OR-21: Form OR-21 Instructions, Oregon Pass-through Entity Elective Tax Return (2025)
Oregon · Oregon DOR · Used for tax years 2025
These instructions explain how to complete Oregon Form OR-21, the Pass-through Entity Elective Tax Return for 2025. The return reports an electing entity’s income, tax, and payments. Upper-tier pass-through entities also use it to report amounts passed through from an electing lo
Who files this form
Pass-through entities (PTEs) that elect to pay Oregon’s PTE elective tax use Form OR-21 to report their income, tax, and payments.
An electing PTE must be a partnership, an S corporation, or an LLC taxed as a partnership or S corporation. All members must be individuals or other PTEs whose members are all individuals.
An upper-tier PTE that is a member of an electing lower-tier PTE also uses Form OR-21 to pass through the lower-tier entity’s distributive proceeds, addition, and tax credit to its individual members, even if the upper-tier PTE does not make its own election.
Form OR-21 is filed on a calendar-year basis only. Fiscal-year PTEs make the election for the calendar year in which their fiscal year ends. A fiscal year beginning in 2025 and ending in 2026 requires the 2026 form.
When it's due
For tax year 2025:
- Return and election: April 15, 2026, unless an extension has been requested.
- Tax payment: April 15, 2026. An extension to file does not extend the time to pay.
- Estimated tax installments: April 15, 2025; June 16, 2025; September 15, 2025; and January 15, 2026.
Oregon honors the same extension request made for federal Form 1065 or Form 1120-S. Submit the extension request by the return’s due date, April 15, 2026, for tax year 2025.
What you'll need
Have these records and details ready:
- The PTE’s legal name, federal employer identification number (FEIN), any different business or assumed name, and entity type.
- A knowledgeable contact person’s name, phone number, and email.
- Federal Schedule K from Form 1065 or Form 1120-S. Amounts for Form OR-21, lines 6 through 15, can generally be found there.
- PTE-E tax payment dates and amounts. You can verify these in the PTE’s Revenue Online account.
- The 2024 Form OR-21 tax amount, if the PTE made the election for 2024 and is using it to calculate required estimated payments.
Schedules to include:
- Schedule OR-21-MD for the electing PTE’s member directory.
- Schedule OR-21-AP if the PTE must apportion its income.
- Schedule OR-21-MD-PT if an upper-tier PTE is passing items from an electing lower-tier PTE to its individual members. An upper-tier PTE making its own election must include 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
Make the election: Timely file a completed Form OR-21 with the “Election” box checked. All members must agree unless an officer, manager, or member is authorized by law or the PTE’s organizational documents to make the election on its behalf. Complete the signature section. A separate preparer must also sign and provide their information.
File electronically: Use Revenue Online at www.oregon.gov/dor, or modernized e-file (MeF) if supported by your software provider. Include all required schedules. Electronic payments are accepted through Revenue Online or with an e-filed return when supported.
File by mail only if you requested a paper return because you do not have internet access. Assemble the required documents 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 the assembled return to:
Oregon Department of Revenue
PO Box 14380
Salem OR 97309-5075
Make a check or money order payable to “Oregon Department of Revenue.” Write the PTE’s FEIN, “2025 PTE-E,” and a daytime phone number on it. For a payment mailed separately from the return, use Form OR-21-V and follow that form’s payment and mailing instructions.
Common mistakes
- Confusing registration with the election. Register through Revenue Online before making estimated payments. Registration does not make the election.
- Treating an extension as extra time to pay. An extension applies only to filing, not payment.
- Assuming an overpayment prevents underpayment interest. Interest may still apply if estimated payments were late or too small.
- Filing the informational worksheet. Worksheet OR-21 is for preparation only. Do not file it.
- Ignoring the line 22 stop instruction. When calculating the PTE’s own elective tax, if line 22 is zero or a loss, do not file Form OR-21. Request a refund of estimated PTE-E tax payments through Revenue Online instead.
- Reporting tax amounts for a pass-through-only upper-tier PTE. If the upper-tier PTE is not making its own election, enter zero on lines 6 through 33 and go to Part F.
- Including interest or penalties in members’ tax credits. Do not include unpaid-tax interest, penalties, or estimated-tax underpayment interest in the credit amount.
- Delaying a mailed return’s processing. 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
How much is the PTE elective tax?
The tax is 9 percent of the first $250,000 in total Oregon distributive proceeds and 9.9 percent of proceeds over $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 on their personal income tax returns for their distributive share of the tax paid by the PTE. Schedule OR-21-K-1 reports each member’s share.
What if we made payments but will not make the election?
Do not file Form OR-21 just to request the refund. Request it through the PTE’s Revenue Online account. Contact the department for assistance if you do not have internet access.
Can we revoke the election?
Yes, if all members on the revocation date consent and the revocation is made by the filing due date, including an 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 correct a filed return?
Complete Form OR-21 and all required schedules as they should have been filed, including any adjustments made by the department. Check the “Amended” box on line 3 and provide an amended Schedule OR-21-K-1 to every member.