Montana Department of Revenue

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

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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.

3rd Quarter 2019 Individual, Pass-through, and Estate and Trusts Estimated Payments Due

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Event Information

September 16 Calendar Icon

Third quarter 2019 estimated payments are due for:

Payment Options

Individual Income Tax

Composite Income Tax and Estate and Trust Income Tax

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.

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Filing for a Waiver from Pass-Through Entity Withholding

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If you prepare Montana returns for pass-through entities, be aware that they are subject to certain withholding requirements.

The entity may qualify for a waiver from the withholding requirements for certain owners if the owner files a Pass-Through Entity Owner Tax Agreement (Form PT-AGR).

An owner may file Form PT-AGR if they are a:

  • Nonresident individual, estate, or trust;
  • Tax-exempt entity administered outside Montana;
  • Foreign C corporation; or
  • Domestic second-tier pass-through entity

A domestic second-tier pass-through entity is a pass-through entity that is owned by resident taxpayers, including domestic C corporations and other entities whose principal place of business or administration is in Montana.

Forms PT-AGR are filed separately. Do not attach these forms to an income tax return.

You can file Forms PT-AGR on the department’s website through TransAction Portal (TAP) or print a copy from My Revenue.

The deadline for filing Form PT-AGR is the same as the filing due date for the pass-through entity return, including extensions.

Learn more about Pass-Through Entities

Pass-Through Entity Owner Tax Agreement Preview Image