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2nd Quarter Payment Due July 31 for Corporate Activity Tax

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Tax Advisory: Oregon

Heads up! The July 31 deadline to make the 2nd quarter payment for the Oregon Corporate Activity Tax (CAT) is coming up on us quickly. To review, for the 2020 tax year, if you expect a Corporate Activity Tax liability of $10,000 or more, then you are required to make estimated payments by April 30, July 31, October 31, and January 31 for the preceding calendar quarter.

For quick reference here is a link to the Oregon Department of Revenue’s How to Calculate the CAT Worksheet.

In its recent special session, the Oregon Legislature made a series of clarifications to the Student Success Act, which governs the Corporate Activity Tax (CAT). Governor Brown signed House Bill 4202 into law June 30, 2020. Among other administrative issues it reduces the penalty for underpayment of quarterly estimated payments to 5 percent, adds a safe harbor, and extends the 80 percent threshold for estimated quarterly payments through tax year 2021.

The Oregon Department of Revenue communicates that it “will not assess penalties for underestimating quarterly payments in 2020 if the business has made a good-faith effort to determine the required installment. Nor will the department assess a penalty for failure to make a quarterly payment if a business doesn’t have the financial ability to make the estimated payment due to the impact of COVID-19.”

For further information, including the documentation taxpayers must retain, please refer the Departments of Revenue’s CAT website page.

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