reglab/statecodes huggingface dataset:
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.101 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
The following definitions apply to this chapter:
(1) "Eligible participant" means a partner of
				a partnership or a shareholder of an S corporation that is a nonresident
				individual, estate, or trust, a foreign C corporation, or a pass-through entity
				whose only Montana source income for the tax year is from partnerships or S
				corporations electing to file composite returns and pay composite taxes on
				their behalf.
(2) "Foreign C
				corporation" means a corporation that is not engaged in or doing business in
				the state. "Engaged in business" and "doing business" are defined in
				15-31-101, MCA, and ARM
				42.23.102.
(3) "Other nonresident entity" means an
				entity, organization, or account whose principal place of business or
				administration is located outside the state of Montana that has not elected,
				for tax purposes, to be treated as a disregarded entity, partnership, or
				corporation, and is not an estate or trust.
(4) "Share of a partnership's or S
				corporation's income" means the aggregate of a participant's share of the
				pass-through entity's income, gain, loss, or deduction, or item of income,
				gain, loss, or deduction.
AUTH:
					 15-30-2620,
					 15-30-3312, MCA; IMP:
					 15-30-3311,
					 15-30-3312,
					 15-30-3313,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.102 - PASS-THROUGH ENTITY INFORMATION RETURNS

Current through Register Vol. 13, July 5, 2024
(1) Every
				pass-through entity with Montana source income is subject to the requirement in
				15-30-3302, MCA, to file
				pass-through entity information returns. Most pass-through entities are subject
				to an annual filing requirement. In general, the status of a pass-through
				entity is the same as its status for federal income tax purposes. A
				pass-through entity falls into one of three categories:
(a) partnership;
(b) S corporation; or
(c) disregarded entity.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.103 - LATE-FILE PENALTY FOR PASS-THROUGH ENTITIES

Current through Register Vol. 13, July 5, 2024
(1) A pass-through
				entity required to file a Montana information return, as provided in ARM Title
				42, chapter 9, is subject to a late-filing penalty if the return is not filed
				by the due date (including extensions).
(2) ARM
				42.3.101 through
				42.3.115 and
				42.3.120 apply to requests for
				waiving penalties.
(3) For
				disregarded entities that do not have a tax year, the number of partners,
				shareholders, members, or other owners will be determined as of the preceding
				December 31.
AUTH:
					 15-1-201,
					 15-30-2620,
					 15-31-501, MCA IMP:
					 15-30-2602,
					 15-30-2603,
					 15-30-3302,
					 15-30-3311,
					 15-30-3312,
					 15-31-101,
					 15-31-111,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.104 - CONSENT, COMPOSITE RETURN, OR WITHHOLDING FOR PARTNERS, SHAREHOLDERS, MANAGERS, AND MEMBERS WHO ARE NONRESIDENT INDIVIDUALS, ESTATES, OR TRUSTS

Current through Register Vol. 13, July 5, 2024
(1) A partnership
				and S corporation with one or more nonresident individual, estate, or trust
				owners, during any part of a tax year for which an information return is
				required by this chapter, must for each nonresident individual, estate, or
				trust that receives a distributive share of Montana source income of $1,000 or
				more:
(a) file a composite return as provided
				in ARM 42.9.202 and include the
				nonresident individual, estate, or trust in the filing;
(b) obtain from the nonresident individual,
				estate, or trust and file Form PT-AGR (Montana Pass-Through Entity Owner
				Agreement). On Form PT-AGR, the owner agrees to timely file a Montana
				individual or fiduciary income tax return, to timely pay tax due, and to be
				subject to the state's tax collection jurisdiction; or
(c) remit an amount on the partner's or
				shareholder's behalf, determined as provided in (5), with the Pass-Through
				Entity Information Return, Forms CLT-4S or PR-1 and provide Montana Schedule
				K-1 to the nonresident individual, estate, or trust. The Montana Schedule K-1
				must set forth the amount of withholding remitted to the department which can
				be used as a refundable credit against the tax liability of the nonresident
				individual, estate, or trust upon filing a Montana individual or fiduciary
				income tax return.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.105 - CONSENT, COMPOSITE RETURN, OR WITHHOLDING FOR PARTNERS, SHAREHOLDERS, MANAGERS, AND MEMBERS THAT ARE FOREIGN C CORPORATIONS

