Instructions For Form 20 - Oregon Corporation Excise Tax - 2014 Page 6
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22residential units in the particular condominium or sub-
Special filing requirements
division involved. Oregon follows the federal definition
of nonexempt function income.
Agricultural or horticultural cooperatives
Don’t file Form 20 if you don’t have nonexempt func-
For purposes of the corporate minimum tax only, the
tion income for Oregon tax purposes. Only file a copy
Oregon sales of agricultural or horticultural cooperatives
of your federal Form 1120-H with us.
doesn’t include sales representing business done with or
for the cooperative’s members. If you’re an agricultural
File an Oregon Form 20, with a copy of federal Form
or horticultural cooperative, write “Ag Co-op” in black
1120-H, if the association has taxable income. Homeown-
or blue ink across the top of your Oregon Form 20. If you
ers association taxable income for Oregon is generally
e-file your return, your software will accommodate this
the same as for federal purposes. It’s gross nonexempt
requirement. Provide a schedule showing the calculation
income less directly-related deductions, less the specific
of Oregon gross sales for sales not done with or for mem-
$100 deduction. However, net capital gains are included
bers of the co-op.
in the computation and receive no special treatment.
Retroactive to tax years beginning on or after January
An association filing Oregon Form 20 is subject to the
1, 2005, the amount deducted for federal income tax pur-
greater of calculated excise tax or Oregon minimum tax.
poses by agricultural or horticultural cooperatives under
For minimum tax purposes, include in “Oregon sales”
IRC §199 and passed through to cooperative patrons
only Oregon nonexempt function income.
under IRC §199(d)(3)(A) isn’t subject to the add-back pro-
visions of ORS 317.398.
Interest charge domestic international sales
Exempt organizations
corporations (IC-DISCs)
If you’re an exempt organization under IRC §§ 501(c)
If your corporation is an IC-DISC, you’ll need to file Form
through (f), 501(j), 501(n), 521, or 529, you’re exempt from
20. For tax years beginning on or after January 1, 2013:
Oregon Corporation taxes [ORS 317.080 (1)–(8)]. Apply to
• An IC-DISC formed on or before January 1, 2014 is
IRS for exempt status, don’t apply to us. Two exceptions
exempt from minimum tax.
are nonprofit homes for the elderly and people’s utility
• An IC-DISC formed after January 1, 2014, isn’t exempt
districts established under ORS chapter 261.
from minimum tax.
If you’re exempt from Oregon tax and don’t have unre-
• Commissions received by an IC-DISC are taxed at 2.5
lated business taxable income (UBTI) as defined in IRC
percent.
§512, don’t file an Oregon tax return.
The Oregon IC-DISC return is due by the 15th day of
If you have UBTI, file Form 20 and attach a copy of your
the month following the due date of the federal return.
federal Form 990-T. Organizations exempt from federal
For example, a calendar-year federal Form 1120-IC-DISC
tax but not exempt from Oregon must also file Form 20
is due 9 months after the year-end (September 15). The
and attach a copy of federal Form 990-T. Some religious
Oregon return for the IC-DISC is due October 15.
organizations that qualify under IRC §501(d) may file as
partnerships.
If the 15th falls on a Saturday, Sunday, or legal holiday,
An exempt organization filing Oregon Form 20 is sub-
the due date is the next business day. No extensions are
ject to the greater of calculated excise tax based on UBTI
allowed for IC-DISC returns per federal and Oregon laws.
apportioned or allocated to Oregon or Oregon minimum
Form 20 Line Instructions for IC-DISCs
tax. For minimum tax purposes, include in “Oregon
sales” only gross unrelated business income appor-
Across the top of your return, write “IC-DISC” in
tioned or allocated to Oregon. Tax-exempt income isn’t
black or blue ink.
included.
Line 1. Taxable income from U.S. Corporation Income Tax
Homeowners associations
Return. Enter the “total commissions received” reported
A homeowners association organized and operated
for federal income tax purposes [federal Form 1120-IC-
under IRC §528(c) may elect to be treated as a tax-exempt
DISC, Schedule B, line 3g column (c)]. Carry this amount
organization (ORS 317.067). The association must make
to line 7 - Income after additions, line 13 - Income before
the election no later than the time prescribed by law for
net loss deductions, and line 15 - Oregon taxable income.
filing the return. A copy of the Form 1120-H filed with
Line 16. Calculated excise tax. Multiply the amount from
IRS will constitute this election when filed with us. Tax-
line 15 by 2.5%. Enter the result. Carry this amount to
exempt status will only exempt the association from tax
line 20 – Tax, line 22 – Tax before credits, line 31 – Excise
on the exempt function income, such as membership
dues, fees, and assessments from member-owners of
tax after credits, and line 33 – Net excise tax.
6
150-102-020-1 (Rev. 10-14)
Form 20 Instructions
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