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                                                                                                                 2022
                                     Publication OR-OC
                            Oregon Composite Return Instructions for Pass-through Entities

                                           General information

Use Form OR-OC to:                                                  This publication provides instructions for the following:
• Report the nonresident owners’ share of Oregon-source             • 150-101-154 Form OR-OC
distributive income.                                                • 150-101-152 Schedule OR-OC-1
• Report centralized partnership audit regime (CPAR)                • 150-101-153 Schedule OR-OC-2
adjustments and any amount paid in lieu of tax at the               • 150-101-148 Schedule OR-OC-3
partnership or tiered partner level.                                • 150-101-149 Schedule OR-OC-4
                                                                    • 150-101-158 Form OR-OC-TR
If you are using these forms to report nonresident owners’ 
share of Oregon-source distributive income, follow the 
“Instructions for composite tax reporting.”
If the IRS adjusted your tax under CPAR, see “Instructions 
for Reporting Federal CPAR Adjustments.”

                            Instructions for Composite Tax Reporting

                                                                    or not. Nonelecting owners are required to file an Oregon 
Introduction                                                        tax return if they have Oregon-source distributive income.
Pass-through entities (PTEs) with distributive income attrib-       “Owner” is a partner of a partnership or limited liability 
utable to Oregon sources must file a composite return on            partnership (LLP), shareholder of an S corporation, member 
behalf of their nonresident owners who elect to participate         of a limited liability company (LLC), or beneficiary of a trust.
in the composite filing. The PTE reports the nonresident            “Pass-through entity (PTE)” is a partnership, S corporation, 
owners’ share of Oregon-source distributive income on one           LLP, LLC, abusive tax shelter trust or a trust that has been 
tax return, Form OR-OC.                                             established or maintained primarily for tax avoidance pur-
PTEs must make tax payments for nonresident owners who              poses. Note: Single-member LLCs owned by an individual 
don’t elect to join the composite return, unless the owner          or a corporation and grantor trusts are disregarded for tax 
files an affidavit. See Form OR-19 Instructions for more            purposes and are not PTEs. For this purpose only: Estates 
information.                                                        are not PTEs.
Important:                                                          “Pass-through entity elective tax (PTE-E tax)” is income 
                                                                    tax paid by electing PTEs at the entity level. Individual 
• The most common error on Form OR-OC is using the                  owners will report their distributive income and the PTE-E 
entity’s tax year instead of the owners’ tax year. Don’t use        addition and credit reported to them on their Oregon K-1 
the entity’s fiscal or short tax year for Form OR-OC. See           and OR-21-K-1. See Form OR-21 Instructions for additional 
“Tax year and return due date.”                                     information.
• Inform the electing owners to not claim the tax paid on 
their behalf on Form OR-40-N, Form OR-20, or Form OR-
20-INC returns.                                                     General information for composite 
                                                                    tax reporting
Definitions
“Distributive income”        is generally the net amount of         It’s important to know which owners intend to elect to join 
income, gain, deduction, or loss of a PTE.                          the composite return at the beginning of the tax year, so the 
                                                                    PTE can make estimated payments on time.
“Electing owner”            is a nonresident owner who chooses to 
join in filing a composite return.
                                                                    Filing requirements
“FEIN” is federal employer identification number.
                                                                    PTEs must file composite returns on behalf of electing own-
“Nonelecting owner” is an owner who chooses not to join             ers. A PTE that files a composite return is still required to 
in filing a composite return, whether the PTE withheld tax          file the PTE’s return (such as Form OR-65 or Form OR-20-S).
150-101-155 (Rev. 09-08-22)                                       1                               2022 Publication OR-OC

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To be included in the composite return, the owner must be:       Use Form OR-OC-V if the PTE only needs an extension to 
                                                                 file the Oregon composite return and make an extension 
• An individual nonresident of Oregon; 
                                                                 payment.
• A disregarded entity using a nonresident individual’s 
name and SSN;                                                    Check the “Original return” box and mail the completed 
• A C corporation with no commercial domicile in Oregon;         voucher with your payment by the original due date. When 
• An estate;                                                     Form OR-OC is filed, check the “Extension” box and enter 
• A trust that isn’t a resident trust;   or                      the extended due date. Keep a copy of the extension form 
• A qualified funeral trust (ORS 316.282).                       with your records. 
Owners who are also a PTE        can’t join in the composite     Remember: An extension allows for more time to file, not 
return. See “Tiered entities” for more information.              more time to pay. See “Estimated tax payment instructions.”

