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Oregon Free Printable 2023 Form OR-20 Instructions, Oregon Corporation Excise Tax, 150-102-020-1 for 2024 Oregon Form 20 Instructions

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Form 20 Instructions
2023 Form OR-20 Instructions, Oregon Corporation Excise Tax, 150-102-020-1

Form OR-20 Instructions Oregon Corporation Excise Tax 2023 Contents Purpose of Form OR-20........................................ 2 Important reminders............................................. 2 What’s new and Looking ahead................ 2, 3 Estimated tax payments...................................... 3 Filing information Filing checklist Due date of return, Extensions........................................... 9 Payments................................................................................ 9 Assembling your return....................................................... 9 Mailing Addresses.................................................... 9 Form instructions Who must file with Oregon?............................................... 4 Filing requirements: consolidated returns, unitary business, insurance affiliates, separate returns........... 5 E-file........................................................................................ 5 Federal audit changes, Amended returns......................... 6 Protective claims................................................................... 6 Heading and checkboxes..................................................... 9 Questions.............................................................................. 11 Line instructions Additions.............................................................................. 11 Subtractions......................................................................... 13 Tax......................................................................................... 16 Credits................................................................................... 16 LIFO benefit recapture....................................................... 17 Net excise tax....................................................................... 17 Payments, penalty, interest, and UND............................. 17 Schedule ES—Estimated tax payments, other prepayments, and refundable credits......................... 17 Total due or refund............................................................. 18 Special filing requirements Agricultural or horticultural cooperatives........................ 6 Broadcasters........................................................................... 7 Exempt organizations........................................................... 7 Homeowners associations................................................... 7 Insurers................................................................................... 7 Interest charge domestic international sales corporations (IC-DISCs)......................................... 7 Limited liability companies (LLCs).................................... 8 Political organizations.......................................................... 8 Publicly traded partnerships............................................... 8 Real Estate Investment Trusts (REITs) and Regulated Investment Companies (RICs)........................................ 8 Real Estate Mortgage Investment Conduits (REMICs)...... 9 Do you have questions?..................................... 19 Appendices Appendix A, 2023 Schedule OR-ASC-CORP code list..... 20 Appendix B, 2023 Tax rates and minimum tax table..... 22 Appendix C, Alternative apportionment........................ 23 Information contained herein is a guide. For complete details of law, refer to Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR). Go electronic! Fast • Accurate • Secure File corporation tax returns through the Federal/State Electronic Filing Program. See “E-file.” Visit us online: ­­w ww.oregon.gov/dor • Registration and account status. • Online payments and communication. • Forms, instructions, and law. • Announcements and FAQ. • Updates to instructions. 150-102-020-1 (Rev. 10-17-23) 1 2023 Form OR-20 Instructions taxpayer with a loss in tax year 2023 may carry their loss to tax year 2020. Visit our website at w ­ ww.oregon.gov/dor for additional information. Purpose of Form OR-20 Use Form OR-20, Oregon Corporation Excise Tax Return, to calculate and report the Oregon corporate excise tax liability of a business entity taxable as a C corporation doing business in Oregon. Credits Agricultural Employer Overtime Tax Credit HB 4002 (2022) creates a refundable tax credit for overtime paid to agricultural workers. The measure requires agricultural employers to pay certain workers for overtime hours worked and creates a refundable personal income or corporate tax credit for employers for a percentage of wages paid as overtime pay to agricultural workers for tax years beginning on or after January 1, 2023, and before January 1, 2029. Taxpayers must apply for the tax credit through the department. Note that this credit can offset corporation minimum tax determined under 317.090. Visit our website at ­www.oregon.gov/dor for additional information. Important reminders If your registered corporation or insurance company isn’t doing business in Oregon and has no Oregonsource income, then you don’t need to file a corporation tax return. Revenue Online. Revenue Online provides convenient, secure access to tools for managing your Oregon tax account. With Revenue Online, you may: • View your tax account. • Make payments. • View correspondence we sent you. • Check the status of your refund. Forest Conservation Tax Credit (FCTC) SB 1502 (2022) creates a non-refundable Forest Conservation Tax Credit (FCTC) for the stumpage value of timber left standing on the land of a small forestland owner. The amount of the tax credit is certified by the Department of Forestry (ODF) and applies to tax years beginning on or after January 1, 2023. For more information and instructions on setting up your Revenue Online account, visit ­www.oregon.gov/dor. What’s new Additionally, HB 2161 (2023) amended the FCTC from SB 1502 (2022) to modify the computation of the credit under certain conditions. See HB 2161 for additional information. Note: Not all information in this section pertains to all taxpayers or form types. If applicable, refer to House Bills (HB) or Senate Bills (SB) as shown. Visit ­ w ww.oregon.gov/dor for possible updates to these instructions. Opportunity Grant Fund (auction) tax credit sunset (ORS 315.643) General The Opportunity Grant Fund (auction) tax credit sunset on January 1, 2023. The tax credit may be claimed in tax years beginning on or after January 1, 2023, if the credit is purchased at auction on or after January 1, 2023, and before March 1, 2023. Tie to federal tax law In general, Oregon tax law is based on federal tax law. Oregon is tied to the federal definition of taxable income as of December 31, 2022; however, Oregon is still disconnected from: Extended credits • Federal subsidies for prescription drug plans (IRC §139A; ORS 317.401). • Deferral of certain deductions for tax years beginning on or after January 1, 2009 and before January 1, 2011 may require subsequent Oregon modifications (IRC §168(k) and §179; ORS 317.301). The following credit is extended to tax years beginning before January 1, 2028: Net Operating Loss (NOL) carryback SB 1524 (2022) allows taxpayers who use NAIC codes 111 or 112 (referring to taxpayers engaged in crop produc¬tion, animal production or aquaculture) to claim a three-year NOL carryback. The three-year NOL carryback applies in tax years beginning on or after January 1, 2023, and before January 1, 2029, and any tax year to which the NOL may be carried back. For example, a • Employer scholarship (ORS 315.237)...................code 847 • Individual Development Account (IDA) donation (ORS 315.271)..........................................code 852 • Reservation enterprise zone (ORS 315.506)........code 810 • Short line railroad rehabilitation (ORS 315.593).........................................................code 872 • University venture fund (ORS 315.640)..............code 864 150-102-020-1 (Rev. 10-17-23) • Cultural Trust contribution (ORS 315.675).........code 807 The following credits are extended to tax years beginning before January 1, 2030: 2 2023 Form OR-20 Instructions The following credits are extended to tax years beginning before January 1, 2032: Sale of publicly supported housing credit HB 2071 (2023) creates a tax credit for the sale of publicly supported housing. The tax credit equals 2.5 percent of the lesser of the sales price or appraisal value if the owner held the publicly supported housing for at least five years and 5.0 percent of the lesser of the sales price or appraisal if the owner held the publicly supported housing for at least ten years. • Agricultural workforce housing (ORS 