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Common questions—corporations

Corporate taxes (home)

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Common questions—corporations

1. What is the tax rate and minimum tax for C corporations?
  • C corporation excise tax filers pay the greater of calculated tax or minimum tax.
  • C corporation income tax filers pay calculated tax. Income tax filers don't pay minimum tax.
Minimum Tax
For tax years beginning on or after January 1, 2009
:
Minimum tax table—C corporations only
Oregon sales of filing group Minimum tax
​under $500,000 ​$150
​$500,000 to $999,999 ​500
​$1,000,000 to $1,999,999 ​1,000
​$2,000,000 to $2,999,999 ​1,500
​$3,000,000 to $4,999,999 ​2,000
​$5,000,000 to $6,999,999 ​4,000
​$7,000,000 to $9,999,999 ​7,500
​$10,000,000 to $24,999,999 ​15,000
​$25,000,000 to $49,999,999 ​30,000
​$50,000,000 to $74,999,999 ​50,000
​$75,000,000 to $99,999,999 ​75,000
​$100,000,000 and above ​100,000
           For tax years beginning prior to January 1, 2009:
  • C corporation excise tax filers—the minimum tax is $10.
  • Income tax filers don't pay minimum tax.
  • Consolidated returns—the minimum tax is $10 multiplied by the total number of corporations doing business in Oregon and included in the consolidated return. For tax years beginning prior to January 1, 2006, the minimum tax for an affiliated group of corporations filing a consolidated return is $10. The $10 minimum tax due for each affiliate included in the consolidated return doing business in Oregon is cancelled [ORS 305.145(3)].

Calculated tax
For tax years beginning January 1, 2013 and later:

  • If Oregon taxable income is $1 million or less, multiply Oregon taxable income by 6.6 percent (not below zero).
  • If Oregon taxable income is more than $1 million, multiply the amount that is more than $1 million by 7.6 percent, and add $66,000.

For tax years beginning January 1, 2011 and before January 1, 2013:
  • If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).
  • If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.6 percent, and add $16,500.

For tax years beginning January 1, 2009 and before January 1, 2011:
  • If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).
  • If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.9 percent, and add $16,500.

For tax years beginning prior to January 1, 2009:
  • Multiply Oregon taxable income by 6.6 percent.

2. What is the tax rate and minimum tax for S corporations?

  • S corporation excise tax filers pay the greater of calculated tax (if any) or minimum tax.
  • S corporation income tax filers pay calculated tax (if any).
  • Income tax filers don’t pay minimum tax.

Minimum tax

  • For tax years beginning on or after January 1, 2009, S corporation minimum tax for excise filers is $150.
  • For tax years beginning prior to January 1, 2009, S corporation minimum tax for excise filers is $10.
Calculated tax
  • S corporation taxpayers without federal taxable income, built-in gains, or excess net passive income do not have a calculated tax. 
  • S corporation taxpayers with federal taxable income, built-in gains, or excess net passive income compute calculated tax as stated for the applicable tax year below.
For tax years beginning January 1, 2013 and later:
  • If Oregon taxable income is $1 million or less, multiply Oregon taxable income by 6.6 percent (not below zero).
  • If Oregon taxable income is more than $1 million, multiply the amount that is more than $1 million by 7.6 percent, and add $66,000.
For tax years beginning January 1, 2011 and before January 1, 2013:
  • If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).
  • If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.6 percent, and add $16,500.
For tax years beginning January 1, 2009 and before January 1, 2011:
  • If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).
  • If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.9 percent, and add $16,500.
For tax years beginning prior to January 1, 2009:
  • Multiply Oregon taxable income by 6.6 percent.

3. When is our corporate tax return due?
The 15th day of the month following the federal due date. For most taxpayers, that's the 15th day of the fourth month following the end of your tax year. When the 15th falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Don't file your return before the end of the year.

