The Oregon Department of Revenue is experiencing an interruption in fax service that has affected taxpayer communications to two of the agency’s key return processing units.

Since Friday afternoon, Revenue has received 644 fax submissions to its Electronic Funds Transfer Unit (EFT) and Suspense Unit that were incomplete due to service problems. “Taxpayers sending the faxes would have every reason to think they had a successful transmission, but we received a distorted or partial image,” Policy and Systems Manager Megan Denison said.

Revenue is asking all taxpayers who recently used the affected lines to resend their faxed information as soon as possible. The agency can identify the senders of about a quarter of the failed faxes and will attempt to contact them, Denison said.

The outage affecting Suspense is ongoing. Taxpayers who try to use the unit’s fax numbers (503-945-8786 and 503-945-8009) will receive a recorded message that the line has been disconnected and is no longer in service. Revenue has set up an alternate fax number (503-945-8584) that should be used until further notice. Anyone who sent Suspense a fax between Friday afternoon and Tuesday morning needs to resend the fax to 503-945-8584 or mail their information to the address on their request letter.

The Suspense fax outage mainly affects taxpayers who are attempting to provide additional documentation to Revenue regarding the processing of their tax returns. These taxpayers could experience a tax refund delay or a tax return adjustment if the agency does not receive this information. Because of this, Revenue will send a second request for information to any taxpayers who might have been affected by the outage.

“We acknowledge this outage affects taxpayers who were doing their best to respond to our letters, and who through no fault of their own are being inconvenienced,” Denison said. “That’s why we are doing everything we can with the information we have to reach out to them.”

The problem affecting the EFT fax line has been resolved. Taxpayers who sent a fax to EFT using 503-947-2016 between Friday afternoon and Monday evening need to resend their fax using either that number or alternate number 503-345-2353.

The EFT fax outage mainly affects businesses communicating with Revenue about payroll, withholding, or corporate tax issues. These businesses use electronic funds transfers to make payments to the agency. In general, these miscommunications only will cause a delay setting up or making changes to EFT accounts.

Revenue is working with its vendor, Concord Technologies, to resolve the ongoing outage affecting the Suspense Unit fax line. At this point, there is no estimated time frame for restoration of regular fax service.

An analysis of U.S. Census Bureau numbers shows Oregon state & local governments ranking higher than national state average when ranked among other 50 states. Below is a chart showing how Oregon ranks among the 50 states and another on how the District of Columbia ranks. The numbers are based upon Fiscal Year 2009 numbers and lag a few years behind current totals.

Additional sources provided by Christopher Chantrill USgovernmentspenidng.com

Better Business Bureau warns taxpayers that they are not exempt if their tax returns are prepared improperly by third-party professionals. BBB serving Alaska, Oregon and Western Washington advises consumers to evade unqualified tax preparers:

Designations: All tax professionals should be able to provide proof of credentials. Turn to the Internal Revenue Service for insight on Enrolled Agents or EAs.

Standings: Check for registration status and disciplinary actions through state and federal agencies. Beware of unanswered or unresolved complaints on bbb.org.

Advertisement Claims: Watch out for those who assert that they can secure higher refunds or deliver faster than other professional preparers.

PTINs: Ask preparers to disclose Preparer Tax Identification Numbers or PTINs before providing services. PTINs should also be enclosed on completed tax returns.

Service Fees: Get costs upfront and in writing. Look for flat fees; avoid rates that fluctuate based on refund percentages.

Electronic Filing: Paid preparers should be able to process returns electronically through IRS e-file, unless clients opt to file paper returns instead. The IRS lists authorized e-file providers.

Documentation: Be wary of those who offer to file without W-2s, records or receipts. Review returns and other tax forms carefully; be skeptical of preparers who try to rush the process, don’t answer questions and encourage clients to sign blank documents. After filing, retain original W-2s and copies of completed tax returns with preparer signatures and PTINs.

Contacts: Ensure preparers will be accessible in case questions or issues arise, even after April. Collect full contact information.

Taxpayers have the right to prepare their own returns. The IRS offers resources at irs.gov/filing.

