SENATE BILL NO. 53
INTRODUCED BY B. DEPRATU
BY REQUEST OF THE DEPARTMENT OF REVENUE
AN ACT REQUIRING TAXPAYERS TO FILE AN AMENDED MONTANA RETURN WHEN THEIR FEDERAL TAXES ARE ADJUSTED OR THEY FILE AN AMENDED RETURN; AMENDING SECTIONS 15-1-206, 15-30-304, 15-31-506, AND 15-31-509, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-1-206, MCA, is amended to read:
"15-1-206. Waiver and abatement of penalties -- interest. (1) The department may, in its discretion, waive the
assessment of penalty for the late filing of any a tax statement or return required to be filed with the department when the
filing is done within 5 days of the date specified for filing the return or statement and for the late payment of any a tax
collected by the department when the payment is made within 5 days of the date specified for payment of the tax.
(2) Whenever the department waives or abates a penalty provided for in this title, it also may, in its discretion, waive or abate interest not to exceed $100 due upon the tax.
(3) Whenever the department is notified of a change in federal taxable income as the result of a federal adjustment or
upon filing an amended federal Montana return, as provided for in 15-30-304, the department shall abate the interest on the
additional tax liability from the date the department is notified until the department sends the statement of increased tax
liability to the taxpayer."
Section 2. Section 15-30-304, MCA, is amended to read:
"15-30-304. Furnishing copy of federal return -- copy of share of income, credit, and deductions schedule --
copies of federal corrections -- filing amended return required. Each taxpayer shall, upon request of the department,
furnish a copy of the return for the corresponding year that the taxpayer has filed or may file with the federal government,
showing the taxpayer's net income and how obtained and the several sources from which derived. Partners of a partnership,
shareholders of a subchapter S. corporation, and members or managers of a limited liability company who are subject to the
workers' compensation old fund liability tax shall attach to their Montana individual income tax return a copy of the share of
income, credit, and deductions schedule that the partner, shareholder, or member or manager received from the entity that
reports income to the federal government for the corresponding year. If the amount of a taxpayer's taxable income is
changed or corrected by the United States internal revenue service or other competent authority, the taxpayer shall report
the change or correction to file an amended Montana return with the department within 90 days after receiving notice of the
change or correction. If a taxpayer files an amended federal income tax return changing or correcting the taxpayer's federal
taxable income for any a tax year, the taxpayer shall also file an amended Montana return with the department within 90
days after filing an amended federal income tax return. The department shall supply all necessary forms and shall, upon the
request of the taxpayer, return all forms to the taxpayer after they have been examined by the department."
Section 3. Section 15-31-506, MCA, is amended to read:
"15-31-506. Copy of federal return required -- report of amended federal return. Every corporation shall, upon
request of the department of revenue, furnish a copy of its federal income tax return and the computation schedule filed for
such the taxable year or years as that the department may specify in its request. If the amount of a corporation's taxable
income reported on its federal income tax return or the computation schedule filed for any a taxable year is changed or
corrected by the United States internal revenue service or other competent authority, the corporation shall report such
proposed change or correction to file an amended Montana return with the department within 90 days after receiving official
notice thereof of the change or correction. Any A corporation filing an amended federal income tax return changing or
correcting its taxable income for any a taxable year shall also file an amended Montana return with the department within 90
days thereafter after filing an amended federal income tax return."
Section 4. Section 15-31-509, MCA, is amended to read:
"15-31-509. Periods of limitation. (1) Except as otherwise provided in 15-31-544 and this section, a deficiency may not be assessed or collected with respect to the year for which a return is filed unless the notice of additional tax proposed to be assessed is mailed within 3 years from the date that the return was filed. For the purposes of this section, a return filed before the last day prescribed for filing is considered as filed on the last day. When, before the expiration of the period prescribed for assessment of the tax, the taxpayer consents in writing to an assessment after the time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The limitations prescribed for giving notice of a proposed assessment of additional tax may not apply when:
(a) the taxpayer has by written agreement suspended the federal statute of limitations for collection of federal tax if the suspension of the limitation set forth in this section lasts:
(i) only so as long as the suspension of the federal statute of limitation; or
(ii) until 1 year after any the federal changes have become final or any an amended federal return is filed as a result of the
suspension of the federal statute, whichever is the latest in time; or
(b) a taxpayer has failed to file a report of changes in federal taxable income or an amended Montana return, as required
by 15-31-506, until 3 years after the federal changes become final or the amended federal return was filed, whichever the
case may be.
(2) A refund or credit may not be allowed or paid with respect to the year for which a return is filed after 3 years from the last day prescribed for filing the return or after 1 year from the date of the overpayment, whichever period expires the later, unless before the expiration of the period the taxpayer files a claim for the refund or credit or the department has determined the existence of the overpayment and has approved the refund or credit. If the taxpayer has agreed in writing under the provisions of subsection (1) to extend the time within which the department may propose an additional assessment, the period within which a claim for refund or credit may be filed or a credit or refund allowed in the event a claim is not filed must automatically be extended.
(3) If a claim for refund or credit is based upon an overpayment attributable to a net loss carryback adjustment as provided in 15-31-119, in lieu of the 3-year period provided for in subsection (1), the period must be the period that ends with the expiration of the 15th day of the 41st month following the end of the tax year of the net loss that results in the carryback.
(4) If the year of the net operating loss is open under either state or federal waivers, the year to which the loss is carried back will remain open for the purposes of the loss carryback and for 12 months following the expiration of the state or federal waiver, even though the claim would otherwise be barred under this section."
Section 5. Effective date. [This act] is effective on passage and approval.
Section 6. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to tax years beginning after December 31, 1998.
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Latest Version of SB 53 (SB0053.ENR)
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