| Subchapter S Corporation Taxes |
|
|
 |
| General |
|
S Corporations doing business in Oregon or receiving income from Oregon are required to file Form 20-S, Oregon S Corporation Tax Return, under the excise tax provisions in ORS Chapter 317.
For Oregon tax purposes, S Corporation income generally is taxable to the shareholders rather than the corporation. However, S Corporations do pay Oregon tax on income from built-in gains or excess net passive income if such income is subject to tax on the federal corporation return.
S corporation tax statutes and rules are in Chapter 314 of the Oregon Revised Statutes and Oregon Administrative Rules. See ORS 314,730 to 314.752 and the rules there under.
The income or loss of an S Corporation is reported to each shareholder on the federal form, Schedule K-1. See Shareholder Information below.
Excise Tax Requirements
S Corporations doing business in Oregon must file an Oregon S Corporation Tax Return to report and pay corporation excise tax. "Doing business" means being engaged in any profit-seeking activity in Oregon not protected by Federal Public Law 86-272. If the S corporation has an Oregon address, generally the S corporation will file and pay excise tax. Corporations with no business activity in Oregon, even if registered to do business in the state, are not subject to the $10 minimum tax and are not required to file a return. A taxpayer having one or more of the following in this state is 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.
Excise tax is a tax for the privilege of doing business in Oregon. It is measured by net income. All S corporations doing business in Oregon must pay the $10 minimum excise tax.
Corporation Excise tax laws are in Chapter 317 of the Oregon Revised Statutes.
Income Tax Requirements
You may still be subject to the Oregon corporation income tax if you have income from an Oregon source. S corporations that derive income from sources within Oregon but whose income producing activity does not actually constitute "doing business" must file Form 20-S under the income tax provisions in ORS Chapter 318.
Income is from an Oregon source if it is derived from:
- Tangible or intangible property located in Oregon;
- Any activity carried on in Oregon, whether intrastate, interstate, or foreign commerce.
There is no minimum tax for a corporate income tax filer.
See Chapter 318 of the Oregon Revised Statutes and the Oregon Administrative Rules.
Filing Information
All returns are due on or before the 15th day of the month following the due date of your federal corporation return (April 15 for calendar-year taxpayers). When the 15th falls on a Saturday, Sunday or legal holiday, the due date is the next business day.
When you file your first Oregon S corporation return, attach a copy of your federal S corporation election, federal Form 2553. Oregon accepts the election made for federal purposes.
If your tax due is $500 or more you may be required to make estimated tax payments. See Estimated Tax Payments for more information.
To amend your Oregon S Corporation Excise or Income tax return, use the form for the tax year you are amending and check the "Amended" box on the front of the return. See Form 20-S instructions for more information.
Shareholder Information
Shareholders who meet Oregon filing requirements must file an Oregon tax return. Refer to the appropriate Oregon tax returns and instructions, based on what type (individual, corporation, trust, or estate) of taxpayer the shareholder is, and for an explanation of those requirements.
Composite Returns
For tax years beginning on or after January 1, 2006, pass-through entities with distributive income attributable to Oregon sources may file a composite return on behalf of its nonresident owners who elect to participate in the composite filing. The pass-through entity reports the nonresident owners' share of Oregon-source distributive income on one tax return, Form OC , Oregon Composite Return.
Additional Information
|
|
|
|
