Montana Administrative Code

42.9.104 CONSENT, COMPOSITE RETURN, OR WITHHOLDING FOR PARTNERS, SHAREHOLDERS, MANAGERS, AND MEMBERS WHO ARE NONRESIDENT INDIVIDUALS, ESTATES, OR TRUSTS A partnership and S corporation with one or more nonresident individual, estate, or trust owners, during any part of a tax year…

42.9.105 CONSENT, COMPOSITE RETURN, OR WITHHOLDING FOR PARTNERS, SHAREHOLDERS, MANAGERS, AND MEMBERS THAT ARE FOREIGN C CORPORATIONS A partnership with one or more foreign C corporation or other nonresident entity owners, during any part of a tax year for which an information ret…

42.9.106 COMPOSITE RETURN, WITHHOLDING, OR WAIVER FOR PARTNERS, SHAREHOLDERS, MANAGERS, AND MEMBERS THAT ARE SECOND-TIER PASS-THROUGH ENTITIES Except as provided in (2), (6), and (7), a first-tier pass-through entity with one or more owners that are also pass-through entities (se…

42.9.107 MULTI-TIERED PASS-THROUGH ENTITY STRUCTURES WITH MONTANA SOURCE INCOME – REPORTING REQUIREMENTS A pass-through entity may have, in addition to income from its own operations or activities, income from one or more other pass-through entities. This rule describes how the p…

42.9.108 INACTIVE PASS-THROUGH ENTITIES Except as provided in (3) and (4), foreign limited liability companies, foreign series limited liability companies, domestic limited liability companies, and domestic series limited liability companies qualified to do business in Montana an…

42.9.109 PARTNERS, SHAREHOLDERS, MANAGERS, AND MEMBERS WHO ARE TAX-EXEMPT ENTITIES A pass-through entity is required to withhold tax on behalf of a partner, shareholder, manager, or member even if the partner, shareholder, manager, or member is not organized and operated for prof…

42.9.110 PASS-THROUGH ENTITIES – AUDIT ADJUSTMENTS The department reports the details of audit adjustments resulting from an audit or other review of a pass-through entity's information return to the entity and the owners of the pass-through entity. The department reports the det…

42.9.111 PASS-THROUGH ENTITIES—STATUTE OF LIMITATIONS FOR AUDIT ADJUSTMENTS The department may revise any return of an entity if, in the opinion of the department, it is incorrect in any essential respect. If a revision to a pass-through entity's information return changes the ow…

42.9.112 APPORTIONABLE AND NONAPPORTIONABLE INCOME – APPORTIONMENT OR ALLOCATION – PASS-THROUGH ENTITIES For purposes of the reporting requirements for pass-through entities that have Montana apportionable or nonapportionable income and determining their Montana source income and…

42.9.201 COMPOSITE RETURN—ELECTION A partnership or S corporation may elect to file a composite tax return and pay a composite tax on behalf of all eligible participants who consent to be included in the filing. The partnership or S corporation filing a composite return must main…

42.9.202 FILING REQUIREMENT The Montana composite income tax return is due on or before the due date (including extensions) of the entity's information return provided in ARM 42.9.301 and 42.9.401. Extension of the date for filing the composite return does not extend the date for…

42.9.203 COMPUTATION OF COMPOSITE TAX The composite tax, required to be remitted to the department with the composite tax return, is the sum of each electing eligible participant's composite tax liability. A participant's composite tax liability is assessed on the participant's s…

42.9.204 COMPOSITE RETURN - NET OPERATING LOSS Net operating losses pass through to the individual shareholders and partners and are not available for carryover or carryback on the entity return. When these shareholders and partners elect to be included in the composite return, t…

42.9.301 PASS-THROUGH ENTITY INFORMATION RETURNS FOR PARTNERSHIPS Every partnership that has Montana source income must file a Form PR-1, Montana Partnership Information and Composite Tax Return, on or before the 15th day of the third month following the close of its annual accou…

