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                                                                                                                 2023
                                     Publication OR-OC
                            Oregon Composite Return Instructions for Pass-through Entities

                                           General information

Use Form OR-OC to:                                                  This publication provides instructions for the following:
• Report the nonresident owners’ share of Oregon-source             • 150-101-154 Form OR-OC
distributive income.                                                • 150-101-152 Schedule OR-OC-1
• Report centralized partnership audit regime (CPAR)                • 150-101-153 Schedule OR-OC-2
adjustments and any amount paid in lieu of tax at the               • 150-101-148 Schedule OR-OC-3
partnership or tiered partner level.                                • 150-101-149 Schedule OR-OC-4
                                                                    • 150-101-158 Form OR-OC-TR
If you are using these forms to report nonresident owners’ 
share of Oregon-source distributive income, follow the 
“Instructions for composite tax reporting.”
If the IRS adjusted your tax under CPAR, see “Instructions 
for Reporting Federal CPAR Adjustments.”

                            Instructions for Composite Tax Reporting

                                                                    or not. Nonelecting owners are required to file an Oregon 
Introduction                                                        tax return if they have Oregon-source distributive income.
Pass-through entities (PTEs) with distributive income attrib-       “Owner” is a partner of a partnership or limited liability 
utable to Oregon sources must file a composite return on            partnership (LLP), shareholder of an S corporation, member 
behalf of their nonresident owners who elect to participate         of a limited liability company (LLC), or beneficiary of a trust.
in the composite filing. The PTE reports the nonresident            “Pass-through entity (PTE)” is a partnership, S corporation, 
owners’ share of Oregon-source distributive income on one           LLP, LLC, abusive tax shelter trust or a trust that has been 
tax return, Form OR-OC.                                             established or maintained primarily for tax avoidance pur-
PTEs must make tax payments for nonresident owners who              poses. Note: Single-member LLCs owned by an individual 
don’t elect to join the composite return, unless the owner          or a corporation and grantor trusts are disregarded for tax 
files an affidavit. See Form OR-19 Instructions for more            purposes and are not PTEs. For this purpose only: Estates 
information.                                                        are not PTEs.
Important:                                                          “Pass-through entity elective tax (PTE-E tax)” is income 
                                                                    tax paid by electing PTEs at the entity level. Individual 
• The most common error on Form OR-OC is using the                  owners will report their distributive income and the PTE-E 
entity’s tax year instead of the owners’ tax year. Don’t use        addition and credit reported to them on their Oregon K-1 
the entity’s fiscal or short tax year for Form OR-OC. See           and OR-21-K-1. See Form OR-21 Instructions for additional 
“Tax year and return due date.”                                     information.
• Inform the electing owners to not claim the tax paid on 
their behalf on Form OR-40-N, Form OR-20, or Form OR-
20-INC returns.                                                     General information for composite 
                                                                    tax reporting
Definitions
“Distributive income”        is generally the net amount of         It’s important to know which owners intend to elect to join 
income, gain, deduction, or loss of a PTE.                          the composite return at the beginning of the tax year, so the 
                                                                    PTE can make estimated payments on time.
“Electing owner”            is a nonresident owner who chooses to 
join in filing a composite return.
                                                                    Filing requirements
“FEIN” is federal employer identification number.
                                                                    PTEs must file composite returns on behalf of electing own-
“Nonelecting owner” is an owner who chooses not to join             ers. A PTE that files a composite return is still required to 
in filing a composite return, whether the PTE withheld tax          file the PTE’s return (such as Form OR-65 or Form OR-20-S).
150-101-155 (Rev. 10-04-23)                                       1                               2023 Publication OR-OC

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To be included in the composite return, the owner must be:       Use Form OR-OC-V if the PTE only needs an extension to 
                                                                 file the Oregon composite return and make an extension 
• An individual nonresident of Oregon; 
                                                                 payment.
• A disregarded entity using a nonresident individual’s 
name and Social Security number (SSN);                           Check the “Original return” box and mail the completed 
• A C corporation with no commercial domicile in Oregon;         voucher with your payment by the original due date. When 
• An estate;                                                     Form OR-OC is filed, check the “Extension” box and enter 
• A trust that isn’t a resident trust;   or                      the extended due date. Keep a copy of the extension form 
• A qualified funeral trust (ORS 316.282).                       with your records. 
Owners who are also a PTE    can’t join in the composite         Remember: An extension allows for more time to file, not 
return. See “Tiered entities” for more information.              more time to pay. See “Estimated tax payment instructions.”

