Ormsby v. Department of Revenue (2004)

First, as this court has previously noted, “[t]he Oregon legislature intended to make Oregon personal income tax law identical to the [IRC] * * * subject only to modifications specified in Oregon law.” Voy v. Dept. of Rev., 20 OTR 179 , 181 (2010), quoting Ormsby v. Dept. of Rev., 18 OTR 146, 151 (2004); ORS 316.007.4 Second, allowable deductions from taxable income are a “matter of legislative grace” and taxpayers bear the burden of proving their entitlement to the deductio…

First, as this court has previously noted, “The Oregon legislature intended to make Oregon personal income tax law identical to the Internal Revenue Code (IRC) * * * subject only to modifications specified in Oregon law.” Voy v. Dept. of Rev., 20 OTR 179 , WL 3238967 at *1, (2010), quoting Ormsby v. Dept. of Rev., 18 OTR 146, 151 (2004) (internal quotation marks omitted); ORS 316.007.1 Second, allowable deductions from taxable income are a “matter of legislative grace” and t…

ANALYSIS The two issues presented are: (1) whether Plaintiffs are entitled to a medical expense deduction in 2011 for the foster home care expenses they incurred for Morison; and (2) whether Plaintiffs are entitled to a deduction for “consulting fees” paid in 2011 when they failed to issue a Form 1099-MISC until 2015. “[T]he Oregon legislature intended to make Oregon personal income tax law identical to the Internal Revenue Code [IRC] * * * subject only to modifications spec…

ANALYSIS The issue presented in this case is whether Plaintiffs are allowed three dependent exemptions for their two nieces and one nephew for the 2011, 2012, and 2013 tax years. “[T]he Oregon legislature intended to make Oregon personal income tax law identical to the Internal Revenue Code [IRC] * * * subject only to modifications specified in Oregon law.” Voy v. Dept. of Rev., 20 OTR 179 , 181 (2010), quoting Ormsby v. Dept. of Rev., 18 OTR 146, 151 (2004) (internal quotat…

“The Oregon Legislature intended to make [Oregon] personal income tax law identical to the Internal Revenue Code (IRC) for purposes of determining Oregon taxable income, subject only to modifications specified in Oregon law.” Ormsby v. Dept. of Rev., 18 OTR 146, 151 (2004), citing ORS 316.007.3 As a result, the legislature adopted, by reference, the federal definitions for deductions, including those under IRC section 162 for trade or business expenses.

“For purposes of determining Oregon taxable income, ‘the Oregon Legislature intended to make Oregon personal income tax law identical to the Internal Revenue Code * * * subject only to modifications specified in Oregon law.’ ” Herzog v. Dept. of Rev., 20 OTR 175 , 177 (2010), citing Ormsby v. Dept. of Rev., 18 OTR 146, 151 (2004); see also ORS 316.007).

ANALYSIS “[T]he Oregon legislature intended to make Oregon personal income tax law identical to the Internal Revenue Code [IRC] * * * subject only to modifications specified in Oregon law.” Voy v. Dept. of Rev., 20 OTR 179 , 181 (2010), citing Ormsby v. Dept. of Rev., 18 OTR 146, 151 (2004) (internal quotation marks omitted); ORS 316.007.2 IRC section 152 defines a “dependent” as “a qualifying child” or “a qualifying relative” of the taxpayer.