Or. Admin. Code § 150-317-1300 - Estimated Tax: When Estimated Payments Are Required
(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
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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