Tax season is underway, and the Oregon Department of Revenue would like to remind taxpayers that assistance is available at five district offices throughout the state and the agency’s main office in Salem. Taxpayers can receive help from Revenue employees 8 a.m. to 5 p.m. Monday through Friday at the following locations:

Bend — 951 SW Simpson Avenue, Suite 100, 541-388-6139
Eugene —1600 Valley River Drive, Suite 310, 541-686-7935
Medford — 3613 Aviation Way, Suite 102, 541-858-6500
Gresham —1550 NW Eastman Parkway, Suite 220, 503-674-6272
Portland — 800 NE Oregon Street, Suite 505, 971-673-0700
Salem — 955 Center Street NE, 503-378-4988

Employees in Revenue’s district offices provide a wide array of services for Oregonians preparing their 2012 state taxes. Auditors are available to answer tax return questions and help clarify state tax law. Revenue agents can set up payment plans and provide information about account balances and past due returns. People who don’t want to mail their income tax return can drop it off at a district office, and make any income tax payments they might owe the state.

“We just want people to know that we are in their community and ready to help,” said Keith Shribbs, a deputy section manager in Revenue’s Personal Tax and Compliance section. “We still have people who come into district offices that have been open for years and tell us, ‘We didn’t know you were here.’”

District office staff also can direct people to tax assistance not provided by Revenue. For example, employees may not be able to answer all federal tax questions, but they will help taxpayers direct their questions to the Internal Revenue Service. The agency does not prepare tax returns, but staff can steer them to organizations that provide free tax preparation.

In addition to the district offices you can visit http://www.oregon.gov/dor to get tax forms, check the status of your refund or make tax payments, or call 1-800-356-4222 toll-free from an Oregon prefix (English or Spanish); 503-378-4988 in Salem and outside Oregon; or e-mail, questions.dor@state.or.us. For TTY (hearing or speech impaired), call 1-800-886-7204. Due to the amount of calls the department receives during tax season, you may experience extended waiting times.

George Fox University’s Accounting Club is offering free tax preparation and e-filing assistance to local residents. Dates for help sessions are four Saturdays: March 2 and 9 and April 6 and 13.

The Tax-Aide program is designed to help taxpayers prepare their returns. The service is especially geared toward senior citizens, students, individuals with lower incomes, and those who have limited English proficiency. Anyone, however, is eligible for assistance. The only exception is for those whose return is deemed too complicated.

Help will be available from 9 a.m. to 4 p.m. on each of the dates. All sessions will meet in Rooms 102 and 103, located on the first floor of the university’s Hoover Academic Building. A sign-up sheet will be available 30 minutes before each session. All sessions are first come, first served.

Those seeking assistance are to bring photo identification, Social Security cards or individual Taxpayer Identification Numbers, birthdates for family members, the current year’s tax package (if you received one), and all appropriate tax forms (W-2, 1099-INT and 1099-DIV, SSA-1099 or RRB-1099, 1099R, etc.).

If applicable, it is also advised that patrons bring a list of child tax credit information; a list of medical, taxes, interest, contributions and miscellaneous expenses; child and disabled dependent care information; bank routing and account numbers; and a copy of their 2011 federal and state returns, if available.

The Tax-Aide program works in conjunction with the IRS, the American Association of Retired Persons Foundation, and the Oregon Department of Revenue. The service also offers free e-filing (electronic filing), allowing for returns to be processed faster than the traditional practice of mailing in information. Assisting with preparation will be faculty members and students in the university’s accounting major.

To e-file a joint return, both spouses must be present to sign the required forms. To find out more, contact Seth Sikkema at 503-554-2813.

George Fox University is ranked by Forbes among the top Christian universities in the country and is a Christian college classified by U.S. News & World Report as a first-tier regional university. Nearly 3,500 students attend classes on the university’s campus in Newberg, Ore., and at teaching centers in Portland, Salem and Redmond, Ore. George Fox offers bachelor’s degrees in more than 40 majors, degree-completion programs for working adults, five seminary degrees, and 11 master’s and doctoral degrees.

