Oregon Update On Extension Of Filing Deadline
The Oregon Department of Revenue announced it is joining the IRS and automatically extending the tax year 2020 filing due date for individuals from April 15, 2021 to May 17, 2021. Additionally, individual tax payments for the 2020 tax year due on April 15, 2021 can be postponed to May 17, 2021 without penalties and interest, regardless of the amount owed. The postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties and interest will begin to accrue on any remaining unpaid balances as of May 18, 2021. Taxpayers do not need to file any forms or call the department to qualify for this automatic tax filing and payment relief. Those needing additional time to file beyond the May 17 deadline can request a filing extension until October 15 by filing federal Form 4868 through their tax professional or tax software or by using the Free File link on IRS.gov. Oregon recognizes a taxpayers federal extension. An extension to file is not an extension to pay.
When Is The Deadline To File A Business Tax Return With Oregon
- Businesses in Oregon have to file their Form OR-20 by the 15th day of the 4th month following the end of the accounting period.
- Businesses in Oregon have to file their Form OR-20-S by the 15th day of the 3rd month following the end of the accounting period.
- Businesses in Oregon have to file their Form OR-65 by the 15th day of the 3rd month following the end of the accounting period.
Oregon Has Announced That The Tax Filing Deadline For Individual Returns Is May 17th
Oregon individual income tax returns are due by April 15. If you cannot file by that date, you can get a state tax extension. An Oregon personal extension will give you 6 more months to file your return, moving the deadline to October 15.
The State of Oregon recognizes the Federal tax extension . Therefore, if you have a valid Federal extension, you will automatically be granted a corresponding Oregon tax extension.
If you dont have a Federal extension and you owe Oregon income tax, use Form 40-EXT to request an Oregon-only extension and pay your state tax. Do not file Form 40-EXT if you have a valid Federal extension and you expect to receive an Oregon tax refund.
Its important to note that a tax extension only gives you more time to file, not to pay. Your Oregon income tax must be fully paid by the original due date or else penalties will apply. You can make a state extension payment using Oregon Form 40-EXT, or you can pay online via Oregons Electronic Payment Services: www.oregon.gov/dor/ESERV/epayments
For more information, please visit the Oregon Department of Revenue website: www.oregon.gov/DOR
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How Can I File An Oregon State Tax Return
The state has limited options to allow you to e-file your tax return through its Department of Revenue site its State Fillable Forms option is typically only available for full-year residents.
However, you can e-file Oregon state tax returns through software providers approved by the Department of Revenue, which may charge a filing fee. Included on the list of approved providers is , which is always free.
If you prefer paper, you can download your tax forms and file a paper return. Heres where you can mail your Oregon state tax return.
If you expect a refund or dont owe anything:
P.O. Box 14700
If you owe a tax payment:
P.O. Box 14555Salem, OR 97309-0940
How Can I Review My Tax Account Online
An easy way to review all your tax-related details, including your address and payment plan details, is to access your IRS account online. According to the IRS, taxpayers can use the information from their account if they need to access their adjusted gross income, find their stimulus payment amounts or review their estimated tax payments or credits. Accessing your tax transcript will give you all the records necessary if you have a tax problem or missing payment.;
If you have any additional questions you can go visit the IRS’ Interactive Tax Assistant to get help.;
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Oregon Estate Tax Faqs
Yes. The tax rate is progressive and starts at 10% and goes as high as 16%. There are several estate planning strategies that can be implemented to reduce exposure.
Oregons estate tax exemption is $1 million. So if your estate is less than this you dont have to pay the tax or even file a tax return. If you are close to the exemption, make sure you do some advance planning to get below the exemption amount.
Like most states, Oregon does not have an inheritance tax. The estate tax was once called an inheritance tax, but in substance it was just an estate tax. Oregon also does not levy a gift tax. Remember that the federal gift tax will apply to gifts made in excess of $15,000.
No. Portability is an important planning tool, but it is not applicable in Oregon. The estate tax does not apply when a surviving spouse inherits the deceased spouses assets. When the second spouse passes away, the estate is not allowed to get a $1 million exemption for both spouses.
If you are required to file an Oregon estate return, you will do it on Form OR-706. See the;Form OR-706 Instructions. If a return is necessary, its due nine months after the decedent passes away. The executor may request a six-month extension, but it does not extend the tax payment due.
Business Return General Information
Due Dates for;Oregon Business Returns
Corporations – Returns are due by the 15th day of the month following the due date of;the;federal corporation return. For calendar year filers, this means the due date is April 15.
S-Corporations -;Returns are due by the 15th day of the month following the due date of;the federal corporation return.;For calendar year filers, this means the due date is April 15.