The election to participate in the composite filing can’t be 
                                                                 Penalty and interest
revoked after the due date of the composite return, includ-
ing extensions. See “Requesting transfer of payment” for         If tax isn’t paid by the due date (not including extensions), 
more information.                                                the PTE will owe penalty and interest. See the instructions 
                                                                 for Form OR-OC, line 9. 
The PTE is liable for any tax, penalty, and interest due, 
including interest on underpayment of estimated tax.
                                                                 Oregon-source distributive income

Tax year and return due date                                     Distributive income includes items directly related to the 
The tax year and due date for the Oregon composite return        PTE that are considered in determining the federal taxable 
is the same as the tax year and due date for the majority of     income of the nonresident owner. It also includes modifica-
the electing owners’ federal and Oregon tax returns. If the      tions and other Oregon laws that directly relate to the PTE. 
majority of owners file using a calendar tax year, then the      Limits that apply to the owner (such as passive loss limits) 
composite return is also a calendar tax year return. Form        are the same whether they file their own return or join a 
OR-OC isn’t filed using a fiscal or short tax year used by the   composite return.
PTE. If the majority of owners adopt a different fiscal year     Examples of the modifications allowed that relate to the PTE’s 
or change to a calendar year after Form OR-OC is filed, file     income include adjustments for depreciation, depletion, gain 
an amended Form OR-OC that includes the income and tax           or loss difference on the sale of depreciable property, and 
due for both the original and short year.                        U.S. government interest. If the PTE elected to pay Oregon’s 
                                                                 PTE-E tax, include the addition for PTE-E taxes deducted 
Use the tax forms and due dates that correspond with the 
                                                                 by the PTE on its federal return from the owner’s Schedule 
owners’ tax year. Most PTEs must use a calendar tax year         OR-21-K-1, line 2. Modifications don’t include the federal tax 
for Form OR-OC because it’s common for a majority of elect-      subtraction, itemized deductions, and the Oregon standard 
ing owners to use a calendar tax year. The due date for 2023     deduction allowed to individual taxpayers.
calendar year filers is April 15, 2024.
                                                                 Oregon-source distributive income is the portion of the 
If Form OR-OC isn’t available for the applicable tax year        entity’s modified distributive income that is derived from or 
at the time of filing, wait until the current year return is     connected with Oregon sources. Oregon-source distributive 
available before filing the composite return. Don’t use prior    income doesn’t include return of capital, income sourced in 
year forms.                                                      another state, or other distributions not taxable by Oregon. 
Example 1: NW LLC‘s 2023 fiscal year began April 1, 2022         If the PTE has business activity only in Oregon, multiply the 
and ended March 31, 2023. Most of the electing owners are        distributive income of the PTE by the ownership percentage 
individuals who file using a calendar year. Following federal    of the nonresident owner.
reporting rules, the 2023 fiscal year income from NW LLC 
is reported on the owners’ 2023 federal and Oregon tax           Apportionable income
returns. Therefore, NW LLC will file a 2023 calendar year 
Form OR-OC for its electing owners to report this income,        PTEs with business activity both inside and outside Oregon 
which is due April 15, 2024.                                     during the year must calculate Oregon-source distributive 
                                                                 income for nonresident owners. This is the same as what 
                                                                 was calculated for the PTE’s return using Schedule OR-AP 
Extensions                                                       to figure the apportionment percentage. 
If the PTE is granted a federal extension to file its return     Corporate Partners. A corporate partner’s distributive 
(Form OR-65 or Form OR-20-S), the PTE is also granted            income may be included in a composite return only when 
an extension for Form OR-OC. The additional time to file         its distributive share is not required to be included in the 
Form OR-OC with a timely filed extension is six months. A        corporate partner’s apportionable income. The PTE filing a 
calendar year 2023 Form OR-OC filed on extension is due          composite return should assume a corporate partner’s dis-
on October 15, 2024.                                             tributive share is required to be included in the corporate 
150-101-155 (Rev. 10-04-23)                                    2                                       2023 Publication OR-OC

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partner’s apportionable income unless the corporate partner               Self-employment tax deduction
notifies the PTE in writing that it is not. 
                                                                          Each PTE must calculate the self-employment tax deduction 
A corporate partner may have previously notified the PTE                  for each electing owner who is subject to self-employment 
that its distributive share is not includable in its apportion-           tax. Subtract the self-employment tax deduction attributable 
able income and elected to be included in the PTE’s com-                  to Oregon-source distributive income from the Oregon-
posite return. If it is determined that the corporate partner’s           source distributive income and enter the net result on Sched-
distributive share should be included in the corporation’s                ule OR-OC-1 for each owner. 
apportionable income by the department, the corporate 
partner’s election to be included in the composite return 
is invalid. Upon notification of this fact by the corporate               Oregon marijuana or psilocybin business 
partner, the PTE may file an amended composite return                     modification
for a refund of tax that was paid on the corporate partner’s 
                                                                          Oregon-licensed marijuana and psilocybin businesses are 
distributive income included in the composite return. 
                                                                          allowed a deduction for expenses that could be claimed 
                                                                          as federal deductions if marijuana or psilocybin wasn’t a 
Guaranteed payments                                                       controlled substance under federal law (IRC 280E). To cal-
Guaranteed payments are treated as a business income                      culate the deduction, you must complete a federal business 
component of the PTE’s distributive income and are                        return as if the business expenses would have been allowed 
attributed directly to the owner receiving the payment                    for federal purposes. You won’t submit the “as if” federal 
(OAR 150-316-0155).                                                       business return to the IRS. The deduction is the difference 
                                                                          between the profit/loss on your actual federal return and 
                                                                          the “as if” return. The deduction is subtracted from the total 
Distributions
                                                                          Oregon-sourced distributive income. Don’t submit the “as-
Though distributions to shareholders of an S corporation                  if” return with Form OR-OC. Keep it with your tax records.
generally aren’t taxable income, there are exceptions. For 
instance, if the corporation was formerly taxed as a C cor-               Note: This deduction can’t be used to create a net operat-
poration, any C corporation earnings and profits that are                 ing loss. It can only be used to reduce your Oregon source 
distributed are taxable. Attribute any taxable part of a dis-             income to zero. See Publication OR-17 for more information.
tribution directly to the shareholder receiving the distribu-
tion. Multiply the taxable part by the Oregon apportionment               Credits
percentage from Schedule OR-AP to determine how much 
to include in the shareholder’s income.                                   Credits normally allowed on owners’ tax returns, such as 
                                                                          the credit for taxes paid to another state or exemption credit, 
                                                                          aren’t allowed on the composite return. If the PTE elected to 
Deductions
                                                                          pay the PTE-E tax, the PTE-E tax credit will be used to off-
Individual tax deduction                                                  set the tax due reported on the composite return. See Form 
                                                                          OR-21 instructions for more information.
Deductions normally allowed to individuals (such as item-
ized deductions or the standard deduction) aren’t allowed                 For tax year 2023, a PTE can claim the Oregon surplus credit 
on composite returns.                                                     (kicker) on behalf of individuals, trusts, and estates that 

