Or. Admin. R. 150-314-0302

Current through Register Vol. 63, No. 6, June 1, 2024

Section 150-314-0302 - Estimated Tax: Application of Payments

(1) Overpayments of tax

(a) Election. When a corporation files its completed excise or income tax return and the tax shown due thereon is less than the amounts previously paid for that year, the corporation may make an irrevocable election to have the overpayment of tax either refunded or applied as a payment of estimated tax. The election is made by entering the amount in the appropriate space provided on the corporation excise tax return or corporation income tax return.

(b) Application to estimated tax installment. For tax years beginning on or after January 1, 2016, the department will apply the elected overpayment, unless it is subject to an offset under ORS 314.415 and related rules, to the following year's estimated tax payment due on the fifteenth day of the fourth month of the taxable year as described by ORS 314.515(1)(a), to the extent that the overpayment of tax is attributable to estimated tax payments received prior to the following year's first quarter estimated tax due date. Payments received after the following year's first quarter estimated tax due date will be applied to estimated tax as of the date the payment is received. In the case of an amended or delinquent return, the amount will be credited to the estimated tax installment as of the date the amended or delinquent return was filed or the date a payment was received, whichever is later.

(2) Payments of estimated tax. Except as otherwise specifically provided in section (1) of this rule, the department will credit estimated tax payments as of the date that they are received. The department will apply estimated tax payments to any prior underpayment and the remainder, if any, will be applied to the next required installment.

Example 1: Corporation A is a calendar year taxpayer. Corporation A's return is filed timely on May 15, 2017. Its 2016 tax after credits is $12,000. The corporation must make the following estimated tax payments on or before the indicated dates to avoid having an underpayment of estimated tax:

April 15, 2016 - $3,000.

June 16, 2016 - $3,000.

Sept. 15, 2016 - $3,000.

Dec. 15, 2016 - $3,000.

Corporation A pays as follows:

April 15, 2016 - $3,000.

June 16, 2016 - $3,000.

Sept. 15, 2016 - $0.

Sept. 30, 2016 - $3,500.

Dec. 15, 2016 - $0.

The $3,500 payment will be credited as of September 30, 2016. Of the $3,500 payment, $3,000 is applied to the payment due September 15, 2016. The $500 remainder is applied to the payment due December 15, 2016.

Or. Admin. R. 150-314-0302

RD 12-1985, f. 12-16-85, cert. ef. 12-31-85; RD 15-1987, f. 12-10-87, cert. ef. 12-31-87; RD 7-1989, f. 12-18-89, cert. ef. 12-31-89; RD 12-1990, f. 12-20-90, cert. ef. 12-31-90; RD 3-1995, f. 12-29-95, cert. ef. 12-31-95; REV 12-1999, f. 12-30-99, cert. ef. 12-31-99; REV 16-2008, f. 12-26-08, cert. ef. 1-1-09; REV 6-2014, f. 12-23-14, cert. ef. 1-1-15; Renumbered from 150-314.515(2), REV 5-2015, f. 12-23-15, cert. ef. 1-1-16; Renumbered from 150-314.515-(A), REV 30-2016, f. 8-12-16, cert. ef. 9/1/2016; REV 71-2017, amend filed 12/22/2017, effective 01/01/2018; REV 6-2018, minor correction filed 01/25/2018, effective1/25/2018

Statutory/Other Authority: ORS 305.100

Statutes/Other Implemented: ORS 314.415 & 314.515