Current through Register Vol. 13, July 5, 2024
(1) A partnership
				with one or more foreign C corporation or other nonresident entity owners,
				during any part of a tax year for which an information return is required by
				this chapter, must for each foreign C corporation, or other nonresident entity,
				that receives a distributive share of Montana source income of $1,000 or more:
(a) file a composite return as provided in
				ARM 42.9.202 and include the foreign C
				corporation or other nonresident entity in the filing;
(b) obtain from the foreign C corporation or
				other nonresident entity and file Form PT-AGR (Montana Pass-Through Entity
				Owner Agreement). On Form PT-AGR, the owner agrees to timely file a Montana
				income tax return, to timely pay tax due, and to be subject to the state's tax
				collection jurisdiction; or
(c)
				remit an amount on the foreign C corporation's or other nonresident entity's
				behalf, determined as provided in (5), with the Pass-Through Entity's
				Information Return, Form PR-1 or Form CLT-4S and provide Montana Schedule K-1
				to the foreign C corporation or other nonresident entity. The Montana Schedule
				K-1 must set forth the amount of withholding remitted to the department which
				can be used as a withholding payment against the tax liability of the foreign C
				corporation or other nonresident entity, upon filing a Montana income tax
				return.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.106 - COMPOSITE RETURN, WITHHOLDING, OR WAIVER FOR PARTNERS, SHAREHOLDERS, MANAGERS, AND MEMBERS THAT ARE SECOND-TIER PASS-THROUGH ENTITIES

Current through Register Vol. 13, July 5, 2024
(1) Except as provided in (2), (6), and (7),
				a first-tier pass-through entity with one or more owners that are also
				pass-through entities (second-tier pass-through entities), during any part of
				the tax year for which an information return is required by this chapter, must
				for each second-tier pass-through entity that receives a distributive share of
				Montana source income of $1,000 or more:
(a)
				file a composite return as provided in ARM
				42.9.202 and include the
				second-tier pass-through entity in the filing; or
(b) do each of the following:
(i) remit to the department an amount equal
				to the highest marginal rate in effect under
				15-30-2103, MCA, multiplied by the
				second-tier pass-through entity's share of Montana source income with the Forms
				CLT-4S, PR-1, or DER-1 Pass-Through Entity's Information Return; and
(ii) provide Montana Schedule K-1 to the
				second-tier pass-through entity setting forth the amount remitted to the
				department that may be claimed as a refundable credit against the Montana
				income tax liability of the owners who file individual, corporate income, or
				other income tax returns as explained in (8).
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.108 - INACTIVE PASS-THROUGH ENTITIES

Current through Register Vol. 13, July 5, 2024
(1) Except as
				provided in (3) and (4), foreign limited liability companies, foreign series
				limited liability companies, domestic limited liability companies, and domestic
				series limited liability companies qualified to do business in Montana and not
				required to file an information return under
				15-30-3302, MCA, must submit an
				affidavit, on a form provided by the department, attesting that the limited
				liability company was not engaged in business in Montana during the reporting
				period.
(2) Foreign limited
				partnerships, foreign limited liability partnerships, domestic limited
				partnerships, and domestic limited liability partnerships qualified to do
				business in Montana and not required to file an information return under
				15-30-3302, MCA, must submit an
				affidavit, on a form provided by the department, attesting that the limited
				partnership or limited liability partnership was not engaged in business in
				Montana during the reporting period.
(3) Any limited liability company organized
				solely to hold assets that does not claim a deduction under IRC section 212,
				for federal income tax purposes, is not required to submit an affidavit as set
				forth in (1) if, upon request from the department, the limited liability
				company provides a written statement describing the nature of its
				purpose.
(4) This rule does not
				apply to a limited liability company, limited partnership, or limited liability
				partnership that is treated as an association for federal income tax purposes
				and subject to the provisions outlined in Title 15, chapter 31, MCA.
AUTH:
					 15-1-201,
					 15-30-2620,
					 15-31-501, MCA; IMP:
					 15-30-3302,
					 15-31-101,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.109 - PARTNERS, SHAREHOLDERS, MANAGERS, AND MEMBERS WHO ARE TAX-EXEMPT ENTITIES

Current through Register Vol. 13, July 5, 2024
(1) A pass-through
				entity is required to withhold tax on behalf of a partner, shareholder,
				manager, or member even if the partner, shareholder, manager, or member is not
				organized and operated for profit or is a stock bonus, pension, profit-sharing,
				or individual retirement plan. A partner, shareholder, manager, or member
				seeking the benefits of exemption from Montana filing and tax requirements must
				comply with all statutory requirements authorizing the classification
				claimed.
(2) In order to establish
				exemption status and thus be relieved of the duty of filing returns and paying
				tax based upon income received from a pass-through entity, each partner,
				shareholder, manager, or member claiming exemption must file an affidavit with
				the department showing:
(a) the character of
				the organization;
(b) the purpose
				it was organized for;
(c) its
				actual activities; and
(d) the
				sources and the disposition of its income.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.110 - PASS-THROUGH ENTITIES - AUDIT ADJUSTMENTS