                                            2023 tax rate charts

                            Tax rate chart                                                  Tax rate chart
                                                                                            For persons filing
          S For persons filing                                                        J
 Single or married filing separately                                       Jointly, head of household, or qualifying surviving 
                                                                                 spouse with dependent child
If your taxable income is:  Your tax is:
                                                                          If your taxable income is:  Your tax is:
Not over $4,050 ............................. 4.75% of taxable income
                                                                          Not over $8,100.............................. 4.75% of taxable income
Over $4,050 but .............................$192 plus 6.75% of the
                                                                          Over $8,100 but ............................. $385 plus 6.75% of the
not over $10,200            excess over $4,050                            not over $20,400            excess over $8,100
Over $10,200 but ...........................$607 plus 8.75% of the        Over $20,400 but ........................... $1,215 plus 8.75% of the
not over $125,000           excess over $10,200                           not over $250,000           excess over $20,400
Over $125,000 ................................ $10,652 plus 9.9% of the   Over $250,000 ................................$21,305 plus 9.9% of the
                            excess over $125,000                                                      excess over $250,000
150-101-155 (Rev. 10-04-23)                                             3                                 2023 Publication OR-OC

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were included on the 2022 Form OR-OC. The Oregon sur- Estimated payment due dates don’t apply and aren’t
plus credit is a refundable credit calculated using the 2022 required for estates and trusts. Tax is due on the due date
tax liability of individuals, trusts, and estates multiplied by of the return, not including extensions.
the surplus credit percentage. The credit isn’t available for
corporate owners. See the instructions for Schedule OR-OC-1 Tiered entities
for more information.
A PTE that owns an interest in another PTE (upper-tier
If the PTE discontinued business and has no filing require- entity) isn’t allowed to join in the composite filing. Don’t
ment for 2023, the individuals, trusts, and estates included send tax payments for an owner who is another PTE. If the
on the 2022 composite filing may file individual or fiduciary owner is another PTE, they must file their own return and
returns to claim the surplus credit using their tax liability make their own payments.
reported in column (a) of the 2022 Schedule OR-OC-1.
Example 2: The owners of Partnership A are one LLC, one
If an individual, trust, or estate chose not to be included on S corporation, three individuals, and two C corporations.
Form OR-OC for tax year 2022, but is electing to be included Only the three individuals and two C corporations can join
in the Form OR-OC filing for tax year 2023, that owner must the composite return. Partnership A doesn’t make estimated
file a 2023 individual or fiduciary return to claim the surplus tax payments on behalf of the upper-tiered entities (the LLC
credit based on the tax liability from their 2022 return. and the S corporation). Each of these upper-tiered PTEs will
file their own composite return for their owners, who can
elect to join in a composite filing.
Estimated tax payment instructions
Payment voucher instructions
The PTE is required to make estimated tax payments in the
PTE’s name on behalf of all owners who elect to join in the Use Form OR-OC-V for all composite return estimated tax
composite filing. payments. You don’t need to use a separate voucher for each
type of tax payment. If submitting a payment with Form
Payment voucher: Use Form OR-OC-V and follow Form OR- OR-OC, don’t include the voucher with the form.
OC-V Instructions. Calculate the amount of tax required to
be paid as follows:
For individual electing owners: Multiply the electing Schedule OR-OC-1 —Individual and
owner’s share of Oregon-source distributive income by the fiduciary owners
tax rate for the electing owner’s filing status. See the 2024
estimated tax rate charts in Publication OR-ESTIMATE. Use Schedule OR-OC-1 for individuals, estates, and trusts
only. Combine all individuals, estates, and trusts on one
For C corporation electing owners: Multiply the electing
Schedule OR-OC-1. Don’t submit a separate Schedule
owner’s share of Oregon-source distributive income by the
OR-OC-1 for each owner type.
corporate tax rates, or use the corporate minimum tax rates.
Lines 1 through 4. Complete one line for each electing
For estate and trust electing owners: Estimated tax pay-
individual, estate, or trust owner. Even if two owners file
ments aren’t required. If you choose to make payments, jointly, list them separately on Schedule OR-OC-1. If more
multiply the electing owner’s share of Oregon-source dis- than four lines are needed, use additional copies of Schedule
tributive income by the tax rate for single or married filing OR-OC-1. If you use more than one Schedule OR-OC-1, total
separately. See the 2024 estimated tax rate charts in Publica- all pages on the first page (line 5) and carry that amount to
tion OR-ESTIMATE. Form OR-OC. Include Schedule OR-OC-1 with Form OR-OC.
See “Estates or trusts” instructions to include the owner of
Due dates for estimated tax payments a grantor trust with other individuals.
The due dates for estimated tax payments are the due dates Owner information. For each owner, enter the owner
required for the majority of the electing owners. type (individual, estate, or trust), the individual owner’s or
fiduciary’s name, SSN or FEIN, filing status (if applicable),
If the majority of electing owners use a: ownership percentage, share of federal income, and share of
• Calendar tax year, the due dates for the 2024 estimated tax Oregon-source distributive income. The filing status must
payments are April 15, 2024; June 17, 2024; September 16, match their federal return. Use “J” for married filing jointly
2024; and January 15, 2025 (or December 16, 2024, for cor- or qualifying surviving spouse; “S” for single filers; “H”
porate calendar year filers). for head of household; or “M” for married filing separately.
• Fiscal tax year, the estimated tax due dates are the 15th Column (a). Oregon income tax. Use the 2023 tax rate
charts on page 3 to calculate Oregon income tax based on
day of the fourth, sixth, ninth, and thirteenth (or twelfth
filing status.
month for corporate filers) month following the beginning
of the fiscal year.Note: It’s rare for the majority of electing Column (b).PTE-E tax credit. If the PTE elected not to pay
owners to have the same fiscal tax year. PTE-E tax, enter zero. If the PTE elected and paid the PTE-E
150-101-155 (Rev. 10-04-23) 4 2023 Publication OR-OC

