Form OR-65 Instructions
                                         Oregon Partnership Income Return                                    2022 

Which partnerships must file Form OR-65?                           •  A copy of federal Form 1065, U.S. Return of Partnership 
                                                                   Income. Include all pages and supporting schedules (for 
•  Every partnership having income or loss derived from            example, Schedule M-3).
or connected with sources in Oregon.                               •  Schedule OR-AP, if you answered yes to question 6A on 
•  Every partnership having one or more Oregon resident            Form OR-65.
partners.                                                          •  If this is the final partnership return, a schedule showing 
                                                                   to whom all assets and liabilities were distributed, and 
Which partnerships don’t need to file Form OR-65?                  each asset’s adjusted basis, fair market value, and sales 
                                                                   price.
•  Publicly traded partnerships taxed as corporations. 
                                                                   •  Federal Schedules K-1, if there were less than 11 part-
•  Partnerships that aren’t required to file a federal partner-    ners during the year. If you had more than 10 part-
ship return.                                                       ners, include a summary of partner information. Your 
Example: A married couple electing the qualified joint ven-        summary must include each partner’s name,  Social 
ture option doesn’t file a federal partnership return; therefore   Security number (SSN) or federal employer identifi-
they don’t file an Oregon partnership return.                      cation number (FEIN), address, profit/loss sharing 
                                                                   percentage, and Oregon modifications and credits.  
                                                                   If you are mailing the summaries and K-1s, we prefer them on 
Partnership minimum tax
                                                                   CD or a USB flashdrive. Label the CD or flashdrive with the 
A partnership must pay the $150 minimum tax if it’s doing          entity’s name, FEIN, and tax year. If your CD or flashdrive 
business in Oregon and required to file a partnership return.      is password protected, mail the password separately or 
“Doing business” is performing a profit-seeking activity. If       email it to files.partnership@ dor.oregon.gov. Include the 
you are registered to do business in Oregon, but didn’t have       partnership name and FEIN with the password.
any business activity, you are not subject to the minimum tax.     •  Form OR-24, if you had a 1031 exchange investing in out-
                                                                   of-state property.
When a short-year return is filed only because of a change         •  Any additional schedules required for Oregon modifica-
in accounting periods, the tax is prorated for the number of       tions and credits from Schedule I.
months in the short tax year.
Filing and payment deadlines                                       Amending instructions
Returns and tax payments for the 2022 calendar year are due        Complete the return as it should have been filed and check 
                                                                   the ”amended return” box at the top. Include an explanation 
by March 15, 2023. Fiscal year returns are due by the 15th day 
                                                                   of all corrections. There is no tax to pay or refund unless you 
of the third month after the end of the partnership’s tax year. 
                                                                   change the amount entered on line 3C or 3D. If the amended 
Estimated payments are not required. 
                                                                   return is a tax-to-pay return, include payment with the 
                                                                   amended return. Don’t include a voucher, Form OR-65-V, 
Extension of time to file                                          with the return.
If you filed a federal extension, you don’t need an Oregon         Federal audit adjustments. If your federal partnership return 
extension. If you need to file an Oregon-only extension,           was audited and adjusted at the federal level, see “Federal 
you will receive the same amount of time to file as a federal      centralized partnership audits” for more information.
extension. The maximum extended due date is September 
15, 2023 for calendar year partnerships. Note: An extension        Penalty and interest
to file doesn’t mean more time to pay.
                                                                   The partnership will owe interest on any tax not paid by 
To receive an Oregon-only extension, make your tax payment         the due date. The 2023 interest rate is 6 percent per year and 
by the original return due date through Revenue Online or          increases to 10 percent per year if not paid within 60 days of 
through the mail using a payment voucher, Form OR-65-V.            our billing notice. 
With either payment option, check the “original return” pay-
                                                                   The partnership will also owe a 5 percent late payment pen-
ment type. When filing Form OR-65, check the (f) checkbox 
                                                                   alty on any tax not paid by the due date. 
and enter the extension due date. 
                                                                   Partnership failure-to-file penalty
What must be included with the Oregon 
                                                                   We may assess a penalty if a partnership doesn’t file a return 
partnership return?
                                                                   or fails to provide information to us as required by law. The 
Submit this information with the return in the following           penalty is $50 per month per partner for each month the 
order:                                                             return is late or incomplete, up to a maximum of five months. 
150-101-065-1 (Rev. 09-19-22)                                    1                                 2022 Form OR-65 Instructions

Don’t submit a penalty payment with your return. Penalty           Additional requirements. Partnerships with CPAR adjust-
payments are only required if a penalty is assessed by us.         ments affecting Oregon tax must notify us by submitting a 
                                                                   completed adjustments report, regardless of whether the 
Guaranteed payments                                                Oregon CPAR election is made. Partnerships must also 
                                                                   notify their owners of adjustments affecting Oregon income 
Guaranteed payments are treated as distributive shares of          and whether the partnership has paid Oregon tax on that 
partnership income. For nonresident partners, income attrib-       income. Partnerships can use federal Form 8986,       Partner’s 
utable to Oregon sources is determined by applying the allo-       Share of Adjustment(s) to Partnership-Related Item(s), for these 
cation and apportionment provisions to each nonresident’s          notifications. 
entire distributive share including guaranteed payments.
                                                                   For more information about the Oregon CPAR election, see 
                                                                   Publication OR-OC.
Individual income tax returns

