Tax season officially opens January 27

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Praesent ac nibh cursus, varius turpis The Oregon Department of Revenue will begin processing e-filed 2024 state income tax returns on January 27, 2025, the same day the IRS will begin processing federal returns. Paper filed returns will be processed starting in mid-February. As a reminder, all paid tax preparers filing Oregon personal income tax returns are required to file them electronically if they are subject to the federal e-file mandate.

E-filed returns will be processed in the order they are received. However, as in years past, the department won’t be issuing personal income tax refunds until after February 15. A refund hold is part of the department’s tax fraud prevention efforts and allows for confirmation that the amounts claimed on tax returns match what employers and payers report on Forms W-2 and 1099.

Voluntary self-identification of race and ethnicity information

New for 2025, Oregon taxpayers and Oregonians can choose to voluntarily provide information about their race and ethnicity on Form OR-VSI when they file their 2024 taxes. Providing this information may be done separately from a tax return through Revenue Online.

This new option may prompt questions from your clients. Tax professionals can let their clients know:

• Voluntary Identification of Race and Ethnicity is a result of legislation passed in 2023.
• The information provided is confidential. Tax practitioners and tax preparation software vendors may only use the data to file the tax return and cannot use it for any other purpose.
• The Department of Revenue will store the data separately from the tax return and it will only be accessible by limited staff for research and analysis of revenue policy.
• Tax professionals must provide the option to fill out the form to their clients so they can make a choice. Clients can opt out of completing the form.

Tax professionals reminded to report data security breaches

The Oregon Department of Revenue is reminding tax professionals that they must report data security breaches to help prevent fraudulent tax refunds from being issued. The sooner the department can learn about a data security breach, the better we are able to protect your client and state resources.

As the tax filing season gets underway, the possibility of data breaches increases as cybercriminals try to steal sensitive tax information. The department will contact tax preparers if we suspect fraudulent filing. State law also requires tax professionals to notify the department within five days if they discover a data security breach or have reason to believe that a breach has occurred.

Suspicious activity that may indicate a possible data breach include the DOR rejecting several of your clients’ e-filed returns, receiving more e-file acknowledgements than returns you know you have filed, or your clients responding to emails that you did not send.

If you experience a data security breach, or suspect one has occurred, please contact DOR:
DOR Identity Theft Hotline: 503-947-2000
Email: fraud.help@dor.oregon.gov

The tax professional must provide the department with the name, address, and tax ID number of the consumer whose personal identification has been compromised. If the tax professional is unable to provide the required information within five days due to the information being unavailable, in cases such as ransomware attacks, they must contact the department again within 15 days of recovering the data to provide the required information. Details are available on our website.

For data breaches in excess of 250 consumers, reporting information is available at the Oregon Department of Justice website.

The Internal Revenue Service also requires reporting data loss for federal tax returns. This IRS website provides more information.

Use Revenue Online to verify payments

Taxpayers’ estimated payments can be verified through their Revenue Online account.

Through Revenue Online, individuals can also view letters sent to them by the department, initiate appeals, make payments, and submit questions. Visit Revenue Online on the Revenue website to learn more.

Those who don’t have a Revenue Online account can sign up on the agency’s website.

Forms 1099-G available on Revenue Online

As a reminder, the department no longer mails Forms 1099-G reporting state tax refunds to taxpayers. Only taxpayers who itemized deductions on the federal return for tax year 2023 will need a Form 1099-G to file their tax year 2024 return. Taxpayers with a Revenue Online account will receive an email to let them know their 1099-G is available to view and download. Practitioners can also look up 1099-G information without logging into their client’s Revenue Online account using their client’s last name, Social Security number, and filing status. The department will mail a postcard to taxpayers who have a 1099-G to let them know to check online for their 1099-G information. Remember: 1099-Gs reporting unemployment compensation are sent by the Employment Department, not the Department of Revenue.

New authorization forms

The Oregon Department of Revenue has updated authorization forms for taxpayers who require other parties to receive and handle their confidential tax information or to act and make decisions on their behalf with the agency.

The new forms, OR-AUTH-REP (Authorization to Represent) and OR-AUTH-INFO (Authorization to Receive Tax Information), replaced the Tax Information Authorization and Power of Attorney for Representation Form, also known as the POA form.

The old POA form is no longer accepted and is permanently discontinued. Any previous authorization using the old form remains valid until the taxpayer revokes it in writing.

Visit the Tax Professionals page on our website

The Tax Professionals page on our website has quick links to the information you need to serve your clients. Resources such as information about tax professional liaison meetings, how to access client accounts in Revenue Online, information on reporting data breaches, new law updates, and contact information for your dedicated practitioner specialist can be found on this page. Make sure to bookmark it in your browser as a quick informational resource.

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email at prac.revenue@dor.oregon.gov, or by phone at 503-947-3541.