OR-21: Form OR-21 Instructions, Oregon Pass-through Entity Elective Tax Return (2024)
Oregon · Oregon DOR · Used for tax years 2024
These instructions explain how to complete Oregon’s 2024 Form OR-21, the Pass-through Entity Elective Tax Return, to report income, tax, and payments. They also explain how an upper-tier pass-through entity reports amounts passed through from an electing lower-tier entity to its
Who files this form
Form OR-21 is used by pass-through entities (PTEs) that elect to pay Oregon’s PTE elective tax. Eligible entities are partnerships, S corporations, and LLCs taxed as partnerships or S corporations. All members must be individuals or other PTEs whose members are all individuals.
An upper-tier PTE that is a member of an electing PTE must also use Form OR-21 to report items passed through to its individual members, even if it does not make its own election. It completes Parts A, B, and F and Schedule OR-21-MD-PT.
Form OR-21 is filed on a calendar-year basis. A fiscal-year PTE makes the election for the calendar year in which its fiscal year ends.
When it's due
For tax year 2024:
- Return and election: April 15, 2025, unless an extension has been requested.
- Tax payment: April 15, 2025. An extension to file does not extend the time to pay.
- Estimated tax installments: April 15, 2024; June 17, 2024; September 16, 2024; and January 15, 2025.
Oregon honors the extension request for federal Form 1065 or Form 1120-S. Submit the extension request on or before the return’s due date.
What you'll need
Have the PTE’s legal name, federal employer identification number (FEIN), entity type, and contact information ready. Income amounts for lines 6 through 15 can generally be found on Schedule K of federal Form 1065 or Form 1120-S. Use the PTE’s Revenue Online account to verify payment dates and amounts if needed.
Required schedules include:
- Schedule OR-21-MD: Member directory for an electing PTE.
- Schedule OR-21-AP: Required if the PTE must apportion its income.
- Schedule OR-21-MD-PT: Required for an upper-tier PTE passing through items from an electing lower-tier PTE. An upper-tier PTE making its own election needs both OR-21-MD and OR-21-MD-PT.
Provide Schedule OR-21-K-1 to every member. Keep underpayment-interest calculations with the PTE’s business records.
How to file
File electronically through Revenue Online at www.oregon.gov/dor or through modernized e-file (MeF), if supported by your software provider. Include all required schedules.
To make the election, timely file the completed return with the “Election” box checked. All members must agree unless an officer, manager, or member has authority to make the election on the PTE’s behalf. Complete the signature and date section. A separate preparer must also sign and provide their information.
File by mail only if you requested a paper return because you do not have internet access. Assemble the required items in this order:
- Check or money order, if any.
- Form OR-21.
- Schedule OR-21-MD.
- Schedule OR-21-MD-PT.
- Schedule OR-21-AP.
Mail to:
Oregon Department of Revenue
PO Box 14380
Salem OR 97309-5075
Make a check or money order payable to Oregon Department of Revenue and write the PTE’s FEIN, “2024 PTE-E,” and daytime phone number on it. For a payment mailed separately from the return, use Form OR-21-V and its payment and mailing instructions.
Common mistakes
- Confusing registration with the election. Register through Revenue Online before making estimated payments. Registration itself does not make the election.
- Treating a filing extension as extra time to pay. It does not extend the payment deadline.
- Assuming an overpayment prevents underpayment interest. Interest may still apply if estimated payments were late or too small.
- Filing to recover payments without making an election. Request the refund through Revenue Online instead. The line 22 instructions also say not to file if Oregon distributive proceeds are zero or a loss.
- Including penalties or interest in members’ credits. Do not include these amounts in the PTE-E tax credit.
- Filing Worksheet OR-21. It is for preparation only, not filing.
- Slowing down a paper return. Do not include a payment voucher with the return, staple the payment to it, send cash or postdated checks, or use red, purple, or gel ink.
Questions people ask
What is the PTE elective tax rate?
The tax is 9% of the first $250,000 in total Oregon distributive proceeds and 9.9% of proceeds above $250,000.
Do individual members still report the PTE income?
Yes. Individual members still report and are taxed on their PTE income. They may claim a refundable credit for their distributive share of the tax paid by the PTE, as reported on Schedule OR-21-K-1.
Which form applies to a fiscal year beginning in 2024 and ending in 2025?
Use the 2025 Form OR-21. The instructions say to wait until that form is available to make the election.
Can the PTE revoke its election?
Yes, if all members on the revocation date consent and the revocation is made by the filing due date, including any extension. Complete the form as if making the election, but enter zero in all numeric fields on lines 6 through 23 and mark the “Revocation” box.
How do we amend a return?
Complete the return and required schedules as they should have been filed, including any department adjustments. Check the “Amended” box and provide an amended Schedule OR-21-K-1 to every member.