4. What is the due date of the Oregon return when I have a federal extension?
Oregon accepts the federal extension to extend the due date for filing your federal and state return. If you have a 6-month extension of time to file, your federal return is due 6 months after the original federal due date, and your Oregon return is due 6 months after the original Oregon due date. Example: Your federal return is due March 15 with a 6-month extension to September 15. Your Oregon return is due April 15 with a 6-month extension to October 15. The due dates for a fiscal year ending taxpayer apply to the 15th day of the fourth month following the end of your fiscal year. Be sure to include a copy of the federal extension when you file your Oregon return and mark the "Extension" box on the first page of the Oregon return. Don't send your extension to us until you file your Oregon return.
 
5. How do I file an “Oregon only” extension for my Oregon return?
We don't have an extension form for Oregon, use federal extension Form 7004 instead.
    • Complete the top information, answer questions 4 and 5, and leave the rest of the form blank.
    • Write "For Oregon only" at the top of the form.
    • Include your extension when you file your Oregon return, don't send in your extension without your Oregon return.
    • Be sure to mark the "Extension" box on the first page of the Oregon return.

6. What does "doing business" mean?
“Doing business” means carrying on or 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.

7. What is the difference between a corporate excise tax return and a corporate income tax return?
Every corporation doing business in Oregon must file a corporate excise tax return (Form 20, 20-INS, or 20-S) and pay the greater of computed tax or the minimum excise tax. Corporations not doing business in Oregon, but with income from an Oregon source, must file a corporate income tax return (Form 20-I or 20-S). There is no minimum tax for income tax filers.

8. Do I need to file a tax return if my corporation is inactive?
No. You don't need to file an Oregon corporation return if your corporation didn't do business in Oregon during any part of the year and had no Oregon source income. This applies even if you're registered to do business in Oregon.

9. How do we amend our corporate return? What form do we use?
Use the same form type you originally used for the year you are amending; for example, use Form 20, Form 20-I, etc. Be sure to check the "Amended" box on the front of the return. If you're amending because you filed the wrong form, file the amended return on the correct form and mark the amended box. Also see Oregon Corporate Amended Returns.

10. How many years can we carry back or carry forward a net operating loss (NOL)?
Oregon allows corporate NOLs to be carried forward for up to 15 years. There is no net operating loss carryback allowed.

11. What is the statute of limitations for filing an amended return?
Generally, the statute of limitations is three years from the date the return is filed or the due date of the return, whichever is later. For an amended return claiming a refund based on federal or another state's audit adjustments, the statute of limitations is generally two years from the date of the auditor's report, if that is later than the three-year statute.
If you file an amended return with the IRS and the changes affect Oregon taxable income, you must amend your Oregon return within 90 days of amending your federal return.  

12. How do I file a protective claim?
An amended return may be filed as a protective claim to extend the statute of limitations for a refund request for a tax year while an issue is being litigated. Don't file a protective claim on an original return.

Check the “Amended” box and write the words “Protective claim for refund” at the top. We’ll also accept a written letter in place of an amended return. Include the same information in the letter as is required on an amended return. We’ll hold your protective claim until you notify us the litigation has been completed.

13. How long after an IRS audit may Oregon issue a bill to me?
Generally, up to two years after we receive notice of a change to your federal return.

If you are audited by the IRS and changes that were made to your federal return affect your Oregon return, you should file an amended Oregon return. Otherwise, Oregon may send you a billing notice up to two years from the date the department receives notice of a change to your federal return.  

14. Does Oregon require corporate quarterly or estimated tax payments?
Yes. You must make estimated tax payments if you expect to owe tax of $500 or more with your return. For more information, see Corporation Estimated Tax.

15. When are corporate estimated tax payments due?
  1st: 15th day of the 4th month of the corporation's tax year;
 2nd: 15th day of the 6th month of the corporation's tax year;
  3rd: 15th day of the 9th month of the corporation's tax year;
  4th: 15th day of the 12th month of the corporation's tax year.
Don't send Form 20-V if paying by Electronic funds transfer (EFT). If paying by mail, send each payment with a Form 20-V and make sure to write the following on your payments:  
  • Federal employer identification number (FEIN).
  • Oregon business identification number (BIN).
  • Tax year.
  • Telephone number.