Each partner’s distributive share of net income (or loss) and      Form instructions
separately stated items must be reported on that partner’s 
individual income tax return.                                      Heading
                                                                   Enter all information in the heading and check all appli-
Partners report their share of Oregon modifications (addi-         cable boxes. It’s important that you provide the name and 
tions or subtractions) or credits on their tax return. The         contact information for the person who has the partnership 
partner’s modification or credit is based on the total for the     records. If you don’t complete this section, there may be a 
business multiplied by their ownership percentage.                 delay in receiving important information. If the partnership 
Nonresident partners can join a composite return, Form             filed using a different name on the 2021 Oregon partnership 
OR-OC, filed by the partnership or file their own return using     return, check the “name change” box and provide that name.
Form OR-40-N and instructions.
                                                                   Line instructions
2023 short tax year                                                Line 1A. Answer yes if the partnership is doing business in 
                                                                   Oregon. “Doing business” is defined the same for partner-
Oregon follows federal filing requirements for short tax years.    ships and corporations.
Use the 2022 form for a short tax year that ends in 2023, if the 
2023 forms are not available by the due date. Remember that        Lines 2A and 2B. The partnership is required to file if it had 
an extension to file doesn’t change the due date of the tax.       Oregon resident partners  orhad income (or loss) apportioned 
                                                                   or allocated to Oregon. If you answered “Yes” to 2A  or  2B (or 
                                                                   both), you must file a Form OR-65. 
Federal centralized partnership audits 
                                                                   If you didn’t answer “Yes” to either 2A or 2B, then the part-
The Internal Revenue Service (IRS) makes audit adjustments 
                                                                   nership isn’t required to file a return or pay the minimum tax. 
and collects taxes at the partnership level for partnerships sub-
ject to the centralized partnership audit regime (CPAR). CPAR      Line 3A. If 1A is “Yes” and 2A  or 2B (or both 2A and 2B) 
adjustments that affect the partnership’s Oregon income and        are “Yes,” the partnership owes the partnership minimum 
taxes must be reported to us using the procedures outlined here.   tax. Enter $150 on line 3A unless the partnership is filing a 
                                                                   return for a change in accounting periods. If the “Accounting 
Partnership representative.   Your federal partnership rep-
                                                                   period change” box is checked, use this chart to determine 
resentative has the authority to make federal and Oregon 
                                                                   the correct tax. Enter the tax on line 3A that corresponds to 
decisions on behalf of the partnership, unless someone else 
                                                                   the number of months on the return: 
is designated as the Oregon representative. Don’t use Form 
OR-65 to designate an Oregon partnership representative.           Number of         Tax           Number of             Tax
Send us a letter with the representative’s information by mail        months                       months
or fax, or submit it through Revenue Online. 
                                                                         1           $ 13              7            $ 88
Oregon CPAR election—Form OR-OC.          The partnership                2           $ 25              8            $100
representative may elect to report the audit adjustments and 
                                                                         3           $ 38              9            $113
pay Oregon tax at the partnership level. The representative 
must use Form OR-OC, not Form OR-65, to make this elec-                  4           $ 50              10           $125
tion. See Publication OR-OC for more details.                            5           $ 63              11           $138
Amended Form OR-65. If the federal CPAR adjustments                      6           $ 75              12           $150
affect Oregon tax, and the partnership representative doesn’t 
                                                                   Important: This chart doesn’t apply to other short tax year 
make the Oregon CPAR election, an amended Form OR-65 
                                                                   returns, such as initial returns or final returns. The tax is $150 
must be filed for each adjusted tax year. Complete a federal 
                                                                   in those cases.
Form 1065 for each adjusted tax year as if the form were 
being filed with the IRS. Write “as if” at the top of each Form    Example 1: In 2022, the IRS gave Renters LLC permission to 
1065, and submit the “as if” form with the amended Form            change from a calendar tax year to a fiscal tax year ending in 
OR-65 for each adjusted tax year.                                  September. To change the accounting periods, a short year return 
150-101-065-1 (Rev. 09-19-22)                                    2                                     2022 Form OR-65 Instructions

is required from January 1 to September 30, 2022. The LLC will      Lines 7A–7D. The partners must file returns and pay transit 
file a 2022 short year return and owe $113 in tax on the due date   district self-employment taxes for income subject to these 
for that short year, which is December 15, 2022. Later they will    taxes. The partnership may instead file and pay on their behalf. 
file a full year 2023 return from October 1, 2022 to September      Go to  www.oregon.gov/dor/business for information. 
30, 2023 and will owe $150 minimum tax for that full tax year.
Example 2: Freight Partners ended business on May 10, 2023.         Schedule I
They are a calendar tax year partnership, so the partners will      Enter the name, numeric code, and amount for each modifica-
file a 2023 short tax year return due August 15, 2023. They will    tion or credit. Include schedules to list additional modifica-
use 2022 forms because 2023 forms aren’t available yet, but they    tions and credits or to explain the modifications. Modification 
will follow 2023 tax laws when completing the return. They will     and credit codes can be found in Publication OR-CODES and 
owe $150 minimum tax which is also due August 15, 2023, even        Publication OR-17, which are available on our website.
if they get an extension to file. 
                                                                    If your partnership is a member of another PTE who elected 
Line 3B. Enter the payments submitted prior to filing or with 
                                                                    to pay Oregon’s PTE-E tax and the PTE claimed a deduction 
an extension. 
                                                                    for PTE-E elective tax on their federal return, you must report 
Line 3C. If payments are less than the tax liability owed by        an addition on Schedule I. See Form OR-21 Instructions or 
the partnership, enter the amount of tax due (line 3A minus         Publication OR-17 for additional information. 
line 3B). Otherwise, go to line 3D. 
                                                                    A partner may be able to claim their share of these modifica-
To submit a payment:                                                tions or credits on their own return. Provide this information 
                                                                    to partners with their Schedule OR-K-1. For more informa-
•  You can make payments anytime at  www.oregon.gov/dor.
•  Make your check or money order payable to “Oregon                tion, see the instructions regarding partnership and S corpo-
Department of Revenue.”                                             ration modifications and credits in Publication OR-17. 
•  Write your daytime phone number, FEIN, and “2022                 Oregon marijuana business modification. Oregon-licensed 
Partnership Tax” on your check or money order.                      marijuana businesses are allowed a subtraction for expenses 
•  Don’t send cash or a postdated check.                            that could be claimed as federal deductions if marijuana 
•  Send your check or money order in the same envelope as           wasn’t a controlled substance under federal law (IRC Section 
your return. Don’t use  Form OR-65-V unless you’re send-            280E). To calculate the subtraction, you must fill out a federal 
ing a payment without a return.                                     partnership return as if the marijuana business expenses 
•  Pay the tax by the due date (not including extensions) to        would have been allowed for federal purposes. You won’t 
avoid penalty and interest.                                         submit the “as if” federal partnership return to the IRS. The 
Line 3D. If payments are more than the tax liability owed           subtraction is the difference between the profit/loss on your 
by the partnership, enter the amount to be refunded to the          actual federal return and the “as if” return. Don’t submit the 
partnership (line 3B minus line 3A). If the tax liability and the   “as if” return with your Form OR-65. Keep it with your tax 
payments already submitted are the same, enter $0.                  records. See Publication OR-17.
Line 4D. Enter the number of federal Schedule K-1s that were        Gain on voluntary and involuntary conversions. Oregon 
issued to partners. Does the partnership have nonresident           allows partnerships to elect for their partners to defer the 
partners? The partnership is required to send in payments           gain on voluntary and involuntary conversions. Partnerships 
on behalf of nonresident partners who are individuals or C          must make the election for all consenting partners. Include 
corporations, unless the partner is exempt, files an affidavit,     Form OR-24 with your Form OR-65, and check box (g) on 
or joins a composite return. See Publication OR-OC and Form         the front of the return.
OR-19-AF Instructions for more information on the partner-
ship’s requirements to file a composite return or send in           Filing instructions
payments on behalf of its nonresident partners.
                                                                    You can electronically file or mail the Form OR-65 and any 
Line 4E. Nonresident partners who are individuals, trusts,          required enclosures to:
estates, or C corporations can join a composite return ,Form 
OR-OC, filed by the partnership. Enter how many partners            Oregon Department of Revenue
participated in the Form OR-OC the partnership filed or will        PO Box 14555
be filing.                                                          Salem OR 97309-0940
Line 5C. If a federal audit or adjustment changed your prior        If you are filing electronically and your software doesn’t 
year or current year tax return, check the box and list the tax     support attachments, mail the attachments to the address 
years that were changed. Report increases in tax using Form         above or fax the attachments to 503-945-8735, labeled “Attn: 
OR-OC. See Publication OR-OC for additional information.            ADP.” Be sure to provide the partnership name and FEIN for 
                                                                    reference. Wait three days after electronically filing the Form 
Line 5D. If the partnership didn’t opt out of CPAR, enter the 
                                                                    OR-65 before faxing the required attachments.
contact information for the federal partnership representative 
(PR). If the PR is an entity, enter the contact information for     Don’t submit Form OR-OC or Form OR-19 with the partner-
both the designated individual and the entity.                      ship return. File those forms separately.
150-101-065-1 (Rev. 09-19-22)                                     3                                2022 Form OR-65 Instructions

Do you have questions or need help?
  www.oregon.gov/dor
503-378-4988 or 800-356-4222
questions.dor@ dor.oregon.gov
Contact us for ADA accommodations or assistance in 
other languages.

150-101-065-1 (Rev. 09-19-22)                      4 2022 Form OR-65 Instructions