OAR 150-314-0515
Oregon Composite Tax Return

(1) A pass-through entity (PTE) doing business in or deriving income from sources within this state is required to file an Oregon composite tax return if requested by one or more nonresident owners.
(a) Computation of tax. Each PTE filing a composite return on behalf of electing nonresident owners must calculate the tax for each owner. The tax liability for each nonresident owner included on the composite return, determined without regard to the tax credits allowed under subsection (1)(b) of this rule, is calculated by applying the Oregon tax rates based on the owner’s filing status to the difference between the owner’s share of the entity’s Oregon-source distributive income for the taxable year and, if applicable, the owner’s self-employment tax deduction, as provided for in subsection (1)(b) of this rule. If distributive income is apportioned, the deduction must also be apportioned by multiplying the owner’s federal deduction for one-half self-employment tax (attributable to the owner’s share of the entity’s net earnings from self-employment), if applicable, by the apportionment percentage provided in ORS 314.650 (Apportionment of income) through 314.675 (Apportionment of net loss). The PTE will report on the Oregon composite return the tax computed for each electing owner and total amounts for all electing owners.
(b) Credits and deductions. Below is a list of items that may or may not be allowed for the electing owners. [See PDF link below]
(c) Net operating losses for Oregon nonresidents subject to tax under ORS chapter 316 are computed under ORS 316.028 (Determination of net operating loss, carryback and carryforward). A PTE that has filed an Oregon composite tax return on behalf of nonresident individual owners may file amended returns to carry back the Oregon net operating losses incurred by the PTE. A schedule must be retained by the PTE indicating the taxpayers affected and calculations of the loss amounts and made available to the department upon request. These losses may also be carried forward. The allowed carryback and carryforward periods (including elections to forego the carryback period) are the same as provided under Internal Revenue Code section 172. The election to forego the carryback period must be made by attaching a statement to the Oregon composite return filed on or before the due date (including extensions) of the return for the loss year. Corporations are not allowed to carry back a net operating loss (ORS 317.476 (Net losses of prior years)).
(2) Election to participate in an Oregon composite tax return. The following provisions apply:
(a) The owner must make a separate election for each tax year;
(b) The owner must have been a nonresident of Oregon during the owner’s entire tax year;
(c) The owner is considered to have made the election on the date the PTE files the composite return that includes the owner;
(d) By making the election, the owner elects to have the owner’s Oregon tax liability on the owner’s share of distributive income from Oregon sources paid and reported by the PTE;
(e) The owner is ultimately liable for tax, penalty and interest if the PTE fails to file a composite tax return or pay the tax on behalf of the owner; and
(f) The election to participate in an Oregon composite tax return is irrevocable after the due date of the composite return, including extensions.
(3)(a) Disregarded entities. The PTE must look to the owner of a disregarded entity to determine whether the owner of the disregarded entity may choose to join in the composite filing.
(b) Corporate owners.
(i) A corporate owner’s distributive income may be included in a composite return only when its distributive share is not required to be included in the corporate owner’s apportionable income. A PTE filing a composite return should assume a corporate owner’s distributive share is required to be included in the corporate owner’s apportionable income unless the corporate owner notifies the PTE in writing that it is not.
(ii) If it is determined by the department that the corporate owner’s distributive share should be included in the corporation’s apportionable income, the corporate owner’s election to be included in the composite return is invalid. The corporate owner must notify the PTE, and the PTE may file an amended composite return for a refund of tax that was paid on the corporate owner’s distributive share included in the composite return subject to the limitations provided in ORS 314.415 (Refunds). The PTE may file a transfer request to move the tax paid for the corporate owner to the owner’s account instead of having the tax refunded to the PTE. In the absence of the amended return, the department may adjust the composite return subject to the limitations provided in ORS 314.415 (Refunds).
(iii) The PTE must include an indirect corporate owner’s share of distributive income in the composite return unless the PTE can reasonably determine that the indirect corporate owner’s share of income is required to be included in the indirect corporate owner’s apportionable income.
