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                                   Form OR-37 Instructions 
                                                                                                                        2022
                             Underpayment of Oregon Corporation Estimated Tax
             This publication is a guide, not a complete statement, of Oregon Revised Statutes (ORS) and 
     Oregon Administrative Rules (OAR). For more information, refer to the laws and rules at  www.oregon.gov/dor.

                                                                    Part 1—Figuring the required 
Purpose of Form OR-37
                                                                    installments
You must make quarterly estimated tax payments if you 
expect to owe $500 or more in tax. This includes Oregon’s        Lines 4a through 4d—Exception 2. To qualify to use this 
minimum tax.                                                     exception, your prior year return must cover a period of 12 
Use Form OR-37 to:                                               months and show a tax liability.
•  Calculate the amount of underpayment of estimated tax;        A high-income taxpayer has federal taxable income, before 
•  Compute the amount of interest you owe on the under-          net operating loss and capital loss carryovers and carry-
payment; or                                                      backs, of $1,000,000 or more in any one of the last consecu-
•  Show you meet an exception to the payment of interest.        tive three years, not including the current year.
                                                                 If you’re a high-income taxpayer, exception 2 only applies 
General                                                          to the first installment payment. Any reduction to the first 
                                                                 installment payment due to exception 2 must be added to 
If  you have  an underpayment  of estimated tax  or if you       the second installment payment.
meet an exception, you must include a completed Form 
                                                                 The reduction amount that must be added to the second 
OR-37 with your corporation return.
                                                                 installment is the lesser of the exception amounts on lines 
If your current year corporation tax liability, including the    3a, 5a, and 6a, minus the exception 2 amount on line 4a. 
minimum tax, is less than $500 you aren’t required to make       Add the reduction amount to the lesser of the exception 
estimated payments. Don’t complete this form.                    amounts on lines 3b, 5b, and 6b, and enter the result on line 
                                                                 4b as the required second installment.
Estimated tax paid or credited for                               Lines 5a through 5d—Exception 3: Annualized income. 
                                                                 This applies to taxpayers using the annualized income 
each period                                                      installment method. See the instructions for lines 22 
                                                                 through 28.
First quarter estimated tax payments. Enter estimated 
taxes paid or credited by April 15 for calendar year filers      Lines  6a through 6d—Exception  4:  Recurring  seasonal 
and the 15th day of the 4th month for fiscal year filers.        income. This applies to taxpayers with recur ring seasonal 
                                                                 income. The taxpayer must pay, by each installment due 
If you elected to apply part or all of your previous tax year’s  date, an amount equal to 100 percent of the amount by 
refund to this year’s estimated tax payments, the elected        applying Section 6655(e)(3)(C) of the Internal Revenue Code 
amount attributable to estimated tax payments received           (IRC) to Oregon taxable income. Include a schedule of your 
prior to the first quarter’s estimated tax due date will be      computation.
applied to the first quarter. The elected amount attributable 
to estimated tax payments received after the first quarter 
estimated tax due will be applied as of the date the pay-           Part 2—Figuring the underpayment
ment is received.
                                                                 Line 7—Exception number. Select the exception being used 
Second quarter estimated tax payments. Enter estimated           for each quarter. Example: If you’re using exception 1 in the 
taxes paid or credited by June 15 for calen dar year filers and  first quarter, place a “1” in box 7(a).
the 15th day of the 6th month for fiscal year filers.

Third quarter estimated tax payments.  Enter  estimated             Part 3—Calculating interest on 
taxes paid or credited by September 15 for calen dar year 
filers and the 15th day of the 9th month for fiscal year filers.    underpayments

Fourth quarter estimated tax payments. Enter estimated           Interest rates. Interest rates may change once in a calendar 
taxes paid or credited by December 15 for calendar year fil-     year. The chart below shows the interest rates and effective 
ers and the 15th day of the 12th month for fiscal year filers.   dates.
NOTE: Instructions are for lines not fully explained on the 
form.

150-102-037-1(Rev. 09-27-22)                              Page 1 of 2                                   2022 Form OR-37 Instructions



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Interest rates                                                      Line 24—Annualization factors. The annualization fac-
For periods beginning                 Annually        Daily         tor is based on the number of months in the annualization 
                                                                    period.
January 1, 2023                      6%            0.0164%
January 1, 2022                      4%            0.0110%          Annualization factor
                                                                    Number of 
January 1, 2021                      4%            0.0110%                        2 3 4      5  6 7   8         9     10 11
                                                                    months
Line 21.  Enter the amount from line 21 on the “interest on         Annualization 
                                                                    factor        6 4 3 2.4 2 1.714 1.5 1.333 1.2 1.091
underpayment of estimated tax” line on your corporation 
return.
                                                                    Lines 26a through 26d—Annualized tax. Use the calcu-
                                                                    lated tax rate from Forms OR-20, OR-20-INC, OR-20-INS, or 
Part 4—Exception 3 annualized                                       OR-20-S. If annual ized taxable income is $1 million or less 
                                                                    (not below zero), multiply Oregon taxable income by 6.6 
income worksheet                                                    percent. If annual ized taxable income is more than $1 mil-
                                                                    lion, multiply the amount that’s more than $1 million by 7.6 
Lines 22—Annualization periods. If you didn’t elect to use          percent and add $66,000. Don’t use the minimum tax rates 
the optional annualization periods for federal purposes             to calculate annualized tax.
allowable under IRC section 6655(e)(2)(C), you must use the 
standard Oregon annualization periods provided in ORS 
314.525(2)(c)(A). If you elected to use the optional annualiza-        Do you have  questions or need help?
tion periods for fed eral purposes, you must use the same 
                                                                      www.oregon.gov/dor
annualization peri ods for Oregon.
                                                                    503-378-4988 or 800-356-4222
Months in annualization periods                                     questions.dor @ dor.oregon.gov
                             1st     2nd       3rd    4th           Contact us for ADA accommodations or assistance in other 
                             quarter quarter quarter  quarter       languages.
Standard Oregon 
periods                      3       3 or 5    6 or 8 9 or 11
Federal option #1            2       4         7      10
Federal option #2            3       5         8      11

150-102-037-1(Rev. 09-27-22)                                 Page 2 of 2                              2022 Form OR-37 Instructions






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