Oregon Statutes 314.784 – Circumstances when pass-through entity withholding is not required; rules
(1) A pass-through entity is not required to withhold taxes under ORS § 314.781 on behalf of a nonresident owner if:
Terms Used In Oregon Statutes 314.784
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
(a) The nonresident owner has a share of distributive income that is less than $1,000 for the tax year of the pass-through entity;
(b) Withholding is not required pursuant to a rule adopted under this section;
(c) The owner makes a timely election under ORS § 314.778 to have taxes on the owner’s distributive share of income paid and reported on the composite return described in ORS § 314.778, and the composite return is filed by the pass-through entity;
(d) The pass-through entity is a publicly traded partnership, as defined in section 7704(b) of the Internal Revenue Code, that is treated as a partnership for federal tax purposes and that agrees to file an annual information return on the form and in the time and manner prescribed by the Department of Revenue and containing the information required by the department, including but not limited to the name, address and taxpayer identification number of each person with an ownership interest in the entity that results in the person receiving Oregon source income of more than $500; or
(e) The nonresident owner files an affidavit with the department, in the form and manner prescribed by the department, under which the nonresident owner agrees to allow the department and the courts of this state to have personal jurisdiction over the nonresident owner for the purpose of determining and collecting any taxes imposed under ORS Chapter 316, 317 or 318 that are attributable to the nonresident owner’s distributive share of taxable income from the pass-through entity. The department may reject the affidavit if the taxpayer fails to comply with Oregon law requiring the filing of a tax return or the payment of any tax.
(2) The department may adopt rules setting forth circumstances under which pass-through entities are not required to withhold taxes under ORS § 314.781. [2005 c.387 § 4]
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