If you prepare Montana returns for pass-through entities, be aware that they are subject to certain withholding requirements. The entity may qualify for a waiver from the withholding requirements for certain owners if the owner files Pass-Through Entity Owner Tax Agreement (Form PT-AGR).
An owner may file Form PT-AGR if they are a:
- Nonresident individual, estate, or trust;
- Tax-exempt entity administered outside Montana;
- Foreign C corporation; or
- Domestic second-tier pass-through entity
New for 2017
The 2017 Montana legislature expanded the definition of a domestic second-tier pass-through entity providing that a second-tier pass-through entity will now qualify as “domestic” for the purposes of filing a waiver if its owners are resident taxpayers, including domestic C corporations and other entities whose principal place of business or administration is in Montana.
Forms PT-AGR are filed separately. Do not attach these forms to an income tax return. You can file Forms PT-AGR on the department’s website through TransActionPortal (TAP) or on paper. The paper forms are also available to print from My Revenue or by contacting the department.
The deadline for filing Form PT-AGR is the same as the filing due date for the pass-through entity return, including extensions.