315.164)...........................................................code 835 • Oregon affordable housing lender’s credit (ORS 317.097)...........................................................code 854 Sunset credits no longer available, including carryforward The new tax credit applies to tax years beginning on or after January 1, 2024, and before January 1, 2030. It will be certified by Oregon Housing and Community Services. The following credits are no longer available, including carryforward, for tax years beginning before January 1, 2023. Any remaining credit amount not used is lost. Short-line railroad rehabilitation (ORS 315.593) • Alternative qualified research activities (ORS 317.154)............................................................code 837 • Qualified research activities (ORS 317.152).......code 858 • Repatriation credit (due to IRC §965)..................code 870 HB 3406 (2023) amended ORS 315.593 to eliminate the distinction between Tier 1 and Tier 2 railroads for purposes of the short-line railroad tax credit. All taxpayers may claim 50 percent of the costs incurred to rehabilitate the short-line railroad. A credit is not allowed for an amount equal to the greater of costs used to claim the IRC 45G credit or the credit limitation in IRC 45G(b)(1). Rehabilitation costs that are funded by a federal or state grant cannot be used to claim the credit. Looking ahead Credits Oregon Affordable Housing Lender’s Credit (ORS 317.097) The credit is certified by Oregon department of Transportation (ODOT). The changes described here apply to tax years beginning on or after January 1, 2024, and before January 1, 2026. Two separate bills amended this credit: • HB 2071 (2023) amended ORS 317.097 to allow financiers of limited equity cooperatives to claim the ORS 317.097 tax credit if the tax credit savings are passed on to the tenants of the limited equity cooperative. This change applies to tax years beginning on or after January 1, 2024. • SB 892 (2023) amended ORS 317.097 to apply to projects involving households earning 80 percent or less of the area median income. Prior to the amendment, ORS 317.097 applies to projects involving households earning less than 80 percent of the area median income. Estimated tax payments Requirements Oregon estimated tax payment requirements aren’t the same as federal estimated tax payment requirements. You must make estimated tax payments if you expect to owe tax of $500 or more. This includes Oregon’s minimum tax. See ORS 314.505 to 314.525 and supporting administrative rules. Qualified semiconductor company research credit If you don’t make estimated payments as required, you may be subject to interest on underpayment of estimated tax (UND). Refer to Form OR-37 if you have an underpayment of estimated tax. HB 2009 (2023) allows a qualified semiconductor company to claim a tax credit based on research and development expenses. The qualifying research and development expenses are determined based on IRC 41. Oregon allows a credit equal to 15 percent of the qualifying research and development expenses as determined in IRC 41. The maximum amount of credit varies based on employee numbers. A portion of the tax credit is refundable if the taxpayer has fewer than 3,000 employees. The exact refund percentage depends on how many employees the taxpayer has. 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. The new tax credit applies to tax years beginning on or after January 1, 2024, and before January 1, 2030. The tax credit will be certified by Oregon Business Development Department (OBDD). 150-102-020-1 (Rev. 10-17-23) Payment options Important: For details about making payments with your return, see “Filing checklist” below. 3 2023 Form OR-20 Instructions Estimated payments may be made by electronic funds transfer (EFT), online, or by mail. 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. EFT. You must make your Oregon estimated payments by EFT if you’re required to make your federal estimated payments by EFT. We may grant a waiver from EFT payments if you’d be disadvantaged by the requirement (ORS 314.518 and supporting administrative rules). Corporation A should make four payments of $1,500 each during the year. 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 timely payments of $3,500* for the third quarter and $1,500 for the fourth quarter. If you don’t meet the federal requirements for mandatory EFT payments, you may still make voluntary EFT payments. You can make EFT payments through Revenue Online or through your financial institution. To learn more about Revenue Online or to make an EFT payment, visit ­www. oregon.gov/dor. If you pay by EFT, don’t send Form OR‑20-V, Oregon Corporation Tax Payment Voucher. *$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. Filing information Mail. If paying by mail, send each payment with a Form OR-20-V, payment voucher, to: Oregon Department of Revenue, PO Box 14950, Salem OR 97309-0950. Who must file with Oregon? Corporations that are doing business in Oregon, or with income from an Oregon source, are required to file an Oregon corporation tax return. If you have tangible or intangible property or other assets in Oregon, any income you receive from that property or assets is Oregon source income. Public Law (Pub.L.) 86-272 provides exceptions to the Oregon filing requirement for certain corporations doing business in Oregon. Include on your check: • Federal employer identification number (FEIN). • Tax year beginning and ending dates. • Contact phone. Estimated tax payments’ worksheet (Keep for your records—don’t file with your payment.) 1. Oregon net income expected in upcoming tax year. 1. 2. Tax on Oregon net income (see Appendix B). 2. 3. Subtract tax credits allowable in upcoming tax year. Tax credits can’t be used to reduce minimum tax. 3. 4. Net tax (line 2 minus line 3). 4. Exemption for emergency service providers. An outof-state emergency service provider is exempt from tax when operating solely for the purposes of performing disaster or emergency-related work on critical infrastructure. Disaster or emergency-related work conducted by an out-of-state business may not be used as the sole basis for determining that a corporation is doing business in Oregon. Note: Oregon follows the federal entity classification regulations. 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. 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 UND. 5. Amount of each payment. (Divide line 4 by the number of payments you need to make. This is usually 4.) Excise or income tax? Oregon has two types of corporate taxes: excise and income. Excise tax is the most common. Most corporations don’t qualify for Oregon’s income tax. 5. Excise tax is a tax for the privilege of doing business in Oregon. It’s measured by net income. Excise tax filers are subject to corporate minimum tax. Corporation excise tax laws are in Chapter 317 of the Oregon Revised Statutes. If your expected net tax changes during the year, refigure your estimated tax payments using the Estimated tax payments’ worksheet. Note: All interest on obligations of the 50 states and their subdivisions are subject to Oregon excise tax. Interest on obligations of the United States and its instrumentalities are also subject to tax if the interest is taxable under the Internal Revenue Code and Congress has not chosen to To avoid additional charges for UND, you must pay the amount of any prior underpayment plus the amount of the current required payment. 150-102-020-1 (Rev. 10-17-23) 4 2023 Form OR-20 Instructions prevent the states from taxing the interest in question. A taxpayer has the burden of showing that Oregon can’t tax the interest on a federal obligation. • Included in a consolidated federal return; • Unitary; and • At least one of the affiliated corporations doing business in Oregon or have Oregon-source income. Income tax is for corporations not doing business in Oregon, but with income from an Oregon source. Income tax filers aren’t subject to corporate excise or minimum tax. Corporation income tax laws are in Chapter 318 of the Oregon Revised Statutes. Note: S corporations can’t be included in consolidated federal returns. IRC §1361(b) provides that a corporation that’s a Qualified Subchapter S Subsidiary (QSSS) isn’t treated as a separate corporation. All income, deductions, and credits of the QSSS will be treated as belonging to the parent S corporation. What form do I use? Unitary business. A business that has, directly or indirectly between members or parts of the enterprise, either a sharing or an exchange of value shown by: Except as provided by Pub.L. 86-272, all corporations doing business in Oregon must file Form OR-20, and are subject to the minimum excise tax. Any corporation doing business in Oregon is also required to register with the Secretary of State, Corporation Division. See www.