How to appeal a department tax decision


Introduction

Everyone should pay their share of taxes, no more and no less. When we make an adjustment to your tax return, taxes owed, or refund, you have the right to ask the department review that change through the appeals process. The appeals process is important and we encourage you to use it if you object to an adjustment we made. If you disagree with our decisions, you have several options. You can read about these options below or download our Tax Appeal Reference Guide (PDF, 337 KB).

Please note that even if you file a Request for Informal Review or Referral to the Office of Dispute Resolution, we will continue to add interest and penalties. Additionally, we don't mail statements during the appeals process and interest and penalties will continue to accrue until you pay the total tax due in full.

To prevent interest and penalties from accruing, you may pay the assessed tax liability in full. Paying the assessment does not prevent you from appealing the taxes, penalties, or interest you have paid. 

Instructions

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 the number of days shown on the table below.

Tax TypeDue Date
Centrally Assessed PropertyWithin 15 days of receiving the first notice.
Other Tax TypesWithin 45 days of receiving the first notice.

It is important to file your request for informal review before the deadlines identified above. Even if you need additional time for research or to gather information, you must file your written objection on time or you will not be allowed to move forward with your informal review. If you need additional time to prepare for your informal review, let us know that when you file your request. We can work out an agreement for a reasonable extension of time for you to provide your information.

You may request an informal review using the forms below:

Centrally Assessed PropertyRequest for Informal Review for Centrally Assessed Companies (Form CAB-8)
Other Tax TypesRequest for Informal Review (Form APLS101F)
CollectionsRequest for Informal Review (Collections) (Form CB-1)

You may also submit a separate written request by USPS or email.

Your appeal must explain why you disagree with our adjustment and include any documents that support your appeal. Please remember, your written request must be received prior to the deadlines identified above.

Submit your request to:

Email

DORObjections@mt.gov

Mail

 

 

 

Montana Department of Revenue

DOR Objections

P.O. Box 7149

Helena, MT 59604-7149

After we receive your written objection, a department supervisor will review your case and the work of any employees involved. We will respond to you within 45 days with a written final determination. Our response will inform you if we agree or disagree with your objection. It will also explain our reasons for disagreement so that you understand our decision.

At any time during the appeals process, you or the department can request a meeting to discuss the details of the case. During this time we may request additional information to help us reach a decision. You may also request additional time to provide information. If a meeting is requested or additional information is necessary, we may need to extend the time it takes to issue a decision. We will execute a formal extension agreement with agreed-upon terms of the exchange of information and the date that we will issue a final determination.

The department prefers to resolve taxpayer objections during the informal review process. We will work with you as much as possible to come to a resolution.

Step 2: Referral to the Office of Dispute Resolution (ODR)

If you disagree with our determination of your informal review and wish to pursue the matter further, you will need to file a referral to the Office of Dispute Resolution:

Centrally Assessed PropertyDue within 15 days of the Informal Review determinationNotice of Referral to the Office of Dispute Resolution for Centrally Assessed Companies (Form CAB-9)
Other Tax TypesDue within 45 days of the Informal Review determinationNotice of Referral to the Office of Dispute Resolution Form APLS102F
CollectionsNotice of Referral to the Office of Dispute Resolution (Collections) (Form CB-2)

Once you file your appeal with the Office of Dispute Resolution (ODR), your appeal will be assigned to an Administrative Law Judge (ALJ) who will hear your appeal and issue the department’s final agency decision.

ALJs are required to make decisions based upon the record and evidence of each case. The ALJ’s final decisions explain why one party or the other prevails in any dispute. The administrative rules explaining the ODR process are ARM 42.2.613 through 42.2.621.

ALJs are not subject to performance ratings, promotions, demotions, or compensation based upon the number of times they decide in favor of the agency or the taxpayer. Your appeal will be carefully reviewed and the ALJ assigned to your case will be fair and impartial.

Step 3: Appeal to the Montana Tax Appeal Board

If we haven't been able to come to an agreement through the Informal Review and you disagree with the ALJ’s decision, you can appeal that decision 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 your appeal 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.

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 the appeals process. You may represent yourself or hire representation at any stage of the proceedings with the department.

If you wish to have someone else represent you during the appeal process, you must complete a Power of Attorney form (Form POA). This allows us to discuss and share confidential tax information with your representative or allow them to make decisions on your behalf.

If you appeal beyond the Office of Dispute Resolution, you may represent yourself. However, under certain circumstances you may be required to hire an attorney.