The election to participate in the composite filing can’t be 
                                                                 Penalty and interest
revoked after the due date of the composite return, includ-
ing extensions. See “Requesting transfer of payment” for         If tax isn’t paid by the due date (not including extensions), 
more information.                                                the PTE will owe penalty and interest. See the instructions 
                                                                 for Form OR-OC, line 9. 
The PTE is liable for any tax, penalty, and interest due, 
including interest on underpayment of estimated tax.
                                                                 Oregon-source distributive income

Tax year and return due date                                     Distributive income includes items directly related to the 
The tax year and due date for the Oregon composite return        PTE that are considered in determining the federal taxable 
is the same as the tax year and due date for the majority of     income of the nonresident owner. It also includes modifica-
the electing owners’ federal and Oregon tax returns. If the      tions and other Oregon laws that directly relate to the PTE. 
majority of owners file using a calendar tax year, then the      Limits that apply to the owner (such as passive loss limits) 
composite return is also a calendar tax year return. Form        are the same whether they file their own return or join a 
OR-OC isn’t filed using a fiscal or short tax year used by the   composite return.
PTE. If the majority of owners adopt a different fiscal year     Examples of the modifications allowed that relate to the PTE’s 
or change to a calendar year after Form OR-OC is filed, file     income include adjustments for depreciation, depletion, gain 
an amended Form OR-OC that includes the income and tax           or loss difference on the sale of depreciable property, and 
due for both the original and short year.                        U.S. government interest. If the PTE elected to pay Oregon’s 
                                                                 PTE-E tax, include the addition for PTE-E taxes deducted 
Use the tax forms and due dates that correspond with the 
                                                                 by the PTE on its federal return from the owner’s Schedule 
owners’ tax year. Most PTEs must use a calendar tax year         OR-21-K-1, line 2. Modifications don’t include the federal tax 
for Form OR-OC because it’s common for a majority of par-        subtraction, itemized deductions, and the Oregon standard 
ticipating owners to use a calendar tax year. The due date       deduction allowed to individual taxpayers.
for 2022 calendar year filers is April 18, 2023.
                                                                 Oregon-source distributive income is the portion of the 
If Form OR-OC isn’t available for the applicable tax year        entity’s modified distributive income that is derived from or 
at the time of filing, wait until the current year return is     connected with Oregon sources. Oregon-source distributive 
available before filing the composite return. Don’t use prior    income doesn’t include return of capital, income sourced in 
year forms.                                                      another state, or other distributions not taxable by Oregon. 
Example 1: NW LLC‘s 2022 fiscal year began April 1, 2021         If the PTE has business activity only in Oregon, multiply the 
and ended March 31, 2022. Most of the electing owners are        distributive income of the PTE by the ownership percentage 
individuals who file using a calendar year. Following federal    of the nonresident owner.
reporting rules, the 2022 fiscal year income from NW LLC 
is reported on the owners’ 2022 federal and Oregon tax           Apportionable income
returns. Therefore, NW LLC will file a 2022 calendar year 
Form OR-OC for its electing owners to report this income,        PTEs with business activity both inside and outside Oregon 
which is due April 18, 2023.                                     during the year must calculate Oregon-source distributive 
                                                                 income for nonresident owners. This is the same as what 
                                                                 was calculated for the PTE’s return using Schedule OR-AP 
Extensions                                                       to figure the apportionment percentage. 
If the PTE is granted a federal extension to file its return     Corporate Partners. A corporate partner’s distributive 
(Form OR-65 or Form OR-20-S), the PTE is also granted            income may be included in a composite return only when 
an extension for Form OR-OC. The additional time to file         its distributive share is not required to be included in the 
Form OR-OC with a timely filed extension is six months. A        corporate partner’s apportionable income. The PTE filing a 
calendar year 2022 Form OR-OC filed on extension is due          composite return should assume a corporate partner’s dis-
on October 16, 2023.                                             tributive share is required to be included in the corporate 
150-101-155 (Rev. 09-08-22)                                    2                                       2022 Publication OR-OC

