Form 150-102-022 - Oregon Estimated Tax Worksheet

• If the period covered is six months or longer but less

Exceptions to interest charged for underpayment of

than nine months, three payments are required. One-third

estimated tax. Interest on underpayment is not charged on

of the estimated tax is due on the 15th day of the fourth

payments made on or before the due dates of the estimated

month, and the 15th day of the sixth month. The balance

tax payments when:

is to be paid on or before the due date of the tax return,

• Each payment is equal to at least 25 percent of the tax for

not including extensions.

the tax year.

• If the period covered is nine months or longer but less

• Each payment is equal to at least 25 percent of the tax on

than twelve months, four payments are required. One-

last year’s return. The prior year’s return must cover a 12-

fourth of the estimated tax is due on the 15th day of the

month period and must show a tax liability. A high-income

fourth month, the 15th day of the sixth month, and the 15th

taxpayer may only use this exception for the first

day of the ninth month. The balance is to be paid on or

installment payment, and any reduction to the first

before the due date of the tax return, not including

installment payment due to this exception must be added

extensions.

to the second installment payment.

Consolidated filers. If you are required to file a 1999 con-

• Each payment is equal to at least 25 percent of the tax

solidated Oregon corporation excise or income tax return, you

after credits on annualized taxable income. Annualized

must make estimated tax payments on a consolidated basis.

taxable income for Oregon is computed the same as it is

See OAR 150-314.505(2).

for federal tax purposes. See Internal Revenue Code Section

Taxpayers subject to apportionment. A double-weighted

6655(e)(2).

sales factor percentage must be used by all corporations, ex-

• Each payment is equal to at least 25 percent of the amount

cept insurers.

obtained by applying Internal Revenue Code Section

All business income (except for insurers) is apportioned to

6655(e)(3) to Oregon taxable income. This is the seasonal

Oregon by multiplying income by a fraction. The numerator

income exception.

of the fraction is the property percentage, plus the payroll

If you meet one of the exceptions, please complete and

percentage, plus two times the sales percentage. The

attach Form 37 (Underpayment of Estimated Taxes) to

denominator is four. The denominator is reduced by the

your return. Form 37 is available on our web page or by

number of factors with a zero denominator. For example, if

calling Tax Help. See page 4. For more information, see OAR

the sales percentage denominator is zero, the sum of the

150-314.505 through 150-314.525.

factors is divided by two. See ORS 314.650.

These instructions aren’t a complete statement of laws

Insurers apportion their income to Oregon by multiplying

and Oregon Department of Revenue rules. Call us if you

income by a fraction. The numerator of the fraction is the

need more information. Our phone numbers are on

insurance sales percentage, plus the wage and commission

page 4.

percentage, plus the real estate income and interest

percentage. The denominator is three. The denominator is

Using the 20ES forms

reduced by the number of factors with a zero denominator.

See ORS 317.660.

You should have four 20ES forms and this instruction

Interest on underpayment of estimated tax. Oregon

booklet. The forms are either “personalized” or “non-

charges interest when payments received on or before the due

personalized.”

date are less than the amount due. If you have an underpay-

• “Personalized” forms. The forms are printed with the

ment, use Form 37 to figure your underpayment amount and

corporation’s name, address, business identification num-

interest due. Interest is also charged on late payments from

ber, and federal employer identification number. Please

the due date to the date paid.

check this information for accuracy. Make any corrections

The current interest rate is 9 percent annually, or .75 percent

on the form.

per month (.0247 percent per day). The interest rate may

Use the personalized forms if you receive them. We can

change once a calendar year.

process your estimated tax payments faster and more ac-

Interest is figured daily for periods of less than a month. A

curately. Do not use forms from a prior year.

month, for example, is May 16 to June 15. Here is how to

If someone else prepares your estimated tax forms, ask

figure daily interest:

them to use your personalized forms.

Tax × Daily interest rate × Number of days

Don’t send photocopies of the personalized forms.

Note: Interest on underpayment of estimated tax is not

Send the original Form 20ES to us and keep copies for your

charged if tax on the prior year’s return was $10 or less. How-

records. Fill in only the information requested on Form

ever, this provision does not apply to a high-income taxpayer.

20ES.

A “high-income taxpayer” is one that had federal taxable

• “Nonpersonalized” forms don’t have printed names or

income, before net operating loss and capital loss carryovers

other corporate information. They are used by corporations

and carrybacks, of $1,000,000 or more in any one of the last

who haven’t filed estimated tax payments before.

three years, not including the current year.

Form 150-102-022 - Oregon Estimated Tax Worksheet - 1999 Page 2

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