Form Or-19 - Pass-Through Entity Withholding - 2008
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5Pass-Through Entity Withholding
Form
2008
OR-19
Introduction
be remitted by the quarterly due dates for estimated pay-
ments. See page 3.
Purpose of form
Do I need to obtain a separate tax identification number,
such as a BIN, to report this new withholding, or can I use
For tax years beginning on or after January 1, 2006, a pass-
my existing number?
through entity (PTE) with distributive income from Oregon
sources must withhold tax from its nonresident owners
You do not need to obtain a separate tax identification number
who do not elect to join in a composite filing. The PTE with-
to report the PTE withholding. You report the withholding
holds and remits tax using the payment voucher in these
using the name and tax identification number of the owner,
instructions. Nonresident withholding is a prepayment of
not the pass-through entity who is making the payment.
Oregon income and excise tax for nonresident owners of
How do PTEs report withholding information to
pass-through entities.
their owners?
Definitions
PTEs report the tax paid on behalf of the nonresident owner
using Form OR-19 and Form TPV. See page 4.
Throughout these instructions, the following terms are used:
Where should payments be sent?
“FEIN” is federal employer identification number.
Mail tax payments to:
“BIN” is Oregon business identification number. If you do
Oregon Department of Revenue
not know your Oregon BIN, leave the space on the form
PO Box 14950
blank when asked for this number.
Salem OR 97309-0950
“Owner” is a partner of a partnership or limited liability part-
Is interest charged on late payments of withholding?
nership (LLP), shareholder of an S corporation, member of a
limited liability company (LLC), or beneficiary of a trust.
Yes. Interest is charged beginning the day after the due date
of the payment.
“Pass-through entity (PTE)” is a partnership, S corporation,
LLP, LLC, or certain trusts.
Does withholding exempt a nonresident owner from filing
“Electing owner” is an owner who chooses to join in the
an Oregon return?
filing of a composite return.
No. Nonresident owners are still required to file the Oregon
“Non-electing owner” is an owner who chooses not to join
personal income tax return, or corporate income tax or excise
in the filing of a composite return and is subject to withhold-
tax return, whichever is applicable.
ing on their distributive share of the income from the PTE.
If the nonresident owner signs an affidavit to be
exempt from withholding, does that relieve them of the
Questions and answers
requirement to file an Oregon return?
No. Nonresident owners are still required to file tax returns.
What is pass-through entity withholding?
If the taxpayer does not file required returns after complet-
Pass-through entity withholding is a prepayment of Oregon
ing the Oregon affidavit, the department will proceed with
income or excise tax for nonresident owners of pass-through
filing enforcement and appropriate failure-to-file and pay
entities similar to estimated tax payments. Nonresident own-
penalties plus interest will be assessed.
ers are C corporations who have no commercial domicile in
If withholding is more than the nonresident owner’s tax
Oregon and individuals who are not residents of Oregon
liability, can the nonresident owner receive an early refund?
under Oregon Revised Statute (ORS) 316.027.
No. There is no way to file for an early refund.
Is this the same as the withholding sent in for employees?
Is withholding required on beneficiaries of trusts
No. What you refer to is called payroll withholding. This
or estates?
is withholding for owners in pass-through entities, not
employees. They are not the same.
Withholding is required if the trust is a grantor trust. A
grantor trust is not recognized for tax purposes because
What forms do PTEs use to report withholding?
the grantor retains substantial control. Withholding is not
The PTE uses Form OR-19 and Form TPV to report
required on beneficiaries of an estate. An estate is not con-
withholding.
sidered a pass-through entity for this purpose only.
How do PTEs report withholding information to the
Are PTEs required to withhold on its nonresident owner if
Oregon Department of Revenue?
that owner is itself a PTE?
PTEs withhold and remit the tax on any distribution that
A pass-through entity that owns an interest in another pass-
includes Oregon-sourced income using Form TPV. Tax must
through entity (upper-tier entity) is not allowed to join in
150-101-182 (12-07)
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