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partner’s apportionable income unless the corporate partner              Self-employment tax deduction
notifies the PTE in writing that it is not. 
                                                                         Each PTE must calculate the self-employment tax deduction 
A corporate partner may have previously notified the PTE                 for each electing owner who is subject to self-employment 
that its distributive share is not includable in its apportion-
                                                                         tax. Subtract the self-employment tax deduction attributable 
able income and elected to be included in the PTE’s com-
posite return. If it is determined that the corporate partner’s          to Oregon-source distributive income from the Oregon-
distributive share should be included in the corporation’s               source distributive income and enter the net result on Sched-
apportionable income by the department, the corporate                    ule OR-OC-1 for each owner. 
partner’s election to be included in the composite return 
is invalid. Upon notification of this fact by the corporate              Oregon marijuana or psilocybin business 
partner, the PTE may file an amended composite return 
                                                                         modification
for a refund of tax that was paid on the corporate partner’s 
distributive income included in the composite return.                    Oregon-licensed marijuana and psilocybin businesses are 
                                                                         allowed a deduction for expenses that could be claimed 
Guaranteed payments                                                      as federal deductions if marijuana or psilocybin wasn’t a 
Guaranteed payments are treated as a business income                     controlled substance under federal law (IRC 280E). To cal-
component of the PTE’s distributive income and are                       culate the deduction, you must complete a federal business 
attributed directly to the owner receiving the payment                   return as if the business expenses would have been allowed 
(OAR 150-316-0155).                                                      for federal purposes. You won’t submit the “as if” federal 
                                                                         business return to the IRS. The deduction is the difference 
Distributions                                                            between the profit/loss on your actual federal return and 
Though distributions to shareholders of an S corporation                 the “as if” return. The deduction is subtracted from the total 
generally aren’t taxable income, there are exceptions. For               Oregon-sourced distributive income. Don’t submit the “as-
instance, if the corporation was formerly taxed as a C cor-              if” return with Form OR-OC. Keep it with your tax records.
poration, any C corporation earnings and profits that are 
                                                                         Note: This deduction can’t be used to create a net operat-
distributed are taxable. Attribute any taxable part of a dis-
tribution directly to the shareholder receiving the distribu-            ing loss. It can only be used to reduce your Oregon source 
tion. Multiply the taxable part by the Oregon apportionment              income to zero. See Publication OR-17 for more information.
percentage from Schedule OR-AP to determine how much 
to include in the shareholder’s income.                                  Credits
                                                                         Credits normally allowed on owners’ tax returns, such as 
Deductions
                                                                         the credit for taxes paid to another state or exemption credit, 
Individual tax deduction                                                 aren’t allowed on the composite return. If the PTE elected to 
Deductions normally allowed to individuals (such as item-                pay the PTE-E tax, the PTE-E tax credit will be used to off-
ized deductions or the standard deduction) aren’t allowed                set the tax due reported on the composite return. See Form 
on composite returns.                                                    OR-21 instructions for more information.

                                            2022 tax rate charts

                            Tax rate chart                                                 Tax rate chart
                                                                                           For persons filing
          S For persons filing                                                       J
 Single or married filing separately                                      Jointly, head of household, or qualifying surviving 
                                                                                spouse with dependent child
If your taxable income is:  Your tax is:
                                                                         If your taxable income is:  Your tax is:
Not over $3,750 ............................. 4.75% of taxable income
                                                                         Not over $7,500 .............................. 4.75% of taxable income
Over $3,750 but .............................$178 plus 6.75% of the
                                                                         Over $7,500 but .............................$356 plus 6.75% of the
not over $9,450             excess over $3,750                           not over $18,900            excess over $7,500
Over $9,450 but ............................. $563 plus 8.75% of the     Over $18,900 but ...........................$1,126 plus 8.75% of the
not over $125,000           excess over $9,450                           not over $250,000           excess over $18,900
Over $125,000 ................................$10,674 plus 9.9% of the   Over $250,000 ................................$21,347 plus 9.9% of the
                            excess over $125,000                                                     excess over $250,000
150-101-155 (Rev. 09-08-22)                                            3                                 2022 Publication OR-OC

