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                               Form OR-706-EXT Instructions  
                               Application for Extension of Time to File a Return 
                               and/or Pay Oregon Estate Transfer Tax

 Purpose of Form OR-706-EXT                                     If the decedent dies on February 29 in a leap year, the due 
                                                                date of the estate tax return and estate tax payment is Febru-
The executor of a decedent’s estate uses Form OR-706-EXT to     ary 28 of the following year. If February 28 of the following 
apply for extensions of time to file Form OR-706 and/or pay     year falls on a Saturday, the due date would be the next 
the estate tax due. Both requests may be made on a single       business day, Monday, March 2.

form. This form is required for estates of decedents dying      Mailing and payment instructions
on or after October 1, 2023. Estates of decedents dying before 
October 1, 2023 are strongly encouraged to use this form in     Form only address:
lieu of the federal extension Form 4768, but aren’t required to If you’re not including a payment with your application, mail 
do so. Using Form OR-706-EXT will result in more efficient      your application to: 
processing.
                                                                Oregon Department of Revenue
Form OR-706-EXT applies only to the Oregon Estate Transfer      PO Box 14110
Tax Program [Oregon Revised Statutes (ORS) Chapter 118].        Salem OR 97309-0910
It can’t be used for any other tax program.                     Form and payment address:
                                                                If you’re including a payment with your application, mail 
 Overview                                                       your application and payment, without a payment voucher, to: 
                                                                Oregon Department of Revenue
Who may file this application?                                  PO Box 14555
The executor(s) of the decedent’s estate will use Form OR-      Salem OR 97309-0940
706-EXT to apply for an extension of time to file Form OR-706   Include on your check:
and/or pay estate tax due.
                                                                • Decedent’s SSN.
For purposes of Oregon’s Estate Transfer Tax, the defini-       • Decedent’s date of death.
tion of “executor” is the executor, administrator, personal     • Applicant’s daytime phone.
representative (PR), fiduciary, or custodian of property of     • Form OR-706.
the decedent (ORS 118.005). For probate estates, the personal 
                                                                Payment only address:
representative appointed or approved by the court has the 
duty to file the return and use this form. For non-probate      If you’re paying by mail, separate from your application, 
estates, any person having actual or constructive possession    include a Form OR-706-V, Oregon Estate Transfer Tax Payment 
of the property of the decedent must file the return and use    Voucher, and mail to:
this form.                                                      Oregon Department of Revenue
Additionally, an authorized attorney, certified public          PO Box 14950
account, or other party holding power of attorney may use       Salem OR 97309-0950.
this form to apply on behalf of the executor. See Oregon        Physical address for private delivery services:
Form 150-800-005, Tax Information Authorization and Power of    Oregon Department of Revenue
Attorney for Representation, for details on which parties are   955 Center Street NE
qualified to be a power of attorney for Oregon tax purposes.    Salem OR 97301-2555
When to file                                                    Your private delivery service will tell you how to get written 
                                                                proof of mailing and delivery dates.
Your application for extension is considered timely filed 
when received by the due date of Form OR-706. For dece-         Application checklist
dents who die on or after January 1, 2022, the due date for 
both the filing of the return and payment of tax is 12 months   For timely and accurate processing, ensure the following 
following the date of death and falls on the same corre-        items are included with your application:
sponding numerical day of the 12th month. When the due          • Form OR-706-EXT.
date falls on a Saturday, Sunday, or a legal holiday, the due   • Written statement supporting your application, if required.
date for filing the return is the next business day. For this   • Oregon Form 150-800-005,  Tax Information Authorization 
purpose, “legal holiday” means a holiday recognized state-      and Power of Attorney for Representation (for applications 
wide in Oregon or a holiday recognized in the District of       made by someone other than the executor).
Columbia [Oregon Administrative Rule (OAR) 150-118-0090].       • Payment for expected tax (if applicable).

