| Common Questions |
|
|
 |
| Corporate Taxes |
|
- When is our corporate tax return due?
The 15th day of the month following the federal due date. For most taxpayers, that´s the 15th day of the fourth month following the end of your tax year.
- What is the corporate tax rate?
The corporate tax rate is 6.6 percent of Oregon taxable income.
- Who must file a corporate excise tax return?
Any corporation doing business in Oregon. (General Corporation) (Foreign Corporation)
- Who must file a corporation income tax return?
Any corporation with income from Oregon, even if it is not doing business in Oregon.
- How do we amend our corporate return? What form do we use?
Use the same form you originally used for the year you are amending; for example, use Form 20, Form 20-I, etc. Be sure to check the "Amended" box on the front of the return.
- What is the statute of limitations for filing an amended return?
Generally, the statute of limitations is three years from the date the return is filed or the due date of the return, whichever is later. For an amended return claiming a refund based on federal or another state's audit adjustments, the statute of limitations is generally two years from the date of the auditor's report, if that is later than the three-year statute.
If you file an amended return with the IRS and the changes affect Oregon taxable income, you must amend your Oregon return within 90 days of amending your federal return.
- How long after an IRS audit may Oregon issue a bill to me?
Generally, up to two years after Oregon received notice of a change to your federal return.
If you are audited by the IRS and changes that were made to your federal return affect your Oregon return, you should file an amended Oregon return. Otherwise, Oregon may send you a billing notice up to two years from the date the department receives notice of a change to your federal return.
- When are corporate estimated tax payments due?
1st: 15th day of the 4th month of the corporation´s tax year;
2nd: 15th day of the 6th month of the corporation´s tax year;
3rd: 15th day of the 9th month of the corporation´s tax year;
4th: 15th day of the 12th month of the corporation´s tax year;
Use Form 20-V.
- If I have an estimated tax account for the current year, and I amend a return or the department makes an adjustment that creates a tax liability, may I use funds in my estimated tax account to pay my tax liability?
No. Estimated tax payments cannot be used to pay a tax liability for a prior year, regardless of whether the liability is created by filing an amended return or by adjustment of the return by the department. It is an irrevocable election to have an overpayment of a prior year tax applied to a current year estimated tax account. ORS 314.515 & OAR 150-314.515(2).
- If we file as an "S" Corporation with the IRS, how do we file with Oregon?
Oregon recognizes your federal "S" election. File Form 20-S.
- Does Oregon allow the filing of a composite or Multiple Nonresident return for nonresident shareholders of an "S" Corporation?
Yes. Refer to Oregon Administrative Rule (OAR) 150-314.760. See Oregon Administrative Rules on our website.
- We are a limited liability company (LLC). How do we file for Oregon?
File the same way for Oregon that you did for federal. For example, if you filed a partnership return for federal, then file a partnership return for Oregon (Form 65).
- We are a corporate member of a Limited Liability Company (LLC). How do we file for Oregon?
IF THE LLC IS TAXED AS A PARTNERSHIP AND IS PART OF YOUR UNITARY BUSINESS:
Include your ownership share of the LLC income in your net income subject to apportionment. Include your ownership share of LLC property, payroll, and sales in your apportionment factors. If the LLC has Oregon activity, include its factors in both the numerators and denominators of your factors.
IF THE LLC IS TAXED AS A PARTNERSHIP AND IS NOT PART OF YOUR UNITARY BUSINESS:
Your income from the LLC is nonbusiness income. Your must allocate it to this state as provided in ORS 314.625 through ORS 314.645.
IF THE LLC IS TAXED AS A CORPORATION AND IS PART OF YOUR UNITARY BUSINESS:
Include the income of the LLC in net income subject to apportionment. Include the factors of the LLC, as appropriate, in both the numerators and denominators of the apportionment factors.
IF THE LLC IS TAXED AS A CORPORATION AND IS NOT PART OF YOUR UNITARY BUSINESS:
Subtract the income of the LLC from the consolidated net income as income from a nonunitary corporation. If the LLC does business in Oregon or has income from an Oregon source, the LLC will be required to file its own Oregon return and calculate its Oregon tax based on its Oregon activities.
- Does Oregon follow federal treatment of LLCs considered "disregarded entities"?
Yes.
- We are starting a nonprofit organization; what do we file with you?
You do not need to file "articles of incorporation" or other forms with the Department of Revenue. If you only file a federal Form 990 with the IRS, you do not need to file a return with Oregon. If you file a federal Form 990-T (unrelated business income), you must file an Oregon Form 20.
- How many years can we carry back or carry forward a net operating loss (NOL)?
Oregon allows corporate NOLs to be carried forward for up to 15 years. THERE IS NO NET OPERATING LOSS CARRYBACK ALLOWED, however there is a capital loss carryback provision.
- What is the interest rate for refunds and deficiencies?
If you do not pay the tax by the due date, interest will be charged on the unpaid tax. Interest periods generally begin on the 16th day of the month the return is due. Returns are due on the 15th unless the 15th falls on a Saturday, Sunday or holiday. Interest is figured daily for periods of less than a month. A month, for example, is May 16 to June 15. Interest rates may change once a calendar year.
To calculate interest due:
• Tax x Annual interest rate x number of full years
• Tax x Monthly interest rate x number of months
• Tax x Daily interest rate x number of days
Interest accrues on any unpaid tax during an extension of time to file.
- What is the due date of the Oregon return when I have a federal extension?
Oregon accepts the federal extension to extend the due date for filing your federal and state return. Be sure to attach a copy of the federal extension to the back of your Oregon return and mark the "Extension" box on the first page of the Oregon return. If you have a 6-month extension of time to file, your federal return is due 6 months after the original federal due date, and your Oregon return is due 6 months after the original Oregon due date. Example: Your federal return is due March 15 with a 6-month extension to September 15. Your Oregon return is due April 15 with a 6 month extension to October 15. The due dates for a fiscal year ending taxpayer apply to the 15th day of the fourth month following the end of your fiscal year.
If you need an extension of time to file for Oregon only:
| • | Use federal extension Form 7004, complete the header information, and answer questions 4 and 5. Leave the rest of the form blank.
| | • | Write "For Oregon only" at the top of the form.
| | • | Do not send the federal Form 7004 to the department before you file your Oregon return. |
- If you are making an extension payment, please use Form 20-V.
|
|
|
|