­­sos.oregon.gov. • Centralized management or a common executive force; • Centralized administrative services or functions resulting in economies of scale; or • Flow of goods, capital resources, or services showing functional integration. “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: Unitary insurance affiliates. If a unitary insurance affiliate has a separate return filing requirement, it’s excluded from the Oregon return of the consolidated group. The insurance affiliate is treated as if it’s a nonunitary affiliate of the consolidated group by subtracting income or adding losses to federal taxable income. The other members of the insurer’s federal consolidated group receive a 100 percent dividend-received deduction for any dividend received from the insurer. See “Additions” and “Subtractions” below. • 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. Separate federal returns. Any corporation that files a separate federal return must file a separate Oregon return if it’s doing business in Oregon or has income from an Oregon source. However, see special filing requirements for REITs. Corporations not doing business in Oregon, but with income from an Oregon source, must file Form OR‑20‑INC. Most corporations don’t fall within Oregon’s income tax provisions. A corporation subject to Oregon taxation must also file a separate Oregon return if it was included in a consolidated federal return, but wasn’t unitary with any of the other affiliates. To determine Oregon taxable income, begin with taxable income from the consolidated federal return and use Oregon additions or subtractions to remove the nonunitary affiliates. Corporations not doing business in Oregon, and with no Oregon source income, even if incorporated in or registered to do business in the state, aren’t subject to the excise, income, or minimum tax, and aren’t required to file a corporation tax return. E-file Important: Don’t file a Form OR-20 unless you’re required to do so. Filing an unnecessary return may result in a billing for minimum tax. If you’re required to e-file with the IRS, you’re also required to e-file for Oregon (ORS 314.364). We accept calendar year, fiscal year, short year, and amended electronic corporation tax returns utilizing the IRS Modernized e-file platform (MeF). Beginning January 2024, we’ll accept e-filed returns for tax year 2023, and will continue accepting returns for 2022 and 2021. Filing requirements Consolidated federal returns (ORS 317.705–317.725). If a corporation is a member of an affiliated group of corporations that filed a consolidated federal return, it must file an Oregon return based on that federal return. An Oregon return, based on the federal consolidated return, is required when two or more affiliated corporations are: 150-102-020-1 (Rev. 10-17-23) Your tax return software also allows you to make electronic payments when e-filing your original return. Note: Your paper return may be rejected if you’re required to electronically file your Oregon corporation 5 2023 Form OR-20 Instructions tax return, unless a waiver request has been approved by us prior to the filing of the paper return. Don’t amend your Oregon return if you amend the federal return to carry a net operating loss back to prior years. Oregon allows corporations to carry net operating losses forward only. If you’d like to request a waiver, send an email with the FEIN, tax year, and reason you’re unable to e-file to bus.electronicfiling​ @​ dor.oregon.gov, prior to paper-filing your return. On the estimated tax payments line of your amended Form OR-20, enter the net excise tax per the original return or as previously adjusted. Don’t include any penalty or interest portions of payments already made. For a list of software vendors or for more information, search “e-filing” at www.oregon.gov/dor. ­­ If paying additional tax with your amended return, you must include interest with your payment. Interest is figured from the day after the due date of your original return up to the day we receive your full payment. See “Interest rates.” Federal or other state audit changes If the IRS or other taxing authority changes or corrects your federal or other state return for any tax year, you must notify us. File an amended Oregon return and include a copy of the federal or other state audit report. Mail this separately from your current year’s return. Pay all tax and interest due with your amended return or within 30 days of receiving a billing notice from us to avoid being charged a 5 percent late payment penalty. If you don’t amend or send a copy of the federal or other state report, we have two years from the date we’re notified of the change to issue a deficiency notice. To receive a refund you must file a claim for refund of tax within two years of the date of the federal or other state report. Protective claims Don’t file an amended return as a protective claim. Use Oregon Form OR-PCR, Protective Claim for Refund, 150‑101-184, when your claim to a refund is contingent on a pending court decision or legislative action. Notify us within 90 days of the final determination by filing an amended return. Don’t file an amended return before the pending action is final. Amended returns Oregon doesn’t have an amended return form for corporations. Use the form for the tax year you’re amending and check the amended box. Always use your current address. If your address has changed, don’t use your old address or our system will revert your current address to the old address. Special filing requirements Fill in all amounts on your amended return, even if they’re the same as originally filed. If you’re amending to change additions, subtractions, or credits, include detail of all items and amounts, including carryovers. Agricultural or horticultural cooperatives For purposes of the corporate minimum tax only, the Oregon sales of agricultural or horticultural cooperatives doesn’t include sales representing business done with or for the cooperative’s members. If you’re an agricultural or horticultural cooperative, check the box in the header for Ag co-op. If you change taxable income by filing an original or amended federal or other state return, you must file an amended Oregon return within 90 days of when the original or amended federal or other state return is filed (ORS 314.380). Include a copy of your original or amended federal or other state return with your amended Oregon return and explain the changes. Your Schedule OR-AP, part 1, must show all sales in Oregon and elsewhere to correctly compute your apportionment percentage. However, for minimum tax purposes, show the amount of sales not done with or for members of the co-op in the header of the Schedule OR-AP, under the heading “Describe the nature and provide the location(s) of your Oregon business activities.” Include the description “Sales not done with or for members of the co-op.” If you filed Form OR-20-S, and later determined you should file Form OR-20, amend your return using Form OR-20 and check the amended box. You may make payments online for your amended return at ­­www.oregon.gov/dor. Don’t make payments for amended returns with EFT. This also applies to e-filed amended returns. For paper returns, you may pay online or include a check or money order with your return. For e-filed returns, you may pay online or send a check or money order separately. If you mail your payment separate from your return, write “Amended” on the payment and include a completed Form OR-20-V with the amended box checked. 150-102-020-1 (Rev. 10-17-23) Note: Generally, co-ops filing federal Form 1120-C begin the Oregon return with line 25a from the federal return (not line 28). You are also allowed a subtraction for patronage dividends, which is taken on Schedule OR‑ASC-CORP, code number 379 (ORS 317.010). 