(iv) Income includable in an indirect corporate owner’s apportionable income may be considered as reasonably determined if the PTE has received written notice from the indirect corporate owner that the indirect corporate owner’s distributive share of income is required to be included in the indirect corporate owner’s apportionable income.
(4) Filing and payment requirements.
(a) Due date. The Oregon composite tax return is due the 15th day of the fourth month after the close of the tax year of the majority of the number of electing owners.
(b) Payment of amounts due. Payment of the amount due is made by the PTE on the owner’s behalf and must accompany the filing of the Oregon composite tax return. The payment must include the tax due plus any penalty or interest provided by Oregon law.
(c) Refund of tax made pursuant to a composite return filed after the due date, including extensions and filed under these provisions will be paid to the PTE, except as provided in Section 5, regardless of changes in ownership or changes in the identity of nonresidents participating in an Oregon composite filing.
(d) Extensions of time to file. If the entity is granted a federal or Oregon extension of time to file the entity’s return (partnership return or S corporation return), an extension for filing the Oregon composite return is allowed. This is true even if the composite return reports the income in a different tax year than the entity’s partnership or S corporation return. The entity must keep a copy of the federal extension with its tax records. The extension to file the composite return is 6 months from the composite return due date.
(e) A nonresident owner may file a separate tax return and elect to join in the filing of a composite return. The income reported on the composite return is subtracted on the owner’s separate return and tax is paid only on the Oregon-source income not reported on the composite return.
(5) Ineligibility or revoking an election to participate in a composite return.
(a) One or more owners may revoke the election to join in the Oregon composite tax return after the Oregon composite tax return has been filed and before the due date of the composite return, including extensions. To revoke a previous election and transfer tax paid:
(A) Upon notification of the revocation, the PTE must file an amended Oregon composite return removing the owner and request a transfer of any payment made on the owner’s behalf to the revoking owner’s account, and
(B) The revoking owner must file a separate return with the department showing all items of income and deduction from the PTE. If the owner did not previously file a return for the year, this separate return will be treated as an original return and, if filed after the due date, any tax liability shown on the return is subject to interest and penalties in the same manner as any other delinquently filed original return.
(b) If an owner becomes ineligible, revokes an election before the due date of the return, including extensions, or declines to participate in filing an Oregon composite return, and the PTE made tax payments on the owner’s behalf with a composite return, the PTE may submit a written transfer request using forms and instructions provided by the department. The department will transfer the tax payment to the account of the owner only if the PTE submits such a written request to the department.
(c) An owner who does not or cannot elect to participate in an Oregon composite tax return is subject to withholding on the owner’s share of the Oregon source distributive income under ORS 314.781 (Withholding) and OAR 150-314-0520 (Pass-through Entity Withholding Requirements).
(6) Payment of tax on behalf of nonresident owners. Estimated tax payments are required for the composite return if the total Oregon tax due for any owner is expected to be $1,000 or more for an individual; or $500 or more for a corporation. The tax liability required to be paid is the sum of each owner’s estimated tax liability for that quarter that is attributable to each owner’s interest in the entity. In determining the electing owner’s tax liability, the provisions of ORS 314.505 (Estimate of tax liability by corporations) to 314.525 (Underpayment of estimated tax) or 316.579 (Amount of estimated tax to be paid with declaration) to 316.589 (Application to short tax years and tax years beginning on other than January 1) regarding calculation of estimated tax apply. The PTE must remit the tax payments to the department using forms and instructions provided by the department.
[Publications: Publications referenced are available from the agency.]
[ED. NOTE: To view attachments referenced in rule text, click here to view rule.]

Source: Rule 150-314-0515 — Oregon Composite Tax Return, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-314-0515.

150–314–0005
Period of Computation of Taxable Income 150–314–0010
Mitigation of Effect of Limitations and Other Provisions 150–314–0012
Determination by Agreement 150–314–0025
Pollution Control Facilities: Revocation of Certificate 150–314–0027
Pollution Control Facilities: Facilities Not Eligible for Tax Credit 150–314–0035
Formula for Apportionment of Lobbying Expenses Subject to Proxy Tax 150–314–0040
Withholding on Real Property Conveyances 150–314–0045
REMIC Filing Requirements 150–314–0047
REMIC Income Taxable to Nonresidents 150–314–0055
Change in Methods of Accounting or Reporting 150–314–0060
Election to Use Alternative Apportionment Weightings by Taxpayers Engaged in Utilities or Telecommunications 150–314–0062
Apportionment and Allocation of Income of Financial Organizations and Public Utilities from Business Activities Within and Without Oregon 150–314–0064
Definitions 150–314–0066
Apportionment and Allocation of Income Generally 150–314–0068
Allocation of Income 150–314–0070
Apportionment Factors Generally 150–314–0072
Apportionment Factors 150–314–0074
Modified Factors for Carriers of Freight or Passengers: General Rule 150–314–0076
Modified Factors for Carriers of Freight or Passengers: Special Rules — Railroads 150–314–0078
Modified Factors for Carriers of Freight or Passengers: Special Rules — Airlines 150–314–0080
Modified Factors for Carriers of Freight or Passengers: Special Rules — Trucking Companies 150–314–0082
Modified Factors for Companies Engaged in Sea Transportation Service 150–314–0084
Modified Factors for Companies Involved in Interstate River Transportation Service 150–314–0086
Other Methods: Limited Application 150–314–0088
Modified Factors for Financial Institutions 150–314–0090
Public Utilities: Sale of Commodities 150–314–0100
Disallowance of Certain Intercompany Transactions Involving Intangible Assets 150–314–0105
Farm Income Averaging 150–314–0110
Allocation of Oregon Modifications to Passive Activity Losses 150–314–0115
Interest on Deferred Oregon Tax Liability with Respect to Installment Obligations 150–314–0120
Reduction of Tax Attributes after Discharge of Debt 150–314–0125
Listed Transaction Reporting Requirement 150–314–0130
Definition: Final Determination 150–314–0135
Returns When Accounting Period Changed 150–314–0140
Information Returns 150–314–0142
Brokers’ Information Returns 150–314–0150
Requirement to File Returns Electronically (Corporation E-file Mandate) 150–314–0152
Requirement to File Returns Electronically 150–314–0160
Report of Changes in Federal Taxable Income 150–314–0165
Filing Returns of Income: Due date 150–314–0167
Filing Returns of Income: Extensions, Chapters 316, 317 and 318 150–314–0169
Standards for Substitute Tax Forms 150–314–0171
Alternative Filing Methods 150–314–0173
Time Limitations Affected by Military Service 150–314–0175
Time Limitations for Persons Outside United States 150–314–0185
Payment of Tax 150–314–0187
Responsibility for Tax Payments 150–314–0195
Delinquency Penalty 150–314–0197
Failure to File Penalty 150–314–0199
Interest on Deficiencies and Delinquencies 150–314–0205
Substantial Understatement Penalty (SUP) 150–314–0207
Waiver of 20 Percent Substantial Understatement of Net Tax Penalty Imposed under ORS 314.402 150–314–0209
Substantial Authority, Adequate Disclosure and Reasonable Basis 150–314–0215
Listed Transaction Understatement 150–314–0220
Additional Assessments 150–314–0222
Five-Year Statute of Limitations 150–314–0224
Time Limit to Make Adjustment 150–314–0226
Notification of Gain Realized Upon the Sale or Exchange of a Principal Residence 150–314–0228
Extension of Period for Assessment 150–314–0230
Effect of Federal Extension of Period for Assessment 150–314–0240
Refunds Generally 150–314–0242
Refunds 150–314–0244
Minimum Offset Amount 150–314–0246
Interest Computation — Offset 150–314–0248
Refund Offset Priority 150–314–0250
Refunds 150–314–0252
Effect of Federal Extension of Period for Assessment 150–314–0254
Separate Refunds When a Joint Return Has Been Filed 150–314–0256
Refunds of Tax Overpayments to Spouse or Heirs 150–314–0265
Model Recordkeeping and Retention 150–314–0267
Requirement to Provide Copies of Documents 150–314–0275
Definition: Collection Charge 150–314–0277
Payment Secured by Bond, Deposit or Otherwise 150–314–0279
Statute of Limitation on Tax Collection 150–314–0285
Assessment of Withholding Tax Against Liable Officers 150–314–0290
Estimated Tax: When Estimates Are Required 150–314–0292
Estimated Tax: When Estimates Are Required For Tax Exempt Corporations 150–314–0294
Estimated Tax: Affiliated Corporations 150–314–0300
Estimated Tax: Due Dates of Payments for Short-Period Returns 150–314–0302
Estimated Tax: Application of Payments 150–314–0310
Requirement to Use Electronic Funds Transfer 150–314–0315
Corporation Estimated Tax: Delinquent or Underestimated Payment or Both, Constitutes Underpayment 150–314–0317
Estimated Tax: Consolidated Return Underpayments 150–314–0319
Estimated Tax: Apportioned Returns 150–314–0321
Estimated Tax: Application of Net Loss, Annualized Income Exception 150–314–0323
Estimated Tax: Interest on Underpayment 150–314–0325
Estimated Tax: Computation of Underpayment 150–314–0327
Underpayment of Estimated Tax 150–314–0335
Apportionable and Nonapportionable Income Defined 150–314–0337
Apportionable and Nonapportionable Income 150–314–0339
Proration of Deductions 150–314–0345
Apportionment and Allocation of Income Generally 150–314–0347
Application of ORS 314.610 to 314.667: Allocation 150–314–0349
Apportionment and Allocation for a Taxpayer Carrying on a Unitary Business 150–314–0351
Two or More Businesses of a Single Taxpayer 150–314–0353
Apportionment for Long-Term Construction Contracts 150–314–0355
Special Rules: Installment Sales 150–314–0357
Modified Factors for Motion Picture and Television Film Producers 150–314–0365
Taxable in Another State 150–314–0367
Taxable in Another State 150–314–0369
Taxable in Another State 150–314–0371
Taxable in Another State 150–314–0380
Allocation of Interest and Dividends 150–314–0385
Apportionment Formula 150–314–0390
Property Factor 150–314–0392
Property Factor 150–314–0394
Property Factor 150–314–0396
Property Factor 150–314–0398
Property Factor 150–314–0400
Property Factor 150–314–0402
Property Factor 150–314–0404
Property Factor 150–314–0406
Property Factor 150–314–0415
Payroll Factor 150–314–0417
Payroll Factor 150–314–0425
Sales Factor 150–314–0427
Sales Factor 150–314–0429
Sales Factor 150–314–0431
Sales Factor 150–314–0435
Sales Factor 150–314–0437
Gross Receipts Related to Deferred Gain or Loss 150–314–0455
Modified Factors for Publishing 150–314–0460
Apportionment of Net Loss 150–314–0465
Sales Factor for Interstate Broadcasters 150–314–0470
Interstate Broadcasters: Net Income Attributable to this State 150–314–0475
Consistent Treatment of Partnership Items 150–314–0480
Publicly Traded Partnerships Taxed as Corporations 150–314–0485
Partnership Information Returns 150–314–0487
Partnership Penalty 150–314–0495
Corporation Tax Credits — Converting a C Corporation to an S Corporation 150–314–0497
Corporation Tax Credits — Converting an S Corporation to a C Corporation 150–314–0510
Definitions for Composite Tax Returns and Pass-through Entity Withholding 150–314–0515
Oregon Composite Tax Return 150–314–0520
Pass-through Entity Withholding Requirements 150–314–0525
Exceptions to Pass-through Entity Withholding Requirements 150–314–0530
Divulging Particulars of Returns and Reports Prohibited 150–314–0535
Information That May Be Furnished 150–314–0540
Rewards for Information 150–314–0545
Combat Zone Benefits 150–314–0733
Partnership Pays Election After Federal Centralized Partnership Audit Adjustments
Last Updated

Jun. 8, 2021

Rule 150-314-0515’s source at or​.us