I had an audit with State Oregon; what’s next?

The first letter that you get will be what is called a Proposed Audit Adjustment. The letter will detail what adjustments were made on the tax return. On Page 2, will be a date that you must respond back to the auditor if you wish to contest the adjustments.

Following the audit, the Oregon Department of Revenue (“ODR”) will issue what is called a Notice of Deficiency (“NOD”). The NOD allows you to appeal to ODR by a Written Objection or you may request a Conference Request. These options are considered administrative appeals. You have 30 days following the NOD letter date to make your appeal.

If you file a Written Objection you will need to explain why you disagree with ODR and what your basis for supporting your disagreement is. You should detail each of your objections to the audit changes, which may include additional documentation to support your arguments. When you submit a written protest, it will be considered by the same person who conducted the audit. In many ways, the written protest is like an extension of the audit. If you were not happy with the way the audit was handled, an appeals conference may be a better option.

If you file a Conference Request, where the case will be assigned to an ODR conference officer. Typically a senior ODR employee. The conference can be conducted over the phone or in person. Although a conference gives you the opportunity to have a second opinion from an experienced ODR employee, you should take note—conference officers are not independent of ODR, which means that their decisions should not be considered objective or unbiased.

You can request your conference appeal electronically through Revenue Online at www.oregon.gov/dor. You will also need to sign up for a Revenue Online account. You may use the Letter ID on the NOD to validate your account.
When you are in your account, choose “Request an Appeal” under “I Want To” menu. Your request must include the following:

  • The filing period involved; and
  • Your day time phone number; and
  • An explanation of why you are appealing.

You can also mail a written objection. The letter must be postmarked within 30 days of the NOD. Please write “written objection” or “conference request” at the top of the letter. Your request must include the following:

  • Your full name, and the name of your business (if applicable); and
  • Your social security number; and
  • Your current mailing address; and
  • The filing period involved; and
  • Your daytime phone number; and
  • An explanation of why you are appealing.

Send your appeal to:
Oregon Department of Revenue
PO Box 14725
Salem, Oregon 97309-5018

Following your appeal, a decision will be mailed to you. If you lose this administrative appeal you may appeal to the Oregon Magistrate Court within 90 days of the date of the decision.

If you do not respond to the NOD as above, then ODR will issue what is called a Notice of Assessment. From the date of that letter, you will 90 days to appeal your matter to Oregon’s Tax Court Magistrate Division.