6 2023 Form OR-20 Instructions Broadcasters membership dues, fees, and assessments from memberowners of residential units in the particular condominium or subdivision involved. Oregon follows the federal definition of nonexempt function income. SB 136 (2021) defines broadcasting sales and repeals the interstate broadcaster provisions applicable before January 1, 2020. Don’t file Form OR-20 if you don’t have nonexempt function income for Oregon tax purposes. Only file a copy of your federal Form 1120-H with us. For tax years beginning on or after January 1, 2020, taxpayers with broadcasting sales must use an audience/ subscriber factor, as demonstrated through the use of third-party ratings information or the taxpayer’s books, papers, records, or memoranda, to source their broadcasting sales to Oregon. Taxpayers with broadcasting sales may elect to apply their audience/subscriber factor to all their gross receipts except sales of real property and tangible personal property. In certain circumstances, taxpayers may source receipts from advertising on or licensing to subscription services using a statutorily prescribed 0.6% apportionment factor. See SB 136 for more information. File an Oregon Form OR-20, with a copy of federal Form 1120-H, if the association has taxable income. Homeowners association taxable income for Oregon is generally the same as for federal purposes. It’s gross nonexempt income less directly-related deductions, less the specific $100 deduction. However, net capital gains are included in the computation and receive no special treatment. An association filing Oregon Form OR-20 is subject to the greater of calculated excise tax or Oregon minimum tax. For minimum tax purposes, include in “Oregon sales” only Oregon nonexempt function income. Exempt organizations Insurers If you’re an exempt organization under IRC §§501(c) through (f), 501(j), 501(n), 521, or 529, you’re exempt from Oregon corporation taxes [ORS 317.080 (1)–(8)]. Apply to the IRS for exempt status, don’t apply to us. Two exceptions are nonprofit homes for the elderly and people’s utility districts established under ORS Chapter 261. Insurers that have a separate return filing requirement under ORS 317.710(5) and (7) can’t be included in an Oregon consolidated return. Instead, they generally determine Oregon corporate excise tax on a separate basis. The remaining affiliates in the Oregon consolidated return compute their modified federal consolidated taxable income after exclusion of the insurer with the separate return filing requirement. Also, the Oregon consolidated return receives a 100 percent dividendsreceived deduction if a dividend is paid by an insurer that has a separate return filing requirement. See Form OR-20-INS and instructions for more information about insurance company filing requirements. If you’re exempt from Oregon tax and don’t have unrelated business taxable income (UBTI) as defined in IRC §512, don’t file an Oregon tax return. UBTI is gross unrelated business income less allowable deductions, including a special $1,000 deduction. If you have UBTI, file Form OR-20 and include a copy of your federal Form 990-T. Organizations exempt from federal tax, but not exempt from Oregon tax, must also file Form OR-20 and include a copy of federal Form 990‑T. Interest charge domestic international sales corporations (IC-DISCs) (ORS 317.283, 317.635) An exempt organization filing Oregon Form OR-20 is subject to the greater of calculated excise tax based on UBTI apportioned or allocated to Oregon or Oregon minimum tax. For minimum tax purposes, include in “Oregon sales” only gross unrelated business income apportioned or allocated to Oregon. Tax-exempt gross income isn’t included. If your corporation is an IC-DISC, file Form OR-20 and check the IC-DISC checkbox at the top of the form. • An IC-DISC formed on or before January 1, 2014 is exempt from minimum tax. Complete your Form OR-20 using the instructions below. • Commissions received by an IC-DISC formed on or before January 1, 2014 are taxed at 2.5 percent. • An IC-DISC formed after January 1, 2014 isn’t exempt from minimum tax. However, it’s disregarded to the extent it has transactions with related parties. If you have transactions other than with related parties, complete your Form OR-20 as a normal corporation filer, and check the IC-DISC checkbox in the return header. Note: Some religious organizations that qualify under IRC § 501(d) may file as partnerships. Homeowners associations A homeowners association organized and operated under IRC §528(c) may elect to be treated as a tax-exempt organization (ORS 317.080). The association must make the election no later than the time prescribed by law for filing the return. A copy of the federal Form 1120-H filed with the IRS will constitute this election when filed with us. Tax-exempt status will only exempt the association from tax on the exempt function income, such as 150-102-020-1 (Rev. 10-17-23) The Oregon IC-DISC return is due by the 15th day of the month following the due date of the federal return. For example, a calendar-year federal Form 1120-IC-DISC is due nine months after the year-end (September 15). The Oregon return for the IC-DISC is due October 15. 7 2023 Form OR-20 Instructions If the 15th falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. No extensions are allowed for IC-DISC returns per federal and Oregon laws. Form OR-20 line instructions for IC-DISCs (formed on or before January 1, 2014) Foreign LLCs are identified as unincorporated associations organized under the laws of a state other than Oregon, or a foreign country. Oregon’s definition of a foreign LLC includes an unincorporated association organized under the laws of a federally recognized American Indian tribe, no matter when organized. Important: Check the IC-DISC box at the top of the form. Political organizations Line 1. Taxable income from the U.S. Corporation Income Tax Return. Enter the “total commissions received” reported for federal income tax purposes [federal Form 1120-IC-DISC, Schedule B, column c, lines 1c, 2k, and 3g]. Carry this amount to: • Line 3—Income after additions; • Line 5—Income before net loss deductions; and • Line 9—Oregon taxable income. Political organizations (for example, campaign committees and political parties) normally don’t pay state or federal taxes. However, income earned from investments is taxable. Examples include interest earned on deposits; dividends from contributed stock, rents, or royalties; and gains from the sale of contributed property. We follow the federal definitions of political organizations and taxable income. Line 10. Calculated excise tax. Multiply the amount from line 9 by 2.5 percent. Enter the result. Carry this amount to: A political organization that isn’t incorporated and hasn’t elected to be taxed as a corporation should file a personal income tax return under ORS 316.277(2). • Line 14—Tax; • Line 16—Tax before credits; • Line 20—Excise tax after credits; and • Line 22—Net excise tax. For more information, including how to file your return, go to ­­www.oregon.gov/dor/business. Publicly traded partnerships Limited liability companies (LLCs) A “publicly traded partnership” is a partnership treated as a corporation for federal tax purposes under IRC §7704. Oregon follows federal law in determining how an LLC is taxed. Federal law doesn’t recognize an LLC as a classification for federal tax purposes. An LLC business entity must file a corporation, partnership, or sole proprietorship tax return, depending on elections made by the LLC and the number of members. The partners in a publicly traded partnership aren’t subject to tax on their distributive shares of partnership income. A publicly traded partnership taxed as a corporation must file Form OR-20 if doing business in Oregon, or Form OR-20-INC if not doing business in Oregon but is receiving Oregon-source income. A multi-member LLC can be either a partnership or a corporation, including an S corporation. A single member LLC (SMLLC) can be either a corporation or a single member “disregarded entity.” Refer to federal law for more information and requirements. Real Estate Investment Trusts (REITs) and Regulated Investment Companies (RICs) A REIT or RIC that isn’t included in a federal consolidated return based on the provisions of IRC §1504(b)(4) must be included in the Oregon consolidated return. These REITs or RICs are subject to the provisions of ORS 317.715 and supporting administrative rules. For apportioning taxpayers, factors from the REIT or RIC are included in the apportionment calculation of the consolidated Oregon return. An LLC taxed as a C corporation must file Form OR-20 if doing business in Oregon, or Form OR-20-INC if not doing business in Oregon but receiving Oregon-source income. The LLC must file Form OR-20-S if the entity files federal Form 1120-S. An LLC taxed as a partnership must file Form OR-65, Oregon Partnership Return, if doing business in Oregon, or if receiving Oregon-source income, or if it has any Oregon resident members. If the LLC has a corporate member, the member is taxed on its share of the LLC’s Oregon income. A REIT or RIC that isn’t required to be included in an Oregon consolidated return is subject to tax under ORS chapter 317 or 318 and calculates their Oregon apportionment factors and Oregon net income in the same manner as a corporation with a separate filing requirement under ORS 317.710. REITs or RICs doing business in Oregon are subject to Oregon minimum tax. Business trusts that qualify as REITs filing separate returns aren’t allowed an Oregon deduction for net losses of prior years. If an LLC is part of a corporation’s overall business operations and is treated as a partnership, include the corporation’s ownership share of LLC property, payroll, and sales in the corporation’s apportionment percentage calculation on Schedule OR-AP (ORS 314.650 and supporting administrative rules). 