Fillable Form Oc-V - Oregon Composite Return Payment Voucher (Page 4 of 11) in pdf

Instructions for Schedule OC2—

include only the 15 individual owners who have elected to

join in the composite filing.

C corporation owners

Schedules OC1 and OC2 or equivalent must be filed with

the composite return. Schedules OC1 and OC2 report each

Lines 1 through 20. Complete one line for each electing

nonresident owner’s Oregon tax liability. You may create

corporate owner. If more than 20 lines are needed, use

your own schedule as long as it has the same information

additional copies of Schedule OC2. If you use more than one

as Schedule OC1 or OC2 for each owner participating in the

Schedule OC2, total all pages on the first page (line 21) and

composite return.

carry that amount to Form OC.

Additional line instructions:

Column (a). Enter the type of tax to which the corporate

owner is subject. Enter “E” for corporate excise tax or “I” for

5. Penalty and interest. Include a penalty payment if you:

corporate income tax. Contact us if you don’t know which

• Pay your tax due after the original due date (even if you

tax applies to the owner.

filed an extension); or

Column (e). Multiply the first $250,000 reported in column

• File the composite return showing tax due after the due

(d) by 6.6 percent and multiply the amount over $250,000 by

date, including any extension.

7.6 percent. If you entered an “E” in column (a), compare the

Penalty is 5 percent of the unpaid balance of your tax as

result with the corporation’s minimum tax from the chart

of the due date, not including extensions (generally April

below. Enter the larger of those two amounts as the tax for

15). If you file more than three months after the due date or

that owner.

extension due date, add an additional 20 percent penalty, for

Corporate Minimum Tax Chart

a total of 25 percent of the unpaid tax.

If Oregon sales are . . .

If you don’t pay the tax due by the due date, interest is due

on the unpaid tax. The current interest rate is 4 percent per

at least:

but less than:

the minimum tax is:

year or 0.3333 percent per month. Interest is figured daily

---------

$500,000

$150

(0.0110 percent per day) for periods of less than a month.

$500,000

$1 million

$500

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

$1 million

$2 million

$1,000

figure daily interest:

$2 million

$3 million

$1,500

Tax × 0.000110 × Number of days past the due date of the

$3 million

$5 million

$2,000

return

$5 million

$7 million

$4,000

If the tax is not paid within 60 days of the original billing

$7 million

$10 million

$7,500

notice, the interest rate increases to 8 percent per year.

$10 million

$25 million

$15,000

8. Balance due. Payment of the amount due must accompany

$25 million

$50 million

$30,000

the Oregon composite return. The PTE must pay the total

$50 million

$75 million

$50,000

amount due on behalf of the nonresident owners. The bal-

ance due must include the tax shown plus any penalty or

$75 million

$100 million

$75,000

interest as required by Oregon law.

$100 million

---------

$100,000

Making a payment. Tax is accounted for separately for each

Column (f). For tax year 2012 there is no corporate surplus.

of the four types of owners—individuals, corporations,

Column (i). Calculate interest on underpayment of esti-

estates, and trusts. Do not offset a refund in the column for

mated taxes. Interest on underpayment of estimated tax

one type of owner against a balance due for another type of

is due when a corporate electing owner has a tax liability

owner. For example, if there is a balance due in the column

over $500 after credits. Calculate the interest for each owner

for individuals and a refund in the column for corporations,

separately using Form 37, Underpayment of Oregon Corporation

pay all of the balance due shown for individuals and the

Estimated Tax.

department will issue a separate check for the refund.

Example: Nevada LLC is filing a composite return for indi-

Instructions for Form OC

vidual and corporate owners. The balance due on Form OC,

line 8a, for individual income tax is $400. The net refund

PTEs must file Form OC, Oregon Composite Return on behalf

on Form OC, line 11b, for corporate income or excise tax is

of electing nonresident owners. As the designated agent, the

$200. The LLC must pay the full $400 by the payment due

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

date to avoid any penalty and interest. The $200 refund for

interest on underpayment of estimated tax.

the corporate owners cannot be applied to the tax owed for

When completing the heading of Form OC, include the num-

the individual owners. Nevada LLC will fill out voucher

ber of each type of electing owner of the PTE. For example, if

Form OC-V on behalf of the individual owners for the tax

due of $400.

the PTE is owned by eight S corporations and 15 individuals,

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

Form Oc-V - Oregon Composite Return Payment Voucher Page 4

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