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Form OR-19 Instructions
Annual Report of Pass-through Entity Owner Tax Payments 2023

“Nonelecting owner” is a nonresident owner who chooses
Introduction not to join in the filing of a composite return, is required to
file an Oregon tax return, and has Oregon-source distribu-
Purpose of form tive income.
Form OR-19 is used to report tax payments withheld by “Owner” is a partner of a partnership or limited liability
pass-through entities (PTEs) with distributive income from partnership (LLP), shareholder of an S corporation, member
Oregon sources. The tax withheld is a prepayment of Oregon of a limited liability company (LLC), or beneficiary of a trust.
income and excise tax for the PTE’s owners.
“Pass-through entity (PTE)” is a partnership, S corpora-
For composite filing information, see Publication OR-OC. For tion, LLP, LLC, or certain trusts. Note: Single-member LLCs
affidavit filing information, see Form OR-19-AF Instructions. owned by an individual or a corporation and grantor trusts
Qualifying publicly traded partnerships, estates, and most are disregarded for tax purposes and aren’t PTEs. For this
trusts aren’t required to withhold tax for their nonresident purpose only: Estates aren’t PTEs.
owners.
A PTE that elects to pay the PTE elective tax will generally Owner payment requirements
not be required to withhold for the owners. Withholding
may be required for other types of taxes not included on the A PTE is required to pay tax to the department on behalf of
PTE elective tax return, such as built-in gains or excess net the nonelecting owner unless:
passive income tax. • The PTE elects to file and pay the Pass-through Entity
Elective (PTE-E) tax;
Determining the correct year for Form OR-19
• The owner has estimated or actual Oregon-source distribu-
Use the following table to determine which Form OR-19 a tive income from the PTE that is less than $1,000 for the
PTE should file. PTE’s tax year;
Use Form OR-19 for the
And the • The owner has made estimated tax payments for the prior
year that corresponds to
If the PTE uses: majority of tax year based on the owner’s share of Oregon-source
the year when the PTE’s
owners use: distributive income from the PTE and continues to make
tax year:
estimated tax payments for the current tax year; or
Calendar or
Calendar tax year Ends
fiscal tax year • The owner files an affidavit, Form OR-19-AF, indicating
Fiscal tax year Fiscal tax year Begins that they do not want the PTE to withhold tax from their
Calendar tax Oregon-source distributive income. For more information,
Fiscal tax year Ends
year see Form OR-19-AF Instructions.
Example 1. Beta Corp, an S corporation, uses a fiscal tax year Withholding isn’t required if the owner is another PTE,
that ends June 30, 2023. Seven of the eight shareholders in the except for entities that are disregarded for tax purposes.
corporation use a calendar tax year. Because the majority of Taxes withheld by a lower-tier PTE on distributions to an
the shareholders use a calendar tax year, Beta Corp will file upper-tier PTE will be applied to the withholding required
a 2023 Form OR-19 for the tax year. by the upper-tier PTE. Two common examples of disre-
garded entities are:
Example 2. MC Contractors, a partnership with three part-
ners, also uses a fiscal tax year that ends June 30, 2023. Two • Grantor trust: A grantor trust (usually called a revocable
of the three partners file using a fiscal tax year. Because the trust or living trust) is controlled by the grantor. Withhold
majority of the partners use a fiscal tax year, MC Contractors for the grantor the same as any other individual. On Form
will file a 2022 Form OR-19 for the tax year. OR-19, use the name, Social Security number (SSN), and
address of the individual owner. Select individual as the
Definitions owner type. Don’t use the name, FEIN, or address of the
grantor trust.
Throughout these instructions, the following terms are used:
• Single member LLC: Withhold for the member the same
“Distributive income” is generally the net taxable income
as any other individual or C corporation owner using the
or loss of a PTE. See “Oregon-source distributive income”
individual’s or corporation’s information.
on page 2 for a complete definition.
If the PTE expects the total Oregon-source distributive
“Electing owner” is a nonresident owner who chooses to
income of a nonresident owner to exceed $1,000 during the
join in the filing of a composite return.
tax year, the PTE should begin submitting payments as of
“FEIN” means federal employer identification number. the first quarter that includes Oregon-source income. Tax

