OAR 150-314-0317: Estimated Tax: Consolidated Return Underpayments

(1) If a consolidated state return is filed, any underpayment shall be computed on a consolidated basis. In computing the underpayment on a consolidated basis, the tax and facts shown on the returns for the preceding year shall be aggregated regardless of whether consolidated or separate returns were filed. Example 1: Corporation A and B file a consolidated state return in 1995. They filed separate returns in 1994 and for 1995 made separate estimated tax payments. [Example not included. See ED. NOTE.] (2) If separate returns are filed and estimated tax is paid on a consolidated basis, then the payments and prior year’s tax may be divided between the various corporation’s liabilities in any manner designated by the Oregon taxpayers. Example 2: In 1995, Corporations A and B are required to file separate state returns. They had filed consolidated in 1994 and made consolidated estimated tax payments for 1995. [Example not included. See ED. NOTE.] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.]