Montana – Rules on Electronic Returns and Payment Amended

2/12/2013

SALT Report 2141 – The Montana Department of Revenue announced that on February 14, 2013 amendments to the following sales and use tax rules will go into effect:

ARM 42.5.201 – This rule is amended to clarify that taxpayers with a tax liability of $500,000 or more must remit their payments to the Department by electronic funds transfer.  If a check, draft, or other paper instrument is received by the Department in the amount of $500,000