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2022
Form OR-20-S Instructions

Oregon S Corporation Tax

Contents

Purpose of Form OR-20-S ...................................2 Form instructions
Important reminders ............................................ 2 Heading and checkboxes ....................................................7
Questions ...............................................................................8
What’s new and Looking ahead ............... 2, 3
Line instructions
Estimated tax payments ..................................... 3
Additions ...............................................................................9
Filing information Subtractions ........................................................................ 10
Who must file with Oregon? ..............................................4 Net loss deduction ............................................................. 10
Excise or income tax? ........................................................... 4 Tax ........................................................................................ 11
Shareholder information .....................................................5 Credits .................................................................................. 11
Composite returns ............................................................... 5 LIFO benefit recapture addition ...................................... 11
Withholding requirement ...................................................5 Net tax .................................................................................. 11
E-file .......................................................................................5 Payments, penalty, interest, and UND ............................ 11
Federal audit changes ..........................................................5 Schedule ES—Estimated tax payments
Amended returns, Protective claims ............................ 5, 6 or other prepayments ................................................... 11
Total due or refund ............................................................ 13
Filing checklist Schedule SM instructions ................................................. 13
Due date of return, Extensions .......................................... 6
Payments ............................................................................... 6 Do you have questions? .................................... 14
Assembling your return ...................................................... 6
K-1 Summary ........................................................................ 7 Appendices
Appendix A, 2022 Schedule OR-ASC-CORP code list ... 15
Mailing Addresses ................................................... 7 Appendix B, 2022 Tax rates and minimum tax ............. 16
Appendix C, Alternative apportionment ....................... 17

Information contained herein is a guide. For complete details of law, refer to
Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR).

Go electronic!
Fast • Accurate • Secure
File corporation tax returns through the Federal/State Electronic Filing Program. See “E-file.”

Visit us online: www.oregon.gov/dor

• Registration and account status.
• Online payments and communication.
• Forms, instructions, and law.
• Announcements and FAQ.
• Updates to instructions.

150-102-025-1 (Rev. 10-28-22) 1 2022 Form OR-20-S Instructions

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(2022 Or Laws, ch. 82, § 3). See Form OR-21 Instructions
Purpose of Form OR-20-S or Publication OR-17 for additional information.
Use Form OR-20-S, Oregon S Corporation Tax Return
to calculate and report the Oregon corporate excise or Psilocybin business expenses
income tax liability of a business entity taxable as an S ORS 317.363 allows Oregon corporation excise and income
corporation doing business in Oregon or with Oregon tax filers to subtract certain business expenses otherwise
sources of income. barred by IRC §280E if the corporation is engaged in psi-
locybin-related activities authorized by ORS 475A.210 to
475A.722, the Oregon Psilocybin Services Act. Use sub-
Important reminders traction code 385 on Schedule OR-ASC-CORP.
If your registered corporation or insurance company If a corporation manufactures or sells psilocybin prod-
isn’t doing business in Oregon and has no Oregon- ucts, operates a psilocybin service center, or facilitates
source income, then you don’t need to file a corporation psilocybin services licensed by the Oregon Health
tax return. Authority (OHA) under ORS Chapter 475A, the corpo-
ration may subtract certain business expenses on the
Revenue Online. Revenue Online provides convenient, Oregon return that can’t be deducted on the federal
secure access to tools for managing your Oregon tax return due to IRC §280E. Federal law prohibits deduc-
account. With Revenue Online, you may: tions for certain business expenses if the business
involves the cultivation, manufacture, distribution, or
• View your tax account.
sale of certain controlled substances. Oregon law, how-
• Make payments.
ever, allows a subtraction for the same ordinary and
• View correspondence we sent you.
necessary expenses incurred for the business that are
• Check the status of your refund. allowed for other types of businesses operating in this
For more information and instructions on setting up your state. If the expense would have been allowed for fed eral
Revenue Online account, visit www.oregon.gov/dor. purposes, but the business falls within the Controlled
Substances Act (21 U.S.C. Sections 801 et seq.), a subtrac-
tion is allowed on your Oregon return.
What’s new
Note: Not all information in this section pertains to all Credits
taxpayers or form types. If applicable, refer to House Individual Development Account (IDA) donations
Bills (HB) or Senate Bills (SB) as shown. (ORS 315.271)
Visit www.oregon.gov/dor for possible updates to these For tax years beginning on or after January 1, 2022
instructions. and before January 1, 2028, this credit is allowed to be
claimed for the prior year if the donation is made not
General later than April 15 following December 31 of the tax year
for which the credit is claimed. This change is effective
Tie to federal tax law for tax years 2022 through 2027, for donations made prior
to April 15, 2028. See HB 2433 (2021).
In general, Oregon is tied to the federal definition of tax-
able income as of December 31, 2021; however, Oregon is Oregon affordable housing lender’s credit (ORS
still disconnected from: 317.097)
• Federal subsidies for prescription drug plans (IRC Oregon statute was amended to allow a financial insti-
§139A; ORS 317.401). tution to claim the tax credit by purchasing bonds if
• Deferral of certain deductions for tax years beginning the bond proceeds are used to finance the purchase of
on or after January 1, 2009 and before January 1, 2011 afford able housing. These amendments apply between
may require subsequent Oregon modifications (IRC January 1, 2022 and January 1, 2026. See HB 2433 (2021).
§168(k) and §179; ORS 317.301).
Expired credits
Pass-through Entity Elective (PTE-E) tax The following tax credits are no longer available, includ-
deducted on entity-level federal return ing carryforwards:
If your S corporation is a member of another PTE who • Biomass production/collection (ORS 315.141) ...code 838
elected to pay Oregon’s PTE-E tax and the PTE claimed a • Pollution control facilities (ORS 315.304) ...........code 857
deduction for PTE-E elective tax on their federal return, • Reforestation of underproductive forestlands
you must report an addition on Schedule OR-ASC-CORP (ORS 315.104) ..........................................................code 867
150-102-025-1 (Rev. 10-28-22) 2 2022 Form OR-20-S Instructions

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• Renewable Energy Development Fund contributions Payment due dates
(ORS 315.326) ..........................................................code 859
Estimated tax payments are due quarterly, as follows:
• Calendar year filers: April 15, June 15, September 15,
Looking ahead
and December 15.
• Fiscal year filers: The 15th day of the 4th, 6th, 9th, and
NOL carryback
12th months of your fiscal year.
SB 1524 (2022) allows taxpayers who use NAIC codes 111 • If the due date falls on a Saturday, Sunday, or legal
or 112 (referring to taxpayers engaged in crop produc- holiday, use the next regular business day.
tion, animal production or aquaculture) to claim a three-
year NOL carryback. The three-year NOL carryback first Payment options
applies in tax years beginning on or after January 1, 2023,
and before January 1, 2029, and any tax year to which the Important: For details about making payments with
NOL may be carried back. For example, a taxpayer with a your return, see “Filing checklist.”
loss in tax year 2023 may carry their loss to tax year 2020. Estimated payments may be made by electronic funds
transfer (EFT), online, or by mail.
Tax credits
EFT. You must make your Oregon estimated payments
HB 4002 (2022) creates a refundable tax credit for over- by EFT if you’re required to make your federal estimated
time paid to agricultural workers. The tax credit equals a payments by EFT. We may grant a waiver from EFT pay-
percentage of actual agricultural worker overtime costs ments if you’d be disadvantaged by the requirement
paid by the taxpayer. The exact amount of the percent- (ORS 314.518 and administrative supporting rules).
age depends on the year the overtime is paid, how many
agricultural workers the taxpayer employs, and the type If you don’t meet the federal requirements for manda-
of agriculture the taxpayer practices. The credit applies tory EFT payments, you may still make voluntary EFT
to tax years beginning on or after January 1, 2023, and payments.
before January 1, 2029, and taxpayers will apply for the You can make EFT payments through Revenue Online or
tax credit through the department. Note that this tax through your financial institution. To learn more about
credit can offset corporation minimum tax determined
Revenue Online or to make an EFT payment, visit www.
under ORS 317.090.
oregon.gov/dor. If you pay by EFT, don’t send Form
SB 1502 (2022) creates a non-refundable tax credit equal OR-20-V, Oregon Corporation Tax Payment Voucher.
to the stumpage value of timber (plus cost of appraisal
Mail. If paying by mail, send each payment with a
and cost of filing and recording a deed restriction, minus
Form OR-20-V, payment voucher, to: Oregon Department
costs of transportation to a mill) left standing on the land
of a small forestland owner. The amount of the tax credit of Revenue, PO Box 14950, Salem OR 97309-0950.
is certified by the Department of Forestry. The tax credit Include on your check:
applies to tax years beginning on or after January 1, 2023.
• Federal employer identification number (FEIN).
• Tax year beginning and ending dates.
Estimated tax payments • Contact phone.

