| Corporation Excise and Income Tax |
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| What You Need to Know |
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Understanding Corporation Excise and Income Tax
Do I need to file?
Yes. Corporations doing business in Oregon or with income from an Oregon source are required to file an annual tax return with the Oregon Department of Revenue (DOR).
No. Corporations with no business activity in Oregon, even if incorporated in or registered to do business in the state, are not required to file a corporation tax return.
What does "doing business" mean?
"Doing business" means being engaged in any profit-seeking activity in Oregon. A taxpayer having one or more of the following in this state is clearly doing business in Oregon:
- A stock of goods.
- An office.
- A place of business (other than an office) where affairs of the corporation are regularly conducted.
- Employees or representatives providing services to customers as the primary business activity (such as accounting or personal services), or services incidental to the sale of tangible or intangible personal property (such as installation, inspection, maintenance, warranty, or repair of a product).
- An economic presence through which the taxpayer regularly takes advantage of Oregon's economy to produce income.
What is "income from an Oregon source"?
If you have tangible or intangible property or other assets being used in Oregon, any income you receive is Oregon-source income and, generally, your company must file an Oregon Corporation Income Tax Return. Public Law 86-272 provides exceptions to this requirement.
What form do I file?
Form 20. A corporation acts as a single entity, existing separately from its owners. It continues to exist even though the shareholders change. It is managed by a board of directors. Corporations doing business in Oregon file Form 20 and pay corporation excise tax. The minimum corporation excise tax is $10.
Form 20-I. Corporations not doing business in Oregon, but with income from one or more Oregon sources, pay income tax and file Form 20-I. Income tax filers are not subject to a minimum tax.
Form 20-S. An S-Corporation is one that has chosen to pass net income to its shareholders for taxation. This election is made with the Internal Revenue Service. S-Corporations doing business in Oregon file Form 20-S and generally pay the minimum $10 tax. Shareholders must include their share of S-Corporation income or loss on their personal income tax returns.
When is my return due?
Returns for the calendar year are due on or before April 15. Returns for other tax periods are due the 15th day of the month following the due date of your federal corporation return. When the 15th falls on a Saturday, Sunday, or legal holiday, the due date is the next business day.
What if I need more time to file?
Oregon honors extensions for filing your federal return. If you have a federal extension, the due date then becomes the 15th day of the month following the federal extension’s due date. You do not need to send the federal extension until you file your return.
If you need more time to file for Oregon only, answer question 1 on federal Form 7004, write “For Oregon Only” at the top, then attach it to your return when you file.
To avoid penalty and interest, mail any tax due with form 20-V on or before the original due date of your return. More time to file does not mean more time to pay your tax.
Registering with the Secretary of State
Any corporation doing business in Oregon is required to register with the Secretary of State in addition to filing corporate excise tax returns. For more information about registering your business, see www.oregon.gov/SOS.
Estimated payments
Estimated payments are required when your tax liability is expected to be at least $500 for a tax year.
To make estimated payments, send your payment with a completed Form 20-V.
Estimated payments are due quarterly. Due dates for estimated payments are:
- 15th day of the 4th month of tax year;
- 15th day of the 6th month;
- 15th day of the 9th month;
- 15th day of the 12th month.
You may be required to file by Electronic Fund Transfer (EFT). For more information, visit our Web site at: www.oregon.gov/DOR/ESERV, or call 503-947-2017.
Questions?
For corporation excise and income tax questions, contact us by e-mail or telephone. Most inquiries will be answered within two business days.
E-mail: corp.help.dor@state.or.us
Please include your e-mail address and telephone number, including area code, in your message. Warning: e-mail is not secure. Do not include confidential data in your e-mail message. We will respond to tax law-related questions only. Account-related questions cannot be answered by e-mail. If you have an account-related question or you have received a letter, notice, or bill, please contact us by telephone.
Taxpayer assistance
General tax information
Salem: 503-378-4988
Toll-free from Oregon prefix: 1-800-356-4222
Asistencia en español:
Salem: 503-378-4988
Gratis de prefijo de Oregon: 1-800-356-4222
TTY (hearing or speech impaired; machine only):
Salem: 503-945-8617
Toll-free from Oregon prefix: 1-800-886-7204
Americans with Disabilities Act (ADA): Call one of the help numbers for information in alternative formats.
Updated October 2007
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