16. If I have an estimated tax account for the current year, and I amend a return or the department makes an adjustment that creates a tax liability, may I use funds in my estimated tax account to pay my liability?
No. Estimated tax payments cannot be used to pay a tax liability for a prior year, regardless of whether the liability is created by filing an amended return or by adjustment of the return by the department. It is an irrevocable election to have an overpayment of a prior year tax applied to a current year estimated tax account. ORS 314.515 & OAR 150-314.515(2).

17. What is the difference between an S corporation and a C corporation?
An S corporation is the incorporation of an ordinary business formed and operated under a state's general corporation law, but the corporation has applied to and been approved by the Internal Revenue Service to be taxed as an S corporation. An S corporation is generally treated like a partnership for federal income tax purposes. It files an "information" tax return to report its income and expenses, and isn't separately taxed.

Income and expenses of an S corporation "flow through" to the shareholders in proportion to their share holdings, and profits are taxed to the shareholders at their individual tax rates. If an S corporation has shareholders that are not Oregon residents, then the nonresident portion of the corporate income may be subject to a withholding tax for the non-resident shareholders.

18.
If we file as an "S" Corporation with the IRS, how do we file with Oregon?
We recognize your federal "S" election, so you would file Form 20-S. For information, see Subchapter S Corporations.

19.  Does Oregon allow the filing of a composite return for nonresident shareholders of an "S" Corporation?
Yes. See Form OC, Oregon Composite Return.

20. We are a limited liability company (LLC). How do we file for Oregon?
File the same way for Oregon that you did for federal. For example, if you filed a partnership return for federal, then file a partnership return for Oregon (Form 65).

21. We are a corporate member of a Limited Liability Company (LLC). How do we file for Oregon?
IF THE LLC IS TAXED AS A PARTNERSHIP AND IS PART OF YOUR UNITARY BUSINESS:
        
Include your ownership share of the LLC income in your net income subject to apportionment. Include your ownership share of LLC property, payroll, and sales in your apportionment factors. If the LLC has Oregon activity, include its factors in both the numerators and denominators of your factors.

IF THE LLC IS TAXED AS A PARTNERSHIP AND IS NOT PART OF YOUR UNITARY BUSINESS:
  Your income from the LLC is nonbusiness income. You must allocate it to this state as provided in ORS 314.625 through ORS 314.645.

IF THE LLC IS TAXED AS A CORPORATION AND IS PART OF YOUR UNITARY BUSINESS:
  Include the income of the LLC in net income subject to apportionment. Include the factors of the LLC, as appropriate, in both the numerators and denominators of the apportionment factors.

IF THE LLC IS TAXED AS A CORPORATION AND IS NOT PART OF YOUR UNITARY BUSINESS:
  Subtract the income of the LLC from the consolidated net income as income from a non-unitary corporation. If the LLC does business in Oregon or has income from an Oregon source, the LLC will be required to file its own Oregon return and calculate its Oregon tax based on its Oregon activities.  


22. Does Oregon follow federal treatment of LLCs considered "disregarded entities"?
Yes.

23. Does Oregon follow the federal entity classification regulations?
Yes. If an entity is classified or taxed as a corporation for federal income tax purposes, it will be treated as a corporation for Oregon tax purposes.

24. We are starting a nonprofit organization; what do we file with you?
You do not need to file "articles of incorporation" or other forms with the Department of Revenue. If you only file a federal Form 990 with the IRS, you do not need to file a return with Oregon. If you file a federal Form 990-T (unrelated business income), you must file an Oregon Form 20. Also see: Nonprofit and Tax-Exempt Organizations including Cooperatives and Homeowners Associations.

25. Is a Political organization required to file a tax return or pay tax?
Political organizations (campaign committees, political parties) normally do not pay income taxes to state or federal governments. However, this changes if financial activities go beyond normal political operations.  

26
. What penalties and interest may apply to my corporate return?
See Penalty and Interest.

27. How do I assemble my return and where do I mail it?
See Assembling and Submitting returns.

28. For questions regarding your corporation tax, e-mail: corp.help.dor@oregon.gov.


29.
For questions regarding your minimum tax, e-mail: minimumtax.help@oregon.gov.