Montana Department of Revenue

E-file Montana Disregarded Entity Returns in TAP

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News and Updates

E-file Montana Disregarded Entity Returns in TAP

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You can file the Montana Disregarded Entity (Form DER-1) tax return electronically in the Montana TransAction Portal (TAP).

You need a TAP account to file the return.

If you do not have a TAP account, sign up for one with

  • Your 13-digit Montana Account ID and
  • Your five-digit ZIP code.

Your Montana Account ID can be found on any correspondence you may have received from the department.

Contact us if you need your Montana Account ID or for any help with your TAP account.

Learn more about disregarded entities, including due dates and extensions.

Learn more about setting up your TAP Account.

TransAction Portal

Montana Tax Tip: Property Tax Relief for Disabled Veterans

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Montana veterans have through April 15 to apply for the Montana Disabled Veteran Assistance Program, which can provide relief on property taxes.

Veterans with 100 percent service-related disabilities and their unmarried surviving spouses may be eligible.

Single veterans may qualify if their federal adjusted gross income is less than $52,507. That limit is $60,585 for veterans who are married or head of household, and $45,775 for unmarried surviving spouses.

Depending on income, the program can reduce general property taxes by 50 to 100 percent on a primary residence.

As long as the applicant owns and lives in his or her home, that application will remain active and the department will send a letter each year with the homeowner’s current status in the program.

See the Montana Disabled Veteran Property Tax Assistance Program (MDV) for more information.

Download the MDV Application in My Revenue

Federal Income Tax Deductions on Montana Tax Returns

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Several tax practitioners contacted us about the itemized deduction for federal income taxes paid. The Form 2 instructions limit the amount of the itemized deduction to the amount of federal income taxes assessed on the 2018 federal Form 1040.

We call this the direct limitation method.

The tax practitioners were concerned they had already filed returns deducting federal income taxes paid without this limitation.

Our intention was to offer this direct limitation method as an alternative to the recovery method which requires a calculation spread over two tax years.

Both the direct limitation method or the recovery method are correct. Montana tax returns already filed do not need to be amended.

Please remember: The recovery method may require an addition to income in the next year.

Public Notice – Universal System Benefits Reports

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The Montana Department of Revenue has received 2018 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:

Mark Schoenfeld
Montana Department of Revenue
PO Box 5805
Helena, MT 59604-5805

Claims due April 30, 2019.

You may also download a copy of the Universal Systems Benefit Legal Notices for 2018 (PDF, 4 KB).

Reporting Companies

  • American Chemet Corporation
  • Aspen Air
  • Ash Grove Cement
  • Barrick Gold (Golden Sunlight Mine)
  • Benefis Health System
  • Billings Clinic
  • Barrets Minerals, Inc.
  • Calumet (Montana Refining)
  • CHS (Cenex Harvest States Cooperatives)
  • City of Billings
  • City of Great Falls
  • City of Troy
  • Rocky Mountain Power (Heorot 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
  • ONEOK Bakken Pipeline
  • Pasta Montana
  • Phillips 66 Billings Refinery
  • Phillips 66 Pipeline
  • Weyerhaeuser NR Company
  • REC Silicon
  • Roseburg Forest Products
  • RY Timber
  • Signal Peak Energy
  • Spring Creek Coal
  • 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
  • Western Energy Company
  • Western Sugar Cooperative
  • Westmoreland Resources
  • Kalispell Regional Medical Center
  • Yellowstone Mountain Club
  • Montana Electrical Cooperatives’ Association
  • NorthWestern Energy
  • Sidney Sugars, Inc.
  • Pyramid Mountain Lumber Inc
  • Idaho Forest Group
  • Colstrip Energy LTD Partnership (CELP)
  • Vista Outdoor – Blackhawk
  • Hyperblock LLC
  • Columbia Mountain Holdings, LLC
  • Boeing of Helena

Changes to the College Contribution Credit

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The college contribution credit a taxpayer may claim on the Montana College Contribution Credit (Form CC) is calculated based on the amount of charitable contribution made by the taxpayer to the foundation or general endowment fund of a college or university located in Montana.

Under the Tax Cut and Jobs Act, charitable deductions are not allowed for payments made to institutions of higher education when the taxpayer receives in return the right to purchase tickets for athletic events at the institution either directly or indirectly.

Other deductible charitable contributions made to a college located in Montana still qualify for the credit. However, if you take the credit for Montana tax purposes, you must reduce your charitable contribution by the corresponding amount.

Identity Verification Letters for Tax Year 2018 Are Going Out

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Tax Year 2018 Identity Verification Letters are being sent out. If you or a client receive an Identity or Address Verification Letter, respond ASAP to avoid a refund delay.

Identity Verification Letters are one of the measures we’ve implemented to help prevent identity theft, reduce tax fraud, and protect refunds.

Our system flags returns with factors indicating the possibility of identity fraud. When this happens, we require the taxpayer to prove their identity before we process the refund.

The letter, which includes a tax verification code, asks the taxpayer to go to TransAction Portal (TAP), click on “Verify Return,” and respond to a few questions so that we can verify that the taxpayer or their preparer filed the return.

It is important to fully understand the questions before responding.

For example, if a taxpayer responds “no” in error when asked “Did you file a Montana tax return or authorize someone to file your Montana tax return for the tax year listed on the letter you received?”, it will result in the tax return being rejected.

We strongly encourage taxpayers to complete the verification process online; but, if a taxpayer does not have internet access, they may respond by mail.

Mailing instructions are included on the back of the letter.

For more information about this process, visit identity verification letters.

Looking for your tax refund? Check your status with "Where's My Refund?" in our TransAction Portal.
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