Revenue shares updates and reminders on Pass-Through Entity Elective Tax

The Department of Revenue (DOR) is providing updates to taxpayers and tax professionals for the Pass-Through Entity Elective (PTE-E) Tax program.

Please make sure that Form OR-21 Oregon Pass-Through Entity Elective Tax Return has been filed for each entity to ensure timely processing of individual returns.

The department has identified an increased number of Form OR-21 returns filed after the Schedule OR-21-K-1 is issued to individual owners. This is the Distributive Share of Proceeds, Addition, and Credit for individual taxpayers. Form OR-21 should be filed before, not after, Schedule OR-21-K-1 is issued. If DOR receives the Form OR-21 return after the entity has issued the Schedule OR-21-K-1 to the individual entity owners and they file their return, DOR will likely deny the individual’s pass-through entity elective addition/credit because the department will not have a Form OR-21 on file for verification.

If no PTE-E return will be filed because there is no distributive income, request a refund of payments made on Revenue Online. To request a refund of the taxes paid on PTE-E accounts, login to the correct Revenue Online account. Next to the PTE elective account is a blue hyperlink for “Request a Refund.” Click on that link and follow the prompts.

Questions? Contact the department at: [email protected].

Tax practitioners with other tax or customer account questions are encouraged to contact a dedicated practitioner specialist by email at [email protected], or by phone at 503-947-3541.