150-101-182-1 (Rev. 09-07-23) 1 2023 Form OR-19 Instructions

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payments are required on the nonresident owner’s entire Apportionable income
share of Oregon-source income, not just the amount exceed-
PTEs with business activity both inside and outside Oregon
ing $1,000.
during the year must calculate Oregon-source distributive
The requirement to submit payments isn’t dependent on income for its owners. Use Schedule OR-AP for this purpose.
whether the PTE makes any distributions to its owners. A Complete Part 1 of the schedule to figure the apportionment
PTE with distributive income that didn’t pay any money percentage. Multiply the PTE’s distributive income by the
to its owners must still submit Oregon tax payments for apportionment percentage, then multiply by the ownership
its nonresident owners. A PTE with no distributive income percentage of the owner.

that pays a distribution from capital or retained earnings Guaranteed payments
isn’t required to withhold tax or submit nonresident owner
payments. Guaranteed payments are treated as a business income
component of the PTE’s distributive income and attributed
directly to the owner receiving the payment. See Oregon
Oregon-source distributive income Administrative Rule (OAR) 150-316-0155.

Oregon-source distributive income is the portion of the Deductions
entity’s modified distributive income that is derived from or Individual tax deductions
connected with Oregon sources. For estimated tax purposes,
distributive income is the net amount of the PTE’s income, Deductions normally allowed to individuals (itemized
gain, deduction, or loss for the tax year. It includes items deductions or the standard deduction) aren’t allowed in
determining the income amount upon which owner pay-
directly related to the PTE that are considered in determin-
ments are based and remitted.
ing the federal taxable income of the owner. It also includes
modifications provided in Oregon Revised Statutes (ORS) Self-employment tax deduction
Chapter 316 and other Oregon laws that directly relate to Each PTE must calculate the self-employment tax deduction
the PTE. for each electing member that is subject to self-employment
Oregon modifications. Examples of modifications that relate tax. The self-employment tax deduction that is attributable to
to the PTE’s income include adjustments for depreciation, the Oregon-source distributive income is subtracted from the
Oregon-source distributive income to determine the amount
depletion, gain or loss difference on the sale of depreciable
upon which the owner’s estimated payments are based.
property, and U.S. government interest. Modifications don’t
include the federal tax subtraction, itemized deductions, or Credits
the Oregon standard deduction.
Credits normally allowed on owners’ tax returns, such as
Oregon marijuana or psilocybin business modification. the credit for income taxes paid to another state, aren’t taken
Oregon-licensed marijuana and psilocybin businesses are into account in determining the income amount upon which
allowed a deduction for expenses that could be claimed owner payments are based and remitted.
as federal deductions if marijuana or psilocybin weren’t
controlled substances under federal law (IRC 280E). To cal-
Form instructions
culate the deduction, fill out a federal business return as if
the business expenses would have been allowed for federal PTE information. Enter the PTE’s name, FEIN, and address.
purposes. Don’t submit the federal business return to the Contact information. Enter the name and phone number of
IRS. The deduction is the difference between the profit/ a person the department can contact if we have questions or
loss on your actual federal return and the “as if” return. need more information.
Note: This deduction can’t be used to create a net operating
loss. It can only reduce your Oregon source income to zero. Section 1. Mark the box that matches the PTE’s entity type:
Partnership, S corporation, LLC, LLP, LP, or Trust. Enter the
Don’t submit the “as-if” return with Form OR-19. Keep
total amount of owner payments made each period and the
it with your tax records. See Publication OR-17 for more
date the payments were made. If more than four payments
information. were made during the year, combine the last payments into
Non-Oregon-source income. Oregon-source distributive Payment 4.
income doesn’t include return of capital, income sourced in Section 2–Owner information. Each line should list only
another state, or other distributions not taxable by Oregon. one taxpayer, so list spouses separately. Enter the name,
tax identification number, and address for each owner for
Oregon-only income whom tax was withheld.
If the PTE has business activity only in Oregon, multiply the Owner type. Indicate how the owner will file. Select from
distributive income of the PTE by the ownership percentage Individual, Corporation, Trust/Estate, or Composite. Don’t
of the owner. enter Grantor Trust, Disregarded Entity, or LLC.

