Our voluntary disclosure program helps you or your business get back in compliance with Montana tax laws by helping you resolve your prior tax liabilities.
You can take advantage of this program for any tax we administer.
If you qualify:
- You disclose your Montana tax liability, file returns for the last five taxable years, and pay any interest.
- We waive penalties for all periods covered by the agreement.
Take advantage of the Voluntary Disclosure Program by using the Multistate Tax Commission’s National Nexus Program or by contacting us directly.
If you owe taxes in other states, we encourage you to use the National Nexus Program. The National Nexus Program can help you become compliant in other jurisdictions as well.
Information on the National Nexus Program can be found at www.MTC.gov.
Qualifying for Voluntary Disclosure
We look at each request based on its own merits, but we will only consider a request if you:
- Haven’t filed a return for the tax type covered by the agreement in the last five years,
- Had no previous contact from the Department of Revenue or its agencies, including the Multistate Tax Commission regarding any taxes covered by the agreement. This includes:
- Audit, review, or assessment notices
- Information requests
- Registration letters
- Have come forward on your own and submitted a voluntary disclosure application,
- Agree to file all returns and pay all taxes and interest in the timeframe specified in the agreement,
- Agree to register with the Montana Secretary of State, file returns, and pay all taxes going forward, and
- Haven’t been part of any criminal investigation or litigation related to taxes of any kind.
Applying for Voluntary Disclosure
You must submit a formal request in writing. Once we receive your request, we will accept, reject, or offer a counterproposal based on the information you submitted.
If we accept, we will offer a draft agreement for review and approval by you or your representative.
Send your request to:
Montana Department of RevenueVoluntary Disclosure Program
PO Box 5805
Helena, MT 59604-5805
What To Include With Your Request
Businesses
If you are requesting a voluntary disclosure agreement as a business, you must include:
- What type of business you are, such as a C corporation or partnership
- A complete statement of all business activities for the five filing periods before your voluntary disclosure period
- How long you’ve been doing business in Montana
- The tax or taxes you’re requesting an agreement for
- An explanation on why you didn’t register with the Montana Secretary of State
- An explanation on why you didn’t file your return or pay taxes
- Proposed Voluntary Disclosure Agreement terms
- An estimate of how much you owed during the period you are disclosing
Your representative may keep your business confidential by not revealing any information we could use to identify your company until the agreement is completed.
Individuals
If you are requesting a voluntary disclosure agreement as an individual, you must include:
- A complete statement of your Montana activity for the five years before the filing period
- All addresses you’ve lived in during the five years before the filing period
- How long you lived in Montana
- All taxes you’re requesting a voluntary disclosure agreement for
- An explanation for why you haven’t filed a Montana return or paid taxes
- Proposed voluntary disclosure agreement terms
- An estimate of how much you owed for the period you are disclosing
Executing
Once we establish the terms of the agreement, we will forward it to you or your representative.
You have 45 days to sign the agreement and an additional 15 days from the date you sign the agreement to submit the agreement back to us.
If you are working with a representative, you remain anonymous until the signed agreement is returned to us
You then have 90 days from the date we sign the agreement to:
- Register with the Secretary of State (if applicable)
- Submit the tax returns
- Pay the taxes owed
Upon receipt, we will issue you a bill for the interest owed.
If your business is a partnership with over 100 partners, you must e-file all returns for periods beginning after December 31, 2013.
If we deny the offer, we will send a letter to you or your representative.
Violations
We can void the voluntary disclosure agreement if you:
- Misrepresent material facts relevant to the agreement
- Fail to file returns or pay taxes and interest for the lookback period within the time specified in the agreement
- Cancel an installment payment arrangement
- Fail to continue to comply with Montana tax laws
If your voluntary disclosure agreement becomes void, you may be responsible for paying the penalties waived under the agreement.