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tax, enter each owner’s distributive share of the credit from the interest for each owner separately using Form OR-10
Schedule OR-21-K-1, line 3 in column (b). Instructions.
Column (c). Oregon surplus credit (kicker). For 2023, a PTE
can claim the Oregon surplus credit on behalf of owners Estates or trusts
that are individuals, trusts, or estates. The credit is calcu- Refer to the basic instructions for Schedule OR-OC-1. In
lated using the 2022 tax liability of those owners multiplied column (a), use the single or married filing separately tax
by the kicker percentage (44.28 percent). Use the following rate from the 2023 tax rate charts. Don’t complete column
worksheet to calculate the credit for each owner included on (e), interest on underpayment of estimated tax—this doesn’t
the 2022 Form OR-OC. apply to estates or trusts.
1. Tax liability reported in column (a) of the Grantor trusts may join in a composite filing. Use the
2022 Schedule OR-OC-1 ................................1. ________ grantor’s name and SSN on the Schedule OR-OC-1 as long
as the grantor is still living. Once the grantor trust becomes
2. Oregon surplus credit percentage an irrevocable trust, use the trust’s name and federal tax
(decimal value)...............................................2. 0.4428 identification number.
3. Multiply line 1 by line 2 .............................3. ________ Simple or complex trusts may join in the composite filing
using the appropriate federal tax identification number on
Enter the amount on line 3 for each owner in column (c) of
the Schedule OR-OC-1.
the 2023 Schedule OR-OC-1.
Example 3: A partnership filed a 2022 Form OR-OC on
behalf of three individual owners and two estates. The part- Schedule OR-OC-2— C corporation
nership will file a 2023 Form OR-OC on behalf of the same owners
owners. The partnership will multiply the Oregon surplus
credit percentage by the tax liability reported in column (a) Use Schedule OR-OC-2 for C corporation owners only.
of the 2022 Schedule OR-OC-1s for each of the owners and
report the credit amounts in column (c) of the 2023 Schedule Lines 1 through 5. Complete one line for each electing
OR-OC-1. corporate owner. If more than five lines are needed, use
additional copies of Schedule OR-OC-2. If you use more than
If an individual, trust, or estate was included in the Form one Schedule OR-OC-2, total all pages on the first page (line
OR-OC filing for 2022 but is no longer an owner in the PTE 6) and carry that amount to Form OR-OC. Include Schedule
for tax year 2023, the credit can still be claimed on their OR-OC-2 with Form OR-OC.
behalf. On Schedule OR-OC-1, provide the owner’s name,
SSN or FEIN, and the Oregon surplus credit amount. Leave Owner information. For each corporate owner, enter the
all other fields blank. The total for column (c) of the 2023 corporation name, FEIN, tax type, ownership percent-
Schedule OR-OC-1, line 5(c), should equal the total tax liabil- age, share of federal income, and share of Oregon-source
ity reported on line 1a of the 2022 Form OR-OC multiplied distributive income. For tax type, enter the tax which the
by the surplus credit percentage. corporate owner is subject to: “E” for corporate excise tax or
“I” for corporate income tax.
Example 4: A partnership filed a 2022 Form OR-OC on
behalf of six individual owners and reported a total tax of Column (a). Multiply the first $1 million of Oregon-source
$2,500 on line 1a. For 2023, the total surplus credit reported distributive income for each corporate owner by 6.6 percent
on Schedule OR-OC-1, line 5(c) should equal $1,107 ($2,500 and multiply the amount over $1 million by 7.6 percent. If
× 0.4428). you entered an “E” as the tax type, compare the result with
the corporation’s minimum tax from the chart below. Enter
Oregon allows the surplus credit to be donated to the the larger of those two amounts as the tax for that owner.
Oregon State School Fund. If you would like to donate to
the fund, mail your donation to: Corporate minimum tax chart
Oregon Department of Education If the owner’s share of Oregon sales are . . .
Attn: OFA Cashier at least: but less than: the minimum tax is:
255 Capitol St NE --------- $500,000 $150
Salem OR 97310 $500,000 $1 million $500
Column (d). Enter the estimated payments submitted on $1 million $2 million $1,000
behalf of each owner. $2 million $3 million $1,500
Column (e). Calculate interest on underpayment of esti- $3 million $5 million $2,000
mated taxes. Interest on the underpayment of estimated $5 million $7 million $4,000
tax is due when an individual electing owner has a net tax $7 million $10 million $7,500
liability in excess of $1,000 after estimated tax payments, the
Oregon surplus credit, and the PTE-E tax credit. Calculate $10 million $25 million $15,000
150-101-155 (Rev. 10-04-23) 5 2023 Publication OR-OC

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            Corporate minimum tax chart                           • Pay your tax due after the original due date (even if you 
                                                                  filed an extension); or
$25 million                 $50 million       $30,000
                                                                  • File the composite return showing tax due after the due 
$50 million                 $75 million       $50,000             date, including any extension. 
$75 million                 $100 million      $75,000
                                                                  The penalty is 5 percent of the unpaid balance of your tax 
$100 million                ---------         $100,000            as of the due date, not including extensions. If you file more 
                                                                  than three months after the due date or extension due date, 
Column (b). Enter the estimated payments submitted on 
                                                                  add an additional 20 percent penalty, for a total of 25 percent 
behalf of each corporate owner.
                                                                  of the unpaid tax.
Column (c). Calculate interest on underpayment of esti-
mated taxes. Interest on underpayment of estimated tax is         If you don’t pay the tax due by the due date, interest is due on 
due when a corporate electing owner has a tax liability of        the unpaid tax. The annual interest rate is 8 percent for 2024. 
more than $500 after estimated tax payments. Calculate the        Interest is figured daily (0.0219 percent per day) for periods 
interest for each owner separately using Form OR-37.              of less than a year. Here’s how to figure daily interest:

                                                                  Tax  ×  0.000219 ×  Number of days past the due date 
Form OR-OC                                                                               of the return
                                                                  If the tax isn’t paid within 60 days of the original billing 
PTEs must file Form OR-OC on behalf of electing nonresi-          notice, the interest rate increases to 12 percent for 2024. 
dent owners. As the designated agent, the PTE is liable for 
any tax, penalty, and interest due, including interest on         Line 11—Interest on underpayment of estimated tax. Enter 
underpayment of estimated tax.                                    the amounts from Schedule OR-OC-1, line 5(e), and Schedule 
                                                                  OR-OC-2, line 6(c). For more information on calculating the 
Important: 
                                                                  interest, see the Schedule OR-OC-1 and OR-OC-2 instruc-
• Complete Schedules OR-OC-1 and OR-OC-2 prior to                 tions above.
completing Form OR-OC. Schedules OR-OC-1 and 
                                                                  Line 17—Amount you owe.     Payment of the amount due 
OR-OC-2 must be filed with the composite return. 
                                                                  must accompany the Oregon composite return. Don’t           use 
• If you are impacted by CPAR adjustments, see “Instruc-
                                                                  the voucher, Form OR-OC-V, if submitting payment with the 
tions for reporting federal CPAR adjustments.”
                                                                  return. The PTE must pay the total amount due on behalf of 
Complete all applicable fields in the header.                     the nonresident owners.
Tax year end date for the majority of owners on composite 
return. The tax year end date for the composite return is the     Amending the composite return 
same as the tax year end date for the majority of owners’ 
federal and Oregon tax returns. If the majority of owners         The PTE may file an amended return to adjust any item 
file using a calendar tax year, then the tax year end date is     reported on the original composite filing or to carry back 
December 31, 2023.          Don’t use the end date for the PTE.   Oregon net operating losses. File Form OR-OC for the year 
Preparer information. If the form was completed by a paid         that is being adjusted or the year to which the loss is being 
preparer, provide all paid preparer information in the sig-       carried and check the “Amended return” box in the header. 
nature block, including the paid preparer address, phone          File a schedule with the amended return that reconciles prior 
number, and license number. If the form was completed by          payments and refunds to the corrected tax. 
someone other than a paid preparer, provide the name and          Net operating loss (NOL) carryback for individual income 
phone number of the preparer in the header and leave the          tax purposes only. If you are amending to claim an NOL, 
paid preparer fields in the signature block blank.                mark the “Amended return” box and enter the tax year 
Line 1  —Composite tax. Enter the tax from Schedules              the NOL was generated from. Include a schedule to the 
OR-OC-1 and OR-OC-2.                                              amended return naming the owners and showing the year 
                                                                  and calculation of the NOL. You are allowed the same 
Line 2—CPAR tax. Enter 0 unless you are filing to report          NOL carryback period that is allowed for federal purposes.  
CPAR adjustments. See “Instructions for reporting federal         Note: For corporate excise and income tax purposes, NOLs 
CPAR adjustments.”                                                may only be carried forward.
Line 4—PTE-E tax credit. Enter the tax from Schedule 
                                                                  When you file the amended return, you must submit the 
OR-OC-1, line 5(b).
                                                                  payment along with the return. Don’t submit the voucher, 
Line 6—Payments. Report the total of all tax payments.            Form OR-OC-V, if sending the payment with the return. Pay 
Include all payments you made up to the date you filed            the total amount due for all owner types.
your original or amended return. 
                                                                  Any refund will be paid to the PTE regardless of any own-
Line 10—Penalty and interest. Include a penalty payment           ership changes or changes in the identity of the owners 
if you:                                                           participating in the composite filing. 
150-101-155 (Rev. 10-04-23)                                     6                                        2023 Publication OR-OC