150-101-182-1 (Rev. 09-07-23) 2 2023 Form OR-19 Instructions

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Important: Due dates for tax payments
• Owners won’t receive credit for payments made on their Tax payments for owners must be remitted for the period in
behalf until the PTE has submitted Form OR-19. which the distributive income is earned or estimated. Use
• Don’t include owners that are exempt, have no Oregon the entity’s tax year.
tax liability or withholding, are joining a composite For calendar year entities, the due dates for 2024 are:
return, or filed an affidavit.
• April 15, 2024 (1st period).
• Use the individual or corporate owner’s information for • June 17, 2024 (2nd period).
disregarded entities. • September 16, 2024 (3rd period).
• Use Form OR-19 only when submitting the annual rec- • December 16, 2024 (4th period).
onciliation. Do not submit this form with each period For fiscal-year entities, the due dates are the 15th day of the
payment. fourth, sixth, ninth, and 12th months of the tax year.
• Incomplete forms or forms submitted in the incorrect Exception: Fiscal-year entities with only noncorporate own-
format won’t be processed. ers who file using a calendar tax year may elect to use the
• Make sure the owner’s name on Form OR-19 matches the due dates applicable to the owners instead of the entity’s
name that will be on their income tax return. tax year.
Section 2–Payment information. Enter the amount of each Example 3. Beachside LLC has a fiscal tax year ending Sep-
payment submitted during the tax year. Use whole dollars tember 30. The LLC would normally send in payments on
for all amounts. If there were more than four payments, the following due dates: January 15; March 15; June 15; and
combine the last payments under Payment 4. September 15. The owners are all individuals who file using
a calendar tax year, so the LLC chooses to use the exception.
Make additional copies of Section 2 as needed to divide all Because the owners report this income in their calendar tax
payments among all owners. If more than one copy is used, year as required by IRS and Oregon laws, the payment due
enter the total for all payments on the last page of Part 2. The dates are the same as their estimated payment due dates:
total payments must exactly match the payments as listed April 15; June 15; September 15; and January 15.
in Section 1. Indicate the number of pages at the bottom of
the form. Payment methods
Important: Provide each owner with the total of their tax Online payments. Tax payments can be submitted through
payments. They will need the information when they file Revenue Online. Visit www.oregon.gov/dor for more
their Oregon income or excise tax return. information.
Composite filing after tax withheld. If the PTE wants any Mailed payments. Use Form OR-19-V to mail a payment by
portion of a payment to go to its Form OR-OC account check, money order, or cashier’s check. See Form OR-19-V
because some or all of the owners will be joining in a com- and Form OR-19-V Instructions for details.
posite return, enter “Form OR-OC” in the “Owner first
name” field and the amount from each payment.
Do you have questions or need help?
Due date for 2023 Form OR-19
www.oregon.gov/dor
Form OR-19 is due on the last day of the second month after 503-378-4988 or 800-356-4222
the end of the PTE’s tax year. For tax year 2023, the due date questions.dor@ dor.oregon.gov
for PTEs using a calendar year is February 29, 2024.
Contact us for ADA accommodations or assistance in other
languages.
Payment instructions

Calculate the amount of tax to be withheld and remitted to
the department as follows:
• Individual owners: Use the highest individual tax rate on
the nonelecting owner’s share of Oregon-source distribu-
tive income. For 2023, the rate is 9.9 percent.
• C corporation owners: Use the corporate tax rates on the
nonelecting owner’s share of Oregon-source distributive
income. For 2023, the rate is 6.6 percent on the first $1 mil-
lion and 7.6 percent on the amount over $1 million.

150-101-182-1 (Rev. 09-07-23) 3 2023 Form OR-19 Instructions

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