Instructions For Form 20 - Oregon Corporation Excise Tax

already reported on a specific line on your return. Use

§1341(a). See OAR 150-315.068 for more information on

the numeric description code from the list in Appendix

computing the credit.

A. The total of all “Other credits” is entered on Form 20,

Consolidated return filers. If estimated payments were

line 29.

made under a different name, fill in the paying corpora-

tion’s name and FEIN on the schedule for correct appli-

Line 30. Total credits (add lines 23 through 29). Most

cation of estimated payments.

credits are used to offset the tax before credits on line 22.

Exception: The carryforward of the credit for “contribu-

Total. On line 8, enter the total of lines 1 through 7, then

tions of computers or scientific equipment for research”

carry total to Form 20, line 34.

isn’t allowed to be applied to minimum tax. If you’re

Line 35. Withholding payments. If taxes were paid on

claiming this credit carryforward and must limit the

the corporation’s behalf, enter the amount on line 35.

credit deduction, attach an explanation and a schedule to

your return that shows the carryforward amount. (ORS

There is a requirement to withhold tax from the pro-

317.151)

ceeds of sales of Oregon real property by nonresidents.

This applies to individual nonresidents as well as C

Line 31. Excise tax after credits (line 22 minus line 30).

corporations that aren’t doing business in Oregon. The

Enter -0- if line 30 is greater than line 22.

amount to be withheld is the least of three amounts:

Line 32. LIFO benefit recapture. This amount is a sub-

• 4 percent of the consideration (sales price);

traction from tax after credits. Oregon has adopted the

• 4 percent of the net proceeds (amount dispersed to the

provisions of IRC §1363(d) for S corpora tions. LIFO ben-

seller); or

efits are included in taxable income for the last year of

• 10 percent of the gain that’s includible in Oregon tax-

the C corporation under these provisions. On a sepa-

able income for the year.

rate schedule, compute the difference between tax (after

Withholding isn’t required if one of the following

credits and any surplus refund) on income per the return

requirements is met:

and income without the recapture of LIFO benefits. Mul-

tiply this difference by 75 percent and enter the result

• The consideration for the real property doesn’t exceed

on Form 20, line 32 as a subtraction from the tax after

$100,000;

credits. Attach the computation schedule to the Oregon

• The property is acquired through foreclosure;

return.

• The transferor (owner) is a resident of Oregon—or if a

C corporation—has a permanent place of business in

On the LIFO benefits line of each of the first three returns

this state; or

of the new S corporation, add one-third of the tax that

• The transferor receives professional advice that the

was deferred from the last year of the C corporation. The

transfer won’t result in Oregon taxable income.

tax on LIFO benefit recapture will be in addition to the

See instructions for Oregon Form OR-18, Report of Tax

Oregon minimum tax, if any. (ORS 314.750)

Payments on Real Property Conveyances, 150-101-183, or

Net excise tax

OAR 150-314.258 for more information.

Line 33. Net excise tax (line 31 minus line 32). Don’t

Pass-through entity withholding requirement. A

enter less than -0-.

pass-through entity (S corporation, partnership, or LLC

treated as a partnership) with one or more nonresi-

Payments, penalty, interest, and UND

dent owner that has no other Oregon-source income is

required to withhold tax on the nonresident owner’s dis-

Line 34. Estimated tax and prepayments

tributive share of income.

Schedule ES—Estimated tax payments or other pre-

The requirement is waived if the nonresident owner

payments. Fill in the total estimated tax payments made

makes an election to join in the filing of a composite

before filing your Oregon return. Include any payments

return, sends us a signed Oregon Affidavit for a Nonresi-

made with Form 20-V. Also include any refund applied

dent Owner of a Pass-through Entity, or meets another

from your previous year’s tax return or an Oregon

exception listed in OAR 150-314.775. See instructions for

amended return on line 5. List name and FEIN of payer

Oregon Form OR-19, Annual Report of Nonresident Owner

only if different from corporation filing this return. On

Tax Payments, 150-101-182, for more information.

line 6, enter payments made with your extension or other

prepayments.

Line 38. Penalty. To avoid penalty and interest, you must

mail any tax payment owed by the original due date of

Claim of right credit. A claim of right exists when you’re

the tax return. You must also mail your tax return by the

taxed on income and later find you have no right to that

original due date, or by the extended due date if you file

income and must repay it. Oregon allows a claim of right

with a valid extension attached.

credit if your federal tax liability is computed under IRC

150-102-020-1 (Rev. 10-14)

Form 20 Instructions

Instructions For Form 20 - Oregon Corporation Excise Tax - 2014 Page 17

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