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Form OR-21 Instructions 2022
Oregon Pass-through Entity Elective Tax Return

least 90 percent of the PTE-E tax shown on Form OR-21 or
Purpose of Schedule OR-21 underpayment interest may be charged. Underpayment
interest may be charged even if the return shows an over-
Pass-through entities (PTEs) electing to pay the PTE elective
payment if estimated payments were late or too small. See
tax (PTE-E tax) use Form OR-21 to report their income, tax,
“Interest on underpayment of estimated tax” and Publica-
and payments. An upper-tier PTE that is a member of an
tion OR-21-EST, Oregon Pass-through Entity Elective Tax Esti-
electing PTE will also use Form OR-21 to pass its share of
mated Payment Instructions, for more information.
the lower-tier entity’s distributive proceeds, addition, and
tax credit through to the upper-tier PTE’s individual owners.
Form OR-21 is filed on a calendar-year basis only. PTEs using Registration required
a fiscal year will make the election for the calendar year in Before estimated payments can be made, the PTE must reg-
which their fiscal year ends. ister with the department using Revenue Online. Go to our
website, www.oregon.gov/dor, and search for “PTE-E” for
registration information. Registration is not the same as
General information
making the election.
Oregon’s PTE-E tax was enacted by SB 727 during the 2021
legislative session (2021 Oregon Laws, ch. 589). It allows r.
Questions about the PTE-E tax?
certain PTEs to elect to pay income tax at the entity level.
Individual members will still report and be taxed on their You can find information and updates about the PTE-E tax
income from the PTE, but they will be able to claim a credit on our website, www.oregon.gov/dor, by following the link
on their individual returns for the tax already paid by the to our “Businesses” page. If you have specific questions
PTE. The provisions in SB 727 were amended by SB 1524 that aren’t answered on our website, send us an email at
during the 2022 legislative session to require electing PTEs BusinessAlternative.IncomeTax@dor.oregon.gov. If you
to pay estimated tax (2022 Oregon Laws, ch. 82, § 3, 4). have questions or need help with any other Oregon tax
Form OR-21 is filed on a calendar-year basis and is only programs, see our contact information on the last page of
available for tax years beginning on or after January 1, 2022 this publication.
and before January 1, 2024. PTEs using a fiscal year will
r.
make the election for the calendar year in which their fiscal Making the election
year ends. Only calendar-year PTEs or fiscal-year PTEs with
a short year that begins and ends in 2022 can make the elec- A PTE makes the election by timely filing Form OR-21 with
tion using the 2022 form. All other PTEs must wait until the the “Election” box checked. To be timely, Form OR-21 must
2023 form is available to make the election for a fiscal year be filed on or before the due date, unless an extension has
beginning in 2022 and ending in 2023. been requested. The due date for filing Form OR-21 for tax
year 2022 is April 18, 2023. All members must agree to
Electing PTE make the election unless there is an officer, manager, or
member of the PTE who is authorized by law or the PTE’s
An electing PTE must be a partnership, an S corporation, or
organizational documents to make the election on the PTE’s
an LLC taxed as a partnership or S corporation. All of the
behalf. See the instructions for line 1, below, regarding the
PTE’s members must be individuals or other PTEs (upper-
“Election” box.
tier PTEs) whose members are all individuals.
The election must be made by members of the PTE who are Extension of time to file
members on the date the election is made or by any officer, If the PTE is requesting an extension of time to file federal
manager or member of the electing PTE who is authorized, Form 1065, U.S. Return of Partnership Income, or 1120-S, U.S.
under law or the PTE’s organizational documents, to make Income Tax Return for an S Corporation, Oregon will honor
the election and who attests to having such authority under the same extension request for filing Form OR-21. You must
penalty of perjury. submit your extension request on or before the due date for
the return.
Estimated payments
An extension of time to file the return is not an extension
An electing PTE must make timely estimated payments of of time to pay the tax. Payment is due on April 18, 2023,
the PTE-E tax. Total estimated tax payments must equal at without regard to an extension to file Form OR-21.