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remove the owner from the composite return. Use Form
Electing owners who have other OR-OC-TR to show the portion of each payment that is trans-
ferred to the owner and the portion that stays on the PTE
Oregon-source income
account. Enter the date and amount of each payment made
during the tax year. Up to four payments can be reported
Electing owners who have additional income from Oregon
on Form OR-OC-TR. Each line is for one taxpayer; enter
sources or who are doing business in Oregon may be
spouses separately. Use additional forms as needed to divide
required to file their own tax return in addition to participat-
a payment among owners and the PTE. Use whole dollars.
ing in the composite return.
Note: Once the payments have been transferred to the
Personal income taxpayers may join multiple composite owner, the payments can’t be transferred back to the PTE.
returns if they qualify. If you have other Oregon income
Preparer information. If the form was completed by
that hasn’t been reported on Form OR-OC, you’re required
someone other than a paid preparer, provide the name
to file your own return. Nonresidents use Form OR-40-N
and phone number of the preparer in the header and leave
and Schedule OR-ASC-NP. Enter all income (including
the paid preparer fields in the signature block blank. If the
income reported on Form OR-OC) in the federal col- form was completed by a paid preparer, provide all paid
umn, line 17F, of Form OR-40-N. You will also report all preparer information in the signature block, including the
Oregon-source income (including Oregon-source income paid preparer address, phone number, and license number.
reported on Form OR-OC) in the Oregon column, line 17S,
of Form OR-40-N. Because the income reported on Form Enter the total for each column on the first form. The totals in
OR-OC has already been taxed, you will subtract those columns (a), (b), (c), and (d) must match the payments listed
amounts on Schedule OR-ASC-NP, Section C. Identify the on the first page. If the amounts don’t match the correspond-
subtraction using code 341. ing payments, the form won’t be processed. The owners won’t
receive credit for payments made until the PTE has submitted
Note: Don’t claim the tax paid on your behalf on Form a correct Form OR-OC-TR.
OR-OC as a payment on your Form OR-40-N. That payment
was already used to pay the tax on the income reported on If you submitted a Form OR-OC-TR, check the “Form OR-
Form OR-OC. OC-TR” box in the header of Form OR-OC. This will make
sure the transfer request is processed prior to the composite
Corporate taxpayers must also file a corporate tax return if return.
you have other income to report. You may join multiple com-
posite returns. If the corporation has other Oregon income Owner instructions
to report that hasn’t been reported on Form OR-OC, you’re
also required to file your own corporate tax return. A separate return filed by an owner is treated as an original
return. The tax liability shown on the return, if any, may be
You will subtract the “Share of Oregon-source distributive subject to penalty and interest, including interest on under-
income” reported on Form OR-OC-2 on Schedule OR-ASC- payment of estimated tax.
CORP, Section B, using subtraction code 341.
Example 5: In August 2023, Karen notifies her S corporation
that she doesn’t want to join the composite return for tax
Form OR-OC-TR—requesting year 2023. Because she was part of the 2022 Form OR-OC,
the S corporation has already sent in payments for her share
transfer of payment instructions of the estimated tax based on the prior year’s tax. They
submitted two payments of $1,500 each; Karen’s estimated
An owner can’t revoke the election to join a composite fil- tax was $250 from each payment. The S corporation won’t
ing after the due date of the composite return, including include Karen’s share in future estimated payments for
extensions. If an owner chooses to not be included in the the composite return. They will immediately submit Form
composite filing, and payments were submitted by the PTE OR-OC-TR. The two $1,500 estimated payments will be in
on behalf of the owner, the PTE may only submit a request payment 1 and payment 2 of the payment section on page 1
for transfer of payment to the owner’s account using Form of Form OR-OC-TR. The first line on page 2 will have $1,250
OR-OC-TR on or before the due date of the composite return, for both payment 1 and payment 2, which will remain on
including extensions. the PTE account. On line 1, the S corporation will provide
Karen’s information and report $250 in both columns (a)
PTE instructions and (b) with a total for owner of $500. When the composite
return is submitted, the S corporation will check the “Form
The PTE must file a transfer request, Form OR-OC-TR, so that
OR-OC-TR submitted” box in the header.
payments made on behalf of an owner can be transferred
from the PTE’s account to the owner’s account. The request Note: The S corporation will have to start withholding tax on
must be submitted before the composite return is filed. If Karen’s behalf as PTE owner payments unless she submits
the transfer request is submitted after Form OR-OC has been an affidavit, Form OR-19-AF. For more information about
filed but before the return is due, the PTE must amend Form PTE owner payments and filing an affidavit, see Form OR-
OR-OC on or before the due date, including extensions, to 19-AF Instructions.
150-101-155 (Rev. 10-04-23) 7 2023 Publication OR-OC

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Example 6: On September 15, 2024, a partnership filed a requests to revoke the election for tax year 2023. Since the
composite return on extension on behalf of six individual due date for the 2023 composite return has already passed,
nonresident owners electing to participate in a 2023 compos- the owner can’t revoke the election and any payment transfer
ite filing. In November 2024, one of the nonresident owners request will not be processed.

Instructions for Reporting Federal CPAR Adjustments

• A composite return filed for the audited year must be
CPAR definitions amended for the CPAR adjustments.
“Audited partnership” is a partnership-level audit by the • All other direct and indirect partners must report the
IRS resulting in an adjustment and needs to report an CPAR adjustments as an addition or subtraction on their
increase in Oregon tax. own returns or file amended returns for the audited year.
“CPAR” is a centralized partnership audit regime. For additional information, visit www.oregon.gov/dor and
search for “Centralized Partnership Audit Regime.”
“CPAR election” is the election made on Form OR-OC by an
Oregon partnership representative on behalf of an audited Filing due date. The due date for filing Form OR-OC to
partnership to report and pay the CPAR tax at the partner- report CPAR adjustments is 180 days after the date of the
ship level [ORS 314.733(4)]. This election is not to be used for FPA. For tiered partners making the CPAR election, the due
administrative adjustment requests (IRC 6227). The election date for filing Form OR-OC is 90 days from the extended
is irrevocable after the filing due date for submitting the due date of the audited partnership’s tax return for the year
CPAR election. in which the FPA was issued.
“CPAR tax” is an amount paid in lieu of tax being reported Payment due date. The payment due date for an audited
to Oregon due to a CPAR adjustment to income and paid at partnership making a CPAR election is 270 days from the
the partnership level. Adjusted income is taxed at the highest date of the FPA. In the case of a tiered partner making a
marginal personal or corporate tax rate. CPAR election, the payment due date is the same as the
filing due date, 90 days from the extended due date of the
“FPA” is a final partnership adjustment. audited partnership’s return for the year in which the FPA
“Notice of FPA” is the notice issued by the IRS reporting the was issued.
CPAR adjustment and final date of the adjustment. Example 7: MP Partnership was audited by the IRS for tax
“Partnership-level audit” is an examination by the IRS at year 2023. The FPA is dated May 31, 2027. MP Partnership
the partnership level from which an adjustment arises. makes the CPAR election; therefore, Form OR-OC, Schedule
OR-OC-3, and Schedule OR-OC-4 reporting their CPAR tax
“Partnership representative” is the person appointed as for tax year 2023 must be filed by November 27, 2027 (180
the sole authority to act on behalf of the partnership and be days after the date of the FPA). The tax must be paid by Feb-
responsible for actions required or permitted to take. ruary 25, 2028 (270 days after the date of the FPA).
• “Federal partnership representative” is the partnership Example 8: Assume the same facts as in Example 7, except
representative appointed by the IRS or designated by the MP Partnership didn’t make the CPAR election. The tiered
partnership to act as its federal representative. partners of MP Partnership may choose to make the elec-
tion themselves. RC Partnership is a tiered partner of MP
• “Oregon partnership representative” is the federal part-
Partnership. If RC Partnership makes the CPAR election,
nership representative, unless the partnership designated
it must file Form OR-OC, Schedule OR-OC-3, and Sched-
another representative for Oregon only.
ule OR-OC-4 reporting their CPAR tax and pay the tax by
“Tiered partner” is a PTE owner of an audited partnership. December 14, 2028 (90 days from the extended due date of
MP Partnership’s 2027 return).

General information for CPAR Amending to report changes in CPAR tax
reporting If you have filed Form OR-OC to report CPAR tax, you may
amend to change the CPAR tax because of changes made
Use Form OR-OC, Schedule OR-OC-3, and Schedule by the IRS. Changes can’t result in a refund that exceeds the
OR-OC-4 to report the CPAR adjustments, whether or not CPAR tax originally reported and paid.
the partnership makes the election to pay the CPAR tax. File
a separate form with schedules for each audited tax year. Owner responsibilities when the CPAR election is
If the partnership doesn’t make the CPAR election: not made
• A tiered partner may make the election to pay CPAR tax If you’re an owner of a partnership that was subject to a part-
on its share of the adjustments. nership-level audit by the IRS (or you’re an owner of a tiered
150-101-155 (Rev. 10-04-23) 8 2023 Publication OR-OC