150-104-002-1 (Rev. 09-14-23)               Page 1 of 4                                       Form OR-706-EXT Instructions

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Line instructions timely. If a written statement isn’t included, your application
will be denied. If granted, the extension is for 6 months after
the original due date; it’s not 6 months after the application
Part 1. Decedent information
is received.
Decedent’s identifying information. Enter the decedent’s
name, the Social Security number (SSN) assigned to the Additional extension
decedent, date of birth, and date of death. If the decedent Executors who are out of the country may qualify for up
didn’t have an SSN, the executor should obtain one for the to an additional 6 months to file the return. You must have
decedent by filing federal Form SS-5, Application for a Social previously been approved for an automatic 6-month exten-
Security Card, with the Social Security Administration. Don’t sion of time to file. The application must include a written
use the SSN assigned to the decedent’s spouse. statement explaining why it’s not possible to file the return
by the initial extended due date. If a written statement isn’t
ORS 305.100 and Section 405, Title 42, of the United States
included, your application will be denied.
Code, authorizes requests for SSNs. You must provide this
information. The SSN will be used to establish the decedent’s Important: If an application for extension has been made
and executor’s identities. and it’s later determined that a return isn’t required, provide
us with a letter stating this. Send your letter to:
Decedent’s domicile. Domicile is the place where the dece-
dent had their fixed, permanent, principal home. The dece- Estate Tax Unit, Business Division
dent is allowed only one domicile, though they may have Oregon Department of Revenue
had multiple residences. PO Box 14110
Salem OR 97309-0910
Part 2. Executor information
Executor’s identifying information. If there’s more than one Part 5. Application for extension of time to pay
executor, enter the information of the executor we should Estates may apply for an extension of time to pay their estate
contact. tax for up to 14 years from the original due date of payment.
Applying for an extension of time to pay doesn’t extend the
Part 3. Application filer information (if not
time you have to file the return. If you also need additional
executor) time to file, you must apply for an extension of time to file
If an authorized attorney, certified public account, or other as described above. You may apply for both extensions on
party holding power of attorney is filing on behalf of the the same application form.
executor, include the name, title, and phone number for this
An extension of time to pay the tax will only be considered
individual in addition to the executor’s information.
when reasonable cause exists that prevents the executor
Important: Notify us in writing if the executor or application from paying the tax timely and collateral is provided that we
filer have a change of address or phone number. determine is acceptable. See What is reasonable cause? below.
Part 4. Application for extension of time to file For self-assessed tax, your application must be received
Form OR-706 by the later of the original due date for the payment of the
Oregon Estate Transfer Tax, or the return filing due date
An application for an extension of time to file doesn’t extend (including extensions).
the time to pay. You must apply for an extension of time to
pay as described below. You may make both applications on For a tax deficiency, your application must be received
the same form, at the same time. within 30 days of the Notice of Deficiency.
Automatic extension A failure-to-pay penalty won’t be imposed when the estate
has an approved extension of time to pay, and all tax plus
An executor may apply for an automatic 6-month extension.
accrued interest is paid by the extended payment due date.
Applications will be approved if received or postmarked by
The executor must contact our Estate Tax Unit prior to mak-
the original due date of Form OR-706. If your application isn’t
ing the final payoff to obtain the final balance that includes
received or postmarked by the original due date of Form
all tax plus accrued interest. See contact information below.
OR-706, it will be denied unless the applicant includes a
statement with their application to show good and sufficient Interest charges will continue to accrue on the unpaid tax
cause that will be evaluated by the department. See below. at the rate established in OAR 150-305-0140 and isn’t subject
Extension for cause to the increased rate established in OAR 150-305-0152 while
under an approved extension of time to pay that remains in
An executor who is unable to timely file for an automatic
good standing.
extension may still apply for an extension if they provide
good and sufficient cause. Application for an extension for If your payment isn’t made timely, the installment payment
cause must be made within the 6-month period after the arrangement is cancelled; a 5 percent late payment penalty
original due date. The application must include a written will be assessed; and the remaining liability of penalty, inter-
statement explaining why the application wasn’t made est, and tax is due and owing immediately.
150-104-002-1 (Rev. 09-14-23) Page 2 of 4 Form OR-706-EXT Instructions