Requirements Estimated tax payments’ worksheet
Oregon estimated tax payment requirements aren’t the (Keep for your records—don’t file with your payment.)
same as federal estimated tax payment requirements.
You must make estimated tax payments if you expect 1. Oregon net income expected in 1.
to owe tax of $500 or more. This includes Oregon mini- upcoming tax year.
mum tax. This requirement also applies if you’re an S 2. Tax on Oregon net income (see 2.
corporation paying tax on income from built-in gains or Appendix B).
excess net passive investment income. See ORS 314.505 to
3. Subtract tax credits allowable in 3.
314.525 and supporting administrative rules. upcoming tax year. Tax credits
If you don’t make estimated payments as required, you can’t be used to reduce the $150
may be subject to interest on underpayment of estimated minimum excise tax.
tax (UND). Refer to Form OR-37 if you have an under- 4. Net tax (line 2 minus line 3). 4.
payment of estimated tax.
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If the amount on line 4 is less corporation for federal income tax purposes, it will be
than $500, stop. You don’t have treated as an S corporation for Oregon tax purposes.
to make estimated tax payments. For Oregon tax purposes, S corporation income gener-
Caution: If your final tax ally is taxable to the shareholders rather than the corpo-
liability when you file your ration. However, S corporations do pay Oregon tax on
return is $500 or more, you may income from built-in gains or excess net passive income
be subject to UND. if such income is subject to tax on the federal corporation
5. Amount of each payment. 5. return.
(Divide line 4 by the number of
The income or loss of an S corporation is reported to
payments you need to make.
each shareholder on the federal form, Schedule K-1. See
This is usually 4.)
“Shareholder information” below.
If your expected net tax changes during the year, refig- Minimum tax requirements. All S corporations doing
ure your estimated tax payments using the Estimated tax business in Oregon must pay the $150 minimum excise
payments’ worksheet. tax. The minimum tax isn’t passed through to the share-
holders, but is payable by the S corporation.
To avoid additional charges for UND, you must pay the
amount of any prior underpayment plus the amount of
the current required payment. Excise or income tax?
Example: During the year, Corporation A’s expected net Oregon has two types of corporate taxes: excise and
tax increased from $2,000 to $6,000. Corporation A made income. Excise tax is the most common. Most corpora-
tions don’t qualify for Oregon’s income tax.
timely first and second quarter estimated payments of
$500 before its expected net tax increased. Excise tax requirements. Excise tax is a tax for the privi-
lege of doing business in Oregon. It’s measured by net
Corporation A should make four payments of $1,500 each
income. S corporations doing business in Oregon must
during the year. Because of its increased net tax, Corpo-
file a Form OR-20-S to report and pay the $150 minimum
ration A will be subject to UND charges for the first and
excise tax. If the S corporation has an Oregon address,
second quarters. To avoid UND charges for the third and
generally the S corporation will file an Oregon S Corpora-
fourth quarters, Corporation A must make timely pay-
tion Tax Return and pay excise tax.
ments of $3,500* for the third quarter and $1,500 for the
fourth quarter. “Doing business” means carrying on or being engaged
in any profit-seeking activity in Oregon not protected
*$1,000 for the first-quarter underpayment, plus $1,000
by Public Law 86-272. A taxpayer having one or more of
for the second-quarter underpayment, plus $1,500 for the the following in this state is doing business in Oregon:
required third-quarter installment equals $3,500.
• A stock of goods.
• An office.
Filing information • A place of business (other than an office) where affairs
of the corporation are regularly conducted.
Who must file with Oregon? • Employees or representatives with activities of which
S corporations doing business in Oregon or receiv- go beyond the mere solicitation of orders for sales of
ing income from Oregon sources are required to file tangible personal property.
Form OR-20-S, Oregon S Corporation Tax Return, under • An economic presence through which the taxpayer
the excise or income tax provisions in ORS Chapters regularly takes advantage of Oregon’s economy to pro-
317 and 318. S corporation tax statutes and rules are in duce income.
Chapter 314 of the Oregon Revised Statutes and Oregon Income tax requirements. S corporations may still be
Administrative Rules (ORS 314.730 to 314.784). subject to the Oregon corporation income tax if they
Exemption for emergency service providers. An out- have income from an Oregon source. S corporations that
of-state emergency service provider is exempt from tax derive income from sources within Oregon but whose
when operating solely for the purposes of performing income producing activity doesn’t actually constitute
disaster or emergency-related work on critical infrastruc- doing business must file Form OR-20-S under the income
tax provisions in ORS Chapter 318.
ture. Disaster or emergency-related work conducted by
an out-of-state business may not be used as the sole basis Income is from an Oregon source if it’s derived from:
for determining that a corporation is doing business in
• Tangible or intangible property located or used in Oregon;
Oregon.
• Any activity carried on in Oregon, whether intrastate,
Note: Oregon follows the federal entity classification interstate, or foreign commerce that doesn’t otherwise
regulations. If an entity is classified or taxed as an S constitute doing business in Oregon.
150-102-025-1 (Rev. 10-28-22) 4 2022 Form OR-20-S Instructions

