Disregarded entity filing requirements depend on the disregarded entity’s owner.
Disregarded entities owned by a partnership are included on the partnership’s Form PTE, Schedules VII and DE.
Qualified subchapter S subsidiaries and any other disregarded entity owned by an S corporation are included on the S corporation’s Form PTE, Schedules VII and Schedule DE.
Disregarded entities owned by C corporations are included on the C corporation’s Form CIT, Schedule M.
An SMLLC is treated as a disregarded entity, whether formed in Montana or in another state or country must file a Montana Disregarded Entity Information Return (Form DER-1).
A Section 761 electing partnership is required to file Form DER-1 each year the entity does business in Montana or has Montana source income.
Any qualified REIT as defined in IRC § 856(i)(2) with Montana income and assets, liabilities, income, deductions, and credits included on its parent REIT's federal return must file Form CIT before its parent REIT's return due date.
Every unincorporated REMIC as defined in IRC § 860D with Montana income must file a Form CIT along with a copy of its federal Form 1066, Real Estate Mortgage Investment Conduit Income Tax Return, before the federal due date, including extensions.
Generally, REMICs must file the Form 1066 by April 15. However, if the entity files its final return, Form 1066 is due by the 15th day of the 4th month following the date the REMIC ceased to exist.
The Form DER-1 is due on the same day as its owner’s return. For example, if the owner is a nonresident individual, the form is due April 15. If the due date falls on a holiday that defers a filing date as recognized by the IRS, the return may be filed on the first business day after the holiday.
Montana grants disregarded entities an automatic filing extension if the owner has a valid federal extension.
The extension is due the same day as the federal extension.
If the owner doesn't have a federal filing requirement, the disregarded entity has an automatic six-month extension.
Extensions are for returns only.
All payments must be made by the original due date. Any payments made after the original due date may be subject to uniform penalties and interest.
If you have discovered your original Montana Disregarded Entity Information Return (Form DER-1) or owner’s return is incorrect or if there is an error on the owner's federal return, you must file an amended return.
Amended returns must be filed within 180 days of filing an amended federal return or receiving a notification of correction from the IRS.
To file an amended return: