Instructions For Form 20-S - Oregon S-Corporation Tax Return

Mail. If paying by mail, send each payment with a Form

Estimated tax payments

20-V payment voucher.

Requirements

Worksheet to calculate Oregon estimated tax

Oregon estimated tax laws aren’t the same as federal

(Keep for your records—don’t file with payment.)

estimated tax laws. You must make estimated tax pay-

1. Oregon net income expected in

ments if you expect to owe tax of $500 or more with

upcoming tax year.

your return. This includes Oregon’s minimum tax. This

requirement also applies if you’re an S corporation pay-

2. Tax on Oregon net income (see

ing tax on income from built-in gains or excess net pas-

tax rate tables for corporation tax

sive investment income.

rate and minimum tax).

If you don’t make estimated payments as required, you

3. Subtract tax credits allowable in

may be subject to interest on underpayment of estimated

upcoming tax year. Tax credits

can’t be used to reduce the

tax (UND). If you have an underpayment, refer to Form

$150 minimum excise tax for S

37, Underpayment of Oregon Corporation Estimated Tax,

corporations.

150-102-037.

4. Net tax (line 2 minus line 3).

Payment due dates

If the amount on line 4 is less

Estimated tax payments are due quarterly, as follows:

than $500, stop. You don’t have

• Calendar year filers: April 15, June 15, September 15,

to make estimated tax payments.

and December 15.

Caution: If your final tax

• Fiscal year filers: The 15th day of the 4th, 6th, 9th, and

liability when you file your

12th months of your fiscal year.

return is $500 or more, you may

• If the due date falls on a Saturday, Sunday, or legal hol-

be subject to UND.

iday, use the next regular business day.

5. Amount of each payment.

(Divide line 4 by the number of

Payment options

payments you need to make.

Important: For details about making payments with

This is usually 4.)

your return, see “Filing checklist.”

If your expected net tax changes during the year, divide

Estimated payments may be made by electronic funds

the amended net tax amount by the number of required

transfer (EFT), directly online, or by mail.

payments (usually four) to determine the correct amount

EFT. You must make your Oregon estimated payments

of each required installment.

by EFT if you’re required to make your federal estimated

To avoid additional charges for UND, you must pay the

payments by EFT. We may grant a waiver from participa-

amount of any prior underpayment plus the amount of

tion in the EFT program if you would be disadvantaged

the current required installment. [OAR 150-314.515(2)]

by the requirement. (OAR 150-314.518)

Example: During the year, Corporation A’s expected net

If you don’t meet the federal requirements for manda-

tax increased from $2,000 to $6,000. Corporation A made

tory participation in the EFT program, you may partici-

pate on a voluntary basis.

timely first and second quarter estimated payments of

$500 before its expected net tax increased.

A business is required to have an authorization agree-

ment filed with us before it can start initiating EFT

Corporation A’s correct amount of each required install-

payments. The EFT help/message phone number is

ment is $1,500. Because of its increased net tax, Corpora-

503-947-2017.

tion A will be subject to UND charges for the first and

second quarters. To avoid UND charges for the third

For more information, visit

and fourth quarters, Corporation A must make a timely

ing, then on the left navigation bar, click on “Electronic

third-quarter estimated payment of $3,500* and a timely

filing,” then click on “Tax professionals.”

fourth quarter payment of $1,500.

EFT payments for corporation estimated taxes must be

*$1,000 for the first-quarter underpayment, plus $1,000

made using our EFT program. This program allows pay-

for the second-quarter underpayment, plus $1,500 for the

ments to be initiated by touch-tone telephone, a secure

required third-quarter installment equals $3,500.

internet site, or through your financial organization. If

you pay by EFT, don’t send Form 20-V, Oregon Corporation

For

information,

see

ORS

314.525,

OAR

Tax Payment Voucher and Instructions, 150-102-172.

150-314.525(1)-(A), 150-314.525(1)-(B), 150-314.525(1)(c)-(A),

Online. See for more information.

150-314.525(1)(d), 150-314.525(2)-(A), and 150-314.525(2)-(B).

150-102-025-1 (Rev. 10-14)

Form 20-S Instructions

Instructions For Form 20-S - Oregon S-Corporation Tax Return - 2014 Page 3

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