150-102-020-1 (Rev. 10-17-23) Distributions from a REIT or RIC to its shareholders are treated the same as distributions from a corporation to 8 2023 Form OR-20 Instructions its shareholders for purposes of ORS chapters 316, 317, and 318. — Contact phone. ° To speed up processing of your return: — Don’t use Form OR-20-V payment voucher. — Don’t staple payment to the return. — Don’t send cash or postdated checks. — Don’t use red or purple or any gel ink. • Assembling your return. Assemble your Oregon return forms in the following order: Real Estate Mortgage Investment Conduits (REMICs) A REMIC isn’t subject to Oregon tax; the income is taxable to the holders of the REMIC’s interests under ORS Chapter 316, 317, or 318, whichever is applicable. A REMIC must file Form OR-20-INC if it receives prohibited transaction income from Oregon sources. 1. Form OR-20, Oregon Corporation Excise Tax Return; 2. Schedule OR-AP, Apportionment of Income for Corporations and Partnerships; 3. Schedule OR-AF, Schedule of Affiliates; 4. Schedule OR-PI, Schedule of Partnership Information; 5. Schedule OR-ASC-CORP, Oregon Adjustments; 6. Form OR-37, Underpayment of Oregon Corporation Estimated Tax; 7. Form OR-DRD, Dividends-Received Deduction; 8. Form OR-24, Like-Kind Exchanges/Involuntary Conversions; 9. Schedule OR-FCG-20, Farm Liquidation Long-Term Capital Gain Tax Adjustment; 10. Other Oregon statements; 11. Oregon credit forms including notice of credit transfers; 12. Copy of federal tax return and schedules; and Form 7004, Federal extension. All REMICs required to file must include a complete copy of federal Form 1066. The REMIC must also include a federal Schedule Q for each residual interest holder for each quarter of the tax year. Report the amount of net income from prohibited transactions from federal Form 1066 Schedule J (ORS 314.260). Filing checklist Rounding to whole dollars. Enter amounts on the return and accompanying schedules as whole dollars only. Example: $4,681.55 becomes $4,682; and $8,775.22 becomes $8,775. • Due date of your return. Returns are due by the 15th day of the month following the due date of your federal corporation return. When the 15th day falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Mailing Addresses Tax-due returns, with or without payment, mail to: Oregon Department of Revenue PO Box 14790 Salem OR 97309-0470 (Do NOT include a payment voucher.) • Extensions. See the instructions below for the extension checkbox. When you file, include the extension as the final page of your return. • Payments. Refunds or no tax-due returns, mail to: Oregon Department of Revenue PO Box 14777 Salem OR 97309-0960 ° Payments received after the original due date will be applied first to penalty, then to interest, and then to tax [ORS 305.265(13)]. ° Estimated payments and prepayments. Identify all estimated payments claimed by completing Schedule ES on page 5 of your return. List all payments that were submitted prior to filing your return. Include the corporation name and FEIN if a payment was made by an affiliate of the filing corporation. Missing or incomplete information on payments made by an affiliate could result in a billing. ° Online payments. You may pay online for any return at www.oregon.gov/dor. ­­ Search “payments.” ° Making electronic payments with your e-filed return. We accept electronic payments when e-filing your original return. ° Making check or money order payments with your paper return. Make your check or money order payable to Oregon Department of Revenue. Write the following on your check or money order: — Filer FEIN. — Tax year beginning and ending dates. 150-102-020-1 (Rev. 10-17-23) Check or money order payments only, mail to: Oregon Department of Revenue PO Box 14950 Salem OR 97309-0950 (Include Form OR-20-V payment voucher.) Form instructions Heading and checkboxes • OR-FCG-20 checkbox. A reduced tax rate is available if you sold or exchanged capital assets used in farming. Complete Schedule OR-FCG-20 and check the box in the header of the form. • Extension checkbox. For an Oregon extension when you’re also filing for a federal extension: Send a copy of the federal extension with the Oregon return when 9 2023 Form OR-20 Instructions you file. Check the extension checkbox on your Oregon return and include a copy of the extension after all other enclosures. ° The corporation reported deferred gain on a federal Form 8824; ° All or part of the property exchanged or given up was located in Oregon; and ° All or part of the acquired property was located outside of Oregon. For an “Oregon only” extension: Answer question 1 on federal extension Form 7004, write “For Oregon Only” at the top of the form, and include it with your Oregon return when you file. Check the extension checkbox on the Oregon return. For a more detailed explanation, see ORS 314.650 and 314.665 and supporting administrative rules regarding apportionment of deferred gain. The Oregon extension due date is the 15th day of the month following the federal extension’s due date. Don’t send the extension before you file your Oregon return. • IC-DISC checkbox. Check this box if you are an ICDISC regardless of what date you were formed. See “Special filing requirements” for more information. More time to file doesn’t mean more time to pay your tax. To avoid penalty and interest, pay your tax due online, or by mail with Form OR-20-V, by the original due date of your return. Note: Filing Form OR-20-V isn’t an extension of time to file your tax return. • Ag co-op checkbox. Check this box if your corporation qualifies as an agricultural or horticultural cooperative and you’re determining Oregon sales for minimum tax purposes differently than the Oregon sales reported on Schedule OR-AP, part 1. See “Special filing requirements” for more information. If you’re making an extension payment by mail, send the payment to: Oregon Department of Revenue, PO Box 14950, Salem OR 97309-0950. • Federal Form 8886 checkbox and reportable transactions. If you’re required to report listed or reportable transactions to the IRS on federal Form 8886, you must check this box. We’ll assess penalties if you don’t comply with this requirement. Include on your check: ° FEIN. ° “Extension.” ° Tax year beginning and ending dates. ° Contact phone. • Global intangible low-taxed income (GILTI) included on federal return. If you included GILTI on your federal return, check this box. • Form OR-37 checkbox. If you have an underpayment of estimated tax, you must include a completed Form OR-37. Check the Form OR-37 box in the header of your return. • Accounting period change checkbox. Check this box only if both of the following apply: Use Form OR-37 to: ° The excise tax return covers a period of less than 12 months; and ° The short-period return is due to a qualified change in accounting period per IRC §§441 to 444. ° Calculate the amount of underpayment of estimated tax; ° Compute the amount of interest you owe on the underpayment; or ° Show you meet an exception to the payment of interest. Note: A short-period return doesn’t automatically constitute a qualified change in accounting period. A taxpayer that isn’t in existence for the entire year shouldn’t check this box. This includes subsidiaries that join or leave a consolidated filing group, and newly formed or dissolved corporations. • REIT/RIC checkbox. If you participated in a REIT or RIC, you must check the appropriate box in the header area of the Oregon tax return. • Amended checkbox. Check the amended box if this is an amended return. If you file a short-period return due to a qualified change in accounting period and you’re subject to the minimum tax, your minimum tax shall be apportioned as follows: • Form OR-24 checkbox. Corporations may defer, for Oregon tax purposes, all gains realized in the exchange of like-kind property and involuntary conversions under IRC §1031 or §1033, even though the replacement property is outside Oregon. Oregon will tax the deferred gain when it’s included in federal taxable income. Annualize Oregon sales by multiplying actual Oregon sales by 12 and dividing by the number of months in the short period. Use the minimum tax table in Appendix B to determine minimum tax on annualized Oregon sales. Include a copy of your Oregon Form OR-24, Like-Kind Exchanges/Involuntary Conversions, 150-800-734, with your Oregon return and check the Form OR-24 box if all of the following apply: 150-102-020-1 (Rev. 10-17-23) Apportion the minimum tax determined above by multiplying by the total number of months in the short period and dividing it by 12. 