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There is no minimum tax for a corporate income tax filer.      meets another exception listed in ORS 314.775 and sup-
                                                               porting administrative rules.
Corporations with no business activity in Oregon or 
without income from Oregon sources, even if registered         Each quarter, the S corporation will complete a 
to do business in the state, aren’t subject to the excise,     Form  OR-19-V,  Tax for Nonresident Owners Payment 
income, or minimum tax and aren’t required to file a           Voucher.  Send  in  any  required  payments  with  a  com-
return.                                                        pleted Form OR-19-V. At the end of the year, complete 
                                                               Form OR-19 to show how much of each quarterly pay-
Important: Don’t file a Form OR-20-S unless you’re 
                                                               ment belongs to each nonresident shareholder. 
required to do so. Filing an unnecessary return may 
result in a billing for minimum tax.
                                                               E-file
Shareholder information                                        If you’re required to e-file with the IRS, you’re also 
                                                               required to e-file for Oregon. We accept calendar year, 
Shareholders who meet Oregon filing requirements 
                                                               fiscal year, short year, and amended electronic corpora-
must file an Oregon tax return. Refer to the appropriate 
                                                               tion tax returns utilizing the IRS Modernized e-file plat-
Oregon tax returns and instructions for an explanation 
                                                               form (MeF). Beginning January 2023, we’ll accept e-filed 
of those requirements, based on shareholder classifica-
                                                               returns for tax year 2022, and will continue accepting 
tion (individual, corporation, trust, or estate).
                                                               returns for 2021 and 2020. 
Resident shareholders are taxed on their pro rata share 
                                                               Your tax return software also allows you to make elec-
of S corporation income, loss, and deductions from the 
                                                               tronic payments when e-filing your original return.
federal K-1s. Those amounts are modified by Oregon 
additions and subtractions.                                    Note: Your paper return may be rejected if you’re 
                                                               required to electronically file your Oregon corporation 
Nonresident shareholders are taxed on their share of 
                                                               tax return, unless a waiver request has been approved by 
business income from the federal K-1s, multiplied by the 
                                                               us prior to the filing of the paper return.
S corporation’s apportionment percentage from Schedule 
OR-AP, part 1,  Apportionment of Income for Corporations       If you’d like to request a waiver, send an email with 
and Partnerships (ORS 314.734). Nonresident shareholders       the FEIN, tax year, and reason you’re unable to e-file to   
are also taxed on their share of nonbusiness income from       bus.electronicfiling@ dor.oregon.gov, prior to  paper-fil-
Oregon sources.                                                ing your return.
Each individual shareholder of an S corporation may            For a list of software vendors or for more information, 
claim their pro rata share of the corporation’s business       search “e-filing” at  www.oregon.gov/dor.
tax credits unless the shareholder is included on a com-
posite return (ORS 314.752 and supporting administra-          Federal or other state audit changes
tive rules). The credit is allowable for the tax year of the 
individual in which the S corporation’s tax year ends.         If the IRS or other taxing authority changes or corrects 
                                                               your federal or other state return for any tax year, you 
                                                               must notify us. File an amended Oregon return and 
Composite returns
                                                               include a copy of the federal or other state audit report. 
Pass-through entities with distributive income attribut-       Mail this separately from your current year’s return.
able to Oregon sources must file a composite return on 
                                                               If you don’t amend or send a copy of the federal or other 
behalf of its nonresident owners who elect to participate 
                                                               state report, we have two years from the date we’re noti-
in the composite filing. A nonresident owner is an indi-
                                                               fied of the change by the IRS to issue a deficiency notice. 
vidual who isn’t a resident of Oregon, a business entity 
                                                               To receive a refund, you must file a claim for refund of 
that  has a  commercial domicile  outside  of  Oregon, a 
                                                               tax within two years of the date of the federal or other 
nonresident trust, or a qualified funeral trust. The pass-
                                                               state report.
through entity reports the nonresident owners’ share of 
Oregon-source distributive income on one tax return, 
Form OR-OC, Oregon Composite Return.                           Amended returns
                                                               Oregon doesn’t have an amended return form for corpo-
Withholding requirement                                        rations. Use the form for the tax year you’re amending 
                                                               and check the amended box.   Always use your current 
An S corporation with one or more nonresident owners 
                                                               address. If your address has changed, don’t use your old 
who have no other Oregon source income is required to 
                                                               address or our system will revert your current address 
withhold tax on the owner’s distributive share of S cor-
                                                               to the old address.
poration income. The requirement is waived if the owner 
makes an election to join in the filing of a composite         Fill in all amounts on your amended return, even if 
return, sends us a signed Form OR-19-AF, 150-101-175, or       they’re the same as originally filed. If you’re amending 
150-102-025-1 (Rev. 10-28-22)                                5                              2022 Form OR-20-S Instructions

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to change additions, subtractions, or credits, include            only. Example: $4,681.55 becomes $4,682; and $8,775.22 
detail of all items and amounts, including carryovers.            becomes $8,775.
If you change taxable income by filing an original or             • Due date of your return. Returns are due by the 15th 
amended federal or other state return, you must file an           day of the month following the due date of your fed-
amended Oregon return within    90 days of when the               eral corporation return. When the 15th falls on a Sat-
original or amended federal or other state return is filed        urday, Sunday, or legal holiday, the due date is the next 
(ORS 314.380). Include a copy of your original or amended         business day. 
federal or other state return with your amended Oregon 
                                                                  • Extensions. See the instructions below for the exten-
return and explain the changes. 
                                                                  sion checkbox. When you file, include the extension as 
If you filed Form OR-20-S and later determined you                the final page of your return.
should file Form OR-20, amend your return using Form 
                                                                  • Payments.
OR-20 and check the amended box. 
                                                                    Payments received after the original due date will 
You may make payments online for your amended                     °
                                                                   be applied first to penalty, then to interest, and 
return at  www.oregon.gov/dor.
                                                                   then to tax [ORS 305.265(13)].
Don’t  make payments  for amended returns with EFT.               °  Estimated payments and prepayments. Identify all 
This also applies to e-filed amended returns. For paper            estimated payments claimed by completing Sched-
returns, you may pay online or include a check or money            ule ES on your return. List all payments that were 
order with your return. For e-filed returns, you may pay           submitted prior to filing your return. Include the 
online or send a check or money order separately. If you           corporation name and FEIN if a payment was made 
mail your payment separate from your return, write                 by an affiliate of the filing corporation.
“Amended”  on  the  payment  and  include  a  completed           °  Online payments. You may pay online for any 
Form OR-20-V with the amended box checked.                         return at  www.oregon.gov/dor. Search “payments.”
Don’t amend your Oregon return if you amend the fed-              °  Making electronic payments with your e-filed 
eral return to carry a net operating loss back to prior            return. We accept electronic payments when e-filing 
years. Oregon allows corporations to carry net operat-             your original return. 
ing losses forward only.                                          °  Making check or money order payments with your 
                                                                   paper return. Make your check or money order pay-
On the estimated tax payments   line on your amended               able to Oregon Department of Revenue. Write the 
Form OR-20-S, enter the net excise tax per the original            following on your check or money order:
return or as previously adjusted. Don’t include any pen-           — Filer FEIN.
alty or interest portions of payments already made.                — Tax year beginning and ending dates.
If paying additional tax with your amended return, you             — Contact phone.
must include interest with your payment. Interest is fig-         °  To speed up processing of your return:
ured from the day after the due date of your original              — Don’t use Form OR-20-V payment voucher.
return up to the day we receive your full payment. See             — Don’t staple payment to the return.
“Interest rates.”                                                  — Don’t send cash or postdated checks.
                                                                   — Don’t use red or purple or any gel ink.
Pay all tax and interest due when you file your amended 
return or within 30 days after receiving a billing notice         • Assembling your return. Assemble your Oregon 
from us to avoid being charged a 5 percent late payment           return forms in the following order: 
penalty.                                                          1.  Form OR-20-S, Oregon S Corporation Income Tax 
                                                                   Return;
Protective claims                                                 2.  Schedule OR-AP, Apportionment of Income for Corpo-
                                                                   rations and Partnerships;
Don’t file an amended return as a protective claim. Use 
                                                                  3.  Schedule OR-PI, Schedule of Partnership Information;
Oregon Form OR-PCR,            Protective Claim for Refund, 150-
                                                                  4.  Schedule OR-ASC-CORP, Oregon Adjustments;
101-184, when your claim to a refund is contingent on 
                                                                  5.  Form OR-37, Underpayment of Oregon Corporation 
a pending court decision or legislative action. Notify us 
                                                                   Estimated Tax;
within 90 days of the final determination by filing an            6.  Form OR-24, Like-Kind Exchanges/Involuntary 
amended return. Don’t file an amended return before                Conversions;
the pending action is final.                                      7.  Schedule OR-FCG-20,   Farm Liquidation Long-Term 
                                                                   Capital Gain Tax Adjustment;
Filing checklist                                                  8.  Other Oregon statements;
                                                                  9.  Oregon credit forms including notice of credit 
Rounding to whole dollars.     Enter amounts on the                transfers;
return and accompanying schedules as whole dollars                10. Copy of federal tax return and schedules; 
150-102-025-1 (Rev. 10-28-22)                                   6                                2022 Form OR-20-S Instructions

