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Corporation Estimated Tax
What is estimated tax?
 
Estimated tax is a corporation's expected tax liability after credits. Oregon estimated tax laws are not the same as federal estimated tax laws.
 
You must make quarterly estimated tax payments if you expect to owe tax of $500 or more with your return. This includes Oregon's minimum tax. This requirement also applies if you are an S Corporation paying tax on income from built-in gains or excess net passive income.
 
If you don't make estimated payments as required, you may be subject to interest on underpayment of estimated tax (UND).

Payment due dates
 
Estimated tax payments are due quarterly, as follows:
  • Calendar year filers: April 15, June 15, September 15, and December 15.
  • Fiscal year filers: The 15th day of the 4th, 6th, 9th, and 12th months of your fiscal year.
  • If the due date falls on a Saturday, Sunday, or legal holiday, use the next regular business day.
 

Payment options
 
Estimated payments may be made by electronic funds transfer or by mail.
 
Electronic funds transfer (EFT). The department accepts corporation estimated payments by EFT. EFT reduces both the time and expense of processing payments and enhances accuracy.
 
You must make your Oregon estimated payments by EFT if you are required to make your federal estimated payments by EFT. The department may grant a waiver from participation in the EFT program if you would be disadvantaged by the requirement.
 
If you do not meet the federal requirements for mandatory participation in the EFT program, you may participate on a voluntary basis.
 
A business is required to have an authorization agreement filed with the department before it can start initiating EFT payments. The EFT Help/Message phone number is 503-947-2017.
 
EFT payments for corporation estimated taxes must be made using Revenue´s EFT program. This program allows payments to be initiated by touch-tone telephone, a secure Internet site, or through your financial organization. If you pay by EFT, do not send Form 20-V.
 
Mail. If paying by mail, send each payment with a Form 20-V voucher.

Oregon estimated tax worksheet
Use this worksheet to calculate your estimated tax. (Keep for your records—do not file with payment.)
 
1. Oregon net income expected in upcoming tax year 1._____________
     
2. Tax on Oregon net income (See Common Questions—Corporations for Oregon's corporation tax rates including minimum tax.) 2._____________
     
3. Subtract expected tax credits allowable in upcoming tax year. 3._____________
     
4. Net tax (line 2 minus line 3)

If the amount on line 4 is less than $500, stop. You don’t have to make estimated tax payments. Caution: If your final tax liability when you file your return is $500 or more, you may be subject to interest on underpayment of estimated tax (UND). 
4._____________
     
5. Amount of each payment (Divide line 4 by the number of payments you need to make. This is usually 4.) 5._____________

If your expected net tax changes during the year, divide the amended net tax amount by the number of required payments (usually four) to determine the correct amount of each required installment.

To avoid additional charges for interest on the underpayment of estimated tax (UND), you must pay the amount of any prior underpayment plus the amount of the current required installment. OAR 150-314.515(2)

Example: During the year, Corporation A's expected net tax increased from $2,000 to $6,000. Corporation A made timely first and second quarter estimated payments of $500 before its expected net tax increased.

Corporation A's correct amount of each required installment is $1,500. Because of its increased net tax, Corporation A will be subject to UND charges for the first and second quarters. To avoid UND charges for the third and fourth quarters, Corporation A must make a timely third-quarter estimated payment of $3,500* and a timely fourth quarter payment of $1,500.

*$1,000 for the first-quarter underpayment, plus $1,000 for the second-quarter underpayment, plus $1,500 for the required third-quarter installment equals $3,500.