Current through Register Vol. 61, No. 4, April 1, 2022
Estimated tax liability means the tax as computed under ORS chapter 317A, less
(2) Every person
required to file an Oregon Corporate Activity Tax (CAT) return and expecting to
have a tax liability of $5,000 or more must make estimated tax payments. For
purposes of determining whether estimated tax liability exceeds $5,000, a
credit balance resulting from overpayment of tax for a prior year is not taken
(3) Estimated tax
payments are required, regardless of when a taxpayer exceeds $1 million of
taxable commercial activity.
Payments are due on the last day of the 4th, 7th, and 10th months of the tax
year, and the first month immediately following the end of the tax
Due dates of
payments for short-period returns.
If a return is filed for a short
period of less than 12 months, estimated tax payments are due as follows:
(a) If the period covered is less than three
months, only one payment is required. It is equal to 100 percent of the
estimated tax and is payable on the due date of the return.
(b) If the period covered is three months or
longer but less than six months, two payments are required. One-half of the
estimated tax is due on the last day of the fourth month, and the balance, if
any, is due on or before the due date of the tax return, not including
(c) If the period
covered is six months or longer but less than nine months, three payments are
required. One-third of the estimated tax is due on the last day of the fourth
month, one-third on the last day of the seventh month and the balance, if any,
is due on or before the due date of the tax return, not including
(d) If the period
covered is nine months or longer, but less than twelve months, four payments
are required. One-fourth of the estimated tax is due on the last day of the
fourth month, one-fourth on the last day of the seventh month, one-fourth on
the last day of the tenth month, and the balance, if any, on or before the due
date of the tax return, not including extensions.
(6) Tax-exempt persons that have "Unrelated
Business Income," as defined in the Internal Revenue Code, must also register,
file an Oregon CAT return, and pay the tax, if such person is otherwise subject
to those requirements under ORS
If their expected Oregon tax liability is $5,000 or more, estimated tax
payments must be made.
Refunds prior to filing of return. Generally, estimated tax
payments will not be refunded prior to the taxpayer's filing of the tax return
for the year for which the estimated tax payments were made. The fact that the
estimated tax payments made exceed the required payments based upon an
exception to underpayment is not sufficient cause to refund such excess prior
to the filing of the Oregon CAT return. On a case-by-case basis, if a taxpayer
establishes to the satisfaction of the department that the facts warrant a
refund, the department may issue a refund of estimated taxes prior to the
filing of the tax return.
Overpayments of tax.
Election. When a person files a completed CAT return and the
tax calculated on the return is less than the amounts previously paid for that
year, the person may make an irrevocable election to have the overpayment of
tax either refunded or applied as a payment of estimated tax. The election is
made by entering the amount in the appropriate space provided on the CAT
estimated tax installment. The department will apply the elected
overpayment, unless it is subject to an offset under ORS
and related rules, to the following year's estimated tax payment due on the
last day of the fourth month of the taxable year, to the extent that the
overpayment of tax is attributable to estimated tax payments received prior to
the following year's first quarter estimated tax due date. Payments received
after the following year's first quarter estimated tax due date will be applied
to estimated tax as of the date the payment is received. In the case of an
amended or delinquent return, the amount will be credited to the estimated tax
installment as of the date the amended or delinquent return was filed or the
date a payment was received, whichever is later.
Payments of estimated
tax. Except as otherwise specifically provided in section (8) of this
rule, the department will credit estimated tax payments as of the date that
they are received. The department will apply estimated tax payments to any
prior underpayment and the remainder, if any, will be applied to the next
Requirement to use electronic funds transfer. For tax years
beginning on or after January 1, 2020, persons or entities that are required by
other tax programs to make estimated payments by electronic funds transfer
(EFT) are also required to use that same method for the CAT.
(11) Any person or entity that is not
required by other tax programs to make estimated tax payments by EFT may use
any other method available to make estimated tax payments for the
(12) Notwithstanding section
(2) of this rule, taxpayers that expect their annual tax liability for tax year
2020 to be less than $10,000 are not required to make quarterly estimated
payments for tax year 2020.