(1) An
underpayment of corporation estimated tax exists when the payments received on
or before a payment due date are less than the required payment due as
determined under section (3) of this rule.
(2)For returns processed on or after
January 1, 2001. If none of the exceptions as provided in section (3)
of this rule are met, interest on underpayment of estimated tax is computed on
the difference between the lowest amount determined under section (3) of this
rule and the total estimated tax payments for the installment period made on or
before the due date.
Example: Interest on underpayment of first
installment
1999 tax liability on return filed April 15, 2001 -
$2,000
1998 tax liability - 1,600
Amount determined under subsection (3)(a) of this rule ($2,000
x 25%) - 500
Amount determined under subsection (3)(b) of this rule ($1,600
x 25%) - 400
Amount determined under subsection (3)(c) of this rule - 375
Amount determined under subsection (3)(d) of this rule - 350
First quarter payment received by the first quarter installment
due date - 100
Interest for the first quarter is calcualted on $250, the
difference between $350, the lowest amount determined under section (3) of this
rule, and $100, the total payments received before the first quarter
installment due date.
(3)Exceptions. Underpayment
charges will not be imposed if each estimated tax payment is equal to or more
than 25 percent (or the appropriate percentage of tax for short periods
provided in OAR
150-314.515) of any one of the following:
(a) One hundred percent of the tax for tax
years beginning on or after January 1, 1996.
(b) One hundred percent of the tax shown on
the return for the preceding tax year (after credits and any state surplus
refund) provided that the preceding tax year was a period of twelve months and
an Oregon return showing a liability was filed for such tax year.
(A) When applying this subsection to a
current taxable year of less than 12 months, the tax for the preceding tax year
is reduced by multiplying it by the number of months in the short tax year and
dividing the resulting amount by 12.
(B) This subsection applies only to the first
required estimated tax payment due for a tax year by a large corporation. When
a large corporation's first required payment is reduced under this subsection,
the second required payment must be increased by the amount of the reduction. A
large corporation is a corporation with federal taxable income, prior to net
operating loss or capital loss deductions, of $1 million or more in any of the
three prior tax years.
(c) An amount equal to 100 percent of the tax
computed on annualized taxable income. Annualized taxable income is computed as
provided in ORS 314.525(2)(c)(A)
or using the same annualization periods as used for federal tax purposes. Tax
credits available on the date of the payment may be deducted from the
annualized tax. An estimated or anticipated tax credit may not be used.
(d) An amount equal to 100 percent
of the amount obtained by applying Section 6655(e)(3)(C) of the Internal
Revenue Code to Oregon taxable income for any corporation with seasonal
income.
Notes
Or. Admin. R.
150-314-0315
9-74; 1-1-77;
TC 9-1981, f. 12-7-81, cert. ef. 12-31-81; RD 7-1983, f. 12-20-83, cert. ef.
12-31-83; RD 12-1985, f. 12-16-85, cert. ef. 12-31-85, Renumbered from
150-315.525(1)?; RD 12-1985, f. 12-16-85, cert. ef. 12-31-85; RD 15-1987, f.
12-10-87, cert. ef. 12-31-87; RD 11-1988, f. 12-19-88, cert. ef. 12-31-88; RD
7-1989, f. 12-18-89, cert. ef. 12-31-89; RD 12-1990, f. 12-20-90, cert. ef.
12-31-90; RD 7-1993, f. 12-30-93, cert. ef. 12-31-93; RD 3-1995, f. 12-29-95,
cert. ef. 12-31-95; REV 8-2002, f. & cert ef. 12-31-02; Renumbered from
150-314.525(1)-(A),
REV
30-2016, f. 8-12-16, cert. ef.
9/1/2016
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
314.525
