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My Revenue Wins National Award

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Tax News You Can Use

My Revenue Wins National Award

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At the Montana Department of Revenue, we work hard to make things easy for Montanans. And we’re getting national notice—Montana’s My Revenue app has earned nationwide recognition with the 2019 Government Experience Award from the Center for Digital Government (CDG).

My Revenue has made streamlined and simplified scores of department interactions for the public. Over 140,000 people used its simple, intuitive interface last year, making more than $500,000 in payments through the app and saving Montana taxpayers thousands of dollars in the costs of printing and processing paper forms.

Just 10 websites in state government across the nation got the honor.

Congrats to our Department of revenue team, Carol Schopfer, Bill Jarocki, Matt Brotherton, and former staffers Wendy Brown, Patrick Miller, and Tarek Haffar.

New for Tax Year 2019: Montana Pass-Through Entity Tax Return (Form PTE)

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Beginning with Tax Year 2019, Partnerships and S corporations will file their Montana tax return on the new Montana Pass-Through Entity Tax Return (Form PTE).

Disregarded entities owned by partnerships and S corporations, including subchapter S subsidiaries, will be included on Form PTE.

The Montana S Corporation Information and Composite Tax Return (Form CLT-4S) and the Montana Partnership Information and Composite Tax Return (Form PR-1) have been discontinued.

For all tax years beginning before December 31, 2018, please continue to use the current forms:

Partnerships
Partnership Information and Composite Tax Return (Form PR-1)
S Corporations
S Corporation Information and Composite Tax Return (Form CLT-4S)
Disregarded Enities
Disregarded Entity Information Return (Form DER-1)

Filing Changes for Disregarded Entities

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Starting with Tax Year 2019, we will not accept the Montana Disregarded Entity Information Return (Form DER-1) or payments for the following entities:

  • Single-Member LLCs (SMLLC) owned by partnerships or S corporations
  • SMLLCs owned by C corporations, and
  • Qualified subchapter S corporation subsidiaries.

The new filing requirements for these entities are explained below.

New Filing and Payment Requirements

Disregarded Entities Owned by Partnerships or S corporations

Single-member LLCs (SMLLCs) owned by Partnerships or S corporations must report their Montana source income on their owner’s Montana Pass-Through Entity Tax Return (Form PTE), Schedule VII and Schedule DE. They will no longer file the Montana Disregarded Entity Information Return (Form DER-1).

For the purpose of determining the owner of a SMLLC, disregarded entities owned through a series of SMLLCs are considered directly owned by the first owner that is not a disregarded entity.

Qualified subchapter S corporation subsidiaries must be included on their owner’s Form PTE, Schedule VII and Schedule DE. They will no longer file Form DER-1.

Disregarded Entities Owned by C corporations

Disregarded entities owned by C corporations must be reported on their owner’s Form CIT, Schedule M.

They will no longer file Form DER-1.

Disregarded Entities Owned by Nonresident Individuals, Estates or Trusts

Disregarded entities owned by nonresident individuals, estates or trusts are still required to file Form DER-1. Disregarded entities with existing accounts on the department’s TransAction Portal (TAP) can file the form electronically.

Disregarded entities without TAP accounts can contact us at (406) 444-6900 for help with registering an account.

Inactive Businesses: File Form INA-CT on TAP

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Businesses that are not actively conducting business in Montana and would like to maintain good-standing with the Montana Secretary of State must file Form INA-CT for every year in which they have no activity in Montana.

Form INA-CT is valid only for one tax year. It must be filed each year unless an income tax return is required. Review the form’s instructions for more information about eligibility.

Form INA-CT is now available to file on our TransAction Portal (TAP). After June 14, the paper form will no longer be available for download.

Users can file Form INA-CT with or without an account. Authorized representatives will need the FEIN and the Secretary of State ID number of the business (or Social Security Number if the business is a sole proprietorship) to complete the form.

TransAction Portal Banner

Property Appraisal Notices Coming from Department of Revenue

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The Montana Department of Revenue is mailing notices to all owners of residential, commercial, industrial, and agricultural properties, showing their market and taxable values for the 2019-2020 appraisal cycle.

These notices are not tax bills. They include the department’s determination of market value for your property and will be used by your county treasurer to determine your property tax bills.

“It’s important that Montana property owners review this information thoroughly,” said Gene Walborn, Director of the Montana Department of Revenue. “If property owners wait until property tax bills are sent in November, it will be too late for the department to correct and update property characteristics that may impact the value of the property for the 2019 tax year. So please review the notice as soon as possible and contact us if you have questions.”

If property owners disagree with the department’s determination, they may submit a Request for Informal Classification and Appraisal Review (called Form AB-26) within 30 days of the date on their notice. Owners can electronically submit the form, download it, and find more information on our website.

Contact us for more information.

Notice of Assessment (NOA) Letters Mailed

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The Department of Revenue has begun mailing the first individual income tax Notice of Assessment (NOA) letters for Tax Year 2018.  If you or your clients have any questions or concerns regarding the NOAs, please contact us. In some cases, a payment may not have been applied as expected if it was submitted without the appropriate information. Department employees can research and make corrections if necessary on payments made for the 2018 tax year.

The NOA is period-specific and includes information about appeal rights and payment options.

The late payment penalty, which is shown on the NOA for informational purposes, can be automatically waived if tax and interest is paid in full within 30 days.

The department mails Statements of Account (SOA) to taxpayers on the first of each month if the balance due on the NOA was not paid within 30 days. The SOA also includes additional information helpful to the taxpayer and will include multiple tax periods if applicable.