You may appeal decisions you disagree with, especially decisions about the taxes you owe or think you should be refunded.
The appeals process is important and we encourage you to use it if you have an objection.
Everyone should pay their share of taxes, no more and no less. We need to be informed of our errors so we can continue to improve our systems.
If you disagree with our decisions, you have several options. You can read about these options below or download our Tax Appeals Reference Guide (PDF, 72 KB).
While you are going through the appeals process, interest and penalties will continue to accrue until you pay the total tax due in full.
Even if you file a Request for Informal Review or appeal, we will continue to add interest and penalties.
Please consider paying the total amount due to stop additional interest and penalties. Making a payment does not waive your right to appeal.
After you request a review or appeal, you can request a review meeting to provide additional information.
If you request a review meeting, we may need to extend the time it takes to issue a decision. This extra time will allow us to include your information in our review.
This appeals process applies for all tax types except for locally-assessed property tax appeals.
For the property tax appeal process, see Property Appraisal Notices.
The Tax Appeal Process
If you need help navigating the appeals process, please contact the Taxpayer Advocate.
Step 1
Request an Informal Review
If you disagree with a notice from us, you need to file a written objection within
- Centrally Assessed Property
- 15 days of receiving the first notice
- Other Taxes
- 30 days of receiving the first notice
A department supervisor will review your case and the work of any employees involved.
Over 90 percent of disagreements are settled with an informal review.
You may request an informal review using:
- Centrally Assessed Property
- Request for Informal Review for Centrally Assessed Companies (Form CAB-8)
- Other Taxes
- Request for Informal Review (Form APLS101F)
Step 2
Referral to the Office of Dispute Resolution (ODR)
If you disagree with our determination of your informal review, you need to file a referral to the Office of Dispute Resolution:
- Centrally Assessed Property
- Due with 15 days of the Informal Review determination
Notice of Referral to the Office of Dispute Resolution for Centrally Assessed Companies (Form CAB-9) - Other Taxes
- Due within 30 days of the Informal Review determination
Notice of Referral to the Office of Dispute Resolution Form APLS102F
The Hearing Examiners assigned to ODR are not subject to performance ratings, promotions, demotions, or compensation based upon the number of times she decides in favor of the agency or the taxpayer. Along with all other agency hearing examiners, she assumes a unique status in state government.
It is the Hearing Examiner’s responsibility to decide based upon the record and evidence of each case. The decisions are expected to explain why one party or another prevails in any dispute. The administrative rules pertaining to the ODR are ARM 42.2.613 through 42.2.621.
Step 3
Appeal to the Montana Tax Appeal Board
If we haven’t been able to come to an agreement through the Informal Review or Dispute Resolution processes, you can appeal our decisions to the Montana Tax Appeal Board.
You can learn more on the Montana Tax Appeal Board website.
To appeal decisions made by the Montana Tax Appeal Board, you need to file with a District Court.
Helpful Information
Payment Options
If you agree with our assessment, but you do not have the financial ability to pay it, you may request a payment plan through our TransAction Portal (TAP) or by contacting us.
Constitutional Issues
As an administrative agency, we can’t decide constitutional issues. These issues are usually decided by a Montana District or Supreme Court or the Montana Tax Appeal Board.
However, you should bring up constitutional issues during our appeals process. We would like to understand all of your concerns. Also, constitutional issues often involve mixed questions about fact and law. Appeals courts may decide you failed to exhaust all administrative remedies if the constitutional challenge isn’t established in administrative proceedings.
Representation
You do not have to hire a lawyer or other tax representative in order to participate in our appeals process.
You may represent yourself or hire representation at any stage of the proceedings with the department.
If you appeal beyond the department, you need to represent yourself or hire an attorney. No nonattorney representation is allowed by the Montana Tax Appeal Board or in District Court.
If you hire a representative, fill out our Power of Attorney (Form POA). This allows us to discuss and share confidential tax information with your representative.
We will continue to send all official mailings to you, the taxpayer, regardless of representation.