Oregon Department of Revenue Increases 2020 Estimated CAT Payment Threshold

The Oregon Department of Revenue on April 27, 2020 proposed a new rule that increases – for 2020 only – the threshold for required estimated payments of the Oregon corporate activity tax (CAT) from $5,000 to $10,000.

A taxpayer that expects to have CAT liability of $5,000 or more for a tax year generally is required to make quarterly estimated tax payments for the year. The quarterly estimated payments for a tax year are due on April 30, July 31 and October 31 of the tax year, and on January 31 of the year following the tax year. The new rule provides that taxpayers that expect their 2020 annual CAT liability to be less than $10,000 are not required to make quarterly estimated payments for the 2020 tax year. As a result of this change, a taxpayer that expects to have a 2020 CAT liability of less than $10,000 is not required to make estimated tax payments for 2020 and therefore is not required to pay its 2020 CAT liability until the April 15, 2021 return and payment due date. The increased threshold applies only to the 2020 tax year; for tax years after 2020 the $5,000 threshold will apply.

Please contact one of the Key Contributors to this Alert if you have questions about this increase or the Oregon corporate activity tax generally.