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11. Federal Schedule K-1s, if less than 11 shareholders For an “Oregon only” extension: Answer question 1 on
during the year, or K-1 Summary (see below); and federal extension Form 7004, write “For Oregon Only”
12. Form 7004, Federal extension. at the top of the form, and include it with your Oregon
return when you file. Check the extension checkbox on
• K-1 Summary. If you had more than 10 shareholders,
the Oregon return.
include a summary of shareholder information. Your
summary must include each shareholder’s name, SSN The Oregon extension due date is the 15th day of the
or FEIN, address, profit/loss sharing percentage, and month following what would be the federal exten sion’s
Oregon modifications and credits. We prefer summa- due date. Don’t send the extension until you file your
ries and K-1s on CD or a USB flash drive. Label it with Oregon return.
the entity’s FEIN, name, and tax year. If the CD or flash More time to file doesn’t mean more time to pay your
drive is password protected, mail the password sepa- tax. To avoid penalty and interest, pay your tax due
rately. Include the S corporation name and identifica- online, or by mail with Form OR-20-V, by the original
tion number with the password. due date of your return. Note: Filing Form OR-20-V
isn’t an extension of time to file your tax return.
Mailing Addresses If you’re making an extension payment by mail, send
the payment to: Oregon Department of Revenue, PO
Tax-due returns, with or without payment, mail to: Box 14950, Salem OR 97309-0950.
Oregon Department of Revenue
PO Box 14790 Include on your check:
Salem OR 97309-0470 ° FEIN.
(Do NOT include a payment voucher.) ° “Extension.”
° Tax year beginning and ending dates.
Refunds or no tax-due returns, mail to:
° Contact phone.
Oregon Department of Revenue
PO Box 14777 • Form OR-37 checkbox. If you have an underpayment,
Salem OR 97309-0960 you must include a completed Form OR-37. Check the
Form OR-37 box in the header of your return.
Check or money order payments only, mail to:
Oregon Department of Revenue Use Form OR-37 to:
PO Box 14950 ° Calculate the amount of underpayment of estimated
Salem OR 97309-0950 tax;
(Include Form OR-20-V payment voucher.) ° Compute the amount of interest you owe on the
underpayment; or
Form instructions ° Show you meet an exception to the payment of
interest.
Heading and checkboxes • REIT/RIC checkbox. If you participated in a REIT or
• Excise or income tax checkbox. Oregon has two types RIC, you must check the appropriate box in the header
of corporate taxes: excise and income. Excise tax is the area of the Oregon tax return.
most common. Most corporations don’t qualify for • Amended checkbox. Check the amended box if this is
Oregon’s income tax. See “Excise or income tax.” an amended return.
Do you pay an excise tax or income tax to Oregon? One
• Form OR-24 checkbox. Corporations may defer,
box must be checked:
for Oregon tax purposes, all gains realized in the
° Excise tax if you do business in Oregon. exchange of like-kind property and involuntary con-
° Income tax if you don’t do business in Oregon, but versions under IRC §1031 or §1033, even though the
you have taxable income from an Oregon source. replacement property is outside Oregon. Oregon will
• OR-FCG-20 checkbox. A reduced tax rate is available tax the deferred gain when it’s included in federal tax-
if you sold or exchanged capital assets used in farm- able income.
ing. Complete Schedule OR-FCG-20 and check the box Include a copy of your Oregon Form OR-24, Like-Kind
in the header of the form. Exchanges/Involuntary Conversions, 150-800-734, with
• Extension checkbox. For an Oregon extension when your Oregon return and check the Form OR-24 box if
you’re also filing for a federal extension: Send a copy all of the following apply:
of the federal extension with the Oregon return when ° The corporation reported deferred gain on a federal
you file. Check the extension box on your Oregon Form 8824;
return and include a copy of the extension after all ° All or part of the property exchanged or given up
other enclosures. was located in Oregon; and
150-102-025-1 (Rev. 10-28-22) 7 2022 Form OR-20-S Instructions

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  ° All or part of the acquired property was located out-       Questions
side of Oregon.
                                                                Questions A–C. Complete only if this is your first return 
  For a more detailed explanation, see ORS 314.650 and 
                                                                or the answer changed during the tax year.
314.665 and supporting administrative rules regarding 
apportionment of deferred gain.                                 Question D. Refer to the current list of North American 
• Federal Form 8886 checkbox and reportable transac-            Industry Classification System (NAICS) codes found 
tions. If you’re required to report listed or reportable        with your federal tax return instructions. Only enter the 
transactions to the IRS on federal Form 8886, you must          code if this is your first return, the current code is dif-
check this box. We’ll assess penalties if you don’t com-        ferent than you reported last year, or your code begins 
ply with this requirement.
                                                                with “111” or “112”.
• Global intangible low-taxed income (GILTI) included 
                                                                Question G. If this is the corporation’s first return, check 
on federal return. If you included GILTI on your federal 
return, check this box.                                         the box and provide all information as requested. If the 
                                                                corporation is a successor to a previously existing busi-
• Accounting period change checkbox (Excise tax 
                                                                ness in Oregon, check the box and provide all information 
return filers only.) Check this box only if both of the 
following apply:                                                as requested. You would only check one of the boxes.

  ° The excise tax return covers a period of less than 12       Question H. Final returns: A final tax return is required 
months, and                                                     when a corporation has ceased to exist, withdrawn from 
  ° The short-period return is due to a qualified change        doing business in Oregon, dissolved, merged, or reorga-
in accounting period per IRC §441 to §444.                      nized. Check the box and provide requested information.
  Note: A short-period return doesn’t automatically con-
                                                                Question I. Utility or telecommunications companies. 
stitute a qualified change in accounting period. A tax-
payer that isn’t in existence for the entire year shouldn’t     Taxpayers primarily engaged in utilities or telecom-
check this box. This includes subsidiaries that join or         munications may elect to apportion income using a 
leave a consolidated filing group and newly formed or           double-weighted sales factor formula (ORS 314.280 and 
dissolved corporations.                                         supporting administrative rules). Check the box if mak-
  If you file a short-period return due to a qualified          ing this election.
change in accounting period and you’re subject to the 
                                                                Question J. Enter  ordinary business income or loss 
minimum tax, apportion the $150 minimum tax by 
multi plying the $150 minimum tax by the total num-             from federal Form 1120-S, line 21.

ber of months in the short period and dividing it by 12.        Question K. Total Oregon sales. 
• Alternative apportionment checkbox. See Appendix 
                                                                • Apportioned returns. Enter the amount of Oregon 
C for complete information. Check this box if you have 
                                                                 sales from Schedule OR-AP, line 22(a).
included a request with your return.
Name. Enter your company name as listed on your busi-           • Nonapportioned returns. Enter the amount of sales 
ness  registration  with  the  Oregon  Secretary  of  State’s    as defined by ORS 314.665. Generally, S corporations 
office.                                                          doing business only within Oregon will calculate Ore-
• Legal  name.  Enter  the  corporation’s  current legal         gon sales by adding:

name as set forth in the articles of incorporation or              ° Gross receipts from sales of inventory (less returns 
other legal document. 
                                                                   and allowances), equipment, and other assets;
• FEIN. Enter the FEIN of the corporation named as the 
                                                                   ° Gross rent and lease payments received; and
filer on the consolidated Oregon return.
                                                                   ° Gross receipts from the performance of services.
• DBA/ABN. If the corporation is doing business under 
                                                                 Note: (This is a non-exclusive list.)
a different name, for example, DBA or ABN, enter that 
name.
• Current address. Always enter the corporation’s cur-           Line instructions
rent address. If the address for the year you’re filing 
was different, don’t use the old address or our system          Do not complete lines 1–5 unless you have taxable 
will revert your current address to the old address.            income and tax on federal Form 1120-S.
150-102-025-1 (Rev. 10-28-22)                                 8                                   2022 Form OR-20-S Instructions

