Or. Admin. R. 150-314-0525

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

Section 150-314-0525 - Exceptions to Pass-through Entity Withholding Requirements

(1) A pass-through entity may be required to withhold tax on behalf of an owner unless the owner makes an election as described in OAR 150-314.778 or meets an exception described in this rule.

(2) A pass-through entity is not required to withhold income taxes for an owner if:

(a) The owner is an electing owner as defined in OAR 150-314.775;

(b) The owner's share of Oregon-source distributive income from the entity is less than $1,000;

(c) The owner made estimated tax payments the prior tax year based on the owner's share of Oregon-source distributive income from the entity and continues to make estimated tax payments for the current tax year;

(d) The entity is a publicly traded partnership, as defined in Internal Revenue Code section 7704(b), that:

(A) Is treated as a partnership for federal tax purposes; and

(B) Files an annual information report including the nonresident's name, address, social security number or taxpayer identification number, ownership percentage, and share of the federal income; or

(e) The owner files with the Department of Revenue a signed affidavit that contains:

(A) The owner's name, address, and social security number or tax identification number (i.e. federal employer identification number or Oregon business identification number);

(B) The entity's name and tax identification number;

(C) The entity's tax year and end date

(D) A statement that the owner agrees to file the owner's Oregon income or excise tax return and make timely payments of all taxes imposed with respect to the owner's share of the Oregon income of the entity; and

(E) Acknowledgement that the owner is subject to the jurisdiction of the State of Oregon for purposes of collection of unpaid income tax, penalties, and interest.

Or. Admin. R. 150-314-0525

REV 10-2010, f. 7-23-10, cert. ef. 7-31-10; Renumbered from 150-314.784, REV 34-2016, f. 8-12-16, cert. ef. 9/1/2016

Publications: Publications referenced are available from the agency.

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 314.784