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partner of such a partnership), you may need to increase or
decrease your Oregon income as a result of the audit. Report CPAR instructions for Form OR-OC
an increase in income using addition code 187 or report a
decrease in income using subtraction code 384, whichever is Complete Schedules OR-OC-3 and OR-OC-4 prior to com-
applicable. Use these codes, even if another code is assigned pleting Form OR-OC. These schedules must be filed with
for the specific type of increased or decreased income. Visit the form.
our website for more information. Enter the audited partnership or tiered partner’s informa-
tion at the top of the form. Complete all applicable fields in
the header.
Schedule OR-OC-3 —CPAR report for
Amended return. Check the box if you previously filed a
individuals , fiduciaries, and tiered
Form OR-OC to report CPAR adjustments for this year.
partners
CPAR report. Check the box to report CPAR adjustments.
This schedule is only used by audited partnerships or FPA issue date. Audited partnerships only, enter the date
tiered partners to report CPAR adjustments. Use Schedule of the FPA.
OR-OC-3 for every individual, estate, trust, and tiered part-
ner for the audited year. Audited partnership tax year end date. Tiered partners
only, enter the last day of the tax year in which the FPA was
Lines 1 through 4. Complete one line for each individual, issued to the audited partnership.
estate, trust, or tiered partner. If more than four lines are
needed, use additional copies of Schedule OR-OC-3. If you If making the election to pay CPAR tax, complete lines 2,
use more than one Schedule OR-OC-3, total all pages on line 6 through 10, and 12 through 14. Otherwise, leave lines 1
5 of the first page and carry the amount to Form OR-OC. through 14 blank.
Owner information. For each owner, enter the owner type Lines 2a and b—CPAR tax. Enter the amounts from Sched-
(individual, estate, trust, or tiered partner), the individual ule OR-OC-3, line 5a, and Schedule OR-OC-4, line 6a. Skip
owner’s or fiduciary’s name, SSN or FEIN, ownership per- lines 3, 4, and 5.
centage, share of federal CPAR adjustments, and share of Line 6 —Payments. Report the total of all CPAR tax pay-
Oregon-source CPAR adjustments. ments made to date.
Keep your calculations for each partner’s share of Oregon- Line 10 —Penalty and interest. If paying late, calculate pen-
source CPAR adjustments with your tax records. alty and interest for the amounts reported on lines 2a and 2b.
Column (a). CPAR tax. If making the election to pay CPAR Combine these and enter on line 10. Skip line 11.
tax, multiply the partner’s share of Oregon source CPAR Calculate a 5 percent penalty of the unpaid CPAR tax if:
adjustments by 9.9 percent.
• The audited partnership pays the tax more than 270 days
after the FPA issue date; or
Schedule OR-OC-4 —CPAR report for • A tiered partner pays the tax more than 90 days after
the due date of the current year’s return, including any
C corporation owners extensions.
Use Schedule OR-OC-4 for C corporation partners for the If you file more than three months after the CPAR filing due
audited year. date, add an additional 20 percent penalty, for a total of 25
percent of the unpaid CPAR tax.
Lines 1 through 5. Complete one line for each included
corporate owner. If more than five lines are needed, use If you don’t pay the CPAR tax by the payment due date,
additional copies of Schedule OR-OC-4. If you use more than interest is due on the unpaid tax from the due date of the
one Schedule OR-OC-4, total all pages on line 6 of the first original return. The annual interest rate for 2024 is 8 percent.
page and carry the amount to Form OR-OC. Interest is figured daily based upon a 365-day year (0.0219
percent per day) for periods of less than a year. Here’s how
Owner information. For each corporate owner, enter the to figure daily interest:
corporation name, FEIN, ownership percentage, share of
federal CPAR adjustments, and share of Oregon-source Tax × 0.000219 × Number of days past the due date
CPAR adjustments. of the return
Keep your calculations for each corporate partner’s share If the tax isn’t paid within 60 days of the original billing
of Oregon-source CPAR adjustments with your tax records. notice, the interest rate increases to 12 percent for 2024.
Column (a). CPAR tax. If the partnership elects to pay the Interest rates may change once a year. See Publication OR-17
CPAR tax, multiply the corporate partner’s share of Oregon- for more information about interest rate changes.
source CPAR adjustments by 7.6 percent.

150-101-155 (Rev. 10-04-23) 9 2023 Publication OR-OC

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CPAR payment instructions Important addresses

Online payment. You may make payments anytime online Mail Form OR-OC-V with payment (without Form OR-OC):
at www.oregon.gov/dor. If you haven’t filed Form OR-OC for Oregon Department of Revenue
this tax year, select the “Return” payment type; otherwise, PO Box 14950
select “Amended return.” Don’t use a voucher with online Salem OR 97309-0950
payments. Mail returns with payment (don’t include voucher):
Oregon Department of Revenue
Payments mailed with a return. If you’re mailing a pay-
PO Box 14555
ment with your tax return, send the payment and return in
Salem OR 97309–0940
the same envelope and don’t use a voucher. Write “CPAR
tax” on the payment. Include a separate payment for each Mail returns without payment (refund or no tax due for
tax year. all owners):
Oregon Department of Revenue
Payments mailed without a return. If you’re mailing a
PO Box 14700
payment without a return, use the voucher, Form OR-OC-V.
Salem OR 97309–0930
Include a separate payment and voucher for each tax year.
Write “CPAR tax” on the payment. See Form OR-OC-V Mail payment transfer request, Form OR-OC-TR:
Instructions for more information. Oregon Department of Revenue
PO Box 14999
Salem OR 97309–0990

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.

150-101-155 (Rev. 10-04-23) 10 2023 Publication OR-OC

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