The department recently mailed delinquency letters to S corporations and partnerships. Taxpayers who do not respond to these notices may be subject to tax estimation.
We send delinquency notices to entities that previously filed a tax return or have an open account. We automatically set up tax accounts for businesses that register with the Secretary of State but do not respond to the department’s Welcome Letter, which is a request for information that we mail to each entity upon receiving notification of their business registration.
The delinquency notice project helps the department keep taxpayer accounts up-to-date. The letters serve as a reminder for entities that may have forgotten to file and informs other entities that we didn’t receive their returns. The department appreciates the time taxpayers and their representatives take to respond to these letters. Responding helps us not only ensure compliance, but also allows us to clean up unnecessary accounts and identify any system errors. Please note that taxpayers who do not respond to these notices may be subject to tax estimation.
For entities that do not have any Montana activity for the tax year in question, the best response administratively, is to file the Affidavit of Inactivity (Form INA-CT). Alternatively, an entity should file a Final Return to close their account with the department if they are withdrawing with the Secretary of State or do not anticipate any future Montana activity.