Montana Administrative Code

42.2.326 RULEMAKING (REPEALED) Authorizing statute(s): 15-1-201, 16-1-303, 16-10-104, 16-11-103, MCA Implementing statute(s): Title 2, chapter 3, part 1, MCA History: NEW, Eff. 4/6/76; REP, 2006 MAR p. 85, Eff. 1/13/06.

42.2.327 OTHER MEASURES (REPEALED) Authorizing statute(s): 15-1-201, 16-1-303, 16-10-104, 16-11-103, MCA Implementing statute(s): Title 2, chapter 3, part 1, MCA History: NEW, Eff. 4/6/76; REP, 2006 MAR p. 85, Eff. 1/13/06.

42.2.328 NONDISCLOSURE OF PROPERTY RECORD INFORMATION Information obtained and records prepared in the course of property tax administration in Montana are available to the public, including the property owner's name. An individual who is at risk of physical harm or to their pers…

42.2.402 TAX CERTIFICATES – REQUIREMENTS A tax certificate is a document a person or an entity can request from the department for the purpose of fulfilling the requirements of 15-31-524, 15-31-552, 16-4-401, 16-12-203, 35-6-201, 35-8-912, 35-8-1010, 35-14-1422, 35-14-1507, or 35…

42.2.501 APPLICATION OF PARTIAL PAYMENTS Partial payments that are received by the department for payment of a tax liability and a collection service fee, if any, must be applied proportionately between the tax liability and the collection service fee. Payment of the tax liabilit…

42.2.503 JEOPARDY ASSESSMENT AND EMERGENCY EXECUTION If the department finds the assessment or collection of a deficiency will be jeopardized by delay and a deficiency notice has not been issued, the deficiency, penalty, and accrued interest become immediately due and payable on …

42.2.504 OTHER PENALTIES - LATE PAY, FAILURE TO FILE, FRAUDULENT AND FRIVOLOUS Applicable late pay penalties must be calculated as set forth in 15-1-216, MCA. The penalty for purposely failing to file a return or to pay the tax by the due date is set forth in 15-1-216, MCA. A tax…

42.2.505 INTEREST ON UNPAID TAX Unless otherwise provided by law, for all taxes, fees, and other assessments imposed under Titles 15 and 16, MCA, and administered by the department, interest attaches as outlined in 15-1-216, MCA. Exclusions to this rule are provided in 15-1-216, …

42.2.506 LATE FILING PENALTY Applicable late filing penalties are calculated at 5 percent of the net tax due for each month during which there is a failure to file the return or report. Late filing penalties shall: not exceed an amount up to 25 percent of the net tax due; and not…

42.2.507 SUBSTANTIAL UNDERSTATEMENT PENALTY A taxpayer who substantially understates tax due is subject to a substantial understatement of tax penalty in an amount equal to 20 percent of the understatement. For individuals, estates, and trusts, the penalty does not apply to under…

42.2.508 ADJUSTMENTS TO PENALTY AND INTEREST Late pay penalties will be adjusted based on the corrected amount of tax due that results from an amended return, adjustment from an audit, or correction to the original return. The department will adjust interest based on the correcte…

42.2.510 REVIEW OF NOTICE OF ASSESSMENT (NOA) This rule applies to all department actions where a Notice of Assessment (NOA) or deficiency assessment, as those terms are defined in ARM 42.2.304, is issued. An NOA does not include centrally assessed appraisal reports and centrally…

42.2.511 REVIEW OF CENTRALLY ASSESSED PROPERTY APPRAISALS If a taxpayer is satisfied with the department's appraisal report, no further action is required. The department will notify the taxpayer that the appraisal is final by issuing an assessment notice on or before July 1 of t…

42.2.512 REASONABLE CAUSE "Reasonable cause" for waiver of penalty and interest is construed in favor of the collection of the penalty and interest. The exercise of ordinary business care and prudence must be determined by the facts of each case. The existence of "reasonable caus…