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Extension to pay of 1 year or less We will generally accept the following as collateral for
We don’t require collateral for an extension to pay of one year purposes of extending the date for payment of the Oregon
or less. You must include a written explanation establishing Estate Transfer Tax:
reasonable cause. If a written statement isn’t included, your • A first mortgage or trust deed on real property with a
application will be denied.
value at least double the amount of the tax paid on exten-
Extension to pay of more than 1 year and up to 14 years sion, or
Estates that require a longer period of time to pay the • A surety bond executed by a corporation licensed to do
Oregon Estate Transfer Tax may apply for an extension of business in the State of Oregon. The bond must be at least
time to pay of up to 14 years from the original due date of double the amount of the tax paid on extension and must
the return. Annual payments are required. be renewed every five years.
Acceptable collateral is required. See Collateral requirements Important: Don’t record any mortgage deed, trust deed, or
below. obtain a surety bond prior to discussing your application
You must include a written explanation that identifies why with our Estate Tax Unit. We must determine and agree that
an extension of time to pay is needed, and you must identify the collateral offered is acceptable.
which property of the estate that you propose to provide as Extension of time to pay application process
collateral. If a written statement isn’t included, your applica-
When applying for an extension of time to pay that is over
tion will be denied.
1 year, you begin an interactive process with us. Upon
What is reasonable cause? receiving the application, the Estate Tax Unit will review the
In general, reasonable cause exists if: application to determine if reasonable cause exists. A letter
• The estate can pay the tax only by disposing of property will be issued to the executor explaining the application is
for less than market value or by borrowing money at a rate tentatively approved pending the taxpayer’s proposal of
in excess of the mortgage money market (on terms that acceptable collateral within 60 days of the time the appli-
would cause a loss to the estate), or cation for extension of time to pay is tentatively accepted.
• The gross taxable estate includes a beneficial interest in We will then contact the executor or party holding power
one or more closely held businesses whose value exceeds of attorney and work with them to determine and secure
either 35 percent of the gross taxable estate or 50 percent of acceptable collateral and complete the remaining steps
the net taxable estate. See OAR 150-118-0150 for definitions needed for the application process.
and further details.
Part 6. Payment to accompany extension request
If a liquid market exists for property, then fluctuations in the
market value of the property won’t create reasonable cause Enter on Part 6, Line 1, the estimated amount of estate taxes
for an extension of time to pay the estate tax. due. On Line 2, enter the amount of the cash shortage.
Include a statement of the current assets already distributed,
If no liquid market exists for the property and the lack of a
and if applicable, the plan for partial payments during the
liquid market would require the estate to sell the property
extension period. On Line 3, enter the balance due.
for less than its market value, we may determine that there
is reasonable cause for an extension to pay. Interest must be paid on any estate taxes that aren’t fully
Collateral requirements paid by the original due date of the tax return, regardless
of whether an extension of time to file and/or pay has been
If you’re applying for an extension of time to pay that is more
obtained. For this reason, you should pay as much of the
than 1 year and up to 14 years, you’re required to provide
acceptable collateral valued at twice the value of the unpaid tax as possible by the original (not extended) due date of
tax amount. the return.

Example: Form OR-706 shows $700,000 tax due. Of this, Part 7. Signature and verification
$200,000 is paid by the due date. The unpaid tax is $500,000.
Sign and date as appropriate.
Collateral provided must be equal to or greater than
$1,000,000, the amount equal to double the unpaid tax. Mail to the address shown on page 3 of the form.

150-104-002-1 (Rev. 09-14-23) Page 3 of 4 Form OR-706-EXT Instructions

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Do you have questions or need help? Phone

503-378-4988 or 800-356-4222
Internet
Monday–Friday, 7:30 a.m.–5 p.m.
Closed Thursdays from 9–11 a.m. Closed holidays.
www.oregon.gov/dor
Wait times may vary.
• Download forms, instructions, and publications.
• Search FAQ. Contact us for ADA accommodations or assistance in other
languages.
Email
In person
estate.help.dor@ dor.oregon.gov
Find directions and hours on our website.
This email address isn’t secure and confidentiality can’t be ensured. Gen- www.oregon.gov/dor.
eral tax and policy questions only. We ask that professional tax preparers
and attorneys research questions before contacting us.

Correspondence

Estate Tax Unit, Business Division
Oregon Department of Revenue
PO Box 14110
Salem OR 97309-0910
Fax: 503-945-8787, Estate Tax Unit

150-104-002-1 (Rev. 09-14-23) Page 4 of 4 Form OR-706-EXT Instructions

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