This article is a part of our 2023 Legislative Roundup series, which brings you updates about changes to Montana income tax laws made during the 68th Montana Legislature.
The 68th Montana Legislature passed Senate Bill 303, increasing the late filing penalties for Form W-2 and Form 1099 reporting Montana mineral royalties. These penalties go into effect for forms due in 2024.
The Form W-2 late filing penalty was previously $5 per Form W-2, with a minimum penalty of $50. The new law increased the penalty to $50 per Form W-2, with a minimum penalty of $250. Forms W-2 for tax year 2023 are due January 31, 2024.
The Mineral Royalty 1099 late filing penalty increased to $150 per 1099, with a minimum penalty of $1,000. Previously, the late filing penalty for Forms 1099 reporting mineral royalties was $50 per Form 1099 with a minimum penalty of $1,000. Forms 1099 reporting mineral royalties for tax year 2023 are due January 31, 2024.