Or. Admin. R. 150-314-0733 - Partnership Pays Election After Federal Centralized Partnership Audit Adjustments

(1) An audited partnership may elect to pay at the partnership level under ORS 314.733(4). The election to have the partnership report adjustments and pay tax is irrevocable after the due date for the election. To rescind the election prior to the due date for providing notice of the election to the department, the partnership must:

(a) Before the due date for the election, provide written notice to the department that it is rescinding its election; and

(b) Provide all notices, file all reports, and pay the tax, penalty, and interest due relating to a composite return as required by ORS 314.733(3)(a).

(2) A tiered partner's share of adjustments under ORS 314.733(4) does not include the following adjustments specified in ORS 314.733(4)(b)(C)(iii):

(a) The share of adjustments allocable to indirect partners exempt from tax under ORS 316.277(2) or 317.080, other than amounts that are unrelated business taxable income.

(b) An indirect corporate partner's share of adjustments listed under ORS 314.733(5)(b) excluded from a tiered partner's share of adjustments, which is the share of adjustments that the audited partnership can reasonably determine is required to be included in the apportionable income of the indirect corporate partner. Adjustments includable in the indirect corporate partner's apportionable income may be considered reasonably determined if the audited partnership has received written notice from the indirect corporate partner that the indirect corporate partner's distributive share of income is required to be included in the indirect corporate partner's apportionable income, if the indirect corporate partner or its agents directly or indirectly have the right to control the audited partnership, or if the audited partnership has access to information about the relationship between the indirect corporate partner's business and the audited partnership's business to reasonably determine that the indirect corporate partner's distributive share of adjustments must be included in that partner's apportionable income.

Notes

Or. Admin. R. 150-314-0733

REV 42-2020, adopt filed 12/23/2020, effective 1/1/2021

Statutory/Other Authority: ORS 305.100

Statutes/Other Implemented: ORS 314.733