Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-1310 - Estimated Tax Payments: Delinquent or Underestimated Payment or Both, Constitutes Underpayment

Current through Register Vol. 63, No. 7, July 1, 2024
(1) An
			 underpayment of Corporate Activity Tax (CAT) estimated tax exists when the
			 payments received on or before a payment due date are less than the required
			 installment due as determined under section (3) of this rule.
(2) If none of the exceptions, as provided in
			 section (3) of this rule, are met, the department will assess a five percent
			 penalty of the underpayment amount for any quarter for which an underpayment
			 exists.
(3)
Required
			 installments and exceptions.
Underpayment charges will not be imposed
			 if:
(a) No estimated payments are required,
			 as provided in OAR 150-317-1300;
(b) The taxpayer has paid an amount equal to
			 at least the taxpayer's required installment for the corresponding quarter of
			 the preceding tax year; or
(c) Each
			 estimated tax installment is equal to or more than 25 percent (or the
			 appropriate percentage of tax for short periods provided in OAR 150-317-1300)
			 of any one of the following:
(A) For tax
			 years beginning on or after January 1, 2020 and ending before January 1, 2022,
			 80 percent of the tax for the tax year.
(B) For tax years beginning on or after
			 January 1, 2022, 90 percent of the tax for the tax year.
(C) For tax years beginning on or after
			 January 1, 2020 and ending before January 1, 2022, an amount equal to 80
			 percent of the tax computed on annualized taxable commercial activity. For
			 purposes of this computation, 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. Annualized taxable commercial activity is computed by entering
			 the taxable commercial activity on an annualized basis:
(i) For the first three months of the taxable
			 year, in the case of the installment required to be paid in the fourth
			 month;
(ii) For the first six
			 months of the taxable year, in the case of the installment required to be paid
			 in the seventh month;
(iii) For the
			 first nine months of the taxable year, in the case of the installment required
			 to be paid in the tenth month; and
(iv) For the 12 months of the taxable year,
			 in the case of the installment required to be paid in the first month of the
			 following taxable year.
(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 commercial activity for any person
			 with seasonal commercial activity.
(E) For tax years beginning on or after
			 January 1, 2022, an amount equal to 90 percent of the tax computed on
			 annualized taxable commercial activity. For purposes of this computation, 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.
			 Annualized taxable commercial activity is computed by entering the taxable
			 commercial activity on an annualized basis:
(i) For the first three months of the taxable
			 year, in the case of the installment required to be paid in the fourth
			 month;
(ii) For the first six
			 months of the taxable year, in the case of the installment required to be paid
			 in the seventh month;
(iii) For the
			 first nine months of the taxable year, in the case of the installment required
			 to be paid in the tenth month; and
(iv) For the 12 months of the taxable year,
			 in the case of the installment required to be paid in the first month of the
			 following taxable year.
(F) For tax years beginning on or after
			 January 1, 2021, 100 percent of the tax shown on the return for the preceding
			 tax year (after credits), 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. 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.