Current through Register Vol. 13, July 5, 2024
(1) The department
				reports the details of audit adjustments resulting from an audit or other
				review of a pass-through entity's information return to the entity and the
				owners of the pass-through entity.
(2) The department reports the details of
				audit adjustments resulting from an audit or other review of a pass-through
				entity's composite tax return to the pass-through entity. The department does
				not report the details of audit adjustments to the eligible participants in the
				composite return because the pass-through entity is responsible for
				representing the eligible participants in appeals.
(3) If the audit adjustments resulting from
				an audit or other review of a pass-through entity's information return affect
				the Montana tax returns filed by the partners, shareholders, or other owners of
				the pass-through entity, then the department may adjust an owner's tax return
				to reflect the audit adjustments that passed through to the owner. If the
				department adjusts an owner's tax return, it will inform the owner of the
				details of the adjustments to its tax return, but the department will not
				report to the pass-through entity the details of the adjustments to the owner's
				tax return.
(4) If the audit
				adjustments resulting from an audit or other review of a pass-through entity's
				information return affect Montana tax returns that partners, shareholders, and
				other owners have not filed, the department may request that the owners file
				tax returns. If an owner does not file a tax return, the department may
				estimate the owner's tax liability in accordance with
				15-30-2605, MCA. The department
				will not report the details of the owner's estimated tax liabilities to the
				pass-through entity.
(5) Except as
				provided in (6), for multi-tiered entity structures, the department will not
				report the details of audit adjustments resulting from an audit or other review
				of a pass-through entity's information return to a related entity, unless the
				related entity is an owner of the audited pass-through entity. For example:
(a) if an audit or other review of a
				first-tier entity results in an audit adjustment the department will report the
				details of the audit adjustments to the first-tier entity and the owners of the
				first-tier entity. However, the department will not report the details of the
				audit adjustments to the owners of the second-tier entity, the third-tier or
				any higher-tier entity.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.111 - PASS-THROUGH ENTITIES - STATUTE OF LIMITATIONS FOR AUDIT ADJUSTMENTS

Current through Register Vol. 13, July 5, 2024
(1) The department
				may revise any return of an entity if, in the opinion of the department, it is
				incorrect in any essential respect.
(2) If a revision to a pass-through entity's
				information return changes the owners' distributive share of Montana source
				income, gain, loss, deduction, or credit or item of income, gain, loss,
				deduction, or credit, the department will review the owners' tax returns and
				determine if additional tax is due. If additional tax is due, the department
				may assess tax, penalties, and interest as follows:
(a) if the additional tax, penalties, and
				interest are due on a return filed by an individual, trust, or estate, it may
				be assessed within:
(i) five years of when
				the return was filed, if it pertains to a tax period beginning before January
				1, 2015; or
(ii) three years after
				the return was filed if it pertains to a tax period beginning after December
				31, 2014; or
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.1 - General › Rule 42.9.112 - APPORTIONABLE AND NONAPPORTIONABLE INCOME - APPORTIONMENT OR ALLOCATION - PASS-THROUGH ENTITIES

Current through Register Vol. 13, July 5, 2024
(1) For purposes of
				the reporting requirements for pass-through entities that have Montana
				apportionable or nonapportionable income and determining their Montana source
				income and Montana tax liability, the department adopts by reference the
				following rules contained in ARM Title 42, chapter 26 - Corporate Multistate
				Activities, subchapters:
(a) 1 - General
				Provisions;
(b) 2 - Income
				Allocation and Apportionment, except ARM
				42.26.204,
				42.26.228,
				42.26.229,
				and
				42.26.260;
(c) 4 - Special Rules Related to Installment
				Sales;
(d) 6 - Railroads;
(e) 7 - Trucking;
(f) 8 - Airlines;
(g) 9 - Special Rules for Construction
				Contracts;
(h) 10 - Publishing
				Companies - Apportionment;
(i) 11 -
				Television and Radio Broadcasting;
(j) 12 - Telecommunication Services for
				Corporate Income Taxes; and
(k) 13
				- Financial Institutions.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.2 - Composite Returns › Rule 42.9.201 - COMPOSITE RETURN-ELECTION

Current through Register Vol. 13, July 5, 2024
(1) A
				partnership or S corporation may elect to file a composite tax return and pay a
				composite tax on behalf of all eligible participants who consent to be included
				in the filing.
(2) The partnership
				or S corporation filing a composite return must maintain and make available to
				the department, on request, a written power of attorney of each consenting,
				eligible participant authorizing it to file the composite return and act on the
				individual's behalf.
(3) Any
				assessments of additional tax, penalties, and interest are the responsibility
				of the entity filing the composite return and will be based on the entity's
				total liability. Any additional assessment will be based on the total liability
				of the composite return.
(4) The
				entity or its representative must represent the eligible participants in any
				appeals, claims for refunds, hearings, or court proceedings in any matter
				relating to the filing of the composite return.
(5) Eligible participants who are nonresident
				individuals, estates, trusts, or foreign C corporations, and consent to be
				included in a composite filing, are consenting to such filing in lieu of filing
				a Montana income or corporate license tax return. The department will not
				accept Montana income or corporate license tax returns filed by an eligible
				participant for any tax year the eligible participant made a composite
				election.
(6) Eligible participants
				who are second-tier pass-through entities and consent to be included in a
				composite filing are consenting to such filing in lieu of filing a Montana
				partnership or S corporation information and composite tax return. The
				department will not accept Montana partnership or S corporation information and
				composite tax returns filed by an eligible participant for any tax year the
				eligible participant made a composite election.
15-30-3312, MCA; IMP,
					 15-30-3312,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.2 - Composite Returns › Rule 42.9.202 - FILING REQUIREMENT

