reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 26. Collection and Administration › 15-30-2641. Repealed

15-30-2641. Repealed.
Sec. 2, Ch. 28, L. 2019.
History: En. Sec. 24, Ch. 181, L. 1933; re-en. Sec. 2295.24, R.C.M. 1935; amd. Sec. 1, Ch. 163, L. 1955; amd. Sec. 3, Ch. 201, L. 1963; amd. Sec; 2, Ch. 347, L. 1969; amd. Sec. 175, Ch. 516, L. 1973; amd. Sec. 1, Ch. 65, L. 1975; R.C.M. 1947, 84-4924; amd. Sec. 3, Ch. 648, L. 1979; amd. Sec. 49, Ch. 370, L. 1987; amd. Sec. 10, Ch. 427, L. 1999; amd. Sec. 9, Ch. 594, L. 2005; Sec. 15-30-321, MCA 2007; redes. 15-30-2641 by Sec. 1, Ch. 147, L. 2009.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 26. Collection and Administration › 15-30-2642. Notice of additional assessment -- penalty and interest for deficiency

15-30-2642. Notice of additional assessment -- penalty and interest for deficiency.
(1) If the department determines that the amount of tax due is greater than the amount disclosed by the return, it shall mail to the taxpayer a notice, pursuant to 15-1-211, of the additional tax proposed to be assessed. The taxpayer may seek review of the determination pursuant to 15-1-211.
(2) Penalty and interest on any deficiency assessment must be calculated from the applicable date specified in 15-30-2604 for payment of the tax, with penalty and interest added as provided in 15-1-216. A certificate by the department of the mailing of the notice specified in subsection (1) is prima facie evidence of the computation and levy of the deficiency in tax and of the giving of the notice.
History: En. Sec. 14, Ch. 181, L. 1933; re-en. Sec. 2295.14, R.C.M. 1935; amd. Sec. 1, Ch. 34, L. 1949; amd. Sec. 8, Ch. 260, L. 1955; amd. Sec. 2, Ch. 227, L. 1957; amd. Sec. 5, Ch. 253, L. 1959; amd. Sec. 1, Ch. 201, L; 1963; amd. Sec. 1, Ch. 347, L. 1969; amd. Sec. 1, Ch. 450, L. 1973; amd; Sec. 171, Ch. 516, L. 1973; amd. Sec. 1, Ch. 159, L. 1977; R.C.M. 1947, 84-4914(part); amd. Sec. 3, Ch. 477, L. 1981; amd. Sec. 13, Ch. 634, L. 1993 (voided by I.R. No. 112, Nov. 8, 1994); amd. Sec. 11, Ch. 427, L. 1999; amd. Sec. 10, Ch. 594, L. 2005; Sec. 15-30-323, MCA 2007; redes. 15-30-2642 by Sec. 1, Ch. 147, L. 2009.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 26. Collection and Administration › 15-30-2643. Time limitations for prosecution

15-30-2643. Time limitations for prosecution.
A prosecution for an offense under 15-1-216 must be commenced within 3 years after the offense is committed.
History: En. Sec. 4, Ch. 648, L. 1979; Sec. 15-30-324, MCA 2007; redes. 15-30-2643 by Sec. 1, Ch. 147, L. 2009; amd. Sec. 13, Ch. 308, L. 2015; amd. Sec. 1, Ch. 28, L. 2019.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 26. Collection and Administration › 15-30-2646. Relief from joint and several liability on joint return -- limitations -- rules

15-30-2646. Relief from joint and several liability on joint return -- limitations -- rules.
(1) A taxpayer who has obtained relief from joint and several liability under section 6015 of the Internal Revenue Code, 26 U.S.C. 6015, may apply to the department for relief from joint and several liability of the tax imposed by this chapter. The taxpayer must have filed a Montana joint return for each of the tax years for which relief is sought under this section.
(2) In applying for relief under this section, the taxpayer shall provide the department with the following:
(a) the tax years for which relief is sought;
(b) complete copies of all correspondence sent to and received from the internal revenue service;
(c) any court order stating that the taxpayer's spouse or former spouse is responsible for paying the Montana individual income tax liability; and
(d) other information demonstrating that it would be unfair to hold the taxpayer responsible for the tax, penalty, and interest.
(3) If the department determines, after consideration of the facts and circumstances presented by the taxpayer, that it would be unfair to hold the taxpayer responsible for some or all of the tax, penalty, and interest, the department shall grant the taxpayer relief from joint and several liability. The relief from joint and several liability granted by the department:
(a) must be based on the same circumstances for which relief was granted the taxpayer by the internal revenue service; and
(b) may not exceed the relief granted by the internal revenue service.
(4) The department shall adopt rules to implement and administer this section, including but not limited to establishing procedures for applying for relief allowed under this section.
History: En. Sec. 1, Ch. 470, L. 2009.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 26. Collection and Administration › 15-30-2651. Certified copies of tax returns to taxpayer -- fee