In an effort to generate more money, cash-strapped states are turning to two controversial solutions—an Internet retail sales tax and legalizing online gambling.

The Wall Street Journal recently reported that an Internet sales tax, referred to as the Amazon tax, could generate $23 billion for states. Historically, online retailers like Amazon and eBay have relied on a 1992 Supreme Court ruling stating that Internet retailers didn’t have to collect sales taxes if they lacked a physical presence in a customer’s state of residence. As a result, online shopping has grown and consumers have had the luxury of finding deals more cheaply and conveniently online than at the store. The 1992 decision, however, did give Congress the authority to step-in and require companies to levy a sales tax, which it has yet to do.

Supporters of the Amazon tax have long argued that online companies should not be given an unfair competitive advantage over brick and mortar companies that must collect state sales tax from customers. Conservative lawmakers have historically resisted the Amazon tax as part of a philosophical commitment to low taxes. But that appears to be changing as lawmakers grapple with budget shortfalls and the need for cash. Several Republican governors, including Chris Christy of New Jersey, have recently expressed support for federal legislation empowering states to tax Internet shopping.

The National Conference of State Legislatures (NCSL) estimates that California could generate $4.16 billion from the Amazon tax, Texas 1.78 and New York $1.77 billion. While the numbers would be smaller in some states, the impact could be greater. The NCSL estimates if an online sales tax had been operative in previous years, some statea could have plugged millions of dollars worth of budget holes. For that reason, an Internet sales tax increasingly seems inevitable in many states desperate for more money.

As states look for additional revenue streams, Internet gambling is also being considered as another way to bring in more money to government coffers. Federal authorities have historically interpreted the 1961 Wire Act to prohibit wagering over telecommunications systems. However, a 2011 ruling by the Department of Justice (DOJ) said the prohibition applies only to sports bets and gave states wide latitude to regulate Internet gambling within their borders. The ruling opens the possibility that an Internet gambling industry could emerge within states.

In the wake of the DOJ ruling, some states are easing into Internet gambling. New York and Maryland, for example, plan to sell lottery tickets online as a first step. Nevada has now authorized online poker. This past June, however, Delaware became the first state to pass legislation that offers residents a wide range of Internet gambling services, including blackjack, poker and slot games. According to the Wall Street Journal, Delaware officials estimate that internet gambling could bring $3.75 million in the first half of 2013—when the law would take affect.

Internet gambling has generally met stiff resistance from a coalition of lawmakers, convenience store owners, casinos and anti-addiction advocates. Among other things, the difficulty of regulating an Internet gambling industry across state borders as well as the potential social consequences have thwarted gambling interest intent on making Internet gambling a viable and widely accepted industry.

Proponents of Internet gambling believe Delaware’s bold legislation could provide the needed momentum to get an Internet gambling industry off the ground.

The Taxpayer Foundation is recognizing five outstanding students for their essays on their Oregon education experience and opinions.   The diversity of opinions range from authors in the 5th grade to recent college graduates covering a wide breadth of topics from the personal to policy suggestions.   Oregon is honored to have these young and talented voices in our state.   Please enjoy the five top honored essays below.  

Top Winning Essay
By Kattarin Kirk

Public school, private school, home school, charter schools, correspondence schools, online schools, there are so many options in today’s world but what’s the best one? It used to be that there was only one option but now that’s all changed. The question is still there though, which option is best? Does it depend on the individual or is the old saying “one size fits all” still true when it comes to the education of today’s students?

I have a unique perspective on this. My first two years of high school I spent at public school. Some teenagers thrive in social settings while others struggle. Teachers are kept so busy trying to keep control of dozens of students that they have little time to offer one on one attention to any individual. Students requiring extra help are often neglected because of such limited time. Many students fall by the wayside due to lack of resources, self-motivation, and inability to ask for help.

Schedules are another problem; many of today’s teenagers have afterschool jobs. In some cases their work shift starts before class lets out. I was one of these students and spent my junior year in a correspondence program. In some cases these programs tend to be more flexible allowing for students with unconventional lifestyles. There are drawbacks though; correspondence programs make it even more difficult to get help with problems. Unless there is someone to oversee them the student must be very self-motivated, that’s not always likely to happen with teenagers. However if a student is willing to work it’s a great way for them to learn self-discipline.