10 2023 Form OR-20 Instructions • Alternative apportionment checkbox. See Appendix C for complete information. Check this box if you have included a request with your return. definition of a subsidiary in an affiliated group or a parent-subsidiary controlled group, see federal Form 1120, Schedule K. Name. Generally, a consolidated Oregon return is filed in the name of the common parent corporation. If the parent corporation isn’t doing business in Oregon, file the return in the name of the member of the group having the greatest presence in Oregon. “Having the greatest presence” means that the member has the largest Oregon property value as determined under ORS 314.655 (see Schedule OR-AP). Question G. Enter the total number of corporations doing business in Oregon that are included in this return. Question L. Utility or telecommunications companies. Taxpayers primarily engaged in utilities or telecommunications may elect to apportion income using a double-weighted sales factor formula (ORS 314.280 and supporting administrative rules). Check the box if making this election. • Legal name. Enter the corporation’s current legal name as set forth in the articles of incorporation or other legal document. Question M. PL86-272 protected affiliate(s). Check this box only if you or an affiliate included in this return claim Oregon sales are protected from Oregon taxation because of Public Law 86-272. • FEIN. Enter the FEIN of the corporation named as the filer on the consolidated Oregon return. Question N. Total Oregon sales. • DBA/ABN. If the corporation is doing business under a different name, for example, DBA or ABN, enter that name. • Apportioned returns. Enter the amount of Oregon sales from Schedule OR-AP, line 22(a) and OAR 150-317-0540. • Current address. Always enter the corporation’s current address. If the address for the year you’re filing has changed, don’t use the old address or our system will revert your current address to the old address. • Nonapportioned returns. Enter the amount of sales as defined by ORS 314.665. Generally, C corporations doing business only within Oregon will calculate Oregon sales by adding: Questions ° Gross receipts from sales of inventory (less returns and allowances), equipment, and other assets; ° Gross rent and lease payments received; and ° Gross receipts from the performance of services. Note: (This is a non-exclusive list.) Questions A–C. Complete only if this is your first return or the answer changed during the tax year. Question D. Refer to the current list of North American Industry Classification System (NAICS) codes found with your federal tax return instructions. Only enter the code if this is your first return, the current code is dif­ ferent than you reported last year, or your code begins with “111” or “112”. Generally, for purposes of determining minimum tax, the calculation for Oregon sales includes gross business income amounts from federal Form 1120, lines 1c and 5 through 10. Include positive numbers only. Question E(1). Check this box if you filed a consolidated federal return. Include a list of the corporations included in the consolidated federal return. Line instructions Question E(2). Check this box if you filed a consolidated Oregon return. Complete Schedule OR-AF, Schedule of Affiliates, and list only the corporations included in the consolidated Oregon return that: Line 1. Taxable income from U.S. corporation income tax return. Enter the taxable income reported for federal income tax purposes before net operating loss or special deductions (federal Form 1120, line 28). • Are doing business in Oregon; or • Have income from Oregon sources. Additions Question E(3). Check this box if it applies. Include a list of corporations included in the consolidated federal return that aren’t included in this Oregon return. List each corporation’s name and FEIN. Note: Include a copy of your federal return and schedules as filed with the IRS. Line 2. Total additions from Schedule OR-ASC-CORP, Section A. The amount by which any item of income is greater under Oregon law than under federal law, or the amount by which any allowable deduction is less under Oregon law than under federal law, is an addition on your Oregon return. Question F. If the filing corporation (shown above as legal name) is a subsidiary in an affiliated group, or a subsidiary in a parent-subsidiary controlled group, enter the name and FEIN of the parent corporation. For Use Schedule OR-ASC-CORP, Section A, to report the amount and description code of each difference. Use the description code from the list in Appendix A. The total of all additions are entered on Form OR-20, line 2. 150-102-020-1 (Rev. 10-17-23) 11 2023 Form OR-20 Instructions Additions include: return (ORS 317.301). Use Schedule OR-DEPR to determine the Oregon modification. • Bad debt reserve addition of a financial institution to the extent that the federal amount exceeds the amount that’s allowable for Oregon. The bad debt method of financial institutions is tied to the federal method. For taxpayers required to use the specific write-off method, an addition must be made if the amortization of the federal reserve is less than the amortization of the Oregon reserve (ORS 317.310). • Gain or loss on the disposition of depreciable property. Add the difference in gain or loss on sale of business assets when your Oregon basis is less than your federal basis (ORS 317.356 and OAR 150-317-0420). • Global intangible low-taxed income (GILTI) under IRC Section 250. You must add back any GILTI amount not included in Line 1 of your Oregon return. Generally, the federal deduction is taken on line 29b of federal Form 1120 and doesn’t impact the Oregon return. However, if any amount was omitted or deducted in determining federal income carried to line 1 of your Oregon return, it must be added back before a subtraction can be claimed. Report the Oregon addition (if any) on Schedule OR-ASC-CORP using code number 186 (ORS 317.267). • Capital construction fund. Amounts deferred under Section 607 of the Merchant Marine Act of 1936 and IRC §7518 must be added back to federal taxable income (ORS 317.319). • Charitable donations not allowed for Oregon. Donations to a charitable organization that has received a disqualifying order from the Attorney General aren’t deductible as charitable donations for Oregon tax purposes. Such organizations are required to provide a disclosure to a donor to acknowledge this. The Attorney General will publish online and otherwise make publicly available information identifying the charitable organizations receiving a disqualification order. If you claimed a federal deduction, an addition must be made on your Oregon return for donations to such charitable organizations (ORS 317.491). • Income from sources outside the United States. Add income from sources outside the United States, as defined in IRC §862, not included in federal taxable income under IRC §§861 to 864 (ORS 317.625). • Income of related FSC or DISC. Net income or loss must be included in the net income of the related U.S. affiliate if the related FSC or DISC doesn’t qualify for ORS 317.283(2) treatment. (ORS 317.283 and 317.286). • Claim of right income repayment adjustment when credit’s claimed. The deduction under IRC §1341 on the federal return must be added back to federal taxable income on your Oregon return if the Oregon credit’s claimed (ORS 317.388). • Individual Development Account credit. Donations deducted on the federal return must be added back to federal taxable income if the Oregon credit’s claimed [ORS 315.271(2)]. • Intercompany transactions involving intangible assets. The user of the intangible asset must add the royalty or other expense for such use to federal taxable income as an addition on the Oregon tax return if: • CPAR addition. If you’re an owner of a partnership that was subject to a partnership-level audit by the IRS (or you’re an owner of a tiered partner of such a partnership), you may have to increase or decrease your Oregon income as a result of the audit. Report an increase in income using addition code 187 or report a decrease in income using subtraction code 384, whichever is applicable. Use these codes even if another code is assigned for the specific type of increased or decreased income (ORS 314.733). Visit our website for more information. ° An intangible asset is owned by one corporation or business (the owner), and used by another (the user) for a royalty or other fee; ° Both the owner and the user are “owned by the same interests,” as defined in Treas. Reg. §1.469-4T(w); ° The owner and the user aren’t included in the same Oregon tax return; and ° The separation of ownership of the intangible asset from the user of the intangible asset results in either: evasion of tax or a computation of Oregon taxable income that isn’t clearly reflective of Oregon business income. • Deferred gain recognized from out-of-state disposition of property acquired in an IRC §1031 or §1033 exchange. See ORS 317.327 regarding the computation of the addition if gain or loss is recognized for federal tax purposes but not taken into account in the computation of Oregon taxable income. • Depletion (percentage in excess of cost). Add the federal deduction that is in excess of the Oregon allowance for depletion (ORS 317.374). If the owner also files an Oregon return, the owner of the intangible asset must report the corresponding royalty or other income as a negative addition on Schedule OR-ASC-CORP, Section A (ORS 314.295 and supporting administrative rules). • Depreciation differences. If your Oregon depreciation isn’t the same as your federal depreciation, the difference is a required modification to your Oregon • Interest income excluded from the federal return. Oregon gross income includes interest on all state and municipal bonds excluded for federal tax purposes. 