15-30-2651. Certified copies of tax returns to taxpayer -- fee.
(1) Certified copies of returns filed for income tax under 15-30-2604 may be furnished by the department to the taxpayer or the taxpayer's authorized representative upon payment of 50 cents for each page.
(2) All money collected under this section must be required to reimburse the department for costs involved in the preparation of the copies. All money collected must be deposited in the general fund.
(3) The provisions of this section apply to all returns on file and all returns to be filed.
History: (1)En. Sec. 1, Ch. 187, L. 1965; amd. Sec. 20, Ch. 516, L. 1973; Sec. 84-732, R.C.M. 1947; (2)En. Sec. 3, Ch. 187, L. 1965; amd. Sec. 22, Ch. 516, L. 1973; Sec. 84-734, R.C.M. 1947; (3)En. Sec. 4, Ch. 187, L. 1965; Sec. 84-735, R.C.M. 1947; R.C.M. 1947, 84-732(part), 84-734(part), 84-735; amd. Sec. 173, Ch. 56, L. 2009; Sec. 15-30-331, MCA 2007; redes. 15-30-2651 by Sec. 1, Ch. 147, L. 2009.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 30. Special Income Tax Applications › 15-30-3001. Short title

15-30-3001. (Temporary) Short title.
This part may be cited as the "Montana Farm and Ranch Risk Management Act". (Terminates on occurrence of contingency--sec. 9, Ch. 262, L. 2001.)
History: En. Sec. 1, Ch. 262, L. 2001; Sec. 15-30-601, MCA 2007; redes. 15-30-3001 by Sec. 1, Ch. 147, L. 2009.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 30. Special Income Tax Applications › 15-30-3002. Definitions

15-30-3002. (Temporary) Definitions.
As used in this part, the following definitions apply:
(1) "Account" means a Montana farm and ranch risk management account.
(2) "Disqualification period" means any period of 2 consecutive tax years in which the taxpayer is not engaged in an eligible agricultural business.
(3) (a) "Eligible agricultural business" means the business of agricultural production, as agricultural is defined in 15-1-101, including silviculture, conducted by an individual or family farm corporation that files net farm income reports for tax purposes as required by the United States internal revenue service.
(b) The term does not mean the business of processing, transporting, or marketing agricultural products.
(4) "Family farm corporation" means a corporation that consists of immediate family members.
(5) "Immediate family members" means family members that are within the second degree of consanguinity or affinity.
(6) "Individual" means a human being and does not include an estate or trust. (Terminates on occurrence of contingency--sec. 9, Ch. 262, L. 2001.)
History: En. Sec. 2, Ch. 262, L. 2001; Sec. 15-30-602, MCA 2007; redes. 15-30-3002 by Sec. 1, Ch. 147, L. 2009.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 30. Special Income Tax Applications › 15-30-3003. Montana farm and ranch risk management account -- deposits -- exclusion from income

15-30-3003. (Effective January 1, 2024) Montana farm and ranch risk management account -- deposits -- exclusion from income.
(1) An individual or a family farm corporation engaged in an eligible agricultural business may hold a Montana farm and ranch risk management account that is composed of contributions that were made to the account prior to January 1, 2024, as provided in this part, to use as a risk management tool for the individual's or family farm corporation's agricultural business. The number of risk management accounts that may be held is limited to one for each individual or family farm corporation.
(2) For the purposes of this section, a taxpayer is considered to have made a deposit to an account if the deposit is made during a tax year beginning before January 1, 2024.
(3) A deposit not distributed within 3 years is considered to have been distributed to the taxpayer as provided in 15-30-3005.
(4) A portion of a deposit distributed within 6 months of the date deposited is income in the year for which an exclusion was taken. The taxpayer shall file a return or amended return as necessary to report the income in the appropriate year. (Terminates on occurrence of contingency--sec. 9, Ch. 262, L. 2001.)
History: En. Sec. 3, Ch. 262, L. 2001; Sec. 15-30-603, MCA 2007; redes. 15-30-3003 by Sec. 1, Ch. 147, L. 2009; amd. Sec. 14, Ch. 308, L. 2015; amd. Sec. 24, Ch. 503, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 30. Special Income Tax Applications › 15-30-3004. Montana farm and ranch risk management account -- creation -- administration

15-30-3004. (Temporary) Montana farm and ranch risk management account -- creation -- administration.
(1) A Montana farm and ranch risk management account is a trust created or organized in the state for the exclusive benefit of the taxpayer. The account trustee must be a financial institution, other than an investment adviser, as defined in 15-62-103, supervised by the United States or by the state of Montana. The trust must be created by written instrument.
(2) The trustee shall report to the department if a portion of a deposit is distributed within 6 months of the date of deposit.
(3) The assets of the trust must consist entirely of cash or of obligations that have adequate stated interest and that pay the interest at least annually.
(4) All income of the trust must be distributed currently to the grantor.
(5) The assets of the trust may not be commingled with other property except in a common trust fund or common investment fund. (Terminates on occurrence of contingency--sec. 9, Ch. 262, L. 2001.)
History: En. Sec. 4, Ch. 262, L. 2001; amd. Sec. 1, Ch. 566, L. 2003; Sec. 15-30-604, MCA 2007; redes. 15-30-3004 by Sec. 1, Ch. 147, L. 2009; amd. Sec. 25, Ch. 503, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 30. Special Income Tax Applications › 15-30-3005. Montana farm and ranch risk management account -- distributions