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IRS (or you’re an owner of a tiered partner of such a
S corporations without built-in gains or excess net partnership), you may have to increase or decrease
passive income: your Oregon income as a result of the audit. Report an
• Skip lines 1 through 5, increase in income using addition code 187 or report a
• Enter your apportionment percentage on line 6, decrease in income using subtraction code 384, which-
• Enter 0 taxable income on line 7, ever is applicable. Use these codes even if another
• Enter 0 calculated tax on line 8, code is assigned for the specific type of increased or
• Enter 0 total calculated tax on line 10, decreased income (ORS 314.733). Visit our website for
• Then skip to line 11, “Minimum tax” (see more information.
instructions).
• Deferred gain recognized from out-of-state disposi-
tion of property acquired in an IRC §1031 or §1033
Line 1. Income taxed on federal Form 1120-S. exchange. See ORS 317.327 regarding the computation
S corporations with built-in gains or excess net passive of the addition if gain or loss is recognized for federal
income: Taxable income. tax purposes but not taken into account in the compu-
tation of Oregon taxable income.
Line 1(a). Enter the amount from federal Form 1120-S,
Schedule D, Part III, line 18. If the amount is negative, • Depreciation differences. If your Oregon deprecia-
enter 0. tion isn’t the same as your federal depreciation, the
difference is a required modification to your Oregon
Line 1(b). Enter the amount from federal Form 1120-S, return (ORS 317.301). Use Schedule OR-DEPR to deter-
“Worksheet for line 22a.” mine the Oregon modification.
Line 1(c). Enter total of lines 1(a) and 1(b). • Gain or loss on the disposition of depreciable prop-
erty. Add the difference in gain or loss on sale of busi-
Additions ness assets when your Oregon basis is less than your
Important: Additions for S corporations with federal federal basis (ORS 317.356).
taxable income or LIFO benefit recapture only. S cor- • Income from sources outside the United States.
porations without built-in gains or excess net passive Add income from sources outside the United States,
income, start on line 6. as defined in IRC §862, not included in federal taxable
Line 2. Total additions from Schedule OR-ASC-CORP, income under IRC §§861 to 864 (ORS 317.625).
Section A .The amount by which any item of income is
• Interest income excluded from the federal return.
greater under Oregon law than under federal law, or the
Oregon gross income includes interest on all state
amount by which any allowable deduction is less under
and municipal bonds or other interest excluded for
Oregon law than under federal law, is an addition on
federal tax purposes. Reduce the addition by any
your Oregon return. Enter only additions that apply to
interest incurred to carry the obligations and by any
taxable income included in line 1c.
expenses incurred in producing this interest income
Use Schedule OR-ASC-CORP, Section A, to report the (ORS 317.309).
amount and description code of each addition. Use the
• Oregon excise tax and other state or foreign taxes
description code from the list in Appendix A. The total
of all additions is entered on Form OR-20-S, line 2. on or measured by net income. Oregon excise tax
may not be deducted on the Oregon return. Taxes of
Additions include: other states or foreign governments on or measured
• Charitable donations not allowed for Oregon. Dona- by net income or profits may not be deducted on the
tions to a charitable organization that has received a Oregon return. If you subtracted these taxes on your
disqualifying order from the Attorney General aren’t federal return, you must add them back on your Ore-
deductible as charitable donations for Oregon tax pur- gon return. However, the Oregon minimum tax and
poses. Such organizations are required to provide a local taxes, such as the Multnomah County Business
disclosure to a donor to acknowledge this. The Attor- Income tax, are deductible, and aren’t required to be
ney General will publish and otherwise make pub- added back (ORS 317.314).
licly available information identifying the charitable • Pass-through Entity Elective (PTE-E) tax deducted
organizations receiving a disqualification order. If you on entity-level federal return. If your S corporation is
claimed a federal deduction, an addition must be made a member of another PTE who elected to pay Oregon’s
on your Oregon return for donations to such charitable
PTE-E tax and the PTE claimed a deduction for PTE-E
organizations (ORS 317.491).
tax on their federal return, you must report an addition
• CPAR addition. If you’re an owner of a partnership on Schedule OR-ASC-CORP. See Form OR-21 Instruc-
that was subject to a partnership-level audit by the tions or Publication OR-17 for additional information.
150-102-025-1 (Rev. 10-28-22) 9 2022 Form OR-20-S Instructions

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Subtractions IRC §862, not included in federal taxable income under
IRC §§861 to 864 (ORS 317.625).
Important: Subtractions for S corporations with federal
taxable income or LIFO benefit recapture only. S corpo- • Manufactured dwelling park tenant payments made
rations without federal taxable income, start on line 6. under ORS 90.505 to 90.840 to compensate a tenant for
costs incurred due to the closure of the park may be
Line 3. Total subtractions from Schedule OR-ASC-CORP, subtracted (ORS 317.092).
Section B. The amount by which an item of income is less
under Oregon law than federal law, or the amount by • Marijuana business expenses. ORS 317.363 allows
which an allowable deduc tion is greater under Oregon Oregon taxpayers filing a corporate excise or income
law than federal law, is a subtraction on your Oregon tax return to deduct business expenses otherwise
return. Enter only subtractions that apply to taxable barred by IRC §280E if the taxpayer is engaged in mar-
income included in line 1c. ijuana-related activities authorized by ORS 475C.005 to
475C.525, or ORS 475C.700 to 475C.919.
Use Schedule OR-ASC-CORP, Section B, to report the
amount and description code of each subtraction. Use • Psilocybin business expenses. ORS 317.363 allows
the description code from the list in Appendix A. The Oregon corporation excise and income tax filers to
total of all subtractions is entered on Form OR-20-S, line 3. subtract certain business expenses otherwise barred
by IRC §280E if the corporation is engaged in psilo-
Subtractions include: cybin-related activities authorized by ORS 475A.210 to
• CPAR subtraction. If you’re an owner of a partner- 475A.722, the Oregon Psilocybin Services Act. Use sub-
ship that was subject to a partnership-level audit by traction code 385 on Schedule OR-ASC-CORP.
the IRS (or you’re an owner of a tiered partner of such • Sale of manufactured dwelling park. The net gain
a partnership), you may have to increase or decrease attributable to the sale of a manufactured dwelling
your Oregon income as a result of the audit. Report an park to a tenant’s association, facility purchase asso-
increase in income using addition code 187 or report a ciation, or tenant’s association supported nonprofit
decrease in income using subtraction code 384, which- organization is exempt from tax (Note following
ever is applicable. Use these codes even if another ORS 317.401).
code is assigned for the specific type of increased or
decreased income (ORS 314.733). Visit our website for • State of Oregon interest income included on line 1
more information. (income filers only). Interest income from obligation
of the state of Oregon isn’t taxable if the obligation was
• Deferred gain recognized from out-of-state disposi- issued after May 24, 1961. Reduce the subtraction by
tion of property acquired in an IRC §1031 or §1033 any expenses incurred to produce this interest income.
exchange. See ORS 317.327 regarding the computa-
tion of the subtraction if gain or loss is recognized for Line 4. S corporation income before net loss deduction
federal tax purposes but not taken into account in the (line 1 plus line 2, minus line 3).
computation of Oregon taxable income. Line 5. Net loss deduction.
• Depreciation differences. If your Oregon deprecia- • Use line 5only for Oregon net loss carried over from a
tion isn’t the same as your federal depreciation, the year the S corporation was a C corporation. Enter as a
difference is a required modification to your Oregon positive number.
return (ORS 317.301). Use Schedule OR-DEPR to deter- • Include a schedule showing your computations.
mine the Oregon modification. • Net losses are allowed as a deduction against built-in
• Film production labor rebate. Subtract the amount gain income only.
• The Oregon deduction is the sum of unused net losses
received as a labor rebate that’s included in federal tax-
assigned to Oregon for preceding taxable years.
able income (ORS 317.394).
• A net operating loss carryforward is required to be
• Gain or loss on the sale of depreciable property. The reduced by the entire Oregon taxable income of inter-
difference in gain or loss on the sale of business assets vening tax years [ORS 317.476(4)(b)].
when your Oregon basis is greater than your federal • Net losses can be carried forward up to 15 years to off-
basis (ORS 317.356 and OAR 150-317-0420). set built-in gain income (ORS 314.740).
• Oregon doesn’t allow net losses to be carried back.
• Interest on obligations of the U.S. and its instrumen-
talities included in Form OR-20-S, line 1. This applies Line 6. Apportionment percentage. Enter the appor-
to income tax filers only. Reduce the subtrac tion tionment percentage from Schedule OR-AP, part 1, line
by any expenses incurred to produce this inter est 23. If you have income only in Oregon and don’t appor-
income. tion, enter 100.0000.
• Losses from outside the United States. Subtract losses Line 7. Oregon taxable income (line 4 minus line 5, or
from sources outside the United States, as defined in from Schedule OR-AP, part 2, line 12). Complete this
150-102-025-1 (Rev. 10-28-22) 10 2022 Form OR-20-S Instructions