150-102-020-1 (Rev. 10-17-23) 12 2023 Form OR-20 Instructions Reduce the addition by any interest incurred to carry the obligations and by any expenses incurred in producing this interest income (ORS 317.309). • Oregon production investment fund. Add back the amount of contribution for which a tax credit certification is made that’s allowed as a deduction for federal tax purposes (ORS 315.514). • Inventory costs. The costs allocable to inventory are the same as those included in IRC §263A. Differences in depreciation and depletion allocable to inventory result in a modification [ORS 314.287(3)]. • REITs and RICs. A REIT or RIC meeting the federal affiliate definition must be included in the consolidated Oregon return. This is an Oregon modification (addition or subtraction) to federal taxable income. For apportioning taxpayers, factors from the REIT or RIC are included in the apportionment calculation of the consolidated Oregon return (ORS 317.010 and supporting administrative rules). • IRC §139A federal subsidies for prescription drug plans. For federal purposes, taxpayers can exclude from taxable income certain federal subsidies for prescription drug plans per IRC §139A. However, for Oregon purposes, this federally excluded income is an addition on the Oregon return (ORS 317.401). • Safe harbor lease agreements. Oregon doesn’t tie to the federal safe harbor lease provisions. See ORS 317.349 and supporting administrative rules for details about the adjustments required for Oregon. • IRC §631(a) treatment of timber isn’t recognized by Oregon. Both beginning and ending inventories must be adjusted for IRC §631(a) gain. For Oregon purposes, there’s no taxable event until actual sale (ORS 317.362). • University venture development fund contributions. Add to federal taxable income the amount of contributions used to calculate the University Venture Fund Contribution credit that were deducted from federal taxable income (ORS 315.640). • Losses of nonunitary corporations. Net losses of nonunitary corporations included in a consolidated federal return must be eliminated from the Oregon return. Net losses include the separate loss as determined under Treasury Regulations adopted for IRC  §1502, and deductions, additions, or items of income, expense, gain, or loss for which the consolidated treatment is prescribed. Include a schedule showing your computation of the total net loss eliminated [ORS 317.715(2)]. • Unused business credits. Unused business credits taken as a federal deduction under IRC §196 must be added back to federal taxable income (ORS 317.304). Line 3. Income after additions (line 1 minus line 2). • Losses of unitary insurance affiliates. If a unitary insurance affiliate has a separate return filing requirement, they’re excluded from the consolidated Oregon return. The insurance affiliate is treated as if it’s a nonunitary affiliate of its consolidated group and the loss (if any) is an addition (ORS 317.715). Subtractions Line 4. Total subtractions from Schedule OR-ASC-CORP, Section B. The amount by which an item of income is less under Oregon law than federal law, or the amount by which an allowable deduc­tion is greater under Oregon law than federal law, is a subtraction on your Oregon return. • Net federal capital loss deduction. If the Oregon and federal capital loss deductions are different, add the federal capital loss back to federal taxable income. The Oregon capital loss will be deducted after subtractions (and apportionment for corporations required to apportion income) to arrive at Oregon taxable income (ORS 317.013 and supporting administrative rules). Use Schedule OR-ASC-CORP, Section B, to report the amount and description code of each difference. Use the description code from the list in Appendix A. The total of all subtractions are entered on Form OR-20, line 4. Subtractions include: • Opportunity Grant Fund (auction). Any federal deduction for contributions for which an Opportunity Grant Fund tax credit certification is made must be added to federal taxable income ORS 315.643). • Bad debt reserve addition of a financial institution to the extent that the Oregon amount exceeds the amount that’s allowed on the federal return. A subtraction is also made if the amortization of the federal reserve is greater than the amortization of the Oregon reserve (ORS 317.310). • Oregon excise tax and other state or foreign taxes on or measured by net income. Oregon excise tax may not be deducted on the Oregon return. Taxes of other states or foreign governments on or measured by net income or profits may not be deducted on the Oregon return. If you subtracted these taxes on your federal return, you must add them back on your Oregon return. However, the Oregon minimum tax and local taxes, such as the Multnomah County Business Income tax, are deductible, and aren’t required to be added back (ORS 317.314). 150-102-020-1 (Rev. 10-17-23) • Charitable contribution. Subtract the amount by which a corporation must reduce its charitable contribution deduction under IRC §170(d)(2)(B) (ORS 317.307 and OAR 150-317-0350). • CPAR subtraction. If you’re an owner of a partnership that was subject to a partnership-level audit by the IRS (or you’re an owner of a tiered partner of such a partnership), you may have to increase or decrease 13 2023 Form OR-20 Instructions your Oregon income as a result of the audit. Report an increase in income using addition code 187 or report a decrease in income using subtraction code 384, whichever is applicable. Use these codes even if another code is assigned for the specific type of increased or decreased income (ORS 314.733). Visit our website for more information. when your Oregon basis is greater than your federal basis (ORS 317.356). • Global intangible low-taxed income (GILTI) under IRC Section 250. Oregon allows an 80 percent subtraction of GILTI amounts under IRC Section 951A that are included in your Oregon income. Report the Oregon subtraction on Schedule OR-ASC-CORP using code number 381. Don’t use Form OR-DRD for this subtraction (ORS 317.267). • Deferred gain recognized from out-of-state disposition of property acquired in an IRC §1031 or §1033 exchange. See ORS 317.327 regarding the computation of the subtraction if gain or loss is recognized for federal tax purposes but not taken into account in the computation of Oregon taxable income. • IC-DISC commission payments. For tax years beginning on or after January 1, 2013, a deduction is allowed for commission payments made to an IC-DISC if the IC-DISC was formed on or before January 1, 2014 (ORS 317.283 and 317.635). • Depletion. Subtract the Oregon allowance for depletion that is in excess of the federal deduction for depletion (ORS 317.374). • Income of nonunitary corporations. Net income of nonunitary corporations included in a consolidated federal return must be eliminated from the Oregon return. Net income includes the separate taxable income, as determined under Treasury Regulations adopted for IRC §1502, and any deductions, additions, or items of income, expense, gain, or loss for which consolidated treatment is prescribed. Include a schedule showing computation of the total net income eliminated [ORS 317.715(2)]. • Depreciation differences. If your Oregon depreciation isn’t the same as your federal depreciation, the difference is a required modification to your Oregon return (ORS 317.301). Use Schedule OR-DEPR to determine the Oregon modification. • Dividend deduction. A 70 percent deduction is allowed for qualifying dividends regardless of geographic source. An 80 percent deduction is allowed for dividends received from corporations whose stock is owned 20 percent or more. Use Oregon Form OR-DRD for computing the Oregon dividend deduction and include it with your return (ORS 317.267). • Income of unitary insurance affiliates. If a unitary insurance affiliate has a separate return filing requirement, they’re excluded from the consolidated Oregon return. The insurance affiliate is treated as if it’s a nonunitary affiliate of its consolidated group and any income is a subtraction (ORS 317.715). • Energy conservation payments. Any amount received as a cash payment for energy conservation measures is exempt from Oregon excise tax (ORS 469.631 to 469.687). Subtract any amount that’s included in federal taxable income (ORS 317.386). • Income on a composite return. A corporate owner of a pass-through entity (PTE) may subtract its share of distributive income that has already been reported on an Oregon composite return. See Publication OR-OC and OAR 150-314-0515 for more information. • Federal credits. Subtract the amount of expense not deducted on the federal return attributable to clai
Extracted from PDF file 2023-oregon-form-20-instructions.pdf, last modified October 2023