Most experts agree that teenagers need a structured environment, so where’s the balance? I found it in the form of Sylvie’s River Web Academy. This program allowed me the best of both worlds, I got one on one attention from a teacher who came up to my house once a month to go over my progress and I had twenty-four hour access to help via email. I also learned self-discipline that taught me important life lessons. I was able to work and go to school without the problem of conflicting schedules because I made my own class schedule. What’s more is I was offered a variety of options because I was able to work on the computer and the school wasn’t tasked with finding a teacher qualified to teach each new class. Sylvie’s River gave me the chance to learn without the drama of a big school but avoided the isolation of homeschooling. For me it was the perfect choice.

Whether you’re dealing with a teenager who learns well in social situations or one who’s more withdrawn you have to realize that everyone learns differently. One size doesn’t fit all, alternative options are needed to help today’s teens adapt to this new world without compromising their education.

By Daniel Wilson Senior, King’s Academy

The excitement of graduation hits me like a splash of ice, cold water. I will be leaving the long halls and thick classrooms for good. I look back at the hardships: late nights of studying, early mornings of cramming, and the occasional twist of a surprise quiz. It has changed me. There’s no doubt about that. The constant drive of learning a language or the persistent push of picking up sources for a topic has never been my idea of ?a party.? I can even remember staying up past midnight to read a book, and waking up early to finish a complicated Hebrew translation. I would hesitate to call my private school ‘an easy ride.’ Something changed me though. Not only was my schooling very strenuous and difficult, but it was fun, whether I admitted it or not. I have found old sheets of graph paper with math equations, dusty pencils with teeth marks, and even a History notebook containing organized indexes and primary sources for famous battles and declarations. Shuffling through them, each piece reminds me of a moment, of a night of homework: a time when I was on the edge of my sanity: despising the stack of books at hand ? praying they would vanish in the morning.

When I think of school, I instantly think of the classmates I knew: the ones that are still with me and the ones that have graduated. I was blessed to meet many of my best friends at school. They were the ones I studied with, ate lunch with, sat with, suffered with, and had years of education with. Sometimes, when homework was especially tough, the only thing keeping my brain from exploding was a classmate’s encouraging comment or humorous joke.

I was additionally blessed with incredible teachers. They went above and beyond the call of duty to serve my daily educational needs. They were strict when strictness was necessary, and they were merciful when mercy was needed. Asking them for help was easy. They often managed to surpass my expectations despite my initial fears.

What I have learned from my years as a high school student can never be forgotten. They have marked me in so many good ways; I could never recall every aspect the school has enhanced in me. I wish I had seen the value of having insurmountable amounts of work assigned to us each week. This is something everyone can relate to: when things get tough, it is easy to want to back down. But if you overcome tribulations and experience them before your adult life, rough times are a piece of cake. Being in a Christian private school brought me closer to my classmates and friends. It trained me and provided me the right tools for the future.

The Next essay written by a recent Senior
at De La Salle North Catholic High School

I live in a world where it seems like my socioeconomic background determines who I am and who I will be. As a young student from a struggling household of eight, I know how it feels to be limited, to be deprived of an opportunity to success, by our very own education system. Students like me are often regarded as poor kids who are incapable of academic achievement, and to an extent, there is truth to this perception. We cannot fully succeed because our education system lacks the resources, support, and opportunities needed for lower-income students to thrive in and beyond the classroom.

I attend a school that serves local urban students at or barely above the poverty threshold. Until this year, my school was unable to offer AP courses. I plan to take the national College Board AP Calculus and English test in two weeks, but I do not have years of preparation that many other students receive during their freshman, sophomore, and junior years. When I took the Chemistry SAT subject test in the fall, I did not recognize a third of the concepts because the Chemistry class I took was behind the national standard. My economics textbook is tattered, scribbled over with cuss words, and does not even have a cover attached to it. Isn’t this an injustice? Isn’t there something wrong when the very system that is supposed to lead me towards success fails to prepare me for what lies ahead?