150-107-114-1 (Rev. 09-13-22) 1 2022 Form OR-21 Instructions

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r. OR-21-K-1 to each of its individual members to report the
Revoking the election distributive proceeds, addition, and credit passing through
from the lower-tier electing entity, even if the upper-tier PTE
The election to pay PTE-E tax may be revoked, but only
isn’t making the election.
under these circumstances:
• All members of the PTE who are members on the date the Addition for PTE taxes paid to Oregon
election is revoked must consent to the revocation. Individual PTE members must report an addition for any
• The revocation must be made on or before the due date for taxes imposed on the PTE by Chapter 314 of the Oregon
filing Form OR-21, including extension. Revised Statutes and paid to the State of Oregon that are
deducted on any federal return filed by the PTE at the entity
To revoke the election, complete this form as if you are mak- level. If the electing PTE has an upper-tier PTE as a mem-
ing the election, except enter 0 for all numeric fields on lines ber, the upper-tier PTE’s members must report the addition
6 through 23. Mark the “Revocation” box on the first page on their personal income tax returns, including composite
of the return. returns joined by nonresident individuals. The PTE must
Request for refund without election. The PTE may request include the addition amount on the Schedule OR-21-K-1
a refund if estimated tax or other payments were made but provided to each member.
the PTE will not be making the election. Do not file Form Individual PTE members can find information about the
OR-21. Request the refund through the PTE’s Revenue addition in Publication OR-17, Oregon Individual Income Tax
Online account. If you don’t have internet access, contact us Guide.
for assistance.
Refundable credit for PTE-E tax paid
r.
Required schedules Individual PTE members are allowed a refundable credit for
their distributive share of the tax paid by the PTE. The credit
Include these schedules when Form OR-21 is filed:
is claimed on the member’s personal income tax return. If
• Schedule OR-21-MD, Oregon Pass-through Entity Elective Tax the electing PTE has an upper-tier PTE as a member, the
Member Directory. upper-tier PTE’s members are allowed to claim the credit
on their personal income tax returns, including composite
• Schedule OR-21-AP, Oregon Pass-through Entity Elective
returns joined by nonresident individuals.
Tax Apportionment of Income, if the PTE must apportion its
income. See the instructions for line 19. The distributive share of the credit must be reported to each
member using Schedule OR-21-K-1, including members that
• Schedule OR-21-MD-PT, Pass Through of Distributive Share
are other PTEs. Don’t include interest or penalty on unpaid
of Proceeds, Addition, and Credit, if the PTE is an upper-tier
tax or underpayment interest in the tax credit amount. See
PTE passing items through from an electing lower-tier
Schedule OR-21-K-1 Instructions.
entity to its own individual members.
Individual PTE members can find information about the
Schedule OR-21-K-1. The PTE must provide Schedule OR-
refundable credit in Publication OR-17.
21-K-1, Distributive Share of Proceeds, Addition, and Credit, to
every member. The schedule shows the member’s share of
the distributive proceeds on which the PTE-E tax was cal- Amended returns
culated, any required Oregon addition, and the amount of
the member’s share of the refundable PTE-E tax credit. See If Form OR-21 must be amended, complete the return as it
Schedule OR-21-K-1 Instructions for more information. should have been filed, including any adjustments that we
made. Check the “Amended” box on line 3.
r.
Information for members Member listed by mistake. If a member was listed on the
original Schedule OR-21-MD or OR-21-MD-PT by mistake,
list the member on the amended schedule as well, but enter
Members who are upper-tier PTEs zeroes for all of that member’s amounts.
A PTE that is an upper-tier member of the electing PTE
must pass its share of the lower-tier entity’s distributive
Return instructions
proceeds, addition and refundable tax credit through to
its own members. All of the upper-tier PTE’s members Tax year beginning and ending dates. Enter “01/01/2022”
must be individuals who will file a personal income tax and “12/31/2022” for the beginning and ending dates of the
return, including nonresident individuals who elect to join PTE’s tax year. If the PTE has a short year that began and
a composite return. The upper-tier PTE must report the ended in 2022, enter the short year beginning and ending
information about the items passed through to its members dates. For example, if the PTE’s short year began on March
by filing Form OR-21 with Schedule OR-21-MD-PT attached. 1, 2022 and ended on December 31, 2022, enter “03/01/2022”
See Schedule OR-21-MD-PT Instructions for more informa- and “12/31/2022.” If the PTE’s tax year ends in 2023, you
tion. In addition, the upper-tier PTE must provide Schedule must wait to make the election on the 2023 Form OR-21.
150-107-114-1 (Rev. 09-13-22) 2 2022 Form OR-21 Instructions