42.2.513 PROOF OF REASONABLE CAUSE OR LACK OF NEGLECT The taxpayer who requests waiver of penalty and interest on a tax, or submits an untimely reply to a deficiency notice, has the burden of proving to the department that reasonable cause exists for the failure to timely file th…

42.2.520 COLLECTION OF DELINQUENT TAXES OR OTHER FUNDS THROUGH OFFSET PROCEDURES In order to collect delinquent taxes after the time for appeal has expired, the department may direct the offset of tax refunds or other funds due the taxpayer from the state except wages subject to …

42.2.601 UNIFORM TAX REVIEW PROCEDURE - DEFINITIONS - APPLICABILITY DATE (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; AMD, 1997 MAR p. 2199, Eff. 12/2/97; REP, 1999 MAR p. 2900, Eff. 12/17/9…

42.2.602 NOTICE TO TAXPAYER (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; AMD, 1993 MAR p. 570, Eff. 4/16/93; REP, 1999 MAR p. 2900, Eff. 12/17/99.

42.2.603 TAXPAYER OBJECTIONS TO AUDITOR'S ASSESSMENT OR REFUND DENIAL, OR DENIAL OR WAIVER OF PENALTY AND INTEREST (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; AMD, 1993 MAR p. 570, Eff. 4/1…

42.2.604 CONSEQUENCES OF FAILURE TO OBJECT TO AN ASSESSMENT IN A TIMELY MANNER (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; REP, 1999 MAR p. 2900, Eff. 12/17/99.

42.2.605 DIVISION ADMINISTRATOR'S DECISION (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; AMD, 1993 MAR p. 570, Eff. 4/16/93; REP, 1999 MAR p. 2900, Eff. 12/17/99.

42.2.606 TAXPAYER OBJECTION TO DECISION OF THE DIVISION ADMINISTRATOR (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; REP, 1999 MAR p. 2900, Eff. 12/17/99.

42.2.607 ALTERNATIVE PROCEDURES (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; REP, 1999 MAR p. 2900, Eff. 12/17/99.

42.2.608 DIRECTOR OF THE DEPARTMENT OF REVENUE'S DECISION (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; REP, 1999 MAR p. 2900, Eff. 12/17/99.

42.2.609 TAXPAYER APPEALS TO THE STATE TAX APPEAL BOARD (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; REP, 1999 MAR p. 2900, Eff. 12/17/99.

42.2.610 DIRECTOR INITIATED REVIEW (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; REP, 1999 MAR p. 2900, Eff. 12/17/99.

42.2.611 SETTLEMENT OF TAX DISPUTES (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; REP, 1999 MAR p. 2900, Eff. 12/17/99.

42.2.612 DEPARTMENTAL PROCEDURES (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, MCA History: NEW, 1991 MAR p. 2495, Eff. 12/13/91; REP, 1999 MAR p. 2900, Eff. 12/17/99.

42.2.613 DEFINITIONS The following definitions apply to rules found in this subchapter. "Administrative Law Judge" means, within the context of the department's ODR, the individual who: adjudicates or mediates a dispute between a person or other entity and the department after th…

42.2.614 PURPOSE Section 15-1-211, MCA, requires a uniform dispute review procedure and the establishment of a dispute resolution office within the department. A primary objective of the dispute resolution procedure is to make resolving a dispute with the department as accessible…

42.2.615 REFERRALS TO ODR Notice of referral to the ODR shall be submitted in writing and shall indicate the issues in dispute. Except for liquor matters and marijuana matters, as defined in ARM 42.2.613, aperson or other entity who has filed an appeal with ODR may, within 30 day…

42.2.616 FORMALITY OF PROCEDURES The department recognizes that a wide array of parties appear before the department with disputes to resolve. These disputes range from large corporations employing professional tax counsel to individuals appearing on their own behalf. It is the i…

42.2.617 INITIAL CONFERENCES Following the ODR's receipt of a notice of referral to the ODR, an initial conference will be scheduled as soon as possible. Parties may participate at the initial conference either on their own behalf or through representatives, employees, or agents …

