What is Voluntary Self-Identification?
Voluntary self-identification is when a taxpayer chooses to provide their race and ethnicity information to the Oregon Department of Revenue.
In 2023, the Oregon Legislature passed a law that allows taxpayers to provide their race and ethnicity when they file their personal income tax return starting in 2025.
To provide the information, you will use a separate form included with your Oregon income tax return or you can provide it on Revenue Online if you don't have a requirement to file a return this year. The form will be available starting with 2024 personal tax returns filed during the 2025 tax season.
Why we ask
Collecting race and ethnicity information helps state economists and researchers analyze inequity in tax policy.
Participation across Oregon is important. The more people who choose to share their race and ethnicity information the more accurate the research data will be.
You get to decide
It's up to you whether you answer the race and ethnicity questions. The form is voluntary. You aren't required to provide answers to the race and ethnicity questions.
We hope you'll answer these questions, so we can better serve you and all Oregonians.
We protect your privacy
We want you to feel safe answering race and ethnicity questions. Your information is confidential and protected.
We secure your information and only authorized individuals have access to it.
Tax professionals and tax software companies will not use your race and ethnicity information for anything other than helping you file your return.
We do not share your race and ethnicity information with the Internal Revenue Service (IRS).
Frequently asked questions
We'll include a new Voluntary Self-Identification of Race and Ethnicity form with the Oregon income tax return. You can use this separate form to provide race and ethnicity information with your tax return if you choose to participate. You can find Form OR-VSI, along with instructions in more than 20 languages, in our Forms and Publication Library.
You can provide the information directly to us through Revenue Online if you don't have a requirement to file a return this year.
The demographic choices mirror the race and ethnicity options in the Oregon Health Authority “REALD" program. But we won't gather language and disability information.
We will store race and ethnicity information separately from personally identifiable taxpayer information. We'll use the information for research purposes only.
The law prohibits using race and ethnicity information for audits or collections. Department staff who perform those functions will not have access to the data.
The law prohibits tax professionals and tax software companies from using the data for purposes other than in their role in assisting the taxpayer in filing their return.
We're also prohibited from sharing the data with the IRS.
Starting in 2024, we will report to the legislature each year on the effectiveness of the measures we've taken to ensure data security.
The department's Research Section will use the race and ethnicity data. We can use the data to assess Oregon tax policy and its effects on different races and ethnic groups.
The research will support the state's vision of building a more equitable Oregon where everyone can thrive, and everyone's voice is heard. Where inequities exist, Oregon leaders may consider and enact policies to mitigate them.
In 2023, the Oregon Legislature passed Senate Bill 1. It allows taxpayers to provide their race and ethnicity when they file their personal income tax return. Providing the information is voluntary. It also requires the department to protect the information. The department can only use the data for specific research purposes. Oregon is the first state to collect this information to use for tax policy analysis.
We'll start collecting the information with 2024 tax year returns, which we receive in 2025.
We anticipate beginning analysis of the race and ethnicity information in 2025. Official reporting would not take place until at least 2026.
Your participation can help the state of Oregon better serve you and all Oregonians.
The more people who choose to share their race and ethnicity information the more accurate the research data will be. Accurate research data – along with Census data – can show where inequities exist in current and future tax policy. Oregon leaders may consider and enact policies to mitigate them.
Race and ethnicity information will be compiled separately each year for research purposes. Submitting race and ethnicity information is completely voluntary. Taxpayers will be asked each year if they want to provide the information, even if they have provided it in a previous year. Submitting information each tax year can help provide more complete data for state researchers.
Tax Professionals - Frequently asked questions
Tax software companies and
professionals must NOT retain or use information about taxpayers’ race or
ethnicity beyond the extent necessary to assist taxpayers with the preparation
and filing of their tax return. ORS 305.686
Tax software developers
must agree to the Oregon Department of Revenue’s Letter of Intent (LOI) to
become a certified software provider. In addition to the LOI, the department has
three new Oregon Administrative Rules (OARs) effective January 1, 2025. OAR 150-316-0664 provides further guidance
on data requirements and prohibited actions by tax software vendors and tax professionals.
Tax professionals are
required to inform their clients of the form and their choice to provide the
information or to opt out. There’s no requirement for the taxpayer or their tax
preparer to maintain or send any records to the department about their choice
to opt out. Taxpayers may choose to opt out when they file their return and
fill out the form separately on Revenue Online, before or after filing the tax
return.
- For returns filed electronically, each taxpayer will have to make the choice (married filing joint taxpayers will each make their own choice) to voluntarily fill out the form or opt out of filing the form. If opting out, the form will not be transmitted to the department, and there's no record-keeping requirements about the choices made.
- For returns filed on paper, the taxpayer may simply include the form if they choose to provide the race and ethnicity data. If they opt out, there is nothing to document, either by the taxpayer or their tax preparer, and no (blank) form needs to be submitted.
Tax professionals are
required to inform their clients of the form and their choice to provide the
information or to opt out. There’s no requirement for the taxpayer or their tax
preparer to maintain or send any records to the department about their choice to
opt-out. Taxpayers may choose to opt-out when they file their return and fill
out the form separately on Revenue Online, before or after filing the tax
return.
The law does not impose
fines or sanctions. You may want to check with your licensing agency to
determine if not providing the form would be in violation of your ethics
requirements.
Yes, any taxpayer filing an
Oregon individual income tax return needs to be given the option to fill out
the form or opt out.
No, your clients need to be
given the choice to fill out the form or opt out.