Corporation Estimated Tax: Delinquent or Underestimated Payment or Both, Constitutes Underpayment
An underpayment of corporation estimated tax exists when the payments received on or before a payment due date are less than the required payment due as determined under section (3) of this rule.
For returns processed on or after January 1, 2001. If none of the exceptions as provided in section (3) of this rule are met, interest on underpayment of estimated tax is computed on the difference between the lowest amount determined under section (3) of this rule and the total estimated tax payments for the installment period made on or before the due date.Example: Interest on underpayment of first installment1999 tax liability on return filed April 15, 2001 — $2,0001998 tax liability — 1,600Amount determined under subsection (3)(a) of this rule ($2,000 x 25%) — 500Amount determined under subsection (3)(b) of this rule ($1,600 x 25%) — 400Amount determined under subsection (3)(c) of this rule — 375Amount determined under subsection (3)(d) of this rule — 350First quarter payment received by the first quarter installment due date — 100Interest for the first quarter is calculated on $250, the difference between $350, the lowest amount determined under section (3) of this rule, and $100, the total payments received before the first quarter installment due date.
One hundred percent of the tax for tax years beginning on or after January 1, 1996.
One hundred percent of the tax shown on the return for the preceding tax year (after credits and any state surplus refund) provided that the preceding tax year was a period of twelve months and an Oregon return showing a liability was filed for such tax year.
When applying this subsection to a current taxable year of less than 12 months, the tax for the preceding tax year is reduced by multiplying it by the number of months in the short tax year and dividing the resulting amount by 12.
This subsection applies only to the first required estimated tax payment due for a tax year by a large corporation. When a large corporation’s first required payment is reduced under this subsection, the second required payment must be increased by the amount of the reduction. A large corporation is a corporation with federal taxable income, prior to net operating loss or capital loss deductions, of $1 million or more in any of the three prior tax years.
An amount equal to 100 percent of the tax computed on annualized taxable income. Annualized taxable income is computed as provided in ORS 314.525 (Underpayment of estimated tax)(2)(c)(A) or using the same annualization periods as used for federal tax purposes. Tax credits available on the date of the payment may be deducted from the annualized tax. An estimated or anticipated tax credit may not be used.