Form 65 - Oregon Partnership Return Of Income

Instructions for Form 65

Oregon Partnership Return of Income

Which partnerships must file an Oregon

taxable income. The partnership’s tax year for Oregon must

be the same as for federal. Oregon doesn’t have a required

partnership return?

payment for partnerships choosing an alternative tax year.

• Every partnership having income derived from or con-

Oregon recognizes the federal “check the box” regulations

nected with sources in Oregon.

for unincorporated organizations. Also, Oregon treats the

• Every partnership having one or more Oregon resident

electing large partnership the same as federal.

partners.

What must be attached to the Oregon

Partnership failure‑to‑file penalty

partnership return?

A penalty may be assessed if a partnership doesn’t file a

return or fails to provide information to the Department of

Attach information in the following order:

Revenue as required by law. The penalty is $50 per month

• A copy of federal Form 1065, U.S. Partnership Return of

per partner for each month the return is late or incomplete,

Income, or Form 1065-B, U.S. Return of Income for Elect-

up to a maximum of five months. Each partner is personally

ing Large Partnerships. Include all pages and supporting

liable for a portion of the penalty.

schedules (for example, Schedule M-3).

• Schedule AP, Apportionment of Income, (form 150-102-171)

Individual income tax returns

if you answered yes to questions 5A and 5B on Form 65.

• An Oregon Depreciation Schedule (form 150-101-025), if

A partnership generally is not subject to tax, but each part-

Oregon depreciation differs from federal depreciation.

ner’s distributive share of net income (or loss) and separately

• If this is the final partnership return, a schedule showing to

stated items must be reported on that partner’s individual

whom all assets and liabilities were distributed, and each

income tax return.

asset’s adjusted basis and fair market value, sales price, or

if distributed, to which partners.

Partners report their share of Oregon modifications on their

• Federal Schedule K-1s, if less than 11 partners during the

Oregon Forms 40, 40N, or 40P. Increases to income go on

year. If you answered yes to questions 2A or 2B on Form

the “Other additions” line of the Oregon individual return.

65, or you had more than 10 partners at any time during

Decreases to income go on the “Other subtractions” line.

the year, attach a summary of partner information. If there

Label the line “OPM” (Oregon Partnership Modifications).

are more than 50 partners, you may attach a statement that

Nonresident partners can choose to file an individual non-

the K-1s are available upon request.

resident return, Form 40N, or join together to file an Oregon

• Form 24, Oregon Like-Kind Exchanges/Involuntary Con-

composite tax return, Form OC. The Oregon individual

versions if you had a 1031 exchange investing in out of

income tax booklet lists filing requirements for partners’

state property.

individual income tax returns. Visit our website to download

Form 8886/REIT/RIC. Oregon now has a mandatory report-

tax forms and instructions, or to order, see page 2.

ing requirement for participation in listed or reportable

transactions. If you are required to report listed or report-

Oregon has new Oregon partnership withholding require-

able transactions to the IRS on Form 8886, you must check

ments for partners. See page 2.

the “Form 8886/REIT/RIC” box. Retain the form with

your Oregon tax records. Do not attach a copy of the form

Guaranteed payments

to your Oregon return. You must also check the box if you

Guaranteed payments are treated as distributive shares of

participated in a real estate invested trust (REIT) or regulated

investment company (RIC) as defined in Senate Bill 39 of the

partnership income. For nonresident partners income attrib-

2007 Oregon Legislature.

utable to Oregon sources is determined by applying the allo-

cation and apportionment provisions to each nonresident’s

Filing deadlines

entire distributive share including guaranteed payments.

Returns for the 2007 calendar year are due by April 15, 2008.

Oregon modifications to federal

Fiscal year returns are due by the 15th day of the fourth

partnership income

month after the end of the partnership’s tax year.

Complete Schedule I (on the back of Form 65) to figure

Connection to federal law

Oregon modifications to federal partnership income.

Attach schedules if necessary to explain and compute the

Oregon is tied to the federal definition of taxable income.

modifications.

Oregon will automatically adopt future federal changes to

150-101-065 (Rev. 12-07) DRAFT 10/23/2007

Form 65 - Oregon Partnership Return Of Income - 2007 Page 3

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