Instructions For Form 20 - Oregon Corporation Excise Tax - 2014 Page 4

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What form do I use?
To avoid additional charges for UND, you must pay the
amount of any prior underpayment plus the amount of
All corporations doing business in Oregon must file
the current required installment. [OAR 150-314.515(2)]
Form 20, Oregon Corporation Excise Tax Return, 150-102-020,
Example: During the year, Corporation A’s expected net
and are subject to the minimum excise tax. Any corpora-
tax increased from $2,000 to $6,000. Corporation A made
tion doing business in Oregon is also required to reg-
timely first and second quarter estimated payments of
ister with the Secretary of State, Corporation Division.
$500 before its expected net tax increased.
See sos.oregon.gov.
Corporation A’s correct amount of each required install-
“Doing business” means carrying on or being engaged
ment is $1,500. Because of its increased net tax, Corpora-
in any profit-seeking activity in Oregon. A taxpayer
tion A will be subject to UND charges for the first and
having one or more of the following in this state is clearly
second quarters. To avoid UND charges for the third
doing business in Oregon:
and fourth quarters, Corporation A must make a timely
• A stock of goods.
third-quarter estimated payment of $3,500* and a timely
• An office.
fourth quarter payment of $1,500.
• A place of business (other than an office) where affairs
*$1,000 for the first-quarter underpayment, plus $1,000
of the corporation are regularly conducted.
for the second-quarter underpayment, plus $1,500 for the
• Employees or representatives providing services to
required third-quarter installment, equals $3,500.
customers as the primary business activity (such as
accounting or personal services), or services incidental
For
more
information,
see
ORS
314.525,
OAR
to the sale of tangible or intangible personal property
150-314.525(1)-(A), 150-314.525(1)-(B), 150-314.525(1)(c)-(A),
(such as installation, inspection, maintenance, war-
150-314.525(1)(d), 150-314.525(2)-(A), and 150-314.525(2)-(B).
ranty, or repair of a product).
• An economic presence through which the taxpayer
Filing information
regularly takes advantage of Oregon’s economy to pro-
duce income.
Who must file with Oregon?
Corporations not doing business in Oregon, but with
Corporations that are doing business in Oregon, or with
income from an Oregon source, generally must file Form
income from an Oregon source, are required to file an
20-I, Oregon Corporation Income Tax Return, 150-102-021.
Oregon corporation tax return. If you have tangible
Most corporations don’t fall within Oregon’s income tax
or intangible property or other assets in Oregon, any
provisions.
income you receive in Oregon or from an Oregon source
Corporations not doing business in Oregon, and with
is Oregon source income. Public Law (Pub.L.) 86-272 pro-
no Oregon source income, even if incorporated in or
vides exceptions to this requirement.
registered to do business in the state, aren’t subject to the
Note: Oregon follows the federal entity classification
minimum tax, and aren’t required to file a corporation
regulations. If an entity is classified or taxed as a corpo-
tax return.
ration for federal income tax purposes, it will be treated
Important: Don’t file a Form 20 unless you’re required to
as a corporation for Oregon tax purposes.
do so. Filing an unnecessary return may result in a bill-
Excise or income tax?
ing for minimum tax.
Filing requirements
Oregon has two types of corporate taxes: excise and
income. Excise tax is the most common. Most corpora-
Consolidated returns (ORS 317.705-317.725). If a corpora-
tions don’t qualify for Oregon’s income tax.
tion is a member of an affiliated group of corporations
Excise tax is a tax for the privilege of doing business
that filed a consolidated federal return, it must file an
in Oregon. It’s measured by net income. All interest
Oregon return based on that federal return.
is included in income, no matter what its source. This
A consolidated Oregon return is required when two or
includes interest on obligations of the United States, its
more affiliated corporations are:
instrumentalities, and all of the 50 states and their sub-
divisions. Excise tax filers are subject to corporate mini-
• Included in a consolidated federal return;
mum tax. Corporation excise tax laws are in Chapter 317
• Unitary; and
of the Oregon Revised Statutes.
• At least one of the affiliated corporations must be
doing business in Oregon or have an Oregon-source
Income tax is for corporations not doing business
income.
in Oregon, but with income from an Oregon source.
Income tax filers aren’t subject to corporate minimum
Note: S corporations can’t be included in consolidated
tax. Corporation income tax laws are in Chapter 318 of
federal returns. IRC §1361(b) provides that a corporation
the Oregon Revised Statutes.
that’s a Qualified Subchapter S Subsidiary (QSSS) isn’t
4
150-102-020-1 (Rev. 10-14)
Form 20 Instructions

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