Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0315 - Corporation Estimated Tax: Delinquent or Underestimated Payment or Both, Constitutes Underpayment

Current through Register Vol. 63, No. 7, July 1, 2024
(1) An
			 underpayment of corporation estimated tax exists when the payments received on
			 or before a payment due date are less than the required payment due as
			 determined under section (3) of this rule.
(2)
For returns processed on or after
			 January 1, 2001
. If none of the exceptions as provided in section (3)
			 of this rule are met, interest on underpayment of estimated tax is computed on
			 the difference between the lowest amount determined under section (3) of this
			 rule and the total estimated tax payments for the installment period made on or
			 before the due date.
Example:
Interest on underpayment of first
				installment
1999 tax liability on return filed April 15, 2001 -
				$2,000
1998 tax liability - 1,600
Amount determined under subsection (3)(a) of this rule ($2,000
				x 25%) - 500
Amount determined under subsection (3)(b) of this rule ($1,600
				x 25%) - 400
Amount determined under subsection (3)(c) of this rule - 375
Amount determined under subsection (3)(d) of this rule - 350
First quarter payment received by the first quarter installment
				due date - 100
Interest for the first quarter is calcualted on $250, the
				difference between $350, the lowest amount determined under section (3) of this
				rule, and $100, the total payments received before the first quarter
				installment due date.
(3)
Exceptions
. Underpayment
			 charges will not be imposed if each estimated tax payment is equal to or more
			 than 25 percent (or the appropriate percentage of tax for short periods
			 provided in OAR 150-314.515) of any one of the following:
(a) One hundred percent of the tax for tax
			 years beginning on or after January 1, 1996.
(b) One hundred percent of the tax shown on
			 the return for the preceding tax year (after credits and any state surplus
			 refund) provided that the preceding tax year was a period of twelve months and
			 an Oregon return showing a liability was filed for such tax year.
(A) When applying this subsection to a
			 current taxable year of less than 12 months, the tax for the preceding tax year
			 is reduced by multiplying it by the number of months in the short tax year and
			 dividing the resulting amount by 12.
(B) This subsection applies only to the first
			 required estimated tax payment due for a tax year by a large corporation. When
			 a large corporation's first required payment is reduced under this subsection,
			 the second required payment must be increased by the amount of the reduction. A
			 large corporation is a corporation with federal taxable income, prior to net
			 operating loss or capital loss deductions, of $1 million or more in any of the
			 three prior tax years.
(c) An amount equal to 100 percent of the tax
			 computed on annualized taxable income. Annualized taxable income is computed as
			 provided in ORS 314.525(2)(c)(A)
			 or using the same annualization periods as used for federal tax purposes. Tax
			 credits available on the date of the payment may be deducted from the
			 annualized tax. An estimated or anticipated tax credit may not be used.
(d) An amount equal to 100 percent
			 of the amount obtained by applying Section
			 6655(e)(3)(C) of
			 the Internal Revenue Code to Oregon taxable income for any corporation with
			 seasonal income.