Oregon state Passthrough Entity Tax Q/A - 1120S - Tax Year 2022

  • Article Type:
  • QA
  • Last Modified:
  • 03/12/2023

Question

What are some common questions and answers regarding Oregon Pass Through Entity Tax with tax year 2022?

Environment

  • CCH® ProSystem fx® Tax
  • CCH Axcess™ Tax
  • S Corporation - 1120S
  • Oregon - OR
  • 2022

Answer

QuestionAnswer
-Form Name
  • OR-21
-State Links
  • https://www.oregon.gov/dor/forms/FormsPubs/form-or-21-instr_107-114-1_2022.pdf
  • https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/SB0727/Enrolled
Election for PTE
-Is an Election Required?
  • Yes
-Made when?
  • Made when filing return on the OR-21 itself
-Good for?
  • Election is good for 2022 and 2023 tax years. PTE will not be available on 2024 tax year
-How do we make this election?
  • Oregon > Oregon Pass-Through Entity Elective Tax Return  worksheet > Section 1  - Oregon Pass-Through Entity Elective Tax Return
    • (Interview Form Oregon > OR25, Box 40)
-Separate Form needed?
  • No separate form is needed
-Option  to Opt-Out?
  • Oregon > Oregon Pass-Through Entity Elective Tax Return worksheet > Section 1  - Oregon Pass-Through Entity Elective Tax Return
    • (Interview Form Oregon > OR25, Box 41)
Generation of State PTE Return
-How do we generate the form above?
  • Common State/City > State PTE Generation > State PTE Return Generation > Oregon - Generate State PTE return
    • (Interview Form PTE-ST1, Box 210)
  • Or Oregon >  Pass-Through Entity Tax worksheet > Section 1 > Pass-Through Entity Tax Prepare  - override
    • (Interview Oregon > OR25, Box 30 - select the checkbox)
-Is this a separate filing from the main form, part of the main form, or filed on it's own?
  • Separate Filing from main OR form
Estimates
-Are there estimates for this form?
  • Yes
    • OR-21-V Estimate
-How do we generate them?
  • Automatically produced if 90% of current tax is greater than $1,000 due, unless suppressed.
  • Can also force on Payments/Penalties/Estimates > Estimates and Application of Overpayment > State Estimates and Application of Overpayment > State Code - ORP
    • (Interview STEST-1 > Box 30 - State code ORP, and Box 40 - Estimate Code selected with option 2).
    -Can you apply an overpayment from the current year form?
    • No overpayment is allowed on Form OR-21
    Interest/Penalties
    -Do interest/penalties apply?
    • Yes
    • Payments/Penalties/Estimates > Penalties worksheet > State / City Late Interest and Penalties > State Code - ORP
      • (Interview Common State > Penalties > PEN-1 > Boxes 30 - ORP, 40-43, and 45-47).
    -Is there an underpayment penalty?
    • Underpayment is input only on Oregon > Pass-Through Entity Elective Tax Return worksheet > Section 1  - Oregon Pass-Through Entity Elective Tax Return > Line Interest on underpayment penalty of estimated tax.
      • (Interview Oregon > Form OR25, box 57).
    Additional PTE Information
    Common State > State PTE Generation worksheet >Grid 23  (Interview PTE-ST1, boxes 300-364)
    -Does this section apply to this state?
    • Not applicable
    Additional Input Available
    - Does new input options under State and City Tax Refund flow to the state?
    • No.
    - Does new input options under Taxes and Licenses flow to the state?
    • No.
    - Does new input options under Rent/Royalty flow to the state?
    • No.
    - Does the new input options under Farm flow to the state?
    • No.

    Additional Information

    N/A

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