I realize that the economy is currently struggling and funding is limited, but there are methods beyond monetary boundaries that can help students achieve their full potential. For example, school days could be extended so that students have more time and preparation during classes. Fifteen minutes more could be the difference of a student understanding a concept rather than walking away from it. As for national testing, teachers could work daily practice tests into the curriculum in order for students to become familiar with testing strategies. Above all, success is not an individual act, but an achievement made altogether. Whether it is after school study sessions with peers or weekend tutoring with teachers, students need opportunities to exercise their cognitive abilities outside of the classroom. It is an injustice to waste a young adult’s brain and talents because of financial barriers. It is social child abuse to not take action and give students what they deserve. The education system is the problem and the solution. It has the power to recreate the educational model of our society and provide an equal opportunity for all students regardless of whom they are or where they come from. The education system has the power to give students a chance at a future, a college, a life. So I must ask when the change will happen because we, the students, cannot wait any longer.

By Max Fruits
5th Grader at LaurelHurst

My name is Max Fruits and I am in fifth grade at Laurelhurst School. I have been at Laurelhurst School for six years. I think it is a fantastic school. This year has been my best year so far because of my incredible teacher. She is never boring. She has a way of making learning interesting and fun. Including me, there are 29 kids in my class. Most of the kids try hard and work hard, but some of them get in trouble, some of them slack off, and some of them just joke around all the time. My teacher works hard to make such a big class very successful. Thanks to her I feel like I have a really good class.

Right now I have almost 30 kids in my class, but next school year there will be almost 40 kids in the class. It will be very hard because I have some very energetic (some would say naughty) kids in my class. My teacher is very worried about having so many students in her class. Also second and third grade classes will be mixed and fourth and fifth grade classes will be mixed too. That will make it extra hard for teachers and students. One reason our school is so crowded is that the district changed our school from K-5 to K-8. So now we have 14 year olds with Kindergarteners. While our school is overcrowded, other schools don’t have enough students.

The school district needs to be smarter about choices. For example deciding which students go to which school. It should take some of the students from the most crowded schools and move them to less crowded schools. Even better, the district should make it easier for parents to choose the schools that are best for their kids. More choices would be better for students, their parents, and even teachers.

By Susannah Hotovec

If I could change one thing about the Oregon school system, I would make Fridays a non-school day statewide. No school Fridays would give everyone a much needed day off and save money while doing that.

A day off would give everyone a break. It would give students another day to do homework. The day off would, also, give everyone time to relax, whether it is on that day or not. An extra day off would give teachers more time to grade, allowing students an opportunity to see what they need to do in order to pass the class. Next: save money, save teachers.

By saving teachers, students would perform better. More teachers means more ‘one on one time’ with the students, which would help students learn and end up in the students getting the material. Since the students are getting it, more students will graduate. More students graduating makes both the school and sate look that much better in terms of graduation percentage. Lastly, no school Fridays will help save classes.

Saving the elective classes will help in making students actually want to come to school. More students coming to school means more students learning. More students learning means more students graduating.
No school Fridays is completely beneficial in helping more students graduating. It’s a win-win situation.

Tim Geithner, U.S. Treasury Secretary, visited Portland in April and held a private meeting with about a dozen CEOs of major corporations. The Portland Business Journal wanted to know what was discussed behind the closed doors. Only one of those CEOs, Benchmade Knife Company’s Les de Asis, spoke to the media afterward—and little was said. According to de Asis, the execs talked with the Treasury Secretary about the economy. Now, the Portland Business Journal has found out a little more by making a public records request and getting a government employee’s handwritten notes on the meeting.

Unfortunately, the notes are nearly indecipherable. They seem to indicate that the CEOs wanted to talk about the European financial crisis, opportunities for the state of Oregon, and overall GDP growth. Other topics were coal export, natural gas pipelines, start-up businesses, and government incentives.

