Instructions For Form 20 - Oregon Corporation Excise Tax

Enter the following penalties on your return if they

To calculate interest:

apply.

Tax × Annual interest rate × Number of full years.

Tax × Monthly interest rate × Number of full months.

• 5 percent failure-to-pay penalty. Include a penalty

Tax × Daily interest rate

× Number of days.

payment of 5 percent of your unpaid tax if you don’t

pay by the original due date, even if you have an exten-

Interest rates and effective dates:

sion of time to file.

For periods

Exception: You won’t be charged the 5 percent fail-

beginning

Annually

Monthly

Daily

ure-to-pay penalty if you meet all of the following

January 1, 2015

0.3333%

0.0110%

requirements:

January 1, 2014

0.3333%

0.0110%

§ You have a valid federal or Oregon extension, and

January 1, 2013

0.3333%

0.0110%

§ You pay at least 90 percent of your tax after credits

January 1, 2012

0.4167%

0.0137%

by the original due date of the return, and

Interest accrues on any unpaid tax during an extension

§ You file your return within the extension period, and

of time to file.

§ You pay the balance of tax due when you file your

return, and

Interest will increase by one-third of 1 percent per month

§ You pay the interest on the balance of tax due when

(4 percent yearly) on delinquencies if:

you file your return or within 30 days of the date of

• You file a return showing tax due, or we assessed an

the bill you receive from us.

existing deficiency; and

If you file with a valid extension but didn’t pay 90

• The assessment isn’t paid within 60 days after the

percent of your tax by the original due date, you’ll be

notice of assessment is issued; and

charged the 5 percent failure-to-pay penalty.

• You haven’t filed a timely appeal.

• 20 percent failure-to-file penalty. Include a penalty

Line 40. Interest on underpayment of estimated tax

payment of 20 percent of your unpaid tax if you don’t

(UND). You must make quarterly estimated tax pay-

file your return within three months after the due date

ments if you expect to owe $500 or more with your

(including extensions). The failure-to-file penalty is in

return. This includes Oregon’s minimum tax. Oregon

addition to the 5 percent failure-to-pay penalty.

charges UND if:

• The quarterly payment is less than the amount due for

• 100 percent late pay and late filing penalty. Include

that quarter; or

a penalty payment of 100 percent of your unpaid tax

• We receive the quarterly payment after that quarter’s

if you don’t file returns for three consecutive years by

due date; or

the original or extended return filing due date of the

• No quarterly payments are made during the year and

third year. A 100 percent penalty is assessed on each

the final tax debt is $500 or more.

year’s tax balance.

Use Form 37 to:

Line 39. Interest. You must pay interest on unpaid taxes

• Calculate the amount of underpayment of estimated

if you don’t pay the tax balance by the original filing

tax;

due date. An interest period is each full month, starting

• Compute the interest you owe on the underpayment;

with the day after the due date of the original return.

For example, April 16 through May 15 is one full interest

• Show you meet an exception to the payment of

period. If you file an amended return and have tax to

interest.

pay, we’ll charge interest starting the day after the due

If you have an underpayment, attach Form 37—with

date of the original return until the date you pay in full.

the “Form 37” box checked—to your tax return, and file

Interest owed on tax starts the day after the due date of

them before the due date of the return.

your original return and ends on the date of your pay-

If your current year corporation tax liability, including the

ment. Interest is figured daily for a fraction of a month,

minimum tax, is less than $500, you don’t need to make

based on a 365-day year. If your taxable income is

estimated payments. Don’t complete this form. However,

changed because of a federal or state audit and you owe

this provision doesn’t apply to a high-income taxpayer. A

more tax, we’ll charge interest from the due date of the

“high-income taxpayer” is one that had federal taxable

original return to the date you pay in full.

income before net operating loss and capital loss carry-

Even if you get an extension to file, you’ll owe interest if

overs and carrybacks of $1 million or more in any one of

you pay after the return’s original due date.

the last three years, not including the current year.

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

Form 20 Instructions

Instructions For Form 20 - Oregon Corporation Excise Tax - 2014 Page 18

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