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line only if you are an S corporation with federal tax- • No credits are allowed to offset the tax on excess net
able income, built-in gains, or excess net passive income. passive income or minimum tax, unless specified by
Most S corporations enter zero. statute. Credit carryforwards are only allowed to off-
set the tax on built-in gains [ORS 314.740(5)(b)].
Tax • List credits and codes on the OR-ASC-CORP in the
order you want them used.
Line 8. Calculated tax. Don’t enter minimum tax on
this line. Line 15. Total carryforward credits from Schedule OR-
ASC-CORP, Section D. Use Schedule OR-ASC-CORP to
All S corporations without federal taxable income, built-
report the amount and description of credits. Use the
in gains, or excess net passive income enter 0 on lines 8
description code from the list in Appendix A. The total
through 10 and go to line 11. S corporations with fed-
eral taxable income, built-in gains, or excess net passive of all credits is entered on Form OR-20-S, line 15. These
income must determine and enter the calculated tax as credits can apply to tax on recognized built-in gains only.
follows: Line 16. Tax after carryforward credits (line 14 minus
• Is Oregon taxable income $1 million or less? If so, mul- line 15).
tiply Oregon taxable income by 6.6 percent and enter Line 17. LIFO benefit recapture addition. Oregon has
the result. Enter 0 if the result is negative or zero. adopted the provisions of IRC §1363(d) for S corpora-
• Is Oregon taxable income greater than $1 million? If so, tions. LIFO benefits are included in taxable income for
multiply the amount that’s greater than $1 million by the last year of the C corporation under these provisions.
7.6 percent, and add $66,000. Enter the result. On the LIFO benefits line of each of the first three returns
Line 9. Schedule OR-FCG-20 adjustment. A reduced tax of the new S corporation, add one-third of the tax that
rate is available if you sold or exchanged capital assets was deferred from the last year of the C corporation. The
used in farming. Subtract the amount of adjustment for tax on LIFO benefit recapture is in addition to all other
tax on net long-term capital gain from farm property taxes, including the Oregon corporate minimum tax for
from line 9 of Schedule OR-FCG-20 (ORS 317.063). excise tax filers. Include the computation schedule with
the Oregon return (ORS 314.771).
Line 10. Total calculated tax (line 8 minus line 9).

Net tax
Line 11. Minimum tax.
Line 18. Net tax (enter line 16 plus line 17).
Excise tax filers. S corporations doing business in
Oregon enter $150 minimum tax.
Payments, penalty, interest, and UND
Reminder: The minimum tax isn’t apportionable
for a short tax year (except a change of accounting Line 19. Estimated tax and prepayments.
period). Estimated tax paid for the tax year. Fill in the total esti-
Income tax filers. S corporations not doing business mated tax payments made before filing your Oregon
in Oregon, but with Oregon-source income don’t pay return.
minimum tax. Enter 0 for minimum tax. Schedule ES—Estimated payments or other prepay-
ments. Fill in the total estimated tax payments and any
Line 12. Tax (greater of line 10 or line 11). Oregon tax is payments made with Form OR-20-V. Also include any
the greater of total calculated tax or minimum tax. refunds applied from other years on line 5. List name
Line 13. Tax adjustment for installment sales interest. and FEIN of the payer only if different from the corpora-
If you owe interest on deferred tax liabilities with respect tion filing this return. On line 6, enter payments made
to installment obligations under ORS 314.302, enter the with your extension or other prepayments.
amount of interest. Include a schedule showing how you
Total. On line 7, enter the total of lines 1 through 6, then
computed the interest.
carry total to Form OR-20-S, line 19.
Line 14. Tax before credits (line 12 plus line 13).
Line 20. Tax due. Is line 18 more than line 19? If so, line
18 minus line 19.
Credits
Line 21. Overpayment. Is line 18 less than line 19? If so,
For a list and description of Oregon corporation cred its, line 19 minus line 18.
visit www.oregon.gov/dor.
Line 22. Penalty due with this return. To avoid penalty
Important:
and interest, you must make any tax payment owed by
• Only credits carried forward from C corporation years the original due date of the tax return, excluding exten-
are allowed on the S corporation return. sions. You must also e-file or mail your tax return by the
150-102-025-1 (Rev. 10-28-22) 11 2022 Form OR-20-S Instructions