15-30-3005. (Temporary) Montana farm and ranch risk management account -- distributions.
(1) Distributions from the account may be used for any purpose the taxpayer chooses.
(2) Distributions from an account:
(a) are first attributable to income and then to other deposits; and
(b) must be considered to be made from deposits in the order in which the deposits were made, beginning with the earliest deposits. Income is considered to be deposited on the date the income is received by the account.
(3) All distributions from the account are taxable unless:
(a) the deposit, or that portion of the deposit to which the distribution is attributable, was not excluded from income in calculating Montana individual income taxes for the tax year the deposit was made; or
(b) the distribution has already been taxed because it was considered a distribution as provided in subsection (4).
(4) (a) (i) Amounts that are not distributed within the 3-year eligibility period established in subsection (4)(a)(ii) are considered to be distributed to the taxpayer on the last day of the tax year in which the third anniversary of the deposit occurs. The distribution is taxable, and a penalty equal to 10% of the tax due on the distributed amount is added to the tax as a penalty.
(ii) The 3-year eligibility period for withdrawal of a deposit without penalty is the due date, including extensions, for the filing of a tax return required by this chapter or, if the taxpayer files earlier, the date the taxpayer files the return for the tax year in which the third anniversary of the deposit occurs.
(b) At the end of the first disqualification period after a period in which the taxpayer was engaged in eligible agricultural business, the balance of the account is considered to be distributed to the taxpayer and is taxable to the taxpayer. (Terminates on occurrence of contingency--sec. 9, Ch. 262, L. 2001.)
History: En. Sec. 5, Ch. 262, L. 2001; Sec. 15-30-605, MCA 2007; redes. 15-30-3005 by Sec. 1, Ch. 147, L. 2009; amd. Sec. 26, Ch. 503, L. 2021; amd. Sec. 1, Ch. 420, L. 2023.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 31. Tax Credit for Qualified Education Contributions › 15-30-3101. Purpose

15-30-3101. (Temporary) Purpose.
Pursuant to 5-4-104, the legislature finds that the purpose of student scholarship organizations is to provide parental and student choice in education with private donations through tax replacement programs. (Terminates December 31, 2029--sec. 20, Ch. 480, L. 2021, sec. 7, Ch. 558, L. 2023.)
History: En. Sec. 7, Ch. 457, L. 2015; amd. Sec. 1, Ch. 480, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 31. Tax Credit for Qualified Education Contributions › 15-30-3102. Definitions

15-30-3102. (Temporary) Definitions.
As used in this part, the following definitions apply:
(1) "Department" means the department of revenue provided for in 2-15-1301.
(2) "Donation" means a gift of cash.
(3) "Eligible student" means a student who is a Montana resident and who is 5 years of age or older on or before September 10 of the year of attendance and has not yet reached 19 years of age.
(4) "Innovative educational program" includes any of the following:
(a) transformational learning as defined in 20-7-1602;
(b) advanced opportunity as defined in 20-7-1503;
(c) any program, service, instructional methodology, or adaptive equipment used to expand opportunity for a child with a disability as defined in 20-7-401;
(d) any courses provided through work-based learning partnerships or for postsecondary credit or career certification;
(e) technology enhancements, including but not limited to any expenditure incurred for purposes specified in 20-9-533; and
(f) capital improvements and equipment necessary to support an innovative educational program.
(5) "Partnership" has the meaning provided in 15-30-2101.
(6) "Pass-through entity" has the meaning provided in 15-30-2101.
(7) "Qualified education provider" means an education provider that:
(a) is not a public school;
(b) (i) is accredited, has applied for accreditation, or is provisionally accredited by a state, regional, or national accreditation organization; or
(ii) is a nonaccredited provider or tutor and has informed the child's parents or legal guardian in writing at the time of enrollment that the provider is not accredited and is not seeking accreditation;
(c) is not a home school as referred to in 20-5-102(2)(e);
(d) satisfies the health and safety requirements prescribed by law for private schools in this state; and
(e) qualifies for an exemption from compulsory enrollment under 20-5-102(2)(e) and 20-5-109.
(8) "Small business corporation" has the meaning provided in 15-30-3301.
(9) "Student scholarship organization" means a charitable organization in this state that:
(a) is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. 501(c)(3);
(b) allocates not less than 90% of its annual revenue from donations eligible for the tax credit under 15-30-3111 for scholarships to allow students to enroll with any qualified education provider; and
(c) provides educational scholarships to eligible students without limiting student access to only one education provider.
(10) "Taxpayer" has the meaning provided in 15-30-2101. (Terminates December 31, 2029--sec. 20, Ch. 480, L. 2021, sec. 7, Ch. 558, L. 2023, sec. 12, Ch. 558, L. 2023.)
History: En. Sec. 8, Ch. 457, L. 2015; amd. Sec. 2, Ch. 480, L. 2021; amd. Sec. 2, Ch. 558, L. 2023.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 31. Tax Credit for Qualified Education Contributions › 15-30-3103. Requirements for student scholarship organizations

15-30-3103. (Temporary) Requirements for student scholarship organizations.
(1) A student scholarship organization:
(a) shall obligate at least 90% of its annual revenue from donations eligible for the tax credit under 15-30-3111 for scholarships. For the purpose of this calculation:
(i) the cost of the annual fiscal review provided for in 15-30-3105(1)(b) may be paid out of the total donations before calculation of the 90% minimum obligation amount; and
(ii) all donations subject to the 90% minimum obligation amount that are received in 1 calendar year must be paid out in scholarships within the 3 calendar years following the donation.
(b) may not restrict or reserve scholarships for use at a particular education provider or any particular type of education provider and shall allow an eligible student to enroll with any qualified education provider of the parents' or legal guardian's choice;
(c) shall provide scholarships to eligible students to attend instruction offered by a qualified education provider;
(d) may not provide a scholarship to an eligible student for an academic year that exceeds the per-pupil average of total public school expenditures calculated in 20-9-570;
(e) shall maintain separate accounts for scholarship funds and operating funds;
(f) may transfer funds to another student scholarship organization;
(g) shall maintain an application process under which scholarship applications are accepted, reviewed, approved, and denied; and
(h) shall comply with payment and reporting requirements in accordance with 15-30-3104 and 15-30-3105.
(2) An organization that fails to satisfy the conditions of this section is subject to termination as provided in 15-30-3113. (Terminates December 31, 2029--sec. 20, Ch. 480, L. 2021, sec. 7, Ch. 558, L. 2023.)
History: En. Sec. 9, Ch. 457, L. 2015; amd. Sec. 3, Ch. 480, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 31. Tax Credit for Qualified Education Contributions › 15-30-3104. Tuition payment limitation

15-30-3104. (Temporary) Tuition payment limitation.
(1) A student scholarship organization shall deliver the scholarship funds directly to the qualified education provider selected by the parents or legal guardian of the child to whom the scholarship was awarded. The qualified education provider shall immediately notify the parents or legal guardian that the payment was received.
(2) A parent or legal guardian of an eligible student may not accept one or more scholarship awards from a student scholarship organization for an eligible student if the total amount of the awards exceeds the per-pupil average of total public school expenditures calculated in 20-9-570. This limitation applies to each eligible student of a parent or legal guardian. (Terminates December 31, 2029--sec. 20, Ch. 480, L. 2021, sec. 7, Ch. 558, L. 2023.)
History: En. Sec. 10, Ch. 457, L. 2015; amd. Sec. 4, Ch. 480, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 31. Tax Credit for Qualified Education Contributions › 15-30-3105. Reporting requirements for student scholarship organizations

15-30-3105. (Temporary) Reporting requirements for student scholarship organizations.
(1) Each student scholarship organization shall:
(a) submit a notice to the department of its intent to operate as a student scholarship organization prior to accepting donations;
(b) complete an annual fiscal review of its accounts by an independent certified public accountant within 120 days after the close of the calendar year that discloses for each of the 3 most recently completed calendar years:
(i) the total number and dollar value of individual and corporate contributions;
(ii) the total number and dollar value of scholarships obligated to eligible students;
(iii) the total number and dollar value of scholarships awarded to eligible students; and
(iv) the cost of the annual fiscal review;
(c) submit the annual fiscal review report to the department within 150 days of the close of the calendar year.
(2) The department shall provide written notice to a student scholarship organization that fails to submit the annual fiscal review report, and the organization has 30 days from receipt of the notice to submit the report.
(3) An organization that fails to satisfy the conditions of this section is subject to termination as provided in 15-30-3113. (Terminates December 31, 2029--sec. 20, Ch. 480, L. 2021.)
History: En. Sec. 11, Ch. 457, L. 2015.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 31. Tax Credit for Qualified Education Contributions › 15-30-3106. Student scholarship organizations -- listing on website

15-30-3106. (Temporary) Student scholarship organizations -- listing on website.
The department shall maintain on its website a hyperlink to a current list of all:
(1) student scholarship organizations that have provided notice pursuant to 15-30-3105(1)(a); and
(2) qualified education providers that accepted scholarship funds from a student scholarship organization. (Terminates December 31, 2029--sec. 20, Ch. 480, L. 2021, sec. 7, Ch. 558, L. 2023.)
History: En. Sec. 12, Ch. 457, L. 2015; amd. Sec. 5, Ch. 480, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 31. Tax Credit for Qualified Education Contributions › 15-30-3112. Report to revenue interim committee -- student scholarship organizations

15-30-3112. (Temporary) Report to revenue interim committee -- student scholarship organizations.
Each biennium, the department shall provide to the revenue interim committee, in accordance with 5-11-210, a list of student scholarship organizations receiving contributions from businesses and individuals that are granted tax credits under 15-30-3111. The listing must detail the tax credits claimed under the individual income tax in chapter 30 and the corporate income tax in chapter 31. (Terminates December 31, 2029--sec. 20, Ch. 480, L. 2021.)
History: En. Sec. 15, Ch. 457, L. 2015; amd. Sec. 11, Ch. 163, L. 2019.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 31. Tax Credit for Qualified Education Contributions › 15-30-3113. Review determination -- termination -- confidentiality

15-30-3113. (Temporary) Review determination -- termination -- confidentiality.
(1) Subject to subsection (7), the department is authorized to examine any books, papers, records, or memoranda relevant to determining whether a student scholarship organization is in compliance with 15-30-3102, 15-30-3103, and 15-30-3105.
(2) If a student scholarship organization is not in compliance, the department shall provide to the organization written notice of the specific failures and the organization has 30 days from the date of the notice to correct deficiencies. If the organization fails to correct all deficiencies, the department shall provide a final written notice of the failure to the organization. The organization may appeal the department's determination of failure to comply according to the uniform dispute review procedure in 15-1-211 within 30 days of the date of the notice.
(3) (a) If a student scholarship organization does not seek review under 15-1-211 or if the dispute is not resolved, the department shall issue a final department decision.
(b) The final department decision for a student scholarship organization must provide that the student scholarship organization:
(i) will be removed from the list of eligible student scholarship organizations provided in 15-30-3106 and notified of the removal; and
(ii) shall within 15 calendar days of receipt of notice from the department of removal from the eligible list cease all operations as a student scholarship organization and transfer all scholarship account funds to a properly operating student scholarship organization.
(4) A student scholarship organization that receives a final department decision may seek review of the decision from the Montana tax appeal board pursuant to 15-2-302.
(5) Either party aggrieved as a result of the decision of the Montana tax appeal board may seek judicial review pursuant to 15-2-303.
(6) If a student scholarship organization files an appeal pursuant to this section, the organization may continue to operate until the decision of the court is final.
(7) The identity of donors who make donations to school districts to support innovative educational programs or donations to a student scholarship organization is confidential tax information that is subject to the provisions of 15-30-2618. (Terminates December 31, 2029--sec. 20, Ch. 480, L. 2021, sec. 7, Ch. 558, L. 2023.)
History: En. Sec. 16, Ch. 457, L. 2015; amd. Sec. 41, Ch. 142, L. 2021; amd. Sec. 18, Ch. 480, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 31. Tax Credit for Qualified Education Contributions › 15-30-3114. Rulemaking

15-30-3114. (Temporary) Rulemaking.
The department may adopt rules, prepare forms, and maintain records that are necessary to implement and administer this part. (Terminates December 31, 2029--sec. 20, Ch. 480, L. 2021.)
History: En. Sec. 17, Ch. 457, L. 2015.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 33. Small Business and Pass-Through Entities › 15-30-3301. Definition of small business corporation

15-30-3301. Definition of small business corporation.
(1) Except as provided in subsection (2), the term "small business corporation" is synonymous with "S. corporation" as defined in 15-30-2101 and means a corporation for which a valid election under section 1362 of the Internal Revenue Code (26 U.S.C. 1362) is in effect.
(2) A corporation that would otherwise be a small business corporation may continue to be subject to the taxes imposed by Title 15, chapter 31, if all of the following conditions are met:
(a) on December 31, 1991, the corporation was doing business in Montana and had a valid subchapter S. corporation election but had not elected to be taxed as a Montana small business corporation;
(b) after December 31, 1991, the corporation has not filed as a Montana small business corporation; and
(c) the corporation files a corporate income tax return, as required by 15-31-111, reporting all income or loss as determined under Title 15, chapter 31, and attaches a copy of the federal subchapter S. corporate tax return.
History: En. 84-1501.1 by Sec. 1, Ch. 122, L. 1959; amd. Sec. 1, Ch. 405, L. 1977; R.C.M. 1947, 84-1501.1(a), (b); amd. Sec. 1, Ch. 667, L. 1983; amd. Sec. 1, Ch. 534, L. 1989; amd. Sec. 6, Ch. 807, L. 1991; amd. Sec. 13, Ch. 143, L. 2001; Sec. 15-31-201, MCA 1999; redes. 15-30-1101 by Sec. 16(2), Ch. 143, L. 2001; Sec. 15-30-1101, MCA 2007; redes. 15-30-3301 by Sec. 1, Ch. 147, L. 2009; amd. Sec. 7, Ch. 268, L. 2013.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 33. Small Business and Pass-Through Entities › 15-30-3311. Taxation of partners, shareholders, managers, and members

15-30-3311. Taxation of partners, shareholders, managers, and members.
(1) A partner of a partnership that has Montana source income and a resident who is a partner of a partnership during any part of the tax year shall, in computing net income, include the partner's distributive share of partnership income, gain, loss, deduction, or credit or item of income, gain, loss, deduction, or credit as determined pursuant to section 704 of the Internal Revenue Code (26 U.S.C. 704) and shall furnish a copy of the partner's federal schedule of the partner's share of income, deductions, and credits when filing the Montana tax return.
(2) A shareholder of an S. corporation that has Montana source income and a resident who is a shareholder of an S. corporation during any part of the tax year shall, in computing net income, include the shareholder's pro rata share of separately and nonseparately stated S. corporation income, loss, deduction, or credit as determined pursuant to sections 1366 and 1377 of the Internal Revenue Code (26 U.S.C. 1366 and 1377) and shall furnish a copy of the shareholder's federal schedule of the shareholder's share of income, deductions, and credits when filing the Montana tax return.
(3) A partner, shareholder, manager, member, or other owner of a disregarded entity that has Montana source income and a resident who is a partner, shareholder, manager, member, or other owner of a disregarded entity during any part of the tax year shall, in computing net income, include the disregarded entity's income, gain, loss, deduction, or credit or item of income, gain, loss, deduction, or credit.
History: En. Sec. 3, Ch. 143, L. 2001; Sec. 15-30-1111, MCA 2007; redes. 15-30-3311 by Sec. 1, Ch. 147, L. 2009.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 33. Small Business and Pass-Through Entities › 15-30-3314. Review of pass-through entity taxation by department

15-30-3314. Review of pass-through entity taxation by department.
The department shall review, with the assistance of interested parties, the reporting and taxation of income that is flowing through pass-through entities and the method of reporting and taxation of this income in states other than Montana and shall consider recommendations concerning the methodology that Montana should use to ensure fair and equitable taxation of income that flows through pass-through entities to other entities.
History: En. Sec. 15, Ch. 143, L. 2001; amd. Sec. 2, Ch. 318, L. 2005; Sec. 15-30-1114, MCA 2007; redes. 15-30-3314 by Sec. 1, Ch. 147, L. 2009.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 33. Small Business and Pass-Through Entities › 15-30-3315. Electronic partnership return required -- waiver -- rulemaking

15-30-3315. Electronic partnership return required -- waiver -- rulemaking.
(1) Subject to subsection (4), each year, a partnership with more than 100 partners shall transmit to the department, in an electronic format approved by the department, all partnership returns, along with the corresponding U.S. department of treasury schedules K-1 and all other related forms and schedules that are required to be attached.
(2) If a partnership fails to file a partnership return electronically in the manner required in subsection (1), the partnership is considered to have failed to file the return and is subject to a penalty pursuant to 15-30-3302(5)(d).
(3) A partnership has more than 100 partners if, over the course of the partnership's tax year, the partnership had more than 100 partners, regardless of whether a partner was a partner for the entire year or whether the partnership had over 100 partners on any particular day in the year.
(4) The department may waive the electronic filing if the partnership demonstrates that software that satisfies the conditions of this section is not readily available or that a hardship will result if it is required to file electronically. A partnership requesting a waiver shall file a written request at least 30 days prior to the date the electronic filing is due.
(5) The department may adopt rules to administer and enforce the provisions of this section.
History: En. Sec. 1, Ch. 289, L. 2013.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 33. Small Business and Pass-Through Entities › 15-30-3321. Small business option unavailable on dissolution -- exception

15-30-3321. Small business option unavailable on dissolution -- exception.
In the case of corporation dissolution, no benefits may be taken under the "small business act" or under any law or regulation shifting the tax to be paid from the corporation to the shareholders unless all shareholders agree to assume personal income tax liability the same as they would bear if they were residents of this state.
History: En. Sec. 2, Ch. 60, L. 1963; R.C.M. 1947, 84-1501.3; Sec. 15-31-203, MCA 1999; redes. 15-30-1121 by Sec. 16(2), Ch. 143, L. 2001; Sec. 15-30-1121, MCA 2007; redes. 15-30-3321 by Sec. 1, Ch. 147, L. 2009.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 33. Small Business and Pass-Through Entities › 15-30-3325. Definitions

15-30-3325. Definitions.
As used in 15-30-3326 through 15-30-3328 and this section, unless the context clearly indicates otherwise, the following definitions apply:
(1) "Electing pass-through entity" means a partnership or an S. corporation that elects to be subject to an entity tax.
(2) "Entity tax" means a tax that an electing pass-through entity elects to pay under 15-30-3325 through 15-30-3328 and this section.
(3) "Nonresident owner" means an individual, estate, or trust that is not a resident owner.
(4) "Owner" means a shareholder of an S. corporation or a partner in a partnership.
(5) "Resident owner" means an individual, estate, or trust owner that is a resident of the state.
History: En. Sec. 1, Ch. 702, L. 2023.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 33. Small Business and Pass-Through Entities › 15-30-3326. Pass-through entity tax

