This article is a part of our 2023 Legislative Roundup series, providing you updates about changes to Montana income tax laws made during the 68th Montana Legislature.
There are two new provisions affecting C corporations for tax periods after December 31, 2022.
Form CIT E-file Mandate
Effective for tax periods beginning after December 31, 2022, Senate Bill 24 requires all corporations filing tax returns in Montana to submit their returns electronically using an approved tax software provider.
Corporations having less than $750,000 in gross receipts for the tax period are exempt from the electronic filing requirement. With an approved waiver request (Form CWR), other exceptions include corporations that attempt to e-file but are unsuccessful, or those that would encounter a hardship by filing electronically.
Water’s Edge Tax Haven Repeal
Effective for tax periods beginning after December 31, 2022, Senate Bill 246 removed tax haven corporations from the water’s-edge group of affiliated corporations.
C corporations in a unitary relationship with the taxpayer, incorporated in a previously designated tax haven, no longer need to have their income and apportionment factors included in the water’s-edge combined filing group.