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Line 9. If the PTE is a partnership, enter the total guaranteed
Part A: Taxpayer information payments from federal Schedule K, line 4c; otherwise, enter
0.
Enter the PTE’s legal name and federal employer identifica-
tion number (FEIN). Enter the name that the entity is doing Line 10. Enter the PTE’s interest income from federal Sched-
business as (DBA) or its assumed business name (ABN) if ule K, line 5 (Form 1065) or line 4 (Form 1120-S).
different from its legal name.
Line 11. Enter the PTE’s ordinary dividends from federal
Entity type. Check the box that matches the PTE’s organiza- Schedule K, line 6a (Form 1065) or line 5a (Form 1120-S).
tion type. If the PTE is an LLC that is treated as a partnership
Line 12. Enter the PTE’s royalties from federal Schedule K,
or an S corporation for tax purposes, check the applicable
line 7 (Form 1065) or line 6 (Form 1120-S).
box.
Line 13. Enter the PTE’s total net gain or loss from the dis-
Contact information. Enter the name, phone, and email of a
position of property from federal Schedule K, the sum of
person the department can contact if we have questions or
line 8 plus line 9a (Form 1065) or the sum of line 7 plus line
need more information. The contact person does not have
8a (Form 1120-S).
to be the same person who prepares or signs the return, but
they should be knowledgeable about the PTE’s election. Line 14. Enter the PTE’s net section 1231 gain or loss from
federal Schedule K, line 10 (Form 1065) or line 9 (Form
1120-S).
Part B: Checkboxes
Line 15. Enter any other income or loss from federal Sched-
Check every box that applies to this return. ule K, line 11 (Form 1065) or line 10 (Form 1120-S).
Box 1: Election. Check this box if the PTE elects to be liable
for and pay the PTE-E tax. By checking this box and submit- Apportionable income from all sources
ting the completed return, you are stating under penalty of Line 17. Enter the total of the PTE’s non-apportionable
false swearing that all members of the PTE have agreed to income that is included in the amount on line 16. Non-appor-
the election or you are stating under penalty of perjury that tionable income means all income other than apportionable
you are an officer, manager, or member of the PTE who is income (ORS 314.610); see the instructions for line 19.
authorized under law or the PTE’s organizational documents
to make the election on the PTE’s behalf. Line 18. Subtract the PTE’s non-apportionable income on
line 17 from the total income from all sources on line 16. The
Box 2: Revocation. Check this box if the PTE is revoking a result is the PTE’s apportionable income from all sources.
prior election. See “Revoking the election,” above.
Box 3: Amended. Check this box if the PTE is amending Oregon apportionable income
an earlier return to make corrections (not revoking a prior
Line 19. Any PTE with income from business activity that is
election).
taxable by Oregon and one or more other states must appor-
Box 4: Extension. Check this box if the PTE filed a request tion its income according to Oregon’s Uniform Division of
for an extension. Income for Tax Purposes Act, ORS 314.605 to 314.675, unless
the PTE is a financial institution or public utility. In that case,
Box 5: Pass through. Check this box if the PTE is an upper-
the PTE must apportion its income using the provisions of
tier member of an electing lower-tier entity. See “Members
ORS 314.280.
who are an upper-tier PTE,” above.
• Complete Schedule OR-21-AP if the PTE must apportion
its income. Enter the apportionment percentage from
Part C: Distributive proceeds Schedule OR-21-AP, line 12. Include the schedule when the
return is filed.
Income from all sources • If Schedule OR-21-AP isn’t required because the PTE
Enter the PTE’s income from all sources. Round all amounts doesn’t have to apportion its income, enter 100.0000.
to the nearest whole dollar. Indicate any losses with paren-
theses. The amounts on lines 6 through 15 can generally be Oregon distributive proceeds
found on Schedule K of federal Form 1065 or 1120-S.
Line 21. Enter the total of the non-apportionable income from
Line 6. Enter the PTE’s ordinary business income or loss line 17 that is allocated to Oregon. If the PTE does all of its
from federal Schedule K, line 1. business activity in Oregon, enter the amount from line 19. If
Line 7. Enter the PTE’s net rental real estate income or loss the PTE must apportion its income, see “Allocable income”
from federal Schedule K, line 2. in Schedule OR-21-AP Instructions to determine whether
the amount on line 19 includes income that is allocated to
Line 8. Enter the PTE’s other net rental income or loss from Oregon.
federal Schedule K, line 3c.