15-30-3326. Pass-through entity tax.
(1) Each electing pass-through entity shall, on or before the due date of the pass-through entity's tax return, pay an entity tax. The entity tax is equal to the highest marginal tax rate in effect under 15-30-2103 for the tax year the election is made multiplied by the distributive share of Montana source income calculated under 15-30-3302 for all owners taxed under this chapter. Electing entities may substitute the distributive share of Montana source income allocated to owners who are residents as defined in 15-30-2101 for the distributive share of Montana source income calculated under 15-30-3302 for all resident owners taxed under this chapter for the computation of the tax.
(2) An electing pass-through entity shall allocate the entity tax to its owners based on their distributive share of Montana source income used to calculate the entity tax in subsection (1).
(3) The entity tax is in lieu of the tax paid under 15-30-3312 and 15-30-3313. If the owner of an electing pass-through entity is a partnership or S. corporation that does not elect to pay the entity tax, any amount of Montana source income in addition to the income subject to the entity tax is subject to the tax paid under 15-30-3313. When the provisions under 15-30-3313 apply, the withholding threshold under 15-30-3313(1) must be determined without regard to the entity tax.
(4) The electing entity shall make quarterly estimated tax payments and be subject to the underpayment interest as prescribed by 15-30-2512(5)(a) computed on the entity tax liability included on the pass-through entity return.
(5) The entity tax under this section is subject to penalties and interest under 15-1-216.
(6) A nonresident owner is not required to file an income tax return under the provisions of 15-30-2602 for a tax year if, for the tax year, all of the nonresident owner's Montana source income is subject to the entity tax.
(7) The department may adopt rules and prescribe forms necessary to administer and enforce the provisions of 15-30-3325 through 15-30-3328.
History: En. Sec. 2, Ch. 702, L. 2023.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 33. Small Business and Pass-Through Entities › 15-30-3327. Making pass-through entity tax election

15-30-3327. Making pass-through entity tax election.
(1) The election must be made annually no later than the due date, including extensions, of the pass-through entity's tax return as prescribed by 15-30-3302. The election for a tax year is irrevocable for the year it is made.
(2) The pass-through entity must designate a Montana pass-through entity representative who is authorized to make the election to subject the pass-through entity to the tax provided for in 15-30-3325 through 15-30-3328.
(a) The Montana pass-through entity representative acts on behalf of the pass-through entity for the applicable tax year.
(b) With respect to an action required or permitted to be taken by a pass-through entity under 15-30-3325 through 15-30-3328 and a proceeding under 15-1-211 with respect to the action, the Montana pass-through entity representative for the tax year has the sole authority to act on behalf of the pass-through entity, and the pass-through entity's direct owners and indirect owners are bound by those actions.
(c) The department may establish reasonable qualifications and procedures for designating a person to be the Montana pass-through entity representative.
(3) Nothing in this section prevents a pass-through entity that does not have business activity in the state during the tax year but that does have resident owners from electing to pay the entity tax.
History: En. Sec. 3, Ch. 702, L. 2023.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 33. Small Business and Pass-Through Entities › 15-30-3328. Pass-through entity tax -- refundable credit -- credit for taxes paid to another state

15-30-3328. Pass-through entity tax -- refundable credit -- credit for taxes paid to another state.
(1) An owner that is not a pass-through entity may claim the distributive share of the owner's entity tax paid by an electing pass-through entity as a refundable credit against the taxes under this chapter.
(2) An owner that is an electing pass-through entity shall claim its distributive share of entity tax paid by another pass-through entity as a refundable credit against the taxes under 15-30-3312, 15-30-3313, or 15-30-3326(1).
(3) An owner that is not an electing pass-through entity must allocate its distributive share of entity tax paid by another pass-through entity and any amount of estimated tax paid to owners subject to tax under this chapter based on the owner's share of profit and loss. The owner that is not an electing pass-through entity may claim the remainder as an overpayment or refund.
(4) Sections 15-30-3325 through 15-30-3328 do not prevent a resident owner from claiming a credit for taxes paid to another state as provided in 15-30-2302.
History: En. Sec. 4, Ch. 702, L. 2023.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 34. Partnership Audit Adjustments › 15-30-3402. State partnership representative

15-30-3402. State partnership representative.
(1) With respect to an action required or permitted to be taken by a partnership under this part and a proceeding under 15-1-211 with respect to that action, the state partnership representative for the reviewed year has the sole authority to act on behalf of the partnership, and the partnership's direct partners and indirect partners are bound by those actions.
(2) The state partnership representative for the reviewed year is the partnership's federal partnership representative unless the partnership designates in writing another person as its state partnership representative.
(3) The department may establish reasonable qualifications and procedures for designating a person, other than the federal partnership representative, to be the state partnership representative.
History: En. Sec. 2, Ch. 108, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 34. Partnership Audit Adjustments › 15-30-3403. Reporting and payment requirements for partnerships subject to final federal adjustment and their direct partners

15-30-3403. Reporting and payment requirements for partnerships subject to final federal adjustment and their direct partners.
(1) Except for final federal adjustments that are reported under the procedures set forth in 15-30-3404, the final federal adjustments required to be reported by taking those adjustments into account in the partnership return for the year of the adjustment or the distributive share of adjustments that have been reported as required under 15-30-2619, partnerships and direct partners shall report final federal adjustments arising from a partnership level audit or an administrative adjustment request pursuant to this section.
(2) No later than 90 days after the final determination date, the partnership shall:
(a) file a completed federal adjustments report, including information required by the department. A partnership that fails to file a timely completed federal adjustments report must be assessed a late file penalty as provided for in 15-30-3302(5)(d).
(b) notify each of its direct partners of their distributive share of the final federal adjustments, including information required by the department; and
(c) file an amended composite return for the reviewed year if direct partners participated in a composite tax return under 15-30-3312, file an amended information return for direct partners as required under 15-30-2619, and pay the additional amount of composite and withholding tax as required under 15-30-3312 and 15-30-3313 that would have been due had the final federal adjustments been reported properly as required.
(3) No later than 180 days after the final determination date, each direct partner that is taxed under chapter 30 or 31 shall:
(a) file an amended return for the reviewed year reporting their distributive share of the final federal adjustments reported to them under subsection (2)(b) as required under chapters 30 and 31; and
(b) pay any additional amount of tax due as if final federal adjustments had been properly reported, plus any penalty and interest due under 15-1-216, and less any credit for related amounts paid or withheld and remitted on behalf of the direct partner under subsection (2)(c).
History: En. Sec. 3, Ch. 108, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 34. Partnership Audit Adjustments › 15-30-3405. Modified reporting and payment method