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Payment voucher instructions
Estimated tax payment instructions
Use Form OR-OC-V for all composite return estimated tax
The PTE is required to make estimated tax payments in the payments. You don’t need to use a separate voucher for each
PTE’s name on behalf of all owners who elect to join in the type of tax payment. If submitting a payment with Form
composite filing. OR-OC, don’t include the voucher with the form.
Payment voucher: Use Form OR-OC-V and follow Form OR-
OC-V Instructions. Calculate the amount of tax required to
Schedule OR-OC-1 —Individual and
be paid as follows:
fiduciary owners
For individual electing owners: Multiply the electing
owner’s share of Oregon-source distributive income by the
Use Schedule OR-OC-1 for individuals, estates, and trusts
tax rate for the electing owner’s filing status. See the 2023
only. Combine all individuals, estates, and trusts on one
estimated tax rate charts in Publication OR-ESTIMATE.
Schedule OR-OC-1. Don’t submit a separate Schedule
For C corporation electing owners: Multiply the electing OR-OC-1 for each owner type.
owner’s share of Oregon-source distributive income by the
Lines 1 through 4. Complete one line for each electing
corporate tax rates, or use the corporate minimum tax rates.
individual, estate, or trust owner. Even if two owners file
For estate and trust electing owners: Estimated tax pay- jointly, list them separately on Schedule OR-OC-1. If more
ments aren’t required. If you choose to make payments, than four lines are needed, use additional copies of Schedule
multiply the electing owner’s share of Oregon-source dis- OR-OC-1. If you use more than one Schedule OR-OC-1, total
tributive income by the tax rate for single or married filing all pages on the first page (line 5) and carry that amount to
separately. See the 2023 estimated tax rate charts in Publica- Form OR-OC. Include Schedule OR-OC-1 with Form OR-OC.
tion OR-ESTIMATE. See “Estates or trusts” instructions to include the owner of
a grantor trust with other individuals.
Due dates for estimated tax payments Owner information. For each owner, enter the owner type
The due dates for estimated tax payments are the due dates (individual, estate, or trust), the individual owner’s or fidu-
required for the majority of the electing owners. ciary’s name, Social Security number (SSN) or FEIN, filing
status (if applicable), ownership percentage, share of federal
If the majority of electing owners use a:
income, and share of Oregon-source distributive income.
• Calendar tax year, the due dates for the 2023 estimated tax The filing status must match their federal return. Use “J”
payments are April 18, 2023; June 15, 2023; September 15, for married filing jointly or qualifying surviving spouse;
2023; and January 16, 2024 (or December 15, 2023, for cor- “S” for single filers; “H” for head of household; or “M” for
porate calendar year filers). married filing separately.
• Fiscal tax year, the estimated tax due dates are the 15th Column (a). Oregon income tax. Use the 2022 tax rate
day of the fourth, sixth, ninth, and thirteenth (or twelfth charts on page 3 to calculate Oregon income tax based on
month for corporate filers) month following the beginning filing status.
of the fiscal year. Note: It’s rare for the majority of electing
owners to have the same fiscal tax year. Column (b).PTE-E tax credit. If the PTE elected not to pay
PTE-E tax, enter zero. If the PTE elected and paid the PTE-E
Estimated payment due dates don’t apply and aren’t tax, enter each owner’s distributive share of the credit from
required for estates and trusts. Tax is due on the due date Schedule OR-21-K-1, line 3 in column (b).
of the return, not including extensions.
Column (d). Enter the estimated payments submitted on
behalf of each owner.
Tiered entities
Column (e). Calculate interest on underpayment of esti-
A PTE that owns an interest in another PTE (upper-tier
mated taxes. Interest on the underpayment of estimated
entity) isn’t allowed to join in the composite filing. Don’t
tax is due when an individual electing owner has a net tax
send tax payments for an owner who is another PTE. If the
liability in excess of $1,000 after estimated tax payments and
owner is another PTE, they must file their own return and
the PTE-E tax credit. Calculate the interest for each owner
make their own payments.
separately using Form OR-10 Instructions.
Example 2: The owners of Partnership A are one LLC, one
S corporation, three individuals, and two C corporations.
Estates or trusts
Only the three individuals and two C corporations can join
the composite return. Partnership A doesn’t make estimated Refer to the basic instructions for Schedule OR-OC-1. In
tax payments on behalf of the upper-tiered entities, (the LLC column (a), use the single or married filing separately tax
and the S corporation). Each of these upper-tiered PTEs will rate from the 2022 tax rate charts. Don’t complete column
file their own composite return for their owners, who can (f), interest on underpayment of estimated tax—this doesn’t
elect to join in a composite filing. apply to estates or trusts.
150-101-155 (Rev. 09-08-22) 4 2022 Publication OR-OC