Current through Register Vol. 13, July 5, 2024
(1) The Montana
				composite income tax return is due on or before the due date (including
				extensions) of the entity's information return provided in ARM
				42.9.301 and
				42.9.401. Extension of the date
				for filing the composite return does not extend the date for paying the
				composite tax. Interest and a late payment penalty accrue from the original due
				date of the return.
(2) The
				composite return must include the name, address, social security or federal
				employer identification number, ownership interest in the entity that is used
				to calculate the owner's distributive share of income, and composite return
				liability of each consenting eligible participant included in the
				filing.
15-30-2620, MCA; IMP,
					 15-30-2104,
					 15-30-3312,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.2 - Composite Returns › Rule 42.9.203 - COMPUTATION OF COMPOSITE TAX

Current through Register Vol. 13, July 5, 2024
(1) The composite
				tax, required to be remitted to the department with the composite tax return,
				is the sum of each electing eligible participant's composite tax liability.
(2) A participant's composite tax
				liability is assessed on the participant's share of the entity's federal
				income, adjusted according to
				15-30-3312, MCA, and multiplied by
				the composite tax ratio. To determine a participant's composite tax liability,
				the entity must use the five-step calculation in (3).
(3) The composite return liability of each
				eligible consenting participant is calculated as follows:
(a) compute the entity's composite tax ratio,
				used to determine the Montana portion of the tax, by:
(i) calculating the entity's federal
				income;
(ii) calculating the
				entity's Montana source income;
(A) if the
				entity is only doing business in Montana, the entity's Montana source income is
				the net taxable income after Montana additions and deductions to income as
				allowed in
				15-30-3302, MCA; or
(B) if the entity is engaged in multistate
				business, the entity's Montana source income is determined as provided in ARM
				42.9.107; and
(iii) dividing the entity's Montana source
				income by the entity's federal income from all sources;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.2 - Composite Returns › Rule 42.9.204 - COMPOSITE RETURNS - NET OPERATING LOSS

Current through Register Vol. 13, July 5, 2024
(1)
				Net operating losses pass through to the individual shareholders and partners
				and are not available for carryover or carryback on the entity return. When
				these shareholders and partners elect to be included in the composite return,
				they lose their ability to use their distributive share of the net operating
				losses.
15-1-201,
					 15-30-2620,
					 15-31-501, MCA; IMP,
					 15-30-3312,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.3 - Partnerships › Rule 42.9.301 - PASS-THROUGH ENTITY INFORMATION RETURNS FOR PARTNERSHIPS

Current through Register Vol. 13, July 5, 2024
(1) Every partnership that has Montana source
				income must file a Form PR-1, Montana Partnership Information and Composite Tax
				Return, on or before the 15th day of the third month following the close of its
				annual accounting period.
(2) A
				six-month extension of time to file a partnership return is automatically
				allowed if any tax, penalties, and interest due are paid on or before the date
				the return is filed.
(3) A
				partnership required to file a Montana partnership information return is
				subject to a late-filing penalty if:
(a) the
				Montana partnership information return is not filed by the due date (including
				extensions);
(b) a copy of the
				partnership's federal partnership return is not filed with the Montana
				partnership information return; or
(c) a return is filed that does not include
				all of the following information:
(i) name,
				address, and social security or federal identification number of each
				partner;
(ii) the partnership's
				Montana source income;
(iii) each
				partner's distributive share of Montana source income, gain, loss, deduction,
				or credit or items of income, gain, loss, deduction, or credit; and
(iv) each partner's distributive share of
				income, gain, loss, deduction, or credit, or item of income, gain, loss,
				deduction, or credit from all sources.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.3 - Partnerships › Rule 42.9.302 - ELECTRONIC RETURNS REQUIRED FOR PARTNERSHIPS HAVING MORE THAN 100 MEMBERS

Current through Register Vol. 13, July 5, 2024
(1) Effective for tax years beginning after
				December 31, 2013, a partnership having more than 100 partners over the course
				of its tax year must electronically file a Montana Partnership Information and
				Composite Return (Form PR-1), using department-approved e-filing tax software.
(2) For purposes of this rule, the
				more than 100-partner threshold shall be considered satisfied if a partnership,
				on any one day over the course of the year, has more than 100 partners. For
				example:
(a) Partnership A has 95 partners on
				January 1, 2014. On April 1, 2014, ten new partners acquire partnership
				interests in Partnership A so that there are 105 total partners. On August 1,
				2014, one of Partnership A's partners acquired the interests of ten partners
				which reduced the total number of partners to 95. Partnership A must file its
				Form PR-1 electronically because over the course of the tax year, the
				partnership had more than 100 partners.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.3 - Partnerships › Rule 42.9.303 - GUARANTEED PAYMENTS TO INDIVIDUAL PARTNERS - SOURCING, APPORTIONMENT, AND ALLOCATION

Current through Register Vol. 13, July 5, 2024
(1) Except as
				provided in (2) and (3), guaranteed payments made to individual partners
				pursuant to section 707 of the Internal Revenue Code,
				26 U.S.C.
				707, are sourced to Montana based upon the
				Montana apportionment factor of the partnership. For example:
(a) A nonresident taxpayer's federal adjusted
				gross income includes three hundred thousand dollars ($300,000) of guaranteed
				payments for a designated use of capital received from a partnership that has a
				fifty percent (50%) Montana apportionment factor. One hundred and fifty
				thousand dollars ($150,000) of the guaranteed payments are included in the
				partner's gross income from Montana sources based on the apportionment factor
				of the partnership.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.4 - S Corporations › Rule 42.9.401 - PASS-THROUGH ENTITY INFORMATION RETURNS FOR S CORPORATIONS

Current through Register Vol. 13, July 5, 2024
(1) Every S corporation that has Montana
				source income must file a Form CLT-4S, Montana S Corporation and Composite
				Information Return, on or before the 15th day of the third month following the
				close of its annual accounting period.
(2) A six-month extension of time to file an
				S corporation return is automatically allowed if any tax, penalties, and
				interest due are paid on or before the date the return is filed.
(3) An S corporation required to file a
				Montana S corporation information return is subject to a late filing penalty
				if:
(a) the Montana S corporation information
				return is not filed by the due date (including extensions);
(b) a copy of the S corporation's federal
				return is not filed with the Montana S corporation information return;
				or
(c) a return is filed that does
				not include the following information:
(i)
				name, address, and social security or federal identification number of each
				shareholder;
(ii) the S
				corporation's Montana source income;
(iii) each shareholder's pro rata share of
				separately and nonseparately stated Montana source income, gain, loss,
				deduction, or credit, or item of income, gain, loss, deduction, or credit; and
(iv) each shareholder's pro rata
				share of separately and nonseparately stated income, gain, loss, deduction, or
				credit, or item of income, gain, loss, deduction, or credit from all
				sources.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.4 - S Corporations › Rule 42.9.402 - S CORPORATION SHAREHOLDER'S ADDITION TO MONTANA ADJUSTED GROSS INCOME

Current through Register Vol. 13, July 5, 2024
(1) An S
				corporation shareholder's income is that income included in federal adjusted
				gross income plus:
(a) an amount equal to the
				federal tax on capital gains and the minimum tax paid by the corporation times
				the shareholder's percentage of ownership;
(b) an amount equal to the excess net passive
				federal income tax paid by the corporation times the shareholder's percentage
				of ownership; and
(c) all other
				amounts equal to federal taxes paid by the corporation that reduce the
				shareholder's distribution of the net S corporation income.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.5 - Disregarded Entities › Rule 42.9.502 - DISREGARDED ENTITIES - SOURCING GAIN OR LOSS ON THE SALE OF AN INTEREST

Current through Register Vol. 13, July 5, 2024
(1) Gain on the sale of an interest in a
				single member limited liability company (LLC) that is a disregarded entity is
				sourced to Montana as if the single member LLC did not exist and the assets of
				the LLC are owned directly by the sole member (or sole member and spouse, if
				applicable). The following example illustrates how this rule is applied:
(a) Nonresident individual C is the sole
				member of LLC D. LLC D is a single member LLC that is disregarded as a separate
				entity for tax purposes. LLC D's only asset is rental property located in
				Montana. If nonresident individual C sells his interest in LLC D, the
				transaction is sourced to Montana in the same way that the gain would be
				sourced if C owned LLC D's assets directly and sold them.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.5 - Disregarded Entities › Rule 42.9.510 - PASS-THROUGH ENTITY INFORMATION RETURNS FOR PARTNERSHIPS ELECTING IRC 761