Private meetings with federal officials and corporate leaders can be important, especially if they discuss sensitive matters like foreign trade problems that are best shared privately for matters of diplomacy. For an international firm like NIKE this is essential. Private meetings also can create speculation and opportunities for abuse. For instance, LA Times reported about problems when then Treasurer Secretary Hank Paulson held meetings with hedge fund firms and may have released sensitive information on the government’s plans to deal with Freedie and Fannie Mac.

The Portland City Council approved a new two percent hotel tax intended to help promote Portland tourism. The assessment applies to hotels with more than 50 rooms and takes effect on Oct. 1, 2012. Called the Portland Tourism Improvement District, the program will raise an estimated $6.6 million annually for tourism advertising, branding, promotions and sponsorships. City officials hope the fund will increase hotel occupancy, which in turn will increase a separate lodging tax collected by the city and county.

This will raise Portland’s tax rate to 14.5 percent, still lower than Seattle (15.6 percent), Denver (14.8 percent) and Austin (15 percent) according to Travel Portland.

A Travel Portland subcommittee of hotel representatives will determine how to better market travel to Portland. Hotel managers say getting more people to Portland won’t just help them fill their rooms, it will also help car rental companies get more customers, restaurants sell more appetizers and entrees, and it will help local stores in the spring and summer when they can’t count on holiday sales. Last year Portland’s economy picked up $3.8 billion from tourists.

The competition in the hotel business isn’t just across the street. It’s across the country. So when Seattle recently raised hotel taxes to pay for a marketing campaign, Embassy Suites General Manager Steve Jung took notice.

Jung told KATU’s Patrick Preston, “”We’re all fighting for tourism dollars, and I think when they have the ability to market as they’re doing, that puts them at an advantage,” he said.

Jung pushed Portland’s two percent hotel tax hike as a way to advertise the city, especially along the Interstate 5 corridor.

“We want to continue to make sure that Portland is front of mind for people in Seattle and in Vancouver,” he said.

Hotel guests don’t like paying the extra tax, but many say it won’t keep them from staying in Portland, especially since there is no sales tax.

The Center for Fiscal Accountability reports out of what the consumer pays, the hotel must cover costs for federal and state income taxes, federal payroll taxes, sales taxes, capital gains taxes, unemployment insurance taxes and workmen’s compensation taxes, business license taxes and fees, utility taxes, local property taxes, and any local income taxes. The hotel must also pay federal and state excise taxes on its telephones. These taxes add another $33.58 to the average cost of a hotel room.

As much as 50 percent of the cost of a hotel room pays for taxes. For an average one night stay costing $97.06, this means that up to $48.53 goes straight to the government.

Identity thieves are using deceased people’s SSN and use it to claim him as a dependent. Then have the IRS send the ridiculously inflated refund to your prepaid debit card. Thieves spend the refund, and pull the same trick next year. The scam works when the victim died fairly recently. If the victim is still alive, the thief files before he does.

Businessweek reported that five-year-old Benny Waters, who died of a brain tumor in September 2010. When his parents tried to file their tax return last year, it was rejected because someone else had already claimed Benny as a dependent. As Benny’s parents said, the experience was akin to having their son stolen. Yet they are far from the only victims. According to IRS, more than 490,000 people have been victimized by this new fraud, and the overall cost to taxpayers has been more than ten billion.

Criminals often ask for their refund to be mailed to a vacant house; the scammer simply comes along and checks the mail when his stolen refund arrives. Once it’s spent, the IRS can do very little. Worst of all, the SSNs of the deceased are publicly available online for free. Congress has begun attempting to regulate the availability of the SSNs of the deceased, but so far, they are still very easy to find. Benny Waters’ mother found his SSN online within minutes.

The IRS has instituted new procedures to check on returns in which the dependents claimed appear to be unrelated to each other, and it has flagged 91,000 returns this year for additional checking. But those who have their identity stolen usually have to wait for about a year before the government sends them their rightful refund. And in those situations, the IRS generally ends up paying the refund twice.

The problem is only growing; a Southen Florida Attorney General calls it “a tsunami of fraud,” the New York Times reports. New regulations may solve some problems. But for now, any place that collects Social Security information is at risk for a breach of privacy.