Or. Admin. R. 150-317-1300 - Estimated Tax: When Estimated Payments Are Required

Current through Register Vol. 61, No. 4, April 1, 2022

(1) Estimated tax liability means the tax as computed under ORS chapter 317A, less allowable credits.
(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 into account.
(3) Estimated tax payments are required, regardless of when a taxpayer exceeds $1 million of taxable commercial activity.
(4) 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 year.
(5) 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 extensions.
(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 extensions.
(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 317A.100 to 317A.161. If their expected Oregon tax liability is $5,000 or more, estimated tax payments must be made.
(7) 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.
(8) Overpayments of tax.
(a) 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 return.
(b) Application to estimated tax installment. The department will apply the elected overpayment, unless it is subject to an offset under ORS 314.415 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.
(9) 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 required installment.
(10) 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 CAT.
(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.

Notes

Or. Admin. R. 150-317-1300
REV 15-2019, temporary adopt filed 12/30/2019, effective 01/01/2020 through 06/28/2020; REV 11-2020, adopt filed 06/24/2020, effective 6/28/2020; REV 23-2020, amend filed 11/30/2020, effective 12/1/2020; REV 17-2021, amend filed 12/15/2021, effective 1/1/2022

Statutory/Other Authority: ORS 305.100 & 317A.143

Statutes/Other Implemented: ORS 314.415, 314.505, 314.515, 314.518, 317A.137 & 317A.149

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