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Grantor trusts may join in a composite filing. Use the             due when a corporate electing owner has a tax liability of 
grantor’s name and SSN on the Schedule OR-OC-1 as long             more than $500 after estimated tax payments. Calculate the 
as the grantor is still living. Once the grantor trust becomes     interest for each owner separately using Form OR-37.
an irrevocable trust, use the trust’s name and federal tax 
identification number. 
                                                                   Form OR-OC
Simple or complex trusts may join in the composite filing 
using the appropriate federal tax identification number on         PTEs must file Form OR-OC on behalf of electing nonresi-
the Schedule OR-OC-1.                                              dent owners. As the designated agent, the PTE is liable for 
                                                                   any tax, penalty, and interest due, including interest on 
                                                                   underpayment of estimated tax.
Schedule OR-OC-2— C corporation 
                                                                   Important: 
owners                                                             • Complete Schedules OR-OC-1 and OR-OC-2 prior to  
                                                                   completing Form OR-OC. Schedules OR-OC-1 and 
Use Schedule OR-OC-2 for C corporation owners only.                OR-OC-2 must be filed with the composite return. 
Lines 1 through 5.           Complete one line for each electing   • If you are impacted by CPAR adjustments, see “Instruc-
corporate owner. If more than five lines are needed, use           tions for reporting federal CPAR adjustments.”
additional copies of Schedule OR-OC-2. If you use more than        Complete all applicable fields in the header. 
one Schedule OR-OC-2, total all pages on the first page (line 
6) and carry that amount to Form OR-OC. Include Schedule           Tax year end date for the majority of owners on composite 
OR-OC-2 with Form OR-OC.                                           return. The tax year end date for the composite return is the 
                                                                   same as the tax year end date for the majority of owner’s 
Owner information.           For each corporate owner, enter the   federal and Oregon tax returns. If the majority of owners 
corporation name, FEIN, tax type, ownership percent-               file using a calendar tax year, then the tax year end date is 
age, share of federal income, and share of Oregon-source           December 31, 2022. Don’t use the end date for the PTE. 
distributive income. For tax type, enter the tax which the 
corporate owner is subject to: “E” for corporate excise tax or     Preparer information. If the form was completed by a paid 
                                                                   preparer, provide all paid preparer information in the sig-
“I” for corporate income tax. 
                                                                   nature block, including the paid preparer address, phone 
Column (a). Multiply the first $1 million of Oregon-source         number, and license number. If the form was completed by 
distributive income for each corporate owner by 6.6 percent        someone other than a paid preparer, provide the name and 
and multiply the amount over $1 million by 7.6 percent. If         phone number of the preparer in the header and leave the 
you entered an “E” as the tax type, compare the result with        paid preparer fields in the signature block blank.
the corporation’s minimum tax from the chart below. Enter 
                                                                   Line 1 —Composite tax. Enter the tax from Schedules 
the larger of those two amounts as the tax for that owner.
                                                                   OR-OC-1 and OR-OC-2.
            Corporate minimum tax chart                            Line 2—CPAR tax. Enter 0 unless you are filing to report 
If the owner’s share of Oregon sales are . . .                     CPAR adjustments. See “Instructions for reporting federal 
at least:                   but less than: the minimum tax is:     CPAR adjustments.”
          ---------         $500,000           $150                Line 4—PTE-E tax credit. Enter the tax from Schedule 
          $500,000          $1 million         $500                OR-OC-1, line 5(b).
$1 million                  $2 million         $1,000              Line 6—Payments. Report the total of all tax payments. 
                                                                   Include all payments you made up to the date you filed  
$2 million                  $3 million         $1,500
                                                                   your original or amended return. 
$3 million                  $5 million         $2,000
                                                                   Line 10—Penalty and interest. Include a penalty payment 
$5 million                  $7 million         $4,000
                                                                   if you: 
$7 million                  $10 million        $7,500
                                                                   • Pay your tax due after the original due date (even if you 
$10 million                 $25 million        $15,000             filed an extension); or
$25 million                 $50 million        $30,000             • File the composite return showing tax due after the due 
$50 million                 $75 million        $50,000             date, including any extension. 
$75 million                 $100 million       $75,000             The penalty is 5 percent of the unpaid balance of your tax 
$100 million                  ---------        $100,000            as of the due date, not including extensions. If you file more 
                                                                   than three months after the due date or extension due date, 
Column (b). Enter the estimated payments submitted on              add an additional 20 percent penalty, for a total of 25 percent 
behalf of each corporate owner.                                    of the unpaid tax.
Column (c). Calculate interest on underpayment of esti-            If you don’t pay the tax due by the due date, interest is due on 
mated taxes. Interest on underpayment of estimated tax is          the unpaid tax. The annual interest rate is 6 percent for 2023. 
150-101-155 (Rev. 09-08-22)                                      5                                       2022 Publication OR-OC

