[Revenews] Qualified Business Income Reduced Tax Rate - Irrevocability

[BALL Shannon * DOR]

The Qualified Business Income Reduced Tax Rate (formerly called the Pass-Through Entity (PTE) Reduced Tax Rate) can only be claimed on an original return. Previously, amended returns changing the PTE election were considered an original return only if filed before the April 15 due date. However, due to a recent decision of the Magistrate Division of the Oregon Tax Court (Ivelia v. Department of Revenue, TC-MD 180054R), if the taxpayer has an extension and the amended return changing the PTE election is filed by the October 15 extended due date, the election is considered as being made on the original return.

When an amended return is received within the extension timeframe, only the Qualified Business Income Reduced Tax Rate election is treated as the original election selected. Changes to other irrevocable elections, such as the surplus refund (kicker) credit donation or changes to the federal tax subtraction, must be made on an amended return filed by April 15 regardless of whether the taxpayer had an extension or not.

Additional information about the Qualified Business Income Reduced Tax Rate can be found on our website in the Frequently Asked Questions or in the instructions for Schedules OR-PTE-FY, OR-PTE-PY, or OR-PTE-NR.



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