Current through Register Vol. 13, July 5, 2024
(1) Any entity that
				has Montana source income, that elects under IRC 761 to be excluded from
				application of some or all of the partnership tax rules on or after January 1,
				2003, must file a Montana Form DER-1 on or before the 15th day of the fourth
				month following the close of the annual accounting period of the
				owners.
(2) An entity required to
				file an information return provided in (1) can obtain an automatic extension of
				time to file its information return if its owner has qualified for extension of
				time to file a return. The extended due date is the same as the owner's federal
				extended due date. The entity is allowed an automatic extension to file its
				information return of up to six months if the owners are not required to file a
				federal information return.
(3) A
				disregarded entity required to file the information returns provided in (1) is
				subject to a late-filing penalty if:
(a) the
				Montana disregarded entity information return is not filed by the due date
				(including extensions); or
(b) a
				return is filed that does not include all of the following information:
(i) name, address, and social security or
				federal identification number of each partner, member, or other
				owner;
(ii) the date of the
				election and the internal revenue district (or service center serving the
				district) where the election was filed;
(iii) any assumed business name(s) the
				disregarded entity has registered with the Montana Secretary of State, under
				which it conducts any trade, business, or occupation in the state, or under
				which it holds title to any real or tangible personal property in the state;
				and
(iv) if the disregarded entity
				is a limited liability company, limited liability partnership, limited
				partnership, or any other unincorporated entity formed under the laws of
				Montana or any other state or country, the state, county, and date of
				formation.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.5 - Disregarded Entities › Rule 42.9.520 - PASS-THROUGH ENTITY INFORMATION RETURNS FOR QUALIFIED SUBCHAPTER S SUBSIDIARIES

Current through Register Vol. 13, July 5, 2024
(1) Any corporation
				described in IRC 1361(b)(3) whose parent elects to treat as a qualified
				subchapter S subsidiary on or after January 1, 2003, and that has Montana
				source income, must file a Montana Form DER-1 on or before the 15th day of the
				third month following the close of the parent S corporation's annual accounting
				period.
(2) A corporation required
				to file an information return provided in (1) can obtain an automatic extension
				of time to file its information return if its owner has qualified for an
				extension of time to file a return. The extended due date is the same as the
				owner's federal extended due date. The corporation is allowed an automatic
				extension to file its information return of up to six months if the owner is
				not required to file a federal information return.
(3) A corporation required to file the
				information returns provided in (1) is subject to a late-filing penalty if:
(a) the Montana disregarded entity
				information return is not filed by the due date (including extensions); or
(b) a return is filed that does
				not include all of the following information:
(i) name, address, and federal identification
				number of its S corporation parent;
(ii) the date of the election and the
				internal revenue district (or service center serving the district) where the
				election was filed;
(iii) any
				assumed business name(s) the qualified subchapter S subsidiary has registered
				with the Montana Secretary of State, under which it conducts any trade,
				business, or occupation in the state, or under which it holds title to any real
				or tangible personal property in the state; and
(iv) the state, country, and date of its
				incorporation.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.5 - Disregarded Entities › Rule 42.9.530 - PASS-THROUGH ENTITY INFORMATION RETURNS FOR QUALIFIED REIT SUBSIDIARIES

Current through Register Vol. 13, July 5, 2024
(1) Any corporation defined as a qualified
				REIT subsidiary in IRC 856(i)(2) that has Montana source income and the assets,
				liabilities, and items of income, deduction, and credit of which are included
				in the federal income tax return of its parent REIT, must file a Montana Form
				DER-1, on or before the due date of its parent REIT's information
				return.
(2) A qualified REIT
				subsidiary is subject to a late-filing penalty if:
(a) the Montana disregarded entity
				information return is not filed by the due date (including extensions);
				or
(b) a return is filed that does
				not include all of the following information:
(i) name, address, and federal identification
				number of its REIT parent;
(ii) any
				assumed business name(s) the qualified REIT subsidiary has registered with the
				Montana Secretary of State, under which it conducts any trade, business, or
				occupation in the state, or under which it holds title to any real or tangible
				personal property in the state;
(iii) the state, country, and date of its
				incorporation; and
(iv) its Montana
				source income, deductions, and credits.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.9 - PASS-THROUGH ENTITIES › Subchapter 42.9.5 - Disregarded Entities › Rule 42.9.540 - PASS-THROUGH ENTITY RETURNS FOR REMIC