150-107-114-1 (Rev. 09-13-22) 3 2022 Form OR-21 Instructions

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Line 22. Add the apportionable income from line 20 to the e. If line d is 0, multiply line a by 9%
income allocated to Oregon on line 21. The result is the PTE’s (0.09); otherwise, enter $22,500. e. $16,200
total distributive proceeds from Oregon sources.
f. Line d plus line e. f. $16,200

Part D: Tax, payments, penalty, and Line 24. Enter the total of all PTE-E tax payments made
before filing this return. Use the PTE’s Revenue Online
interest account to verify the date or amount of any payment, if
needed.
Line 23. The PTE-E tax is 9 percent of the first $250,000 in
total distributive proceeds, and 9.9 percent of the distributive Line 25. If the amount on line 23 is more than the amount
proceeds over $250,000. on line 24, you have tax to pay. Subtract line 24 from line 23.
Use this worksheet to figure the tax: Line 26. If the amount on line 23 is less than the amount on
line 24, you overpaid. Subtract line 23 from line 24, then go
PTE-E tax worksheet
to line 28.
a. Amount from Form OR-21, line a. $
22. Penalty and interest
b. Amount taxed at 9%. b. 250,000 Line 27. Enter the total amount of penalty and interest owed
if all of the tax shown on line 23 wasn’t paid by April 18,
c. Line a minus line b. If less than c. $ 2023. Round the amount to the nearest $1.
zero, enter 0. Penalty for failure to pay. If the PTE elects to be liable for
d. Multiply line c by 9.9% (0.099). d. $ the PTE-E tax but doesn’t pay the total tax owed by the due
date of the return (without extension), the PTE will owe a
e. If line d is 0, multiply line a by 9% e. $ penalty of 5 percent of the unpaid tax.
(0.09); otherwise, enter $22,500.
Interest on unpaid tax. A PTE that elects to be liable for
f. Line d plus line e. This is the f. $ the PTE-E tax but doesn’t pay it by April 18, 2023 must pay
PTE-E tax. Enter this amount on interest at the applicable rate. Interest is figured daily, based
Form OR-21, line 23. on a 365-day year. The annual interest rate is 6 percent for
calendar year 2023, or 0.0164 percent per day. The interest
Example 1. Smith and Sons, a general partnership, has
rate may be changed once per calendar year.
$425,000 in total distributive proceeds from Oregon sources
on line 22. The PTE-E tax is $39,825, calculated as follows: Note: Additional interest of 4 percent per year will be
charged on deficiencies or delinquencies that remain unpaid
a. Amount from line 22. a. $425,000 more than 60 days after they have been assessed. For more
information, see “Interest and penalties” in Publication
b. Amount taxed at 9%. b. $250,000 OR-17.
c. Line a minus line b. c. $175,000 Example 3. Use the same facts as in Example 1. Smith and
Sons made $35,000 in payments by April 18, 2023, the due
date of the return. The partnership filed Form OR-21 on
d. Multiply line c by 9.9% (0.099) d. $17,325
extension on July 28, 2023. The unpaid PTE-E tax was $4,825
e. If line d is 0, multiply line a by 9% ($39,825 – 35,000), which they paid when they filed the
(0.09); otherwise, enter $22,500. e. $22,500 return. Smith and Sons must pay a 5 percent penalty and
daily interest as follows:
f. Line d plus line e. f. $39,825
Penalty:
$4,825 x 0.05 $ 241.25
Example 2. Mountaintop, Inc., an S corporation, has $180,000 Interest:
in total distributive proceeds from Oregon sources on line April 19, 2023 to July 28, 2023
22. The PTE-E tax is $16,200, calculated as follows: 100 days at 0.0164%
0.000164 x $4,825 x 100 days + 79.13+ 79.13
a. Amount from line 22. a. $180,000
Total penalty and interest $ 320.38
b. Amount taxed at 9%. b. $250.000 The partnership enters $320 on Form OR-21, line 27.
Line 28. Calculate the underpayment interest due for each
c. Line a minus line b. If less c. $0
installment period using the Underpayment interest work-
than zero, enter 0.
sheet under “Interest on underpayment of estimated tax.”
d. Multiply line c by 9.9% (0.099). d. $173,250 The PTE may calculate the underpayment interest based
on regular installments or installments using annualized

150-107-114-1 (Rev. 09-13-22) 4 2022 Form OR-21 Instructions

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income, whichever is less. There are no exceptions to paying 
interest on an underpayment of PTE-E tax.                         Filing the return
Enter the total underpayment interest amount from the 
                                                                  Electronic filing
Underpayment interest worksheet, line 14. 
                                                                  File Form OR-21 electronically using Revenue Online or by 
                                                                  modernized e-file (MeF) if your software provider supports 
Part E: Tax to pay or refund                                      it. Include all required schedules. See “Required schedules,” 
                                                                  above.
Line 30. If line 25 shows tax to pay, add lines 25 and 29. This 
is the amount you owe.                                            Filing by mail
Payment Options                                                   File Form OR-21 by mail only if you requested a paper return 
                                                                  because you don’t have internet access. If you’re mailing in 
Online payments.  Log into the PTE’s Revenue Online 
                                                                  a payment with the paper return, follow the instructions 
account to make a payment. If you make a non-logged in 
                                                                  under “Payment options,” above, for making a payment by 
payment you will need the PTE-E tax account number. If 
                                                                  check or money order. To avoid slowing down processing, 
you don’t know the PTE-E tax account number, log into the 
                                                                  do not use a payment voucher, staple the payment to the 
PTE’s Revenue Online account.
                                                                  return, send cash or postdated checks, or use red or purple 
Electronic payments with e-filed return. We accept elec-          or any gel ink.
tronic payments when e-filing Form OR-21, if supported 
                                                                  Assembling and mailing the return. Include all required 
by your software provider, or when submitting the return 
                                                                  schedules. Assemble the return in this order, from top to 
through Revenue Online.
                                                                  bottom:
Check or money order payments with paper return. Note:            1. Check or money order, if any.
This option is available only for PTEs that don’t have 
                                                                  2. Form OR-21.
access to the internet and have requested a paper return. 
Make the check or money order payable to “Oregon Depart-          3. Schedule OR-21-MD.
ment of Revenue.” Write the following on the check or             4. Schedule OR-21-MD-PT, if required.
money order:                                                      5. Schedule OR-21-AP, if required.
• The PTE’s FEIN.
                                                                  Mail the assembled return to:
• “2022 PTE-E.”
• Daytime phone.                                                  Oregon Department of Revenue 
                                                                  PO Box 14380
Check or money order payments mailed separately. Use 
                                                                  Salem OR 97309-5075
Form OR-21-V, Oregon Pass-through Entity Elective Tax Pay-
ment Voucher, to make a payment separately from the return. 
See Form OR-21-V Instructions for payment and mailing             Interest on underpayment of estimated 
information.                                                      tax

Refund                                                            The PTE will owe underpayment interest if its estimated 
Line 31. If line 26 shows an overpayment, subtract line 29        payments are paid late or are less than the required amount. 
from line 26. This is your refund. Refunds of PTE-E tax can’t     Underpayment interest is calculated on a running balance of 
be applied as an estimated payment for a later tax year. The      estimated tax due from one event (a due date or a payment) 
department will issue a check and send it to the PTE’s mail-      to the next. The interest accrues until the balance is paid in 
ing address as shown in the PTE’s registered account.             full or the due date for filing the return (without extensions), 
                                                                  whichever is earlier. 
                                                                  Interest accruing on tax that remains unpaid after the due 
Part F: Signature and date
                                                                  date is computed separately as shown under “Penalty and 
Generally, the member who signs the return should be a gen-       interest,” above. The same interest rate that applies to unpaid 
eral partner, officer, managing member, managing manager,         tax also applies to underpayments of estimated tax.
or other member with the authority to enter into binding 
agreements on behalf of the PTE.
                                                                  Calculating installment payments
Preparer signature. If the form is prepared by someone 
other than the general partner, officer, managing member,         The PTE may pay all of the estimated tax by the due date 
or other authorized member, they must sign the return and         for the first installment payment, or the payments may be 
provide their information.                                        made in up to four installments. There are two methods for 
                                                                  calculating the installment amount. For the first method, 
                                                                  divide the annual required payment into four equal install-
                                                                  ment payments. These are known as regular installments. 
                                                                  The second method, for PTEs that do not realize their income 
150-107-114-1 (Rev. 09-13-22)                                   5                                   2022 Form OR-21 Instructions