42.9.302 ELECTRONIC RETURNS REQUIRED FOR PARTNERSHIPS HAVING MORE THAN 100 MEMBERS Effective for tax years beginning after December 31, 2013, a partnership having more than 100 partners over the course of its tax year must electronically file a Montana Partnership Information and…

42.9.303 GUARANTEED PAYMENTS TO INDIVIDUAL PARTNERS - SOURCING, APPORTIONMENT, AND ALLOCATION Except as provided in (2) and (3), guaranteed payments made to individual partners pursuant to section 707 of the Internal Revenue Code, 26 U.S.C. 707, are sourced to Montana based upon …

42.9.401 PASS-THROUGH ENTITY INFORMATION RETURNS FOR S CORPORATIONS Every S corporation that has Montana source income must file a Form CLT-4S, Montana S Corporation and Composite Information Return, on or before the 15th day of the third month following the close of its annual a…

42.9.402 S CORPORATION SHAREHOLDER'S ADDITION TO MONTANA ADJUSTED GROSS INCOME An S corporation shareholder's income is that income included in federal adjusted gross income plus: an amount equal to the federal tax on capital gains and the minimum tax paid by the corporation time…

42.9.501 PASS-THROUGH ENTITY INFORMATION RETURNS FOR SINGLE-MEMBER LLC TREATED AS DISREGARDED ENTITY Any single-member limited liability company (LLC) treated as a disregarded entity that has Montana source income, whether formed in Montana or in another state or country, must fi…

42.9.502 DISREGARDED ENTITIES – SOURCING GAIN OR LOSS ON THE SALE OF AN INTEREST Gain on the sale of an interest in a single member limited liability company (LLC) that is a disregarded entity is sourced to Montana as if the single member LLC did not exist and the assets of the L…

42.9.510 PASS-THROUGH ENTITY INFORMATION RETURNS FOR PARTNERSHIPS ELECTING IRC 761 Any entity that has Montana source income, that elects under IRC 761 to be excluded from application of some or all of the partnership tax rules on or after January 1, 2003, must file a Montana For…

42.9.520 PASS-THROUGH ENTITY INFORMATION RETURNS FOR QUALIFIED SUBCHAPTER S SUBSIDIARIES Any corporation described in IRC 1361(b)(3) whose parent elects to treat as a qualified subchapter S subsidiary on or after January 1, 2003, and that has Montana source income, must file a Mo…

42.9.530 PASS-THROUGH ENTITY INFORMATION RETURNS FOR QUALIFIED REIT SUBSIDIARIES Any corporation defined as a qualified REIT subsidiary in IRC 856(i)(2) that has Montana source income and the assets, liabilities, and items of income, deduction, and credit of which are included in…

42.9.540 PASS-THROUGH ENTITY RETURNS FOR REMIC Every unincorporated Real Estate Mortgage Investment Conduit (REMIC) described in IRC 860D, that has Montana source income, must file a copy of its form 1066, federal Real Estate Mortgage Investment Conduit Income Tax Return on or be…

44.1.101 ORGANIZATIONAL RULE Organization of the Office of the Secretary of State. The Office of the Secretary of State of the state of Montana was created by the 1889 Constitution of the state of Montana, Article VII, Section 1. The office was continued and currently exists unde…

44.10.325 POLITICAL COMMITTEE - DEFINITION (REPEALED) Authorizing statute(s): 13-37-114, MCA Implementing statute(s): 13-1-101(12), MCA History: NEW, Eff. 1/1/76; AMD, Eff. 5/7/76; AMD, 1977 MAR p. 1240, Eff. 12/25/77; AMD, 1979 MAR p. 652, Eff. 7/1/79; AMD, 2001 MAR p. 2049, Eff…

44.10.332 LEADERSHIP POLITICAL COMMITTEES (REPEALED) Authorizing statute(s): 13-37-114, MCA Implementing statute(s): 13-37-216, MCA History: NEW, 1995 MAR p. 2048, Eff. 9/28/95; AMD, 2001 MAR p. 2049, Eff. 10/12/01; REP, 2016 MAR p. 28, Eff. 1/9/16.