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<p class="MsoNormal" style="text-autospace:none"><span style="font-size:12.0pt">The Oregon Department of Revenue is adjusting requirements of businesses making estimated quarterly payments of the Corporate Activity Tax.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:12.0pt">Beginning immediately, Revenue has revised OAR 150-317-1300, dated April 27, 2020, to reflect a change in the threshold for making estimated tax payments from $5,000 of annual tax
liability to $10,000 of annual tax liability for the first year of the tax. This means businesses that will owe less than $10,000 are not required to make quarterly estimated tax payments during 2020.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:12.0pt">Revenue also won’t assess penalties for underestimated quarterly payments or for not making a quarterly payment, if businesses don’t have the financial ability to make the estimated
payment.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black">If businesses know they’ll owe $10,000 or more in annual Corporate Activity Tax in 2020 and can pay, they should make estimated quarterly payments and comply with the law to the fullest extent
possible.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black">Information and a worksheet for calculating quarterly payments can be found on the CAT page of the agency
<a href="https://www.oregon.gov/dor/Pages/index.aspx"><span style="color:#0563C1">website</span></a> under the Beyond the FAQ “When are estimated payments required?” The information has recently been updated to reflect the higher threshold of $10,000 or more.</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black">The Department of Revenue will honor a business taxpayer’s good-faith efforts to comply and not assess penalties if they document their efforts to comply, including how COVID-19 has impacted their
business. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black">If businesses have been impacted by COVID-19 and are finding it difficult to calculate or pay an estimated quarterly payment, they should keep documentation showing:<o:p></o:p></span></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoNormalCxSpMiddle" style="color:black;mso-list:l0 level1 lfo1"><span style="font-size:12.0pt">Their inability to pay a quarterly payment because of insufficient funds due to COVID-19.<o:p></o:p></span></li><li class="MsoNormalCxSpMiddle" style="color:black;mso-list:l0 level1 lfo1"><span style="font-size:12.0pt">Their inability to reasonably calculate a quarterly payment or annual tax liability due to their business being impacted by COVID-19.<o:p></o:p></span></li><li class="MsoNormalCxSpMiddle" style="color:black;mso-list:l0 level1 lfo1"><span style="font-size:12.0pt">That the taxpayer is unclear at this time whether the business will owe Corporate Activity Tax in April 2020 due to COVID-19 impacts, after taking into
consideration exclusions and subtractions in the law.<o:p></o:p></span></li></ul>
<p class="MsoNormalCxSpMiddle" style="margin-left:.5in;mso-add-space:auto"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black">Businesses uncertain about their economic future due to the COVID-19 crisis, or those that have been closed during this crisis and have no ability to determine that they will owe a tax this year,
won’t be penalized.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black">Stakeholders can direct questions or comments about the CAT via email to
</span><span style="font-size:12.0pt"><a href="mailto:cat.help.dor@oregon.gov"><span style="color:#0563C1">cat.help.dor@oregon.gov</span></a><span style="color:black"> or call 503-945-8005.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;color:black">Thank you.</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.5pt;color:black">Corporate Activity Tax Policy Team</span></b><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;color:black">Oregon Department of Revenue</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><a href="mailto:cat.help.dor@Oregon.gov" title="mailto:cat.help.dor@Oregon.gov"><span style="font-size:10.5pt;color:#0563C1">cat.help.dor@Oregon.gov</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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