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original due date, or by the extended due date if you file            For periods 
with a valid extension.                                                    beginning    Annually       Daily
Enter the following penalties on your return if they                 January 1, 2023    6%             0.0164%
apply.                                                               January 1, 2022    4%             0.0110%
                                                                     January 1, 2021    4%             0.0110%
• 5 percent failure-to-pay penalty.   Include a penalty 
 payment of 5 percent of your unpaid tax if you don’t          Interest accrues on any unpaid tax during an extension 
 pay by the original due date, even if you have an exten-      of time to file.
 sion of time to file. 
                                                               Interest will increase by one-third of 1 percent per month 
  Exception: You won’t be charged the 5 percent fail-          (4 percent yearly) on delinquencies if:
 ure-to-pay penalty  if  you  meet  all  of  the  following 
 requirements:                                                 • You file a return showing tax due, or we assessed an 
                                                               existing deficiency; and
   ° You have a valid federal or Oregon extension, and 
                                                               • The assessment isn’t paid within 60 days after the 
   ° You pay at least 90 percent of your tax after credits 
                                                               notice of assessment is issued; and
 by the original due date of the return, and
                                                               • You haven’t filed a timely appeal with us.
   ° You file your return within the extension period, and
   ° You pay the balance of tax due when you file your         Line 24. Interest on underpayment of estimated tax 
 return, and                                                   (UND). You  must make quarterly estimated tax  pay-
   ° You pay the interest on the balance of tax due when       ments  if  you  expect to owe  $500  or  more  in  tax.  This 
 you file your return or within 30 days of the date of         includes Oregon minimum tax. Oregon charges UND 
 the bill you receive from us.                                 interest if:
  If you filed with a valid extension but didn’t pay           • The quarterly payment is less than the amount due for 
 90 percent of your tax liability by the original due date, 
                                                               that quarter; or
 you’ll be charged the 5 percent failure-to-pay penalty.
                                                               • We receive the quarterly payment after that quarter’s 
• 20 percent failure-to-file penalty. Include a penalty        due date; or
 payment of 20 percent of your unpaid tax if you don’t         • No quarterly payments are made during the year and 
 file your return within three months after the due date       the final tax liability is $500 or more.
 (including extensions). The failure-to-file penalty is in 
 addition to the 5 percent failure-to-pay penalty.             Use Form OR-37 to:
• 100 percent late pay and late filing penalty.  Include       • Calculate the amount of underpayment of estimated 
 a penalty payment of 100 percent of your unpaid tax           tax;
 if you don’t file returns for three consecutive years by      • Compute the interest you owe on the underpayment; 
 the original or extended return filing due date of the        or
 third year. A 100 percent penalty is assessed on each         • Show you meet an exception to the payment of interest.
 year’s tax balance.
                                                               If you have an underpayment of estimated tax, include 
Line 23. Interest due with this return. You must pay           Form OR-37 with your tax return, check the box on page 
interest on unpaid taxes if:                                   1 of Form OR-20-S, and file them before the due date of 
• You don’t pay the tax balance by the original filing due     the return.
 date, excluding extensions;                                   If your current year corporation tax liability, including 
• You file an amended return and have tax to pay; or           the minimum tax, is less than $500, you’re not required 
• Your taxable income is changed because of a federal or       to make estimated payments. Don’t complete this form. 
 state audit and you owe more tax.
                                                               However, this provision doesn’t apply to a high-income 
Interest owed on tax starts the day after the due date of      taxpayer. A “high-income taxpayer” is one that had fed-
your original return, excluding extensions, and ends on        eral taxable income before net operating loss and capital 
the date of your payment. Interest is computed daily.          loss carryovers and carrybacks of $1 million or more in 
Even if you have an extension to file, you’ll owe interest     any one of the last three years, not including the current 
if you pay after the return’s original due date.               year. Note:  This  may  result  in  the overpayment  being 
                                                               applied to your second estimated tax installment. See 
To calculate interest:                                         ORS 314.515.
       Tax × Daily interest rate × Number of days.
                                                               Line 25. Total penalty and interest     (add lines 22 
Interest rates and effective dates:                            through 24).
150-102-025-1 (Rev. 10-28-22)                               12                             2022 Form OR-20-S Instructions

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Total due or refund • Gain from involuntary conversion. An S corporation
shall make the election to defer gain from the involun-
Line 26. Total due (line 20 plus line 25). See “Filing tary conversion of its owned property.
checklist” for payment options. Don’t include a Form • Depletion in excess of basis.
OR-20-V, payment voucher, with your payment if you’re • High-yield discount obligation interest.
including a payment with your return.
• PTE-E tax addition: Oregon state taxes deducted on
Note: Any payments received after the original due date the federal income tax return.
will be applied first to penalty, then to interest, and then
to tax [ORS 305.265(13)]. For more information see Form OR-21-MD and instruc-
tions, “Addition for tax deducted at federal level.”
Special instructions. If you owe penalty or interest and Taxes paid by the electing PTE to the State of Oregon
have an overpayment on line 21, and your overpayment that are deducted on a federal return filed by the entity
is less than total penalty and interest, then fill in the must be added to Oregon income. Individual members
result of line 25 minus line 21, on line 26. of the electing PTE, or individual members of a PTE
Line 27. Refund available (line 21 minus line 25). that is a member of the electing PTE, report their share
of the addition on their Oregon personal income tax
Line 28. Amount of refund to be credited to estimated returns, including composite returns joined by non-
tax. You may elect to apply part or all of your refund resident individuals.
to your next year’s estimated tax payments. Fill in the
amount you want to apply. Your election is irrevocable. Line 4. Total Oregon additions.
Elected amounts that are attributable to estimated tax Line 5. Interest from U.S. government. Enter the
payments received prior to the following year’s first amount of interest received from the U.S. government, its
quarter estimated tax due date, will be applied as a instrumentalities, and organizations that invest in U.S.
timely first quarter installment of the following year. government securities.
Elected amounts attributable to payments received after Line 6. Gain or loss on the sale of depreciable property.
the following year’s first quarter estimated tax due date, Enter the difference in gain or loss on the sale of busi-
will be applied to the following year’s estimated tax ness assets when the Oregon basis is greater than it’s for
account as of the date the payment is received. See ORS federal purposes (ORS 316.716).
314.515 and OAR 150-314-0302.
Line 7. Work opportunity credit wage reductions. Were
Line 29. Net refund (line 27 minus line 28). salaries and wages on federal Form 1120-S reduced for
the work opportunity tax credit? Enter the amount of
Schedule SM instructions reduction here.
Schedule SM is for reporting total Oregon modifications Line 8. Subtractions. See ORS 316.680 through 316.848
to federal taxable income that are passed through to all and ORS 314.734(4) and (5). Include a schedule with your
S corporation shareholders. If items of income, loss, or return. You may subtract the Oregon corporation tax
deduction are different under Oregon and federal law, paid on built-in gains reported on line 1 of the return.
indicate the federal schedule K-1 line and amount of the Examples of other subtractions include:
modification.
• Local government bond interest.
Note: Don’t use Schedule OR-ASC-CORP codes for • Like-kind exchanges.
Schedule SM additions and subtractions. • High yield discount obligation dividends.
• Sale of public utility dividend reinvestment plan stock.
Line 1. Interest on government bonds of other states.
• Depreciation of basis differences due to claiming a fed-
Enter interest the corporation received from states and
eral tax credit.
local governments other than Oregon and its municipali-
• Long-term capital gains from sale of farm.
ties. Example: Include interest from state of Washington
bonds or San Francisco city bonds, but omit interest from Include a schedule with your return.
Oregon government bonds.
Line 9. Total Oregon subtractions.
Line 2. Gain or loss on the sale of depreciable property.
Each shareholder’s share of additions and subtractions
Enter the difference in gain or loss on the sale of business
must be reported to the shareholder. These amounts may
assets when your Oregon basis is less than your basis for
be added to the federal K-1s and labeled “Oregon addi-
federal purposes (ORS 316.716).
tions” and “Oregon subtractions.” Alternatively, the S
Line 3. Other additions. See ORS 316.680 through corporation could use Oregon Schedule OR-K-1 to report
316.848. Include a schedule with your return. Examples the Oregon modifications to each shareholder. Don’t file
of other additions include: the OR-K-1 schedules with your return.
150-102-025-1 (Rev. 10-28-22) 13 2022 Form OR-20-S Instructions

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Note: Nonresident shareholders must report their own-
ership percentage of modifications, multiplied by the S 
corporation’s Oregon apportionment percentage from 
Schedule OR-AP.

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.