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evenly throughout the year, is to calculate annualized Work through the worksheet column-by-column except
installment payments. where otherwise indicated.
Method 1: Regular installments Line 1. Determine the Oregon distributive proceeds for each
period using Form OR-21, lines 6 through 22 as a guide.
Use this worksheet to figure the amount of the PTE’s regular Enter only the proceeds for the time period shown at the top
installment of estimated PTE-E tax. This worksheet must of each column. Note: The amount in box 1D should be the
be completed even if the PTE made annualized installment same as the total Oregon distributive proceeds for the year
payments. Round all dollar amounts to the nearest $1. from Form OR-21, line 22.
Regular installment worksheet Line 4. If the annualized amount on line 3 is less than
1. Tax from Form OR-21, line 23. 1. __________ $250,000, multiply line 3 times 9 percent (0.09). Otherwise,
If the amount on line 1 is less than use the instructions for Form OR-21, line 23 as a guide for
$1,000, stop; underpayment interest won’t calculating the tax.
be charged. Line 7. Don’t enter an amount in box 7A because there were
2. Annual required payment. Multiply line no prior installment payments before this period. Enter the
1 by 90% (0.9). 2. __________ amount from box 13A in box 7B, box 13A plus box 13B in box
3. Regular installment payment. Line 2 7C, and box 13A plus box 13B plus box 13C in box 7D.
divided by four. 3. __________ Line 10. The excess regular installment entered on line 12 is
the difference between the regular installment payment and
Method 2: Annualized installments the annualized installment payment for the period. Don’t
enter an amount in box 10A because there was no excess
If the PTE didn’t realize its income evenly throughout the regular installment amount before this period. Enter the
year, the required estimated tax payments may be figured excess regular installment amount from box 12A in box 10B,
using the annualized installment method. With this method, box 12B in box 10C, and box 12C in box 10D.
income and tax are placed on an annualized basis for each
period, and the lesser of the regular installment or annual- Line 13. This is the annualized installment payment that you
ized installment for each period is the required payment needed to make for each period if you are using this method.
amount. Complete the Regular installment worksheet Payments were due on the due dates for a calendar-year filer:
above before figuring the PTE’s annualized installments. June 15, 2022 (first two installments), September 15, 2022, and
January 17, 2023.
Annualized installment worksheet instructions
Use the worksheet below to figure the PTE’s annualized
installment payments. The period dates in the worksheet
are based on a calendar year.

Annualized installment worksheet
A B C D
1/1/2022 1/1/2022 1/1/2022 1/1/2022
to to to to
3/31/2022 5/31/2022 8/31/2022 12/31/2022
1. Distributive proceeds from Oregon sources for the period (see instructions).
2. Annualization multiplier. 4 2.4 1.5 1
3. Annualized distributive proceeds. Line 1 multiplied by line 2.
4. Annualized tax (see instructions).
5. Percentage for this period (as a decimal). 0.225 0.45 0.675 0.9
6. Annualized tax for this period. Line 4 multiplied by line 5.
7. Prior period installment (see instructions).
8. Line 6 minus line 7. If less than zero, enter 0.
9. Line 4 of the Regular installment worksheet, above.
10. Prior excess regular installment (see instructions).
11. Line 9 plus line 10.
12. Excess regular installment amount. Line 11 minus line 8. If less than zero,
enter 0.
13. Annualized installment payment. Enter the smaller of line 8 or line 11.