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Interest is figured daily (0.0164 percent per day) for periods     and Schedule OR-ASC-NP. Enter all income (including 
of less than a year. Here’s how to figure daily interest:          income reported on Form OR-OC) in the federal col-
                                                                   umn, line 17F, of Form OR-40-N. You will also report all 
Tax  ×  0.000164 ×  Number of days past the due date               Oregon-source income (including Oregon-source income 
                            of the return                          reported on Form OR-OC) in the Oregon column, line 17S, 
If the tax isn’t paid within 60 days of the original billing       of Form OR-40-N. Because the income reported on Form 
notice, the interest rate increases to 10 percent for 2023.        OR-OC has already been taxed, you will subtract those 
                                                                   amounts on Schedule OR-ASC-NP, Section C. Identify the 
Line 11—Interest on underpayment of estimated tax. Enter           subtraction using code 341. 
the amounts from Schedule OR-OC-1, line 5(e), and Schedule 
OR-OC-2, line 6(c). For more information on calculating the        Note: Don’t claim the tax paid on your behalf on Form 
interest, see the Schedule OR-OC-1 and OR-OC-2 instruc-            OR-OC as a payment on your Form OR-40-N. That payment 
tions above.                                                       was already used to pay the tax on the income reported on 
                                                                   Form OR-OC.
Line 17—Amount you owe.      Payment of the amount due 
must accompany the Oregon composite return. Don’t           use    Corporate taxpayers must also file a corporate tax return if 
the voucher, Form OR-OC-V, if submitting payment with the          you have other income to report. You may join multiple com-
return. The PTE must pay the total amount due on behalf of         posite returns. If the corporation has other Oregon income 
the nonresident owners.                                            to report that hasn’t been reported on Form OR-OC, you’re 
                                                                   also required to file your own corporate tax return.
Amending the composite return                                      You will subtract the “Share of Oregon-source distributive 
                                                                   income” reported on Form OR-OC-2 on Schedule OR-ASC-
The PTE may file an amended return to adjust any item              CORP, Section B, using subtraction code 341. 
reported on the original composite filing or to carry back 
Oregon net operating losses. File Form OR-OC for the year 
that is being adjusted or the year to which the loss is being      Form OR-OC-TR—requesting 
carried and check the “Amended return” box in the header.          transfer of payment instructions
File a schedule with the amended return that reconciles prior 
payments and refunds to the corrected tax.                         An owner can’t revoke the election to join a composite fil-
Net operating loss (NOL) carryback for individual income           ing after the due date of the composite return, including 
tax purposes only. If you are amending to claim an NOL,            extensions. If an owner chooses to not be included in the 
mark the “Amended return” box and enter the tax year               composite filing, and payments were submitted by the PTE 
the NOL was generated from. Include a schedule to the              on behalf of the owner, the PTE may only submit a request 
amended return naming the owners and showing the year              for transfer of payment to the owner’s account using Form 
and calculation of the NOL. You are allowed the same               OR-OC-TR on or before the due date of the composite return, 
NOL carryback period that is allowed for federal purposes.         including extensions. 
Note: For corporate excise and income tax purposes, NOLs 
may only be carried forward.                                       PTE instructions
When you file the amended return, you must submit the              The PTE must file a transfer request, Form OR-OC-TR, so that 
payment along with the return. Don’t submit the voucher,           payments made on behalf of an owner can be transferred 
Form OR-OC-V, if sending the payment with the return. Pay          from the PTE’s account to the owner’s account. The request 
the total amount due for all owner types.                          must be submitted before the composite return is filed. If 
                                                                   the transfer request is submitted after Form OR-OC has been 
Any refund will be paid to the PTE regardless of any own-                                      must amend Form 
                                                                   filed but before the return is due, the PTE 
ership changes or changes in the identity of the owners            OR-OC on or before the due date, including extensions, to 
participating in the composite filing. 
                                                                   remove the owner from the composite return. Use Form 
                                                                   OR-OC-TR to show the portion of each payment that is trans-
                                                                   ferred to the owner and the portion that stays on the PTE 
Electing owners who have other 
                                                                   account. Enter the date and amount of each payment made 
Oregon-source income                                               during the tax year. Up to four payments can be reported 
                                                                   on Form OR-OC-TR. Each line is for one taxpayer; enter 
Electing owners who have additional income from Oregon             spouses separately. Use additional forms as needed to divide 
sources or who are doing business in Oregon may be                 a payment among owners and the PTE. Use whole dollars. 
required to file their own tax return in addition to participat-   Note: Once the payments have been transferred to the 
ing in the composite return.                                       owner, the payments can’t be transferred back to the PTE. 
Personal income taxpayers may join multiple composite              Preparer information.  If the form was completed by 
returns if they qualify. If you have other Oregon income           someone other than a paid preparer, provide the name 
that hasn’t been reported on Form OR-OC, you’re required           and phone number of the preparer in the header and leave 
to file your own return. Nonresidents use Form OR-40-N             the paid preparer fields in the signature block blank. If the 
150-101-155 (Rev. 09-08-22)                                      6                             2022 Publication OR-OC

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form was completed by a paid preparer, provide all paid submitted two payments of $1,500 each; Karen’s estimated
preparer information in the signature block, including the tax was $250 from each payment. The S corporation won’t
paid preparer address, phone number, and license number. include Karen’s share in future estimated payments for
the composite return. They will immediately submit Form
Enter the total for each column on the first form. The totals in OR-OC-TR. The two $1,500 estimated payments will be in
columns (a), (b), (c), and (d) must match the payments listed payment 1 and payment 2 of the payment section on page 1
on the first page. If the amounts don’t match the correspond- of Form OR-OC-TR. The first line on page 2 will have $1,250
ing payments, the form won’t be processed. The owners won’t for both payment 1 and payment 2, which will remain on
receive credit for payments made until the PTE has submitted the PTE account. On line 1, the S corporation will provide
a correct Form OR-OC-TR. Karen’s information and report $250 in both columns (a)
If you submitted a Form OR-OC-TR, check the “Form OR- and (b) with a total for owner of $500. When the composite
OC-TR” box in the header of Form OR-OC. This will make return is submitted, the S corporation will check the “Form
sure the transfer request is processed prior to the composite OR-OC-TR submitted” box in the header.
return. Note: The S corporation will have to start withholding tax on
Karen’s behalf as PTE owner payments unless she submits
Owner instructions an affidavit, Form OR-19-AF. For more information about
PTE owner payments and filing an affidavit, see Form OR-
A separate return filed by an owner is treated as an original 19-AF Instructions.
return. The tax liability shown on the return, if any, may be
subject to penalty and interest, including interest on under- Example 4: On September 15, 2023, a partnership filed a
payment of estimated tax. composite return on extension on behalf of six individual
nonresident owners electing to participate in a 2022 compos-
Example 3: In August 2022, Karen notifies her S corporation ite filing. In November 2023, one of the nonresident owners
that she doesn’t want to join the composite return for tax requests to revoke the election for tax year 2022. Since the
year 2022. Because she was part of the 2021 Form OR-OC, due date for the 2022 composite return has already passed,
the S corporation has already sent in payments for her share the owner can’t revoke the election and any payment transfer
of the estimated tax based on the prior year’s tax. They request will not be processed.

