I am being audited by the Oregon Department of Revenue

I am being audited by the Oregon Department of Revenue and it’s not looking good. What to do?

My opinion is that the Oregon Department of Revenue (“ODR”) is much more difficult that IRS when it comes to audit. This includes collections. They are more detailed in terms of what constitutes substantiating documentation (items that establish income or expense) and more often than not will weight evidence heavily in the State’s favor. Typically, I recommend for any larger amount of taxes that are generated out of an audit, to appeal to the Oregon Tax Court Magistrate Division. Here you will get someone who will better be able to decide the issues in the tax return fairly.