Instructions For Form 20-I - Oregon Corporation Income Tax

Payments, penalty, interest, and UND

withhold tax on the nonresident owner’s distributive

share of income.

Line 24. Estimated tax and prepayments

The requirement is waived if the nonresident owner

Schedule ES—Estimated tax payments or other pre-

makes an election to join in the filing of a composite

payments. Fill in the total estimated tax payments made

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

before filing your Oregon return. Include any payments

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

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

exception listed in OAR 150-314.775. See instructions for

from your previous year’s tax return or an Oregon

Oregon Form OR-19, Annual Report of Nonresident Owner

amended return. List name and FEIN of payer only if

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

different from corporation filing this return. On line

Line 28. Penalty. To avoid penalty and interest, you must

6, enter payments made with your extension or other

mail any tax payment owed by the original due date of

prepayments.

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

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

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

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

with a valid extension attached.

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

Enter the following penalties on your return if they apply.

credit if your federal tax liability is computed under IRC

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

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

computing the credit.

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

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

Consolidated return filers. If estimated payments were

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

sion of time to file.

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

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

tion of estimated payments.

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

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

requirements:

carry total to Form 20-I, line 24.

§ You have a valid federal or Oregon extension, and

Line 25. Withholding payments. If taxes were paid on

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

the corporation’s behalf, enter the amount on line 25.

the original due date of the return, and

§ You file your return within the extension period, and

There is a requirement to withhold tax from the proceeds

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

of sales of Oregon real property by nonresidents. This

return, and

applies to individual nonresidents as well as C corpora-

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

tions that aren’t doing business in Oregon. The amount

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

to be withheld is the least of three amounts:

the bill you receive from us.

• 4 percent of the consideration (sales price);

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

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

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

seller); or

charged the 5 percent failure-to-pay penalty.

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

able income for the year.

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

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

Withholding isn’t required if one of the following

file your return within three months after the due date

requirements is met:

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

• The consideration for the real property doesn’t exceed

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

$100,000;

• 100 percent late pay and late filing penalty. Include

• The property is acquired through foreclosure;

a penalty payment of 100 percent of your unpaid tax if

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

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

C corporation—has a permanent place of business in

original or extended return filing due date of the third

this state; or

year. A 100 percent penalty is assessed on each year’s

• The transferor receives professional advice that the

tax balance.

transfer won’t result in Oregon taxable income.

Line 29. Interest. You must pay interest on unpaid taxes

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

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

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

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

OAR 150-314.258 for more information.

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

Pass-through entity withholding requirement. A pass-

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

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

through entity (S corporation, partnership, or LLC treated

as a partnership) with one or more nonresident owner

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

that has no other Oregon-source income is required to

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

150-102-021-1 (Rev. 10-14)

Form 20-I Instructions

Instructions For Form 20-I - Oregon Corporation Income Tax - 2014 Page 14

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