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Oregon State Tax Updates

For the latest news and updates on Oregon state and local tax

March 23, 2021

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 taxpayer’s federal extension. An extension to file is not an extension to pay. ( Income Tax Filing, Payment Deadlines for Individuals Extended to May 17, Or. Dept. Rev., 03/17/2021 .)

March 21, 2020

Latest Tax Update Relating to COVID-19

Personal and corporate income tax

The Oregon Department of Revenue (“DOR” or “Department”) has received several questions asking if Oregon is going to provide similar relief to the IRS. Now that the Department knows what the IRS is providing, it is evaluating options and authority under the statutes to provide relief for Oregon and its taxpayers. A decision is expected to be made soon.

Corporate Activity Tax

Initial quarterly payments for the new Corporate Activity Tax (CAT) are due April 30, 2020. The Department understands that the pandemic may impact commercial activity, up or down, to an extent that 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 its first-quarter payments.

All other tax programs Department of Revenue administers

If an action of the IRS or a state-declared emergency will impair the ability of Oregon taxpayers to take action required within the time required by law, the Department may extend any statutory period of limitation on any tax that is collected by the DOR. If the Department makes such a decision, an order will be issued and announced, and filed with the Secretary of State.

March 17, 2020

Underpayment Penalties Will Not Be Assessed Amid Coronavirus Pandemic

Corporate Activity Tax Initial quarterly payments for the new Corporate Activity Tax (CAT) 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.

More on Taxes and the Coronavirus Pandemic.

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.

July 2019

New CAT Tax

Effective for tax years January 1, 2020 and on, a new commercial activity tax (CAT) has been enacted in Oregon. This new tax applies to various taxpayers including corporations, individuals, partnerships, limited liability companies, federally disregarded entities, and ‘any other entities.’ Unitary groups register, file, and pay the tax as a single taxpayer. Once “Substantial Nexus” has been established then the taxpayer is required to file. More guidance is to come in the future.

SALT Updates

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