Partnerships – March 15 -;Returns are due by the 15th day of the third month following the close;of the partnership’s;tax year if it is on a fiscal year.
Fiduciary;- April;15 – Returns are due by the 15th day of the fourth month following the close of the tax year if the entity is on a fiscal year.
Business Extensions
C Corporation and S Corporation;- Corporations that have obtained a federal;extension by filing Form 7004 with the IRS are also extended six months to file their;Oregon return, and the OR-20 can be e-filed on extension.
However, a corporation that is seeking to extend filing only the;Oregon tax return must complete the Federal Form 7004 by hand, write “For Oregon Only” at the top of the form, and include the form with the Oregon return when it is filed. Since the state of Oregon does not support PDF attachments to e-filed returns, the Oregon return cannot be e-filed.
To file an Oregon only extension, use voucher Form OR-41-V. Check the extension box on the voucher and send it in by the original due date of the return, with payment if necessary.
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Oregon Bill Modifies Provisions Of The Corporate Activity Tax
On July 19, 2021 Senate Bill 164 was signed into law, modifying certain provisions of the Oregon Corporate Activity Tax . Previously, all CAT taxpayers used the calendar year to file their corporate activity tax returns. Effective, September 25, 2021, and applicable to tax years that begin on or after January 1, 2021, taxpayers will use their federal income tax year as their tax for the CAT. Fiscal-year taxpayers will be required to file a short period return covering January 1, 2021, through the end of their fiscal tax year. These short year returns for 2021 will be due no later than April 15, 2022. Prospectively, CAT returns for fiscal-year taxpayers will be due on the 15th day of the fourth month following the end of the tax year.
How Can I Track An Oregon Tax Refund
If youve filed a return and want to know when youre going to get your refund, you can use the departments Wheres My Refund? tool to get an update.
To track your refund, youll need to input your Social Security number or individual taxpayer identification number, your filing status and the exact amount of your expected refund as shown on your return.
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Oregon Department Of Justice
The Oregon DOJ/Charities site has been redesigned to offer a better user experience, while retaining the information and resources our visitors rely on.
As with any transition, it may take a little extra time to find what you’re looking for. For your convenience, here are links to some important pages on the Charities section of the new website.
Why People Submit Tax Extensions
Life gets busy, and finances can be complicated. If you find yourself in either of these two situations, rest assured as you may be eligible to receive additional time to compile the necessary paperwork for your returns. It is important to note that this is an extension to file, not an extension to pay any taxes due.
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Will Filing My 2020 Return Impact My Stimulus Payments
If the IRS owes you money from the first two stimulus checks — maybe you didn’t receive either check or received less than you qualified for — you can claim the missing payments through a;recovery rebate credit;on your 2020 tax form. This holds even if you’re not usually required to file taxes. So the longer you wait to file, the longer it’ll take to get your missing stimulus payment.;
The IRS says it will automatically evaluate your eligibility for the third stimulus check when your 2020 return is processed. If the IRS calculated the amount of your third stimulus payment using your 2019 tax return, you could qualify for more money as a so-called “plus-up payment” once the IRS receives 2020 taxes and recalculates your total. However, until you file a 2020 tax return, the IRS won’t have your new income or dependent information on file.;
The IRS plans to issue eligible taxpayers third stimulus payments and plus-up payments through the end of 2021.;
Update / Your Taxes: Filing Deadline Extended
- The Chronicle
With April 15 approaching, the Oregon Department of Revenue has issued a reminder to taxpayers that the deadline for filing individual income tax returns for the 2020 tax year has been postponed to May 17, 2021. The IRS and Oregon both announced the postponements last month.
Income tax deadline has been moved from April 15 to May 17.
Individual taxpayers, including those who pay self-employment tax, can also postpone state income tax payments due on their 2020 tax year return until May 17, 2021, according to a release from the Oregon Revenue Department. Individual taxpayers will automatically avoid interest and penalties as long as they pay all taxes due by the postponed deadline. Penalties and interest will begin to accrue on any unpaid balances as of May 18, 2021.
Oregon has not postponed the due date for first-quarter estimated income tax payments for 2021. Estimated tax payments are still due April 15, 2021. Taxpayers may choose to pay directly from their bank account or by credit card using Revenue Online. More information about the postponement of the individual income tax filing and payment due dates is available in a list of frequently asked questions the departments website.
Update on 2020 unemployment benefits tax relief
E-filing and free filing
Previous Chronicle coverage posted March 18:
Both the IRS and the Oregon Department of Revenue will be providing formal guidance in the coming days.