More about the Oregon Form 20 Instructions Corporate Income Tax TY 2023

We last updated the Form 20 Instructions in January 2024, so this is the latest version of Form 20 Instructions, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 20 Instructions directly from TaxFormFinder. You can print other Oregon tax forms here.

Other Oregon Corporate Income Tax Forms:

TaxFormFinder has an additional 50 Oregon income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 20 Instructions Form 20 Instructions
Schedule K-1 Distributive Share of Income Schedule
Form 20-INS Instructions Form 20-INS Instructions
Form 65 Oregon Partnership Return of Income
Form 20-V Oregon Corporation Tax Payment Voucher

Download all OR tax forms View all 51 Oregon Income Tax Forms


Form Sources:

Oregon usually releases forms for the current tax year between January and April. We last updated Oregon Form 20 Instructions from the Department of Revenue in January 2024.

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About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Oregon Form 20 Instructions

We have a total of ten past-year versions of Form 20 Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2023 Form 20 Instructions

2023 Form OR-20 Instructions, Oregon Corporation Excise Tax, 150-102-020-1

2022 Form 20 Instructions

2022 Form OR-20 Instructions, Oregon Corporation Excise Tax, 150-102-020-1

2021 Form 20 Instructions

2021 Form OR-20 Instructions, Oregon Corporation Excise Tax, 150-102-020-1

2020 Form 20 Instructions

2020 Form OR-20 Oregon Corporation Excise Tax Instructions 150-102-020-1

2019 Form 20 Instructions

2019 Form OR-20 Instructions, Oregon Corporation Excise Tax, 150-102-020-1

2018 Form 20 Instructions

2018 Form OR-20 Instructions, Oregon Corporation Excise Tax, 150-102-016

2017 Form 20 Instructions

2017, Form OR-20 Instructions, Oregon Corporation Excise Tax Form 20 Instructions, 150-102-016

2016 Form 20 Instructions

2016, Form OR-20 Instructions, Oregon Corporation Excise Tax Form 20 Instructions, 150-102-020-1

2015 Form 20 Instructions

2015 Form 20 Instructions, Oregon Corporation Excise Tax Form 20 Instructions, 150-102-020-1

Tax Return for Corporations to file and pay Oregon income tax (excise tax is most common) Instructions only. 2014 Form 20 Instructions

Form 20 Instructions, Oregon Corporation Excise Tax Form 20 Instructions, 150-102-020-1


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