Salem, OR—The Department of Revenue reminds business owners and their tax preparers that once their business has earned more than $750,000 in commercial activity for the year, they are required to register for Oregon’s Corporate Activity Tax (CAT) within 30 days.
The CAT applies to all business entity types, such as C and S corporations, partnerships, sole proprietorships, and other entities. More than 15,000 businesses have registered for the CAT since registration opened for the new program in December 2019.
To register go directly to the CAT page of the Revenue website and click on the “Register for the CAT” link in the center of the page.
For those who need help, a short CAT registration training document is available on the page.
To register, individuals doing business in Oregon will need their name and their Social Security number or individual taxpayer identification number. Businesses will need their entity’s legal name and federal employer identification number.
Businesses and individuals will need:
• Their mailing address;
• The date they exceeded or expect to exceed $750,000 in Oregon commercial activity;
• A valid email address or current Revenue Online login, and;
• Their Business Activity Code (Refer to the current list of North American Industry Classification System codes found with their federal income tax return instructions.)
The 2019 Legislature created the CAT to boost funding for public schools. The CAT is imposed on businesses for the privilege of doing business in Oregon, including those located inside and outside of Oregon. It’s measured on a business’s commercial activity—the total amount a business realizes from activity in Oregon.
Registration doesn’t mean a business will owe tax. Only businesses with taxable commercial activity in excess of $1 million must pay the Corporate Activity Tax. The tax is $250 plus 0.57% of taxable commercial activity greater than $1 million after subtractions.
The CAT page of the Revenue website includes links to the administrative rules that govern the tax, a list of basic frequently asked questions (FAQ), and a Beyond the FAQ section that includes high-level summaries of the rules and other topics to help answer taxpayer questions.
Taxpayers with general questions about the CAT can email cat.help.dor@oregon.gov or call 503-945-8005.
Visit www.oregon.gov/dor to get tax forms, check the status of your refund, or make tax payments; call 800-356-4222 toll-free from an Oregon prefix (English or Spanish); 503-378-4988 in Salem and outside Oregon; or email questions.dor@oregon.gov. For TTY (hearing or speech impaired), call 800-886-7204.
Salem, OR—More than 130,000 Oregonians will receive a special mailing this month from the IRS encouraging them to see if they’re eligible to claim an Economic Impact Payment.
The IRS will mail the letters to people who typically aren’t required to file federal income tax returns but may qualify for an Economic Impact Payment. The letter urges recipients to visit the special Non-Filers: Enter Payment Info tool on IRS.gov before the Oct. 15 deadline to register for an Economic Impact Payment.
More than 7 million people nationwide have already used the Non-Filers tool to register for a payment.
This month’s letters, delivered from an IRS address, are being sent to people who haven’t filed a return for either 2018 or 2019. Based on an internal analysis, these are people who don’t typically have a tax return filing requirement because they appear to have income below the filing threshold based on Forms W-2 and 1099 and other third-party statements available to the IRS.
The letter urges the recipient to register at IRS.gov by Oct. 15 in order to receive a payment by the end of the year. Individuals can receive up to $1,200, and married couples can receive up to $2,400. People with qualifying children under age 17 at the end of 2019 can get up to an additional $500 for each qualifying child.
The IRS cautions that receiving a letter is not a guarantee of eligibility. An individual is likely eligible for an Economic Impact Payment if they:
For more information on eligibility requirements, see the Economic Impact Payment eligibility FAQ on IRS.gov.
People who are eligible should not wait to receive a letter and should register now. Alternatively, people can wait until next year and claim the recovery rebate credit on their 2020 federal income tax return by filing in 2021.
Those unable to access the Non-Filers tool may submit a simplified paper return following the procedures described in the Economic Impact Payment FAQ on IRS.gov.
Anyone using the Non-Filers tool can speed up the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.
Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available only on IRS.gov.
For Oregon tax issues, visit www.oregon.gov/dor to get tax forms, check the status of your refund, or make tax payments; call 800-356-4222 toll-free from an Oregon prefix (English or Spanish); 503-378-4988 in Salem and outside Oregon; or email questions.dor@oregon.gov. For TTY (hearing or speech impaired), call 800-886-7204.
Salem, OR—The Oregon Department of Revenue is making temporary changes to protect the public in response to the threat of wildfires and poor air quality.
Beginning Wednesday, September 16, the Revenue Building in Salem and all regional field offices will be closed to the general public for in-person payments and taxpayer assistance by appointment.
The department plans to reopen to the public on Monday, September 21 and will accept appointments for taxpayer assistance and in-person payments at that time.
Until then, taxpayers in need of assistance can reach the department by telephone at 503-378-4988 or toll free at 800-356-4222, or through email at questions.dor@oregon.gov.
We encourage taxpayers to use our online resources at www.oregon.gov/dor whenever possible to obtain tax forms, calculate your kicker amount, check the status of your refund, or make tax payments using Revenue Online.
The public can also keep up to date with the latest developments and news on the impacts of wildfires in Oregon by visiting www.wildfire.oregon.gov.
Thousands of Oregonians, many of them for the first time, are now receiving unemployment benefits. The Oregon Department of Revenue wants to remind recipients that these benefits are taxable, and they should consider having tax withheld from their benefits to avoid owing taxes when they file their federal and Oregon income tax return next year.
By law, unemployment benefits are taxable and must be reported on a 2020 federal and Oregon income tax return. Taxable benefits include any of the special unemployment compensation authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted this spring.
Withholding is voluntary. Federal law allows any recipient to choose to have a flat 10% withheld, and Oregon law allows recipients to choose to have a flat 6% withheld from their benefits to cover part or all of their tax liability. To do that, fill out Form 1040WH, Authorization for Tax Withholding, and send it to the Oregon Employment Department. Don’t send it to the IRS or the Oregon Department of Revenue.
If a recipient of unemployment benefits doesn’t choose withholding, or if withholding is not enough, they can make quarterly estimated tax payments instead. The payment for the first two quarters of 2020 was due on July 15. Third and fourth quarter payments are due September 15, 2020 and January 15, 2021, respectively. For more information, including some helpful worksheets, see Publication OR-ESTIMATE, available on www.oregon.gov/dor.
Unemployment benefit recipients who return to work before the end of the year can use the Oregon Personal Income Tax Withholding Calculator to determine if they’re having enough tax taken out of their paycheck. This online tool can help any worker or pension recipient avoid or lessen their year-end tax bill or estimate the refund they want.
In January 2021, unemployment benefit recipients should receive a Form 1099-G, Certain Government Payments, from the Oregon Employment Department, showing the amount of unemployment benefits they received during 2020 in Box 1, any federal income tax withheld in Box 4, and Oregon income tax withheld in Box 11. Recipients will report this information, along with their Form W-2 income, on their 2020 federal and Oregon income tax returns.
For additional resources and more information about applying for unemployment benefits, visit unemployment.oregon.gov.
You can visit www.oregon.gov/dor to get forms, check the status of your refund, or make payments. You can call 503-378-4988 or 800-356-4222 (toll-free) or email questions.dor@oregon.gov for additional assistance.