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Oregon Tax Refund Or Return Checking Electronically
Oregon tax refund status for original returns can be checked on the Department of Revenue’s site. Return acceptance is usually sent electronically for e-filed returns. Refunds are distributed faster for e-filed Oregon returns. To check the status of an amended return, call 503-378-4988. Amended returns take several months to process.
Business Return Electronic Filing Information
Business Electronic Filing Mandate;-;Oregon allows business taxpayers to mail or electronically file business returns, but if a return is required to be e-filed with the IRS then its Oregon counterpart must also be e-filed.
Oregon;currently supports electronic filing for all business returns but does not support e-file for all years:
Corporate returns – current year and two prior years.
S Corporation returns; -;current year and two prior years.
Partnership returns (Form OR-65 – Oregon;Partnership Return of Income – current year and two prior years.
Fiduciary returns -;current year and two prior years.
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Multnomah County Business Income Tax Changes For Ty2020
Dear Tax filer:;
Thank you for choosing to do business in Multnomah County. With support from businesses like you that pay the Business Income Tax;, the County is able to deliver services that support the social and health services, public safety, and wellbeing of our community and make Multnomah County one of the nations most attractive places to live, work, and conduct business.;
The purpose of this letter is to notify you that the Board of County Commissioners voted unanimously on March 19, 2020, to make three changes to the Countys BIT code. For tax years beginning on or after January 1, 2020, Multnomah County will: increase the tax rate for the BIT from 1.45% to 2.00%; increase the gross receipts exemption from less than $50,000 to less than $100,000; and increase the maximum owners compensation deduction from $108,000 to $127,000.;
For tax year 2020, taxpayers making estimated quarterly payments can continue to avoid being assessed quarterly interest by paying 100% of the prior years BIT liability. Taxpayers may also avoid quarterly interest by paying 90% of the total current tax years BIT liability by the original due date for that BIT return. If a taxpayer would have met the 90% threshold under the prior years rate for tax year 2020, but does not meet the 90% threshold under the new BIT rate , quarterly interest will be waived. Taxpayers may submit a waiver request along with their 2020 combined tax return.;
Sincerely,;
Oregon Income Tax Rates
The state has a progressive tax system with rates ranging from 5% to 9.9%. Here are the 2019 tax rates and tax bracket thresholds.
| Tax rate | |
|---|---|
| $125,001 or more | $250,001 or more |
This isnt the total amount of tax you will pay. All brackets other than 5% will pay a set dollar amount in addition to the percentage of their income. Be sure to read the instructions that come with your Oregon state tax return to understand how much tax youll need to pay.
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What About The Federal Estate Tax
Not only are you assessed a tax at the state level in Oregon, but you also have a federal estate tax to consider. It is often called the death tax for obvious reasons.
The estate tax has been around for decades, but it is evolved over time and the exemption has changed. Currently, the exemption is $11.7 million for calendar year 2021. But this could be changing in the future.
In theory, the tax is rather simple to calculate. But youll still need the assistance of a CPA or another tax professional.
The executor or administrator of the estate will need to aggregate all assets. The valuation of these assets should all be examined based on account statements or appraisals.
Once final valuations are determined, the executor can deduct certain administrative expenses and professional fees. This would include legal fees, accounting fees, and appraisal costs.
The executor is also allowed to deduct against the assets any debts or mortgages of the estate. This includes medical bills, and any personal debts like credit cards.
Lastly, deduct the exemption amount from the net assets. The final calculation is then multiplied by the 40% tax rate to determine the estate tax liability. Youre also able to deduct any estate tax paid to Oregon from your federal estate tax bill.
Underpayment Penalties Will Not Be Assessed Amid Coronavirus Pandemic
Corporate Activity Tax Initial quarterly payments for the new Corporate Activity Tax are due April 30, 2020. The department understands that the pandemic may impact commercial activity, up or down, to the extent that it makes it difficult for businesses to estimate their first payment. The department will not assess underpayment penalties to taxpayers, making a good faith effort to estimate their first-quarter payments.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
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How To File For An Extension Of State Taxes
OVERVIEW
While the IRS requires you to file Form 4868 to request a tax extension, each state has its own requirements for obtaining a similar extension.
For information on the third coronavirus relief package, please visit our American Rescue Plan: What Does it Mean for You and a Third Stimulus Check blog post.
While the IRS requires you to file Form 4868 in order to request a tax extension, each state has its own requirements for obtaining a similar extension. Some states such as California offer automatic extensions to all taxpayers, while other states require you to file a specific form by the original due date of the return. Here are some tips to help walk you through what you need to do when filing state taxes in your area:
