Law change affects CAT filing in 2022
With the passage of Senate Bill 164 in the 2021 session, the Oregon Legislature removed the requirement for calendar year filing of returns for the Corporate Activity Tax. For 2021 and forward, returns for taxpayers that use a federal tax year other than a calendar year are due on or before the 15th day of the fourth month following the end of the tax year. Taxpayers who use a calendar year for federal income tax purposes will not be impacted by these provisions.To address the gap between the end of the 2020 calendar year and the start of the taxpayer’s fiscal year that began in 2021, taxpayers that use a federal tax year other than a calendar year must:Prorate the annual registration, filing, and payment thresholds based on the number of days in the short-year return.File a short-period return, if the taxpayer reaches the prorated filing threshold.Prorate the $500,000 cap on compensation to a single employee when calculating labor costs included in the short-year return.If required, file the short-year return by April 15, 2022.An example of how to calculate the prorated thresholds for a short year return can be found in the 2021 Corporate Activity Tax Training presentation used during the December 7 live Zoom training event. A series of frequently asked questions and answers about the CAT, including changes made in Senate Bill 164, is also available on the CAT page of the Department of Revenue website.For general questions about the CAT, email cat.help.dor@oregon.gov or call 503-945-8005 between 8 a.m. and 4 p.m. Monday-Friday. |
