Or. Admin. Code § 150-316-0465 - Estimated Tax
(1)
(a) No declaration of estimated tax is
required if the estimated tax as defined ORS
316.557 is less than
$1,000.
(b) A required declaration
shall contain information and be in the form prescribed by the Department of
Revenue. Federal forms are not acceptable.
(2) A taxpayer may amend the declaration of
estimated tax by recalculating the estimated tax due for the year, subtracting
the payments already made and dividing the balance by the remaining payment
dates.
(3) 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. Where
taxpayers establish to the satisfaction of the department that the facts
warrant a refund, a refund of estimated taxes can be made prior to the filing
of the tax return. Examples of fact situations which will be considered
sufficient to warrant a refund are as follows:
(a) Estimated tax payments were made by an
individual who will not be required to file a return for the tax year for which
the estimated tax payments were made.
(b) The estimated tax payments were intended
for the Internal Revenue Service but were sent to the Department of Revenue in
error. 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 tax return.
(4) Estimated tax payments cannot
be used to pay additional tax liabilities for prior or current tax years,
regardless of whether the liability is created by the taxpayer filing an
amended return or by adjustment of the return by the department.
Example 1
: Douglas has made
estimated tax payments for 1998 totaling $2,000. His 1996 tax return was
audited & a deficiency of $500 was imposed. No part of the $2,000 payments
may be used to pay the deficiency.
(5) Interest shall be computed on excess
estimated tax payments starting 45 days after the return is filed, or 45 days
after the due date of the return, whichever is later.
(6) An individual with a taxable year of less
than 12 months may be required to file a declaration of estimated tax and pay
estimated tax.
(a) No declaration is needed
for a short taxable year that is:
(A) Less
than four months.
(B) At least
four months but less than six months and the declaration filing requirements of
ORS 316.563 are met after the first
day of the fourth month.
(C) At
least six months but less than nine months and the requirements to file the
declaration are met after the first day of the sixth month.
(D) At least nine months and the requirements
to file the declaration are met after the first day of the ninth month.
(b) If the taxpayer is
required to file the declaration, the declaration must be filed on or before:
(A) The 15th day of the fourth month if the
requirements to file are met before the second day of the fourth month.
(B) The 15th day of the sixth
month if the requirements to file are first met after the first day of the
fourth month but before the second day of the sixth month.
(C) The 15th day of the ninth month if the
requirements to file are first met after the first day of the sixth month but
before the second day of the ninth month.
(D) The 15th day of the first month of the
succeeding year if the requirements to file are first met after the first day
of the ninth month but before the last day of the year unless the return for
such tax year is filed on or before the last day of the first month of the
succeeding year.
(c)
The estimated tax shall be paid in equal installments. The amount of each
installment depends on the length of the short taxable year and the date during
the year when the requirements to file and pay estimated tax are first met.
Example 2 . Tom has a short taxable year
beginning January 1, 1998 & ending October 31, 1998. The requirements to
filing a declaration of estimated tax are first met prior to April 2, 1998. The
estimated tax is payable in four equal payments on April 15, June 15, September
15 & November 15, 1998. Each payment would equal one-fourth of the total
estimated tax due. If, on the other hand, the requirements to filing a
declaration of estimated tax were first met after April 1 but before June 2,
the estimated tax would be payable in three equal payments of one-third of the
total estimated tax. The payment dates would be June 15, September 15 &
November 15, 1998.
Example 3 . A
five-month short taxable year beginning January 1, 1998, & ending May 31,
1998, & the requirements to file were met on March 31, 1998, Tom must file
& pay:
1/2 of the estimated tax on April 15, 1998
1/2 of the estimated tax on June 15, 1998
Example 4. A seven-month short taxable year
from April 1, 1998, through October 31, 1998, and the requirements to file are
met on July 1, 1998. Tom must file and pay:
1/3 of the estimated tax on July 15, 1998
1/3 of the estimated tax on September 15, 1998
1/3 of the estimated tax on November 15, 1998
Notes
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 316.563
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