Fillable Form Oc-V - Oregon Composite Return Payment Voucher (Page 5 of 11) in pdf

Amending the composite return

Revoking election to join in the

filing of a composite return

The PTE may file an amended return to adjust any item

reported on the original composite filing or to carry back

Electing owners may revoke their election to join in the fil-

Oregon net operating losses. File Form OC for the year that is

ing of the composite return by notifying the PTE. This must

being adjusted or the year to which the loss is being carried

be done before any returns are filed by the PTE or owner.

and check the “Amending” box in the header. File a schedule

Requesting transfer of payment

with the amended return that reconciles prior payments and

refunds to the corrected tax.

PTE instructions

Net operating loss carryback for individual income tax

The PTE is required to file a transfer request (page 11, Form

purposes only. Attach a schedule to the amended return

OC-TR) so payments made on behalf of a revoking owner can

naming the owners and showing the year and calculation

be transferred from the PTE’s name to the revoking owner’s

of the net operating loss. Note: For corporate excise and

name. File this request with the department as soon as the

income tax purposes, net operating losses may only be car-

owner revokes the election to join in the composite filing. The

ried forward.

request must be filed before either the composite return or

When you file the amended return, you must mail the pay-

the revoking owner’s return is filed. Use Form OC-TR to show

ment along with voucher Form OC-V. Pay the total amount

the portion of each payment that is transferred to the revok-

due for all owner types.

ing owner and what stays on the PTE account. Enter the date

and amount of each payment made during the tax year. Up to

Any refund will be paid to the PTE regardless of any own-

four payments can be reported on Form OC-TR. Each line is

ership changes or changes in the identity of the owners

for one taxpayer, enter spouses separately. Use whole dollars.

participating in the composite filing.

Use additional forms as needed to divide a payment among

Note: A PTE will receive more than one refund check from

revoking owners and the PTE. Enter the total for each col-

one composite filing if a refund is owed for more than one

umn on the last form. The totals in column d, e, f & g must

type of owner.

match the payments as listed above in the heading. If the

amounts don’t match the corresponding payments, the

Instructions for electing owners who

form will be rejected and returned to the PTE to correct

have other Oregon-source income

and resubmit. The owners won’t receive credit for payments

made until the PTE has submitted a correct Form OC-TR.

Electing owners who have additional income from Oregon

The decision to revoke a previous election by one or more

sources or who are doing business in Oregon may be

owners has no effect on the election of the remaining own-

required to file their own tax return in addition to the com-

ers. Transferring payments from one account to another may

posite return.

delay the processing of the revoking owner’s return.

These owners must remove their share of Oregon-source

Revoking owner instructions

distributive income already reported on an Oregon Composite

A separate return filed by a revoking owner is treated as an

Return. You may join multiple composite returns. If you

original return. The tax liability shown on the return, if any,

have other income to report that has not been reported on

may be subject to penalty and interest, including interest on

an Oregon Form OC, you need to file Form 40N.

underpayment of estimated tax.

Personal income taxpayers need to file Form 40N if they

Example: In August 2012 Karen notifies her S-corporation that

have other income not already reported on a Form OC.

she doesn’t want to join the composite return for tax year 2012.

When filing Form 40N, complete the form per the standard

Since she was part of the 2011 Form OC, the S-corporation

instructions. This means you enter all income (including

has already sent in payments for her share of the estimated

income reported on the Form OC) in the federal column, line

tax based on the prior year’s tax. Of the $3,000 in estimated

18F, of your Oregon return. You will also report all Oregon

payments for the composite return, $500 is for Karen’s esti-

source income (including Oregon-source income reported on

mated tax. The S-corporation will not include Karen’s share

Form OC) in the Oregon column, line 18S, of your Form 40N.

in any future estimated payments for the composite return.

Because the income reported on Form(s) OC has already

They will immediately send a transfer request to both us. The

been taxed, you will subtract those amounts on Form 40N,

$3,000 of estimated payment will be in the payment section

lines 37F and 37S. Identify the subtraction using code 341.

(depending on when the payments were made). The first line

Note: Do not claim the tax paid on your behalf on Form OC

will have $2,500 that will remain on the PTE account and the

as a payment on your Form 40N. That payment was already

second line will have Karen’s name with $500.

used to pay the tax on the income reported on Form OC.

Note: The S-corporation will have to start making payments

For corporate taxpayers, enter the “net tax” amount from

on Karen’s behalf as pass-through entity owner payments,

Schedule OC2, column (g) of the electing owner’s line on

unless she submitted an affidavit. For more information

Form 20, line 17 or Form 20-I, line 18 for the adjustment

about pass-through entity owner payments and filing an

related to the tax paid on the income from the PTE.

affidavit, see Oregon Form OR-19 instructions on our website.

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

Form Oc-V - Oregon Composite Return Payment Voucher Page 5

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