Filing Oregon Form OR-65: Partners, Apportionment, and Due Dates

To file Oregon Form OR-65, finish your federal Form 1065 first, carry those figures onto the Oregon return, apply Oregon’s additions and subtractions on Schedule I, apportion income if you do business in more than one state, and file by March 15 along with the $150 minimum tax if the partnership was doing business in Oregon during the year. The return goes to the Department of Revenue either electronically through the IRS Modernized e-File platform or by mail.

Confirm You Have to File

Two situations create the obligation. The partnership earned income from Oregon sources, or at least one partner was an Oregon resident during the year.¹ General partnerships, limited partnerships, and LLCs taxed as partnerships federally all fall under the rule. A net loss doesn’t excuse the filing.

On top of the return itself, a $150 minimum tax applies if the partnership was “doing business” in Oregon. The Department of Revenue reads that term broadly: an Oregon office, inventory in the state, employees providing services, or economic presence sufficient to generate income from Oregon’s economy all qualify.² A partnership that files only because of a resident partner, with no Oregon activity, still files the return but may owe nothing.

What to Pull Together First

Form OR-65 picks up where your federal return leaves off, so complete Form 1065 and all federal Schedule K-1s before you start.³ Gross receipts, ordinary business income, and deductions carry over directly, then get adjusted for Oregon law.

Beyond the federal return, pull records for every Oregon-specific modification you’ll report. Common additions include state and local income taxes deducted federally, which Oregon requires you to add back. Common subtractions include interest from U.S. government obligations, which Oregon can’t tax. Each modification is reported by a numeric code from the Department of Revenue’s Publication OR-CODES.⁴

If the partnership operates in more than one state, you’ll need total sales and Oregon sales to run the apportionment on Schedule OR-AP. If you have nonresident partners, pull each partner’s Oregon-source distributive share so you can decide between composite filing and withholding.

Working Through the Form

The heading asks for the partnership’s name, address, federal employer identification number (FEIN), and the name and contact information of the person who holds the partnership’s records. Check the “name change” box and give the prior name if applicable.⁵

Lines 1 Through 3: Doing Business and Minimum Tax

Line 1A asks whether the partnership is doing business in Oregon under the broad definition above. Lines 2A and 2B ask whether income was apportioned or allocated to Oregon (2A) and whether any partner was an Oregon resident (2B). A “Yes” on either Line 2 means you must file.⁵

If Line 1A is “Yes” and at least one of Lines 2A or 2B is also “Yes,” enter $150 on Line 3A. Line 3B captures any payments already made (an extension payment, for example). Line 3C is the balance due; Line 3D is a refund if you overpaid.

Lines 4 and 5: Partner Count and Audit Information

Line 4D asks for the total federal Schedule K-1s issued, split between resident and nonresident partners. Line 4E records how many partners elected to join a composite return on Form OR-OC. If a federal audit changed any prior- or current-year figures, check the Line 5C box and list the affected tax years. Line 5D captures the federal partnership representative’s contact information unless the partnership opted out of the centralized audit regime.

Schedule I: Oregon Modifications

Schedule I is where the Oregon return diverges from the federal one. Enter each modification by numeric code, name, and dollar amount. Addition code 119 and subtraction code 323 are the general partnership modification codes.⁴ Attach supporting schedules where you need more space. If the partnership is a member of another entity that paid Oregon’s PTE-E tax and deducted it federally, add that deduction back here.⁵

Apportionment for Multistate Partnerships

Partnerships that do business in Oregon and at least one other state use Schedule OR-AP to figure out how much income Oregon taxes. The standard method is a single sales factor: divide Oregon sales by total sales everywhere, then apply that percentage to apportionable income.⁶ Utilities and telecommunications companies may elect a double-weighted sales factor that also considers property and payroll; most partnerships use the standard single factor.

If the partnership operates entirely inside Oregon, skip Schedule OR-AP and report 100 percent of income to the state. The apportionment percentage you calculate also drives how much Oregon-source income shows up on nonresident partners’ K-1s, so accuracy here matters downstream.

Handling Nonresident Partners

Oregon uses two mechanisms to collect tax from nonresident partners on their share of Oregon-source income: a composite return filed by the partnership, and withholding on partners who don’t join it.

Composite Return on Form OR-OC

A partnership can file Form OR-OC covering one or more nonresident partners who elect to participate. Each electing partner must have been a nonresident for the entire tax year, and the election is made fresh each year rather than carrying over. Tax is calculated by applying Oregon individual rates to each electing partner’s share of Oregon-source distributive income.⁷ The composite return is due the 15th day of the fourth month after the close of the tax year for the majority of electing owners, and a federal or Oregon extension of the partnership return extends it too.

Withholding on Nonresidents

Nonresident partners who don’t join the composite return are subject to Oregon withholding unless they qualify for an exemption. A partner is exempt if estimated Oregon-source distributive income from the partnership is under $1,000 for the year, if the partner makes their own estimated payments based on prior-year Oregon income, or if the partner files Form OR-19-AF to opt out.⁸ Partners that are themselves pass-through entities or tax-exempt organizations may also qualify. The partnership tracks which exemption each nonresident partner uses, and incomplete records here cause the most trouble at filing time.

When It’s Due

Calendar-year partnerships file Form OR-65 by March 15 and pay any tax due by the same date.² When March 15 falls on a weekend or holiday the deadline shifts to the next business day; for the 2025 tax year that moves the date to March 16, 2026.⁹ Fiscal-year and short-year filers owe the return by the 15th day of the third month after the close of the tax year.¹

A valid federal extension automatically extends the Oregon deadline. No separate Oregon request is needed. The extended due date for calendar-year filers is September 15. An extension gives more time to file, not more time to pay, so send the $150 minimum tax by the original deadline through Revenue Online or with Form OR-65-V if you expect to owe it.² Mark the “Extension” box on the return when you eventually file.

How to Submit the Return

Electronic Filing

The Department of Revenue accepts electronic partnership returns through the IRS Modernized e-File (MeF) platform, including calendar-year, fiscal-year, short-year, and amended returns.¹⁰ An acknowledgment comes back after the return is received; allow at least one business day before following up.

Paper Filing

Paper returns go to:

Oregon Department of Revenue
PO Box 14555
Salem, OR 97309-0940¹¹

Certified mail gives you proof of a timely postmark.

Paying

Electronic payments go through Revenue Online at revenueonline.dor.oregon.gov, drawn from a bank account or made by credit card. Processor fees may apply to card payments.¹²

To mail a payment separately from the return, use Form OR-65-V. Make the check payable to the Oregon Department of Revenue, and write the tax year, “Form OR-65-V,” a contact name, daytime phone number, and the partnership’s FEIN on the check itself. The voucher goes to a different address than the return:¹³

Oregon Department of Revenue
PO Box 14950
Salem, OR 97309-0950

Don’t use the voucher if the payment is going in the same envelope as the return. Just include the check with the return package.

What Happens If You File Late

A partnership that misses the deadline faces a penalty of up to $50 per partner for each month or partial month the return is late, capped at five months.¹ For a ten-partner entity, that’s $500 per month and a maximum of $2,500. The same penalty applies when a return is filed but missing required information, and the clock keeps running until it’s complete. Requesting an extension before the deadline is far cheaper than filing late.

A Note on the PTE-E Election

Oregon’s pass-through entity elective tax is a separate return, Form OR-21, not part of Form OR-65. The election must be filed by April 15 for calendar-year partnerships (October 15 with an extension), and a missed deadline cannot be fixed retroactively.¹⁴ If your partnership is participating in PTE-E, file Form OR-21 before issuing OR-21-K-1s to partners; credits claimed by partners before the entity files may be disallowed.¹⁵

1
Oregon Public Law. Oregon Code ORS 314.724 – Information Return Penalty Rules
2
Oregon Department of Revenue. Partnership Information
3
Internal Revenue Service. About Form 1065, U.S. Return of Partnership Income
4
Oregon Department of Revenue. Numeric Codes for Oregon Adjustments, Additions, Subtractions
5
Oregon Department of Revenue. 2024 Instructions for Form OR-65, Oregon Partnership Income
6
Oregon Department of Revenue. 2023 Schedule OR-AP Instructions, Apportionment of Income
7
Oregon Secretary of State. OAR 150-314-0515 – Oregon Composite Tax Return
8
Oregon Department of Revenue. Publication OR-19 – Pass-Through Entity Owner Payments and Oregon Affidavit
9
Oregon Department of Revenue. Tax Calendar
10
Oregon Department of Revenue. Corporation, Business, and Fiduciary E-Filing
11
Oregon Department of Revenue. Mailing Addresses
12
Oregon Department of Revenue. Make a Payment
13
Oregon Department of Revenue. Form OR-65-V Instructions Oregon Partnership Income Return Payment Voucher Instructions
14
Oregon Department of Revenue. 2025 Form OR-21 Instructions, Oregon Pass-Through Entity Elective Tax
15
Oregon Department of Revenue. Pass-Through Entity Elective (PTE-E) Tax