Current through Register Vol. 13, July 5, 2024
(1)
				Every unincorporated Real Estate Mortgage Investment Conduit (REMIC) described
				in IRC 860D, that has Montana source income, must file a copy of its form 1066,
				federal Real Estate Mortgage Investment Conduit Income Tax Return on or before
				the due date (including extensions) for filing its federal return.
15-1-201,
					 15-30-2620,
					 15-31-501, MCA; IMP,
					 15-30-2602,
					 15-30-2603,
					 15-30-3302,
					 15-30-3311,
					 15-30-3312,
					 15-31-101,
					 15-31-111,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.10 - COLLECTIONS › Subchapter 42.10.5 - Debt Collection Services on Behalf of Other Agencies › Rule 42.10.501 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
The following definitions apply to terms found in this
				  subchapter:
(1) "Collection methods"
				means any action taken in an attempt to collect on a debt, including but not
				limited to making a demand for payment, issuing collection notices, obtaining a
				judgment, and levying wages and bank accounts.
(2) "Criteria for uncollectibility" means an
				agency's written standards stating the collection methods that must occur in
				order for the agency to determine that the debt is uncollectible.
(3) "Form CB-1" means the department's
				Request for Informal Review form, which is available at the department's
				website at
www.mtrevenue.gov
, for use by
				a person to file a written objection with the department concerning the
				transfer of a debt to the department or the department's collection of a
				debt.
(4) "Form CB-2" means the
				department's Notice of Referral to the Office of Dispute Resolution form, which
				is available at the department's website at
www.mtrevenue.gov
, for use by a person to
				appeal an informal review determination to the department's Office of Dispute
				Resolution (ODR).
(5) "Form CB-1"
				means the department's Request for Informal Review form, which is available at
				the department's website at
www.mtrevenue.gov
, for use by a person to file
				a written objection with the department concerning the transfer of a debt to
				the department or the department's collection of a debt.
(6) "Form CB-2" means the department's Notice
				of Referral to the Office of Dispute Resolution form, which is available at the
				department's website at
www.mtrevenue.gov
, for use by a person to
				appeal an informal review determination to the department's Office of Dispute
				Resolution (ODR).
AUTH:
					 15-1-201,
					 17-4-110,
					 MCA; IMP:
					 15-1-211,
					 17-4-101,
					 17-4-104,
					 17-4-105,
					 17-4-106,
					 17-4-107,
					 17-4-108,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.10 - COLLECTIONS › Subchapter 42.10.5 - Debt Collection Services on Behalf of Other Agencies › Rule 42.10.502 - AGENCY'S SUBMISSION OF DEBTS TO DEPARTMENT

Current through Register Vol. 13, July 5, 2024
(1) Prior to submitting any debt to the
				department for collection services, the agency shall:
(a) enter into a memorandum of understanding
				with the department addressing debt collection services; and
(b) establish criteria for uncollectibility
				and provide that criteria to the department.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.10 - COLLECTIONS › Subchapter 42.10.5 - Debt Collection Services on Behalf of Other Agencies › Rule 42.10.503 - DEPARTMENT'S REVIEW OF SUBMITTED ACCOUNTS

Current through Register Vol. 13, July 5, 2024
(1)
				The department will only accept a debt for collection services if the
				department determines that the submitting agency has met its criteria for
				uncollectibility, unless the agency is exempted from this requirement under
				17-4-105, MCA. The department will
				notify the agency of its acceptance or rejection of the debt for collection
				services.
(2) If the department
				determines that a submitting agency has not met its criteria for
				uncollectibility, the department may return the debt to that agency.
(3) Upon the department's request, the
				submitting agency shall submit all relevant evidence regarding a debt,
				including but not limited to documentation of the collection methods undertaken
				by the agency and any information that substantiates the debt.
15-1-201,
					 17-4-110, MCA; IMP,
					 17-4-104,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.10 - COLLECTIONS › Subchapter 42.10.5 - Debt Collection Services on Behalf of Other Agencies › Rule 42.10.504 - TRANSFER OF DEBTS TO DEPARTMENT

Current through Register Vol. 13, July 5, 2024
(1) Upon
				the department's acceptance of a debt for collection services, the debt is
				transferred to the department.
(2)
				Once a debt has been transferred to the department, the submitting agency
				shall:
(a) write off the debt;
(b) cease all collection activities on the
				debt;
(c) forward to the department
				any payment received by the agency; and
(d) update the department with any
				information received relating to the debt, including notification that the
				debtor filed for bankruptcy or has new contact information.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.10 - COLLECTIONS › Subchapter 42.10.5 - Debt Collection Services on Behalf of Other Agencies › Rule 42.10.505 - DEBTOR APPEALS ON VALIDITY OF TRANSFER OF DEBT

Current through Register Vol. 13, July 5, 2024
(1) The department shall notify a debtor that
				another agency has transferred a debt to the department for collection
				services. The notice of transfer shall identify the debt and provide:
(a) a statement that the department intends
				to undertake collection activities;
(b) payment information;
(c) the department's contact information,
				including phone number and mailing address; and
(d) the debtor's appeal rights as set forth
				in (2) through (4).
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.10 - COLLECTIONS › Subchapter 42.10.5 - Debt Collection Services on Behalf of Other Agencies › Rule 42.10.506 - DEBTOR APPEALS ON DEPARTMENT'S COLLECTIONS

