Fillable Form Oc - Oregon Composite Return - 2014 printable pdf download

Oregon Composite Return

2014

Form OC and Instructions for Pass-through Entities

This publication is a guide, not a complete statement, of Oregon Revised Statutes (ORS) or Oregon Department of Revenue

Administrative Rules (OAR). For more information, refer to the laws and rules on our website,

Filing requirements

Introduction

PTEs must file composite returns on behalf of electing own-

Pass-through entities (PTEs) with distributive income attrib-

ers. A PTE that files a composite return is still required to

utable to Oregon sources must file a composite return on

file the PTE’s return (such as Form 65 or Form 20-S).

behalf of their nonresident owners who elect to participate

To be included in the composite return, the owner must be:

in the composite filing. The PTE reports the nonresident

• an individual nonresident of Oregon,

owners’ share of Oregon-source distributive income on one

• a C corporation with no commercial domicile in Oregon,

tax return, Form OC, Oregon Composite Return, 150-101-154.

• an estate,

PTEs must make tax payments for owners who don’t elect to

• a trust that is not a resident trust, or

join the composite return unless the owner files an affidavit.

• a qualified funeral trust under ORS 316.282.

See Form OR-19, PTE Owner Payments, 150-101-182, for owner

Owners who are also a PTE cannot join in the composite

payment and affidavit instructions.

return. See page 3 for more tiered entity information.

Use Form OC-V, Oregon Composite Return Payment Voucher,

The PTE is liable for any tax, penalty, and interest due,

150-101-150, for all composite return payments (estimated,

including interest on underpayment of estimated tax.

extension, and tax due payments). See page 7 for Form OC-V

and page 3 for voucher instructions.

Business identification number (BIN)

Important: The most common error with Form OC is using

This is a number we use to identify business taxpayers,

the entity’s tax year instead of the owners’ tax year. Do not

employers, estates, and trusts. Some businesses have more

use the entity’s fiscal or short tax year for Form OC. The

than one BIN for different types of taxes. If you’re an

entity is filing on behalf of the owners who are usually

employer, you were assigned a BIN after you submitted your

calendar tax year filers. See ‘Tax year and return due date.’

combined registration form. Otherwise, we assigned one

Definitions

when you filed or made a payment. We use your BIN on all

notices. Using the correct BIN will result in faster and more

Throughout these instructions, the following terms are used:

accurate processing of your returns and payments. If you have

“Distributive income” is generally the net amount of

never filed or made a payment before, leave the BIN blank.

income, gain, deduction, or loss of a PTE.

Tax year and return due date

“Electing owner” is a nonresident owner who chooses to

join in the filing of a composite return.

The tax year and due date for the Oregon composite return

is the same as the tax year and due date for the majority of

“FEIN” is federal employer identification number.

the electing owners’ federal and Oregon tax returns. If the

“Nonelecting owner” is an owner who chooses not to join

majority of owners file using a calendar tax year, then the

in the filing of a composite return, whether the PTE with-

composite return is also a calendar tax year return. Form OC

held tax or not. Nonelecting owners are required to file an

isn’t filed using a fiscal or short tax year used by the PTE. If

Oregon tax return if they have Oregon-source distributive

the majority of owners adopt a different fiscal year or change

income.

to a calendar year after Form OC is filed, file an amended

Form OC that includes the income and tax due for both the

“Owner” is a partner of a partnership or limited liability

original and short year.

partnership (LLP), shareholder of an S corporation, member

of a limited liability company (LLC), or beneficiary of a trust.

Use the tax forms and due dates that correspond with the

owners’ tax year. Most PTEs must use a calendar tax year

“Pass-through entity (PTE)” is a partnership, S corporation,

for Form OC because it’s most common for a majority of

LLP, LLC, trust established specifically for tax avoidance,

participating owners to use a calendar tax year. If Form OC

or an abusive tax shelter trust. Note: Single-member LLCs

isn’t available for the applicable tax year at the time of filing,

owned by an individual or a corporation and grantor trusts

the PTE may use Form OC from the previous tax year. Cross

are disregarded for tax purposes and are not PTEs. For this

out the tax year at the top of Form OC and the applicable

purpose only: Estates are not PTEs.

schedules, then write in the tax year for the year you’re fil-

General information

ing. Use the tax laws for the correct year.

Example 1: NW LLC has a fiscal year that begins April 1,

It’s important to know which owners are electing to join the

2013 and ends March 31, 2014. Most of the electing owners

composite return at the beginning of the tax year, so the PTE

are individuals and file using a calendar year. Following

can make estimated payments on time.

federal reporting rules, the 2013 fiscal year income from NW

150-101-154 (Rev. 12-14)

Form Oc - Oregon Composite Return - 2014

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