15-30-3405. Modified reporting and payment method.
Under procedures adopted by and subject to the approval of the department, an audited partnership or tiered partner may enter into an agreement with the department to utilize an alternative reporting and payment method, including applicable time requirements or any other provision of 15-30-3403 or 15-30-3404, if the audited partnership or tiered partner demonstrates that the requested method will reasonably provide for the reporting and payment of taxes, penalties, and interest due under the provisions of 15-30-3403 or 15-30-3404. Application for approval of an alternative reporting and payment method must be made by the audited partnership or tiered partner within the time for election as provided in 15-30-3403 or 15-30-3404, as appropriate.
History: En. Sec. 5, Ch. 108, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 34. Partnership Audit Adjustments › 15-30-3406. Effect of election by audited partnership or tiered partner and payment of amount due

15-30-3406. Effect of election by audited partnership or tiered partner and payment of amount due.
(1) The election made pursuant to 15-30-3404 is irrevocable, unless the department, in its discretion, determines otherwise.
(2) If properly reported and paid by the audited partnership or tiered partner, the amount determined in 15-30-3404(1)(b), will be treated as paid in lieu of taxes owed by its direct and indirect partners, to the extent applicable, on the same final federal adjustment. The direct partners or indirect partners may not take any deduction or credit for this amount or claim a refund of the amount in this state. Nothing in this section shall preclude a direct resident partner from claiming:
(a) a credit against taxes paid to this state pursuant to 15-30-3313; or
(b) any amounts paid by the audited partnership or tiered partner on the resident partner's behalf to another state or local tax jurisdiction in accordance with the provisions of 15-30-2302.
(3) Nothing in this section prevents the department from assessing direct partners or indirect partners for taxes owed, using the best information available, in the event that a partnership or tiered partner fails to timely make any report or payment required by this section for any reason.
History: En. Sec. 6, Ch. 108, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 34. Partnership Audit Adjustments › 15-30-3407. De minimis exception -- rulemaking

15-30-3407. De minimis exception -- rulemaking.
The department may, at its discretion, adopt rules establishing a de minimis amount on which a taxpayer may not be required to comply with 15-30-3403 and 15-30-3404.
History: En. Sec. 7, Ch. 108, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 34. Partnership Audit Adjustments › 15-30-3408. Estimated tax payments during course of federal audit

15-30-3408. Estimated tax payments during course of federal audit.
A taxpayer may make estimated payments to the department, following the process prescribed by the department, of the Montana individual income or corporate income tax expected to result from a pending internal revenue service audit, prior to the due date of the federal adjustments report, without having to file the report with the department. The estimated tax payments must be credited against any tax liability ultimately found to be due to this state and will limit the accrual of further statutory interest on that amount. If the estimated tax payments exceed the final tax liability and statutory interest ultimately determined to be due, the taxpayer is entitled to a refund or credit for the excess, provided the taxpayer files a federal adjustments report or claim for refund or credit of tax pursuant to 15-30-2609 or 15-31-509, no later than 1 year following the final determination date.
History: En. Sec. 8, Ch. 108, L. 2021.
2023 Montana Code Annotated › Title 15. Taxation › Chapter 30. Individual Income Tax › Part 37. Montana Entrepreneur Magnet Act › 15-30-3702. Definitions

15-30-3702. Definitions.
As used in this part, the following definitions apply:
(1) (a) "Capital stock" means voting or nonvoting common or preferred stock acquired as the result of employment or service as an employee or director with a corporation.
(b) The term does not include stock rights or debt securities.
(2) (a) "Corporation" means a corporation, as defined in 15-30-2101, including a unitary business, as described in 15-31-301.
(b) The term includes a predecessor or successor corporation.
(c) The term does not include either a business entity or a business entity with a financial interest in another business entity that is directly or indirectly engaged in a business activity that is illegal under federal law, regardless of how the business entity is organized.
(3) "Net long-term capital gain" has the meaning provided in section 1222(7) of the Internal Revenue Code, 26 U.S.C. 1222(7).
(4) "Predecessor or successor corporation" means a corporation that was party to a reorganization that was entirely or substantially tax-free and that occurred during or after the employment of an individual claiming the rate under 15-30-3704.
History: En. Sec. 2, Ch. 458, L. 2021.