)(a). Nonetheless, Plaintiff argues that an additional action of the IRS is relevant: the penalty relief announced in IRS Notice 2022-36, IRB 188 (2022), which was the subject of an IRS news release, IR-2022-163. Notice 2022-36 recites how, although the due dates for 2019 and 2020 returns had been postponed, “[a]dditions to tax or penalties for failure to timely file returns continued to accrue for taxpayers who did not file by the postponed due dates.” IRS Notice 2022-36 § 2. Given the IRS’s backlog of returns and correspondence, it was determined that penalty relief would allow the IRS “to focus its resources more effectively, as well as provide relief to taxpayers affected by the COVID-19 pandemic.” Id. Therefore, the IRS would not impose certain listed penalties with respect to certain listed 2019 and 2020 returns “that are filed on or before September 30, 2022.” Id., § 3.A. Nothing in Notice 2022-36 extends the 2021 filing due date. To the contrary, Notice 2022-36 specifically references previous postponements of due dates and provides a different form of relief: penalty waiver and abatement. Furthermore, the relief granted is expressly limited to certain statutes, none of which is pertinent to Plaintiff’s refund claim, and is further limited to
DECISION TC-MD 250060G 4 of 4 returns filed by September 30, 2022, whereas Plaintiff’s Oregon return was filed August 8, 2024. Notice 2022-36 is not relevant to Plaintiff’s claim. Because Plaintiff’s 2020 return was filed more than three years after the due date, Defendant properly declined to issue a refund. See ORS 314.415(2)(a). III. CONCLUSION There is no genuine issue of material fact, and Defendant is entitled to prevail as a matter of law. See TCR 47 C, TCR-MD 13 B.5 Now, therefore, IT IS THE DECISION OF THIS COURT that Defendant’s Motion for Summary Judgment be granted. Plaintiff’s appeal is denied. POUL F. LUNDGREN MAGISTRATE If you want to appeal this Decision, file a complaint in the Regular Division of the Oregon Tax Court, by mailing to: 1163 State Street, Salem, OR 97301-2563; or by hand delivery to: Fourth Floor, 1241 State Street, Salem, OR. Your complaint must be submitted within 60 days after the date of this Decision or this Decision cannot be changed. TCR-MD 19 B. This document was signed by Magistrate Poul F. Lundgren and entered on March 3, 2026. 5 Tax Court Rules (TCR); Tax Court Rules-Magistrate Division (TCR-MD)
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