|In response to feedback from tax practitioners the department has posted the OR-CAT-EXT form in the Forms and Publications Library on our website.|
|Short-year CAT return deadline approaching|
|For tax years 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 this change.|
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 as described in the instructions (even though it does not specifically say to prorate on the forms).
Prorate the $500,000 cap on compensation to a single employee when calculating labor costs included in the short-year return.
File a short period return, if the taxpayer reaches the prorated filing threshold.
If required, file the short-year return by April 15, 2022.
File a short year return on forms for the tax year in which the short year ends. Short year periods ending in 2021 should be filed on the 2021 tax forms. An extension is available. Note: Corporate Activity Tax returns cannot be filed through Revenue Online. Information on how to file electronically is available here.
Helpful hint: Line 7 on the 2021 OR-CAT return is a calculation field. Unless your percentage is zero, you must enter a percentage in this field for our system to allow a subtraction. For example, if 100 percent of your commercial activity is in Oregon, you should enter 100 percent on line 7.
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 (2021), is also available on the CAT page of the Department of Revenue website.
For general questions about the CAT, email [email protected] or call 503-945-8005 between 8 a.m. and 4 p.m. Monday-Friday.