Montana Department of Revenue

Have You Received a Withholding Nonfiler Letter?

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Have You Received a Withholding Nonfiler Letter?

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Recently, the department sent letters to business owners who have not filed their 2019 Montana Annual W-2 1099 Withholding Tax Reconciliation (Form MW-3). The Form MW-3 was due January 31, 2020.

What we are asking you to do

  • Send us your Form MW-3, Forms W-2 with or without withholding, and Forms 1099 that report withholding by July 31, 2020.
  • Contact us if you do not believe you have a filing requirement or if your account is closed.

What happens if I don’t respond?

If you do not respond, we will estimate your withholding tax along with any penalties and interest based on the information available to us. You may have an additional penalty if you do not file within 60 days of receiving your letter.

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Additional Tips for Successful Filing

The Montana Department of Revenue reconciles employer information with the Forms W-2s or 1099s filed by employees or retirees. Many errors occur that can be easily avoided. Following the tips below will help employers and tax preparers reduce the chance of receiving a letter or phone call from us. This will also speed up the processing of tax refunds for employees or clients.

  • Complete all required fields
  • Use the correct Employer Identification Number (EIN)—use the EIN the IRS issued you. If you are a service provider, use the EINs issued to your clients.
  • Use the correct state account number. This number is formatted as XXXXXXX-XXX-WTH.
  • Make sure all copies of Form W-2 and Form 1099 are legible and no numbers are truncated or masked.
  • Use the correct Form W-2 and Form 1099 for the reporting year.
  • File Form MW-3 with your Forms W-2. Federal Form W-3 will not be accepted.
  • If you are reporting for Forms 1099 without withholding, do not send them with the Form MW-3. They should be filed with federal Form 1096.
  • If you file your Forms W-2 electronically, do not send a paper copy.

 

If you are mailing your information, please send it to:

Montana Department of Revenue
PO Box 5835
Helena, MT 59604-5835

Paycheck Protection Program (PPP) Tax and Deduction Clarifications

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The Paycheck Protection Program (PPP) is a loan at first that becomes a grant if certain requirements are met.

To the extent the loans are forgiven under the CARES Act, the amounts are not included in gross income and are not taxable.

IRS Notice 2020-32 provides that the business expenses paid with the loan-grant money are not deductible for federal tax purposes. Because the PPP is a loan-grant and not a credit, 15-30-2110(4), MCA, does not apply and the business expenses offset by the grant are not deductible for Montana tax purposes either.

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Net Operating Loss (NOL) Changes Due to COVID-19

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On March 27, 2020, Congress enacted the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. Among other things, the Act addresses net operating losses (NOLs) and other related provisions.

For example:

  • Section 2303 allows a five-year carryback for NOLs arising in the 2018, 2019, and 2020 tax years. Section 2303 also temporarily repeals the 80% of income limitation for tax years beginning before 2021.
  • Section 2304 temporarily repeals the loss limitation for individuals, estates and trusts under section 461(l) of the Internal Revenue Code for tax years beginning before January 1, 2021.
  • Section 2306 added a special rule to section 163(j) of the IRC for tax years 2019 and 2020.
  • Section 2307 made some technical amendments to section 168(e) of the IRC relative to qualified improvement property.

The above-provisions apply when a taxpayer calculates Montana taxable income.  Note, sections 2303 and 2304 don’t apply to C corporations having a Montana filing obligation.

As a result:

  1. Some taxpayers may have to amend their 2018 and 2019 tax returns;
  2. Individuals, estates and trusts with an NOL incurred in tax years 2018 or 2019 may carry their NOL back five years and amend the corresponding returns filed in those years. A waiver of the carryback period will be available on their 2020 Montana income tax return for each impacted tax year.

We recommend that individuals, estates and trusts who amend returns from tax years 2013 through 2019 to calculate or carry back an NOL wait until the department issues guidance on a revised Montana Form NOL covering the period 2018 through 2020.

For Corporations, amended return instructions and Net Operating Loss provisions remain unchanged. See the Corporate Income Tax Return Instructions for more information.

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Alcoholic Beverage Outreach Program

The Alcoholic Beverage Control Division (ABCD) is dedicated to supporting voluntary compliance through education and outreach. View the upcoming events where you’ll find us or submit a request for ABCD to participate in your event or provide education on requested topics.

Upcoming Outreach Activities

There are no events currently scheduled at this time.