150-107-114-1 (Rev. 09-13-22) 6 2022 Form OR-21 Instructions

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Underpayment interest worksheet instructions next event that changes the running balance, including the
day of the next event (except January 1 when there has been a
First, use the Regular installment worksheet or the Annu-
change in the interest rate; include January 1 in the day count
alized installment worksheet to determine the amount of
your installment payments for tax year 2022. for a subsequent event). Enter the count in the Number of
days column, on the same line as the first event. Continue
Date and Amount columns. This worksheet includes pay- down the column, entering the number of days when the
ment due dates and space to record two estimated tax pay- running balance is positive, until the last event is reached. If
ments per period. Use the PTE’s Revenue Online account to
the running balance is positive after the last event, count the
verify the date or amount of any payment, if needed.
number of days after the last event through the due date of
Lines 1, 4, 7, and 11. In the Amount column for each line, the return. Don’t count any days when the running balance
enter the required installment for each period from the is negative or zero.
Regular installment worksheet, line 3, or from the Annu-
Interest due column. To calculate the underpayment inter-
alized installment worksheet, line 13, whichever applies.
est, multiply each positive running balance by the number
Note: For tax year 2022 only, enter 0 for the required amount
of days and the daily rate on the same line. Don’t calculate
on line 1, and enter the sum of the first two installment pay-
interest on a negative running balance. Round all amounts
ments on line 4.
to the nearest $1.
Lines 2 and 3. Enter the date and amount for each estimated
Line 14. Add the amounts in the Interest due column. Enter
PTE-E tax payment made before June 15, 2022 in date order.
the total here and on Form OR-21, line 28.
Note: For tax year 2022 only, if more than two payments
were made before June 15, 2022, you may add them together Keep the calculations with the PTE’s business records; we
and enter them on line 3. may ask for it later.
Lines 5 and 6. Enter the dates and amounts of any estimated Example. Sunset Inc., an S corporation, owed $10,000 in
PTE-E tax payments made from June 15, 2022 through Sep- PTE-E tax when it elected to pay the tax and file Form
tember 14, 2022 in date order. OR-21 for tax year 2022. The PTE’s tax on Form OR-21, line
23 is $95,556. Multiplying the tax by 90 percent results in
Line 8. Enter the date and amount of an estimated payment
an annual required payment of $86,000, with four regular
made from September 15, 2022 through December 31, 2022.
installments of $21,500. Sunset made its first two estimated
Line 9. Any interest rate change as of January 1, 2023 is noted payments on June 15, 2022, paying $39,500. The PTE made
on this line and is treated as an event. a payment of $19,000 on September 15, 2022 and $8,500 on
January 5, 2023. The PTE made its last estimated payment of
Line 10. Enter the date and amount of an estimated PTE-E
$9,000 on January 31, 2023.
tax payment made from January 1, 2023 through January
16, 2023. Sunset doesn’t figure underpayment interest for the period
before June 15, 2022 because for tax year 2022, the first
Lines 12 and 13. Enter the dates and amounts of any esti-
installment payment wasn’t due until June 15, 2022, the due
mated PTE-E tax payments made from January 17, 2023
date for the second installment payment. On June 15, Sunset
through April 18, 2023.
starts a running balance of $3,500 ($43,000 – $39,500) which
Running balance column. The running balance is the lasts for 92 days until the $19,000 payment on September 15,
amount of tax due at any given time during the year. 2022. Sunset’s new running balance as of September 15 is
Required installments increase the running balance, and $6,000 [($21,500 – $19,000) + $3,500). This balance runs for
estimated tax payments decrease it. The running balance 107 days until December 31, 2022, and then the interest rate
can be positive, negative, or zero. Use a minus sign or paren- changes on January 1, 2023. Sunset calculates interest at the
theses to indicate a negative amount. new rate for 5 days, from January 1 through January 5, 2023.
Work through this column starting with line 1. Note: For tax The $8,500 payment on January 5 results in a negative run-
year 2022 only, any payments made before the first payment ning balance of ($2,500) until the next required installment
was due on June 15, 2022 will result in a negative running on January 17. No interest is calculated for those days. The
balance. new balance of $19,000 [($2,500) + $21,500] on January 17 runs
Number of days column. Count the number of days after the for 14 days until Sunset’s $9,000 payment on January 31. The
first event that creates a positive running balance until the running balance of $10,000 ($19,000 - $9,000) continues for 77
days until the return due date.