Current through Register Vol. 13, July 5, 2024
(1)
				The department shall notify the debtor when it identifies funds that may be
				subject to offset. The notice of offset shall identify the debt and funds held
				and inform the debtor that the department will hold the funds for 30 days
				pending receipt of an objection.
The notice shall also provide the department's contact
				  information, including phone number and mailing address, and the debtor's
				  appeal rights, as provided in (2) through (4).
(2) To object to the potential offset of
				funds held, the debtor must submit a written request stating the basis of their
				objection within 30 days of the date on the notice of transfer. Written
				objections may be submitted on Form CB-1, by letter sent through U.S. mail or
				other generally accepted delivery service, or as electronic mail to the
				department's email address provided on the notice of transfer. The objection
				must be postmarked or electronically date stamped within 30 days of the date on
				the notice of offset. If the debtor fails to timely submit a written objection,
				the department will apply the held funds to the debt.
(3) The department shall review the objection
				and shall mail written notice to the debtor advising them of the department's
				determination within 30 days after receipt of the objection. If the department
				concurs with the debtor's objection, the department will release the held funds
				to the debtor. If the department disagrees with the debtor, the department
				shall explain the reasons for the disagreement, notify the debtor that the
				department's determination may be appealed to the Office of Dispute Resolution,
				and provide a copy of Form CB-2. The department shall also notify the debtor
				that the debtor must submit a Form CB-2 or other written objection to the
				department within 30 days of the date on the department's determination, and
				that the debtor will forfeit the right to a hearing if the debtor fails to
				submit Form CB-2 or other written objection within the 30-day period.
(4) If the debtor disagrees with the
				department's determination, the debtor must submit a Form CB-2 or other written
				objection within 30 days of the date on the department's determination to
				request a hearing before the Office of Dispute Resolution. Objections should be
				mailed to the Department of Revenue, Office of Dispute Resolution, P.O. Box
				5805, Helena, Montana 59604 or e-mailed to dordisputeresolution@mt.gov. The
				objection must be postmarked or electronically date stamped within 30 days of
				the date on the department's determination. If the debtor fails to timely
				submit a written objection, the department will apply the held funds to the
				debt.
(5) Deadlines may be
				extended if both parties agree.
AUTH:
					 15-1-201,
					 17-4-110,
					 MCA; IMP:
					 15-1-211,
					 17-4-105,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.10 - COLLECTIONS › Subchapter 42.10.5 - Debt Collection Services on Behalf of Other Agencies › Rule 42.10.507 - APPEAL HEARINGS

Current through Register Vol. 13, July 5, 2024
(1) Hearings on
				debts owed to an agency other than the Department of Public Health and Human
				Services will be conducted by the department. Such hearings will be conducted
				pursuant to
				15-1-211, MCA, and ARM
				42.2.613 through
				42.2.621.
(2) Hearings on debts owed to the Department
				of Public Health and Human Services will be conducted by that agency.
15-1-201,
					 17-4-110, MCA; IMP,
					 15-1-211,
					 17-4-105,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.10 - COLLECTIONS › Subchapter 42.10.5 - Debt Collection Services on Behalf of Other Agencies › Rule 42.10.508 - WRITE OFF OF AGENCY DEBT BY DEPARTMENT

Current through Register Vol. 13, July 5, 2024
(1)
				Upon determining that a transferred debt is uncollectible or that the cost of
				continued collection activities would exceed the amount of debt, the department
				shall write off the debt and cease collection activities.
15-1-201,
					 17-4-110, MCA; IMP,
					 17-4-107,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.10 - COLLECTIONS › Subchapter 42.10.5 - Debt Collection Services on Behalf of Other Agencies › Rule 42.10.509 - COLLECTION SERVICES FEE

Current through Register Vol. 13, July 5, 2024
(1) The department
				shall collect a service fee for the cost of collections. Any payment the
				department receives will first be applied to the collections service fee and
				then to the transferred debt. Any payment the submitting agency receives on a
				transferred debt is also subject to the collections service fee.
15-1-201,
					 17-4-110, MCA; IMP,
					 17-4-103,
					 17-4-106,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.11 - AGENCY LIQUOR STORES AND VENDORS › Subchapter 42.11.1 - General Provisions › Rule 42.11.101 - BUSINESS HOURS FOR STATE LIQUOR STORE (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 16-1-303, MCA; IMP, Sec.
					 16-2-104,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.11 - AGENCY LIQUOR STORES AND VENDORS › Subchapter 42.11.1 - General Provisions › Rule 42.11.102 - LICENSEE'S AGENT FOR LIQUOR PURCHASES (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 16-1-303, MCA; IMP, Sec.
					 16-1-303,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.11 - AGENCY LIQUOR STORES AND VENDORS › Subchapter 42.11.1 - General Provisions › Rule 42.11.103 - REPLACEMENT OF DEFECTIVE LIQUORS (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 16-1-303, MCA; IMP, Sec.
					 16-3-103,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.11 - AGENCY LIQUOR STORES AND VENDORS › Subchapter 42.11.1 - General Provisions › Rule 42.11.104 - CALCULATION OF POSTED PRICE

Current through Register Vol. 13, July 5, 2024
(1) The posted
				price of liquor is determined by:
(a) adding:
(i) the wholesale price as set forth in (2);
(ii) the liquor excise tax as
				determined under
				16-1-401, MCA;
				and
(iii) the liquor license tax as
				determined under
				16-1-404,
				MCA;