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Previous Outreach Activities

DateEvent NameDescriptiionLocation
02/11/2020 @ 3:00 p.m.Montana Alcohol Laws & Rules Overview—Licensees and Members of the Public.A high-level overview of Montana’s alcoholic beverage laws & rules. presentation lasting about 1-2 hours. An open question and answer session will follow. Cottonwood Inn & Suite
54250 US Hwy 2
Glasgow, MT
2/13/2020 @ 2:00 p.m.Montana Alcohol Laws & Rules Overview—Law Enforcment and City OfficialsA high-level overview of Montana’s alcoholic beverage laws & rules. presentation lasting about 1-2 hours. An open question and answer session will follow. Stat Hangar at the Airport, Glasgow

Invite us to Your Event

We are available to participate in conferences, meetings, webinars, or other outreach events related to our mission. We may not be able to accommodate all requests, but in making our decision, among other things, we will consider:

  • Does the event fit within our mission or strategic goals?
  • Do we have the resources to support it?

Please contact us at least 90 days in advance if at all possible. We will respond within two weeks of receiving your inquiry.

We are interested in your feedback on outreach activities. If you attended a recent webinar, seminar, presentation, or other outreach event, please submit your comments to DORAlcoholicBeverageControl@mt.gov.

Let's Work Together at Your Event

Public Notice – 2019 Universal System Benefits Reports

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The Montana Department of Revenue has received 2019 Universal System Benefits Reports from the companies listed below.

You may review all USB Reports at our Central Office:

125 N. Roberts, 3rd Floor
Helena, MT, 59601

Please send all challenges to:

Jason Lay
Montana Department of Revenue
PO Box 5805
Helena, MT 59604-5805

Claims due May 31, 2020.

April 1, 2020
2019 Legal Notice updated April 1, 2020 (PDF, 5 KB)

Reporting Companies

April 1, 2020

Notice is hereby given that the Department has received 2019 USB Annual Reports from the following companies:

  • American Chemet Corporation
  • Aspen Air
  • Ash Grove Cement
  • Barrick Gold (Golden Sunlight Mine)
  • Benefis Health System
  • Billings Clinic
  • Barretts Minerals, Inc.
  • Calumet (Montana Refining)
  • CHS (Cenex Harvest States Cooperatives)
  • Grain Craft (Cereal Food Processors)
  • City of Billings
  • City of Great Falls
  • City of Troy
  • Rocky Mountain Power
  • Community Medical Center
  • GCC Trident Cement Plant (CRH)
  • Denbury Onshore
  • Express Pipeline
  • ExxonMobil Refining & Supply
  • F.H. Stoltze Land & Lumber Co.
  • U.S. Dept of Foreign Affairs (Fort Harrison VA Center)
  • General Mills Operations
  • Graymont Western US
  • Imerys Talc
  • Invenergy Operations Center (Judith Gap)
  • U.S. Dept of the Air Force (Malmstrom)
  • Malteurop North America
  • Montana Dakota Utilities
  • Metra Park
  • Montana Dept of Corrections
  • Montana Resources
  • Montana State University Billings
  • Montana State University
  • National Institutes of Health
  • Pasta Montana
  • Phillips 66 Billings Refinery
  • Phillips 66 Pipeline
  • Weyerhaeuser NR Company
  • REC Silicon
  • Roseburg Forest Products
  • RY Timber
  • Signal Peak Energy
  • Navajo Transitional Energy Company (Spring Creek)
  • Stillwater Mining (NWE)
  • Stillwater Mining (PE)
  • Saint James Healthcare
  • Saint Patrick Healthcare
  • Saint Vincent Healthcare
  • Sun Mountain Lumber
  • Talen Energy
  • Thompson River Lumber Company
  • United Materials
  • United Properties
  • University of Montana
  • Westmoreland Rosebud Mining LLC (Western Energy Company)
  • Western Sugar Cooperative
  • Westmoreland Absaloka Mining LLC (Resources)
  • Kalispell Regional Medical Center
  • Yellowstone Mountain Club
  • Montana Electrical Cooperatives’ Association
  • NorthWestern Energy
  • Sidney Sugars, Inc.
  • Montana Precision Products
  • Decker Coal Company
  • Pyramid Mountain Lumber Inc
  • Idaho Forest Group
  • Colstrip Energy LTD Partnership (CELP)
  • Vista Outdoor – Blackhawk
  • Hyperblock LLC
  • Semitool, Inc.
  • Columbia Mountain Holdings, LLC
  • Boeing of Helena
  • Cryptowatt Mining LLC

Questions on Payment Plans

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With many Montana taxpayers facing disruption and uncertainty related to COVID-19, the Collections Bureau will do its best to accommodate and work with taxpayers during this difficult time.

For taxpayers with payment plans, we are assessing situations on a case-by-case basis and may allow deferral of payments for an extended amount of time.

Upon request, the Collections Bureau will work with taxpayers impacted by COVID-19 to extend payment dates. Please contact us via phone, email, or web message at least one week prior to your payment due date.

Contact the Collections Bureau

Phone
(406) 444-6964
Email
DORcollections@mt.gov
Web Messaging
Available through our TransAction Portal (TAP)
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