Swarens v. Deparment of Revenue

In Swarens v. Dept. of Rev., 320 Or 326, 883 P2d 853 (1994), this court was called on to interpret ORS 314.410(3) in a situation in which the Internal Revenue Service disallowed deductions for losses claimed from tax shelters. The court held that ORS 314.410(3) extended the usual three-year statute of limitations, as taxpayer argued, rather than reopening the statute of limitations period, as the Department of Revenue (department) argued. 320 Or at 330-35.

Thereafter, in a timely fashion, taxpayer filed a statement of costs and disbursements and a petition for attorney fees. The department…