150-107-114-1 (Rev. 09-13-22) 7 2022 Form OR-21 Instructions

- 8 -

 Sunset Inc.’s underpayment interest worksheet
          Date                 Event      Amount  Running       Number Daily interest rate Interest due
                                                  balance       of days
1.  04/15/2022    Required installment    $0                           0.000110
   2.             Payment                                              0.000110
   3.             Payment                                              0.000110
   4.  06/15/2022 Required installment    $43,000                      0.000110
   5. 06/15/2022  Payment                 $39,500 $3,500        92     0.000110            $35
   6.             Payment                                              0.000110
   7.  09/15/2022 Required installment    $21,500                      0.000110
   8. 09/15/2022  Payment                 $19,000        $6,000 107    0.000110            $71
   9.  01/01/2023 Rate change                            $6,000 5      0.000164            $5
 10.  01/05/2023  Payment                 $8,500  ($2,500)             0.000164
 11.  01/17/2023  Required installment    $21,500 $19,000       14     0.000164            $44
12.   01/31/2023  Payment                 $9,000  $10,000       77     0.000164            $126
13.               Payment                                              0.000164
 14.  04/18/2023  Total interest due                                                       $281
Sunset enters $281 on Form OR-21, line 28.

 Underpayment interest worksheet
          Date                 Event      Amount  Running       Number Daily interest rate Interest due
                                                  balance       of days
1.  04/15/2022    Required installment                                 0.000110
   2.             Payment                                              0.000110
   3.             Payment                                              0.000110
   4.  06/15/2022 Required installment                                 0.000110
   5.             Payment                                              0.000110
   6.             Payment                                              0.000110
   7.  09/15/2022 Required installment                                 0.000110
   8.             Payment                                              0.000110
   9.  01/01/2023 Rate change                                          0.000164
 10.              Payment                                              0.000164
 11.  01/17/2023  Required installment                                 0.000164
12.               Payment                                              0.000164
13.               Payment                                              0.000164
 14.  04/18/2023  Total interest due

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.

150-107-114-1 (Rev. 09-13-22)                            8                      2022 Form OR-21 Instructions

- 9 -

Worksheet OR-21
Complete this worksheet to prepare to file Form OR-21. To complete your filing, go to Revenue Online at
www.oregon.gov/dor. This worksheet is for informational purposes only. Do not file this worksheet.

Part C: Distributive proceeds
Income from all sources
6. Ordinary business income or (loss) 6.
7. Net rental real estate income or (loss) 7.
8. Other net rental income or (loss) 8.
9. Guaranteed payments to partners 9.
10. Interest 10.
11. Ordinary dividends 11.
12. Royalties 12.
13. Net capital gain or (loss) 13.
14. Net IRC section 1231 gain or (loss) 14.
15. Other income or (loss) 15.
16. Total income from all sources. Add lines 6 through 15. 16.
Apportionable income from all sources
17. Non-apportionable income (see instructions) 17.
18. Total apportionable income. Line 16 minus line 17. 18.
Oregon apportionable income
19. Enter the apportionment percentage from Schedule OR-21-AP, line 12. You must attach
Schedule OR-21-AP to apportion income. If you don’t apportion income, enter 100.0000. 19. %
20. Oregon apportionable income. Line 18 multiplied by line 19. 20.
21. Oregon allocated income (see instructions). 21.
22. Total Oregon distributive proceeds. Line 20 plus line 21. 22.

Part D: Tax, payments, penalty, and interest
23. PTE elective tax. (see instructions) 23.
24. Total PTE-E tax payments. Include all payments made prior to filing this return 24.
25. Net tax. If line 23 is more than line 24, you have tax to pay. Line 23 minus line 24. 25.
26. Overpayment of tax. If line 23 is less than line 24, you overpaid. Line 24 minus line 23. 26.
Penalty and interest
27. Penalty and interest for paying late (see instructions). 27.
28. Interest on underpayment of estimated tax (see instructions). 28.
29. Total penalty and interest due. Line 27 plus line 28. 29.

Part E: Tax to pay or refund
30. Net tax including penalty and interest. Line 25 plus line 29. This is the amount you owe. 30.
31. Overpayment less penalty and interest. Line 26 minus line 29. This is your refund. 31.

150-107-114-1 (Rev. 09-13-22) 9 2022 Form OR-21 Instructions

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