Pass-Through Entity Owner Payments And Oregon Affidavit - 2015

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Pass-Through Entity Owner Payments
Form
OR-19
2015
and Oregon Affidavit
Introduction
• Files the Oregon Affidavit.
Do not withhold if the owner is another PTE, except for
Purpose of form
entities that are disregarded for tax purposes. Two common
examples of disregarded entities are:
A pass-through entity (PTE) with distributive income from
• Grantor trust: A grantor trust (usually called a revocable
Oregon sources must withhold tax from its nonresident own-
trust or living trust) is where the grantor has control. If
ers who do not elect to join in a composite filing (Form OC)
the grantor is a nonresident, withhold for the grantor the
and have not filed an affidavit unless the owner is exempt.
same as any other individual. On Form OR-19, provide
The payment is a prepayment of estimated Oregon income
the name, Social Security number (SSN), and address of
and excise tax for nonresident owners of pass-through
the individual owner. Do not provide the name, FEIN, and
entities. For composite filing information, see Form OC
address of the grantor trust.
instructions.
• Single member LLC: Withhold if the member is a non-
Qualifying publicly traded partnerships, estates, and most
resident individual or C corporation. Withhold for the
trusts are not required to withhold on their nonresident
member the same as any other individual or C corporation
owners.
owner using the individual’s or corporation’s information.
Definitions
If the PTE expects the total Oregon-source distributive
income of a nonresident owner to exceed $1,000 during the
Throughout these instructions, the following terms are used:
tax year, the PTE should begin submitting payments as of
the first quarter that includes Oregon-source income. Tax
“BIN” means Oregon business identification number. This
payments are required on the entire nonresident owner’s
is the number we use to identify business taxpayers and
share of Oregon-source income, not just the amount exceed-
employers. If you do not know the Oregon BIN, leave the
ing $1,000.
space on the form blank.
These payments are prepayments of tax by the PTE on
“Distributive income” is generally the net taxable income or
behalf of the owners. The requirement to submit payments
loss of a PTE. See page 2 for a complete definition.
is not dependent on whether the PTE makes any distribu-
“Electing owner” is a nonresident owner who chooses to
tions to its owners. A PTE with distributive income that did
join in the filing of a composite return.
not pay any money to its owners will still submit Oregon
tax payments for its nonresident owners. A PTE with no
“FEIN” means federal employer identification number.
distributive income that pays a distribution from capital or
“Nonelecting owner” is a nonresident owner who chooses
retained earnings, will not submit Oregon tax payments for
not to join in the filing of a composite return, is required to
its nonresident owners.
file an Oregon tax return, and has Oregon-source distribu-
tive income.
Instructions for Oregon affidavit
“Owner” is a partner of a partnership or limited liability
partnership (LLP), shareholder of an S corporation, member
The PTE must withhold tax from the nonelecting owner’s
of a limited liability company (LLC), or beneficiary of a trust.
Oregon-source distributive income unless the nonelecting
owner files an Oregon affidavit or is an owner for which the
“Pass-through entity (PTE)” is a partnership, S corpora-
PTE is not required to withhold, such as another PTE.
tion, LLP, LLC, or certain trusts. Note: Single-member LLCs
owned by an individual or a corporation and grantor trusts
To be exempt from the payment requirement, the nonelecting
are disregarded for tax purposes and are not PTEs. For this
owner must file an Oregon affidavit with the department
purpose only: Estates are not PTEs.
as soon as it is known that the owner will receive Oregon-
source distributive income from the PTE. The nonelecting
Owner payment requirements
owner must provide a copy of the completed affidavit to the
PTE so the PTE will not withhold tax from the Oregon-source
distributive income.
A PTE is required to pay tax to the department on behalf of
the nonelecting owner unless the owner:
The affidavit is valid until it is replaced by a subsequent
affidavit. The affidavit is on page 6 of these instructions.
• Has estimated or actual Oregon-source distributive income
from the PTE that is less than $1,000 for the PTE’s tax year;
Revoking or changing an affidavit
• Has made estimated tax payments the prior tax year based
on the owner’s share of Oregon-source distributive income
To revoke a previously filed affidavit, submit an affidavit (or
from the PTE and continues to make estimated tax pay-
a copy of the original) with the revocation section completed
ments for the current tax year; or
to the department and the PTE.
150-101-182 (Rev. 12-14)
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