42.2.618 MEDIATION PROCEDURES The resolution of any matter in connection with a dispute may be pursued through mediation with the agreement of all parties. Mediation may be requested and scheduled at the initial conference or at any time during the proceeding at the agreement of …

42.2.619 HEARING PROCEDURES Except as provided in this rule, hearings shall be conducted in Helena, Montana. Upon a showing of compelling circumstances by either party, the hearing examiner may order a hearing to be conducted at a location elsewhere in Montana. The location for h…

42.2.620 INFORMATION OFFERED IN HEARINGS The hearing examiner shall have the discretion to adopt and apply rules of civil procedure and/or rules of evidence as deemed necessary. Every party at a hearing shall have the right to introduce evidence. The evidence may be oral or writt…

42.2.621 FINAL AGENCY DECISION AND APPEAL The director retains the authority to issue a final agency decision (FAD) on all matters except those identified in (2). The director delegates to the ODR the authority to issue a FAD on liquor licensing protests, marijuana matters,bad de…

42.2.701 PUBLIC ACCESS TO TAXPAYER INFORMATION (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): Montana Constitution, Art. II, sec. 8, 9, & 10 History: Attorney General Opinions 38-59, 39-17; 2-4-501, 2-4-623, 2-6-109, 15-7-308, 15-30-303, 15-31-507, 15-3…

42.2.801 STATEMENT OF INTENT These rules provide guidance to Department of Revenue employees concerning the ethical standards they are expected to meet or exceed. The rules also inform the public concerning ethics expected of department employees. In Wadsworth v. DOR , the Montan…

42.2.802 DEFINITIONS - ETHICS OF DEPARTMENT OF REVENUE EMPLOYEES Unless the context clearly indicates otherwise, the following terms shall have the following meanings: "Code of ethics" means any accepted professional standards of conduct, requirements or prohibitions applicable t…

42.2.803 REQUIRED EMPLOYEE CONDUCT Employees shall be familiar with these rules and the code of ethics adopted by the Montana legislature in order to enable them to recognize a conflict of interest, appearance of conflict of interest or other ethical issue and make full, complete…

42.2.804 EXAMPLES OF SITUATIONS WHERE DISCLOSURE OF AN ETHICAL ISSUE IS REQUIRED The following are examples of situations where the employee is required to make full, complete and timely disclosure: A tax auditor employed by the department prepares federal and state income tax re…

42.2.805 BEST INTERESTS OF THE STATE OF MONTANA In consideration of their employment, employees have a duty to perform diligently and faithfully. This includes the requirement to be faithful to the employer's objectives and goals. An employee is expected to act in the best intere…

42.2.806 REVIEW OF ETHICAL ISSUES AND DEPARTMENT ACTION AFTER DISCLOSURE The department director shall appoint a panel to review ethical issues. The panel shall meet regularly and review requests from employees for advice concerning ethical issues, and disclosures. The panel shal…

42.2.807 CONSEQUENCES FOR FAILURE TO COMPLY WITH ETHICAL STANDARDS An employee who breaks faith with the trust given them by the public, the state and the department by violating these rules or the code of ethics shall be subject to appropriate disciplinary action. The disciplina…

42.2.901 DEFINITIONS The following definitions apply to rules found in this subchapter. "All protested taxes" means all taxes in all funds, under protest, for the given tax year a school district is electing to waive protested taxes as stated in 15-1-409, MCA. "Election to Waive …

42.2.902 ELECTION TO WAIVE PROTESTED TAXES - SCHOOL DISTRICTS NOTIFICATION REQUIREMENTS School districts electing to waive their protested taxes as provided in 15-1-409, MCA, shall submit the Election to Waive Protested Taxes form to the Department of Revenue, county treasurer, a…

42.2.903 COUNTY TREASURERS NOTIFICATION REQUIREMENTS For each school district electing to waive protested taxes, the applicable county treasurer shall submit the Protested School Tax Remittance form and the protested tax remittance to the Department of Revenue by the first Monday…