150-102-025-1 (Rev. 10-28-22)                           14 2022 Form OR-20-S Instructions

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Appendix A
Corporation Form OR-20-S
2022 Schedule OR-ASC-CORP codes

Additions
Description Code Description Code
Charitable donations not allowed for Oregon ............. 132 Income from sources outside U.S. ................................. 159
CPAR addition .................................................................. 187 Interest income excluded from the federal return
Deferred gain from out-of-state disposition of (state, municipal, and other interest income) ........... 150
property ......................................................................... 118 Oregon excise tax and other tax ..................................... 151
Depreciation differences.................................................. 174 PTE-E tax deducted on entity-level federal return...... 167
Gain or loss on disposition of depreciable property ... 158 Uncategorized addition (must include explanation) ... 199

Subtractions
Description Code Description Code
CPAR subtraction ............................................................. 384 Losses from outside U.S. ................................................. 358
Deferred gain from out-of-state disposition of Manufactured dwelling park tenant payments ........... 344
property ......................................................................... 352 Marijuana business expenses ......................................... 375
Depreciation differences.................................................. 353 Psilocybin business expenses ......................................... 385
Film production labor rebate .......................................... 336 Sale of manufactured dwelling park ............................. 338
Gain or loss on sale of depreciable property ................ 356 State of Oregon interest income (income filers only) ... 364
Interest on obligations from the federal return and Uncategorized subtraction (must include
its instrumentalities (income filers only)................... 361 explanation) ................................................................... 399

Credits (carryforward from prior C corporation status only)
Description Code Description Code
Standard credits: None Opportunity Grant Fund (auction) (ORS 315.643) .......871
Carryforward credits:
Agricultural workforce housing (ORS 315.164 and Oregon affordable housing lender’s credit
315.169) ........................................................................... 835 (ORS 317.097) ................................................................ 854
Alternative qualified research activities Oregon Low-Income Community Jobs Initiative
(ORS 317.154) ................................................................ 837 (ORS 315.533) ................................................................ 855
Bovine manure (ORS 315.176 and 315.179) .................. 869 Oregon production investment fund (auction)
Business energy (ORS 315.354) ...................................... 839 (ORS 315.514) ................................................................ 856
Child Care Fund contributions (ORS 315.213) ............. 841 Qualified research activities (ORS 317.152) .................. 858
Crop donation (ORS 315.156) ......................................... 843 Renewable energy resource equipment
Electronic commerce zone investment manufacturing facility (ORS 315.341) ........................ 860
(ORS 315.507) ................................................................ 845 Repatriation credit (due to IRC §965) (must include
Employer-provided dependent care assistance copy of 2017 form) ........................................................ 870
(ORS 315.204) ................................................................ 846 Rural technology workforce development
Employer scholarship (ORS 315.237) ............................ 847 (ORS 315.523) ................................................................ 868
Energy conservation projects (ORS 315.331) ................ 849 Short line railroad rehabilitation (ORS 315.593) .......... 872
Fish screening devices (ORS 315.138)............................ 850 Transportation projects (ORS 315.336) .......................... 863
Individual Development Account (IDA) donation Uncategorized carryforward credit (must include
(ORS 315.271) ................................................................ 852 explanation) ................................................................... 999
Lender’s credit: energy conservation (ORS 317.112)...848 University venture fund (ORS 315.521) ........................ 864
Long-term enterprise zone facilities (ORS 317.124) .... 853 Weatherization lender’s credit (ORS 317.111) .............. 866

150-102-025-1 (Rev. 10-28-22) 15 2022 Form OR-20-S Instructions

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                                      Appendix B
                               Oregon Corporation Form OR-20-S
                               2022 Tax rates and minimum tax

     Note: Corporation excise tax filers pay the greater of calculated tax or minimum tax.

Calculated tax (ORS 317.061)

S corporations without federal taxable income, built-in gains, or excess net passive income generally have 0 calculated 
tax. These corporations pay minimum tax if they’re excise tax filers.
If Oregon taxable income is:
     • $1 million or less, multiply Oregon taxable income by 6.6 percent (not below zero).
     • More than $1 million, multiply the amount exceeding $1 million by 7.6 percent, and add $66,000.

Minimum tax (ORS 317.090)

S corporation minimum tax is $150 for excise tax filers.
Note: Income tax filers pay only calculated tax. They’re not subject to minimum tax.

150-102-025-1 (Rev. 10-28-22)                           16                                2022 Form OR-20-S Instructions

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                                         Appendix C

                               Oregon Corporation Form OR-20-S
                                  Alternative apportionment

Oregon law allows taxpayers to request an alterna-           Note: Taxpayers filing amended returns for 2015 or prior 
tive method of apportionment using the instructions          must use the form year corresponding to the tax year 
below. Uniform Division of Income for Tax Purposes Act       even though there’s no alternative apportionment check-
(UDITPA) taxpayers filing under ORS 314.605 to ORS           box on the return. Clearly identify that you’re requesting 
314.675, as well as insurers, and taxpayers filing under     alternative apportionment by writing the words “Alter-
ORS 314.280, must use this procedure to apply for alter-     native apportionment request” at the top and adhere 
native apportionment.                                        to all other requirements. Determinations to amended 
                                                             returns may take longer to process.
Administration
                                                             Method 2 —Alternative apportionment petition 
We will review the alternative apportionment request         submitted separately from your original or amended 
and issue a decision letter.                                 return 
If your alternative apportionment petition is denied, you    • Your written petition must have the title “Alternative 
may appeal the denial of your petition to Oregon Tax         apportionment request.”
Court as provided in ORS 305.275.                            • We will not rule on your alternative apportionment 
                                                             request until you file your original or amended return 
If your alternative apportionment petition is approved, 
                                                             using standard apportionment provisions.
you may amend your returns within the normal statute 
                                                             • Your original or amended return, for which the writ-
of limitations. The approval of your petition will remain 
                                                             ten petition requests alternative apportionment, must 
in effect unless and until we revoke it during audit or 
                                                             use standard apportionment provisions.
you file a new petition and receive our approval of the 
                                                             • Mail  your  petition  to:  Oregon  Department  of  Reve-
new proposal.
                                                             nue, Corporation Section, 955 Center St NE, Salem OR 
Allow at least 6 months for us to make a determination.      97301-2555.
Also, note that all petitions for alternative apportion-
ment may result in additional review and documenta-          Both methods of petition
tion requests.                                               • The petition must be signed by the taxpayer or the tax-
                                                             payer’s representative.
Instructions                                                 • You must use standard apportionment provisions to 
• Your written petition for alternative apportionment        complete your original or amended return while the 
  can be submitted with your original or amended             department rules, in writing, on your request for alter-
  return (Method 1) or separate from your original or        native apportionment.
  amended return (Method 2).                                 • In the case of a UDITPA taxpayer, the petition must 
• For administrative purposes, we prefer Method 2.           fully explain the  extent of the taxpayer’s business 
                                                             activity in Oregon and why standard apportionment 
Method 1 —Alternative apportionment petition                 doesn’t fairly and equitably represent the taxpayer’s 
submitted with your original or amended return               business activity in Oregon. An ORS 314.280 taxpayer 
                                                             must fully explain why standard apportionment 
• Check the alternative apportionment checkbox on            doesn’t fairly and equitably represent the amount of 
  the front of the return and include a written peti-        net income the taxpayer earns inside and outside Ore-
  tion for alternative apportionment with your original      gon. An  insurer  must explain  why standard  appor-
  or amended return. Failure to do so could result in        tionment  doesn’t  fairly  and  equitably  represent  the 
  your request being overlooked. This box is to denote       insurer’s business activity within Oregon.
  requests only and isn’t to be used after a request is      • Your petition must fully explain your proposed 
  approved.                                                  method of alternative apportionment and explain why 
• You must include a written petition for alternative        this proposed method is more accurate in reflecting 
  apportionment with your original or amended return         business activity or net income, as appropriate, in Ore-
  if you check the alternative apportionment checkbox.       gon than the standard formula. 
• Do not complete the original or amended return using       • The petition must show how the Oregon return (Form 
  an alternative method of apportionment unless/until        OR-20, OR-20-INC, OR-20-INS, or OR-20-S) would be 
  that  alternative  method  of  apportionment  has  been    completed, including the net tax calculation, using the 
  approved.                                                  proposed method of alternative apportionment.
• Include your petition with your return.

150-102-025-1 (Rev. 10-28-22)                             17                                    2022 Form OR-20-S Instructions

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