Instructions for Reporting Federal CPAR Adjustments

• “Federal partnership representative” is the partnership
CPAR definitions representative appointed by the IRS or designated by the
“Audited partnership” is a partnership-level audit by the partnership to act as its federal representative.
IRS resulting in an adjustment and needs to report an • “Oregon partnership representative” is the federal part-
increase in Oregon tax. nership representative, unless the partnership designated
“CPAR” is a centralized partnership audit regime. another representative for Oregon only.
“CPAR election” is the election made on Form OR-OC by an “Tiered partner” is a PTE owner of an audited partnership.
Oregon partnership representative on behalf of an audited
partnership to report and pay the CPAR tax at the partner-
ship level [ORS 314.733(4)]. This election is not to be used for General information for CPAR
administrative adjustment requests (IRC 6227). The election
is irrevocable after the filing due date for submitting the reporting
CPAR election.
Use Form OR-OC, Schedule OR-OC-3, and Schedule
“CPAR tax” is an amount paid in lieu of tax being reported OR-OC-4 to report the CPAR adjustments, whether or not
to Oregon due to a CPAR adjustment to income and paid at the partnership makes the election to pay the CPAR tax. File
the partnership level. Adjusted income is taxed at the highest a separate form with schedules for each audited tax year.
marginal personal or corporate tax rate.
If the partnership doesn’t make the CPAR election:
“FPA” is a final partnership adjustment.
• A tiered partner may make the election to pay CPAR tax
“Notice of FPA” is the notice issued by the IRS reporting the
CPAR adjustment and final date of the adjustment. on its share of the adjustments.
“Partnership-level audit” is an examination by the IRS at • A composite return filed for the audited year must be
the partnership level from which an adjustment arises. amended for the CPAR adjustments.
“Partnership representative” is the person appointed as • All other direct and indirect partners must report the
the sole authority to act on behalf of the partnership and be CPAR adjustments as an addition or subtraction on their
responsible for actions required or permitted to take. own returns or file amended returns for the audited year.
150-101-155 (Rev. 09-08-22) 7 2022 Publication OR-OC

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For additional information, visit www.oregon.gov/dor and
search for “Centralized Partnership Audit Regime.” Schedule OR-OC-3 —CPAR report for
Filing due date. The due date for filing Form OR-OC to individuals , fiduciaries, and tiered
report CPAR adjustments is 180 days after the date of the partners
FPA. For tiered partners making the CPAR election, the due
date for filing Form OR-OC is 90 days from the extended This schedule is only used by audited partnerships or
due date of the audited partnership’s tax return for the year tiered partners to report CPAR adjustments. Use Schedule
in which the FPA was issued. OR-OC-3 for every individual, estate, trust, and tiered part-
ner for the audited year.
Payment due date. The payment due date for an audited
Lines 1 through 4. Complete one line for each individual,
partnership making a CPAR election is 270 days from the
estate, trust, or tiered partner. If more than four lines are
date of the FPA. In the case of a tiered partner making a
needed, use additional copies of Schedule OR-OC-3. If you
CPAR election, the payment due date is the same as the
use more than one Schedule OR-OC-3, total all pages on line
filing due date, 90 days from the extended due date of the 5 of the first page and carry the amount to Form OR-OC.
audited partnership’s return for the year in which the FPA
was issued. Owner information. For each owner, enter the owner type
(individual, estate, trust, or tiered partner), the individual
Example 5: MP Partnership was audited by the IRS for tax owner’s or fiduciary’s name, SSN or FEIN, ownership per-
year 2022. The FPA is dated May 31, 2026. MP Partnership centage, share of federal CPAR adjustments, and share of
makes the CPAR election; therefore, Form OR-OC, Schedule Oregon-source CPAR adjustments.
OR-OC-3, and Schedule OR-OC-4 reporting their CPAR tax Keep your calculations for each partner’s share of Oregon-
for tax year 2022 must be filed by November 27, 2026 (180 source CPAR adjustments with your tax records.
days after the date of the FPA). The tax must be paid by Feb-
Column (a) CPAR tax. If making the election to pay CPAR
ruary 25, 2027 (270 days after the date of the FPA).
tax multiply the partner’s share of Oregon source CPAR
Example 6: Assume the same facts as in Example 5, except adjustments by 9.9 percent.
MP Partnership didn’t make the CPAR election. The tiered
partners of MP Partnership may choose to make the elec-
Schedule OR-OC-4 —CPAR report for
tion themselves. RC Partnership is a tiered partner of MP
Partnership. If RC Partnership makes the CPAR election, C corporation owners
it must file Form OR-OC, Schedule OR-OC-3, and Sched-
ule OR-OC-4 reporting their CPAR tax and pay the tax by Use Schedule OR-OC-4 for C corporation partners for the
audited year.
December 14, 2027 (90 days from the extended due date of
MP Partnership’s 2026 return). Lines 1 through 5. Complete one line for each included
corporate owner. If more than five lines are needed, use
Amending to report changes in CPAR tax additional copies of Schedule OR-OC-4. If you use more than
one Schedule OR-OC-4, total all pages on line 6 of the first
If you have filed Form OR-OC to report CPAR tax, you may page and carry the amount to Form OR-OC.
amend to change the CPAR tax because of changes made
Owner information. For each corporate owner, enter the
by the IRS. Changes can’t result in a refund that exceeds the
corporation name, FEIN, ownership percentage, share of
CPAR tax originally reported and paid. federal CPAR adjustments, and share of Oregon-source
CPAR adjustments.
Owner responsibilities when the CPAR election is
Keep your calculations for each corporate partner’s share
not made of Oregon-source CPAR adjustments with your tax records.
If you’re an owner of a partnership that was subject to a part- Column (a). CPAR tax. If the partnership elects to pay the
nership-level audit by the IRS (or you’re an owner of a tiered CPAR tax, multiply the corporate partner’s share of Oregon-
partner of such a partnership), you may need to increase or source CPAR adjustments by 7.6 percent.
decrease your Oregon income as a result of the audit. Report
an increase in income using addition code 187 or report a
CPAR instructions for Form OR-OC
decrease in income using subtraction code 384, whichever is
applicable. Use these codes, even if another code is assigned Complete Schedules OR-OC-3 and OR-OC-4 prior to com-
for the specific type of increased or decreased income. Visit pleting Form OR-OC. These schedules must be filed with
our website for more information. the form.
150-101-155 (Rev. 09-08-22) 8 2022 Publication OR-OC

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Enter the audited partnership or tiered partner’s informa-
tion at the top of the form. Complete all applicable fields in CPAR payment instructions
the header.
Online payment. You may make payments anytime online
Amended return. Check the box if you previously filed a at www.oregon.gov/dor. If you haven’t filed Form OR-OC for
Form OR-OC to report CPAR adjustments for this year. this tax year, select the “Return” payment type; otherwise,
CPAR report. Check the box to report CPAR adjustments. select “Amended return.” Don’t use a voucher with online
payments.
FPA Issue Date. Audited partnerships only, enter the date
of the FPA. Payments mailed with a return. If you’re mailing a pay-
ment with your tax return, send the payment and return in
Audited Partnership tax year end date. Tiered partners the same envelope and don’t use a voucher. Write “CPAR
only, enter the last day of the tax year, in which the FPA was tax” on the payment. Include a separate payment for each
issued to the audited partnership tax year.
If making the election to pay CPAR tax, complete lines 2, Payments mailed without a return. If you’re mailing a
6 through 10, and 12 through 14. Otherwise, leave lines 1 payment without a return, use the voucher, Form OR-OC-V.
through 14 blank. Include a separate payment and voucher for each tax year.
Lines 2a and b—CPAR Tax. Enter the amounts from Sched- Write “CPAR tax” on the payment. See Form OR-OC-V
ule OR-OC-3, line 5a, and Schedule OR-OC-4, line 6a. Skip Instructions for more information.
lines 3, 4, and 5.
Line 6 —Payments. Report the total of all CPAR tax pay- Important addresses
ments made to date.
Mail Form OR-OC-V with payment (without Form OR-OC):
Line 10 —Penalty and interest. If paying late, calculate pen-
Oregon Department of Revenue
alty and interest for the amounts reported on lines 2a and 2b.
PO Box 14950
Combine these and enter on line 10. Skip line 11.
Salem OR 97309–0950
Calculate a 5 percent penalty of the unpaid CPAR tax if:
Mail returns with payment (don’t include voucher):
• The audited partnership pays the tax more than 270 days Oregon Department of Revenue
after the FPA issue date; or PO Box 14555
• A tiered partner pays the tax more than 90 days after Salem OR 97309–0940
the due date of the current year’s return, including any
Mail returns without payment (refund or no tax due for
extensions.
all owners):
If you file more than three months after the CPAR filing due Oregon Department of Revenue
date, add an additional 20 percent penalty, for a total of 25 PO Box 14700
percent of the unpaid CPAR tax. Salem OR 97309–0930
If you don’t pay the CPAR tax by the payment due date, Mail payment transfer request, Form OR-OC-TR:
interest is due on the unpaid tax from the due date of the Oregon Department of Revenue
original return. The annual interest rate for 2023 is 6 percent. PO Box 14999
Interest is figured daily based upon a 365-day year (0.0164 Salem OR 97309–0990
percent per day) for periods of less than a year. Here’s how
to figure daily interest:
Do you have questions or need help?
Tax × 0.000164 × Number of days past the due date
of the return www.oregon.gov/dor
503-378-4988 or 800-356-4222
If the tax isn’t paid within 60 days of the original billing questions.dor@ dor.oregon.gov
notice, the interest rate increases to 10 percent for 2023.
Contact us for ADA accommodations or assistance in other
Interest rates may change once a year. See Publication OR-17 languages.
for more information about interest rate changes.

150-101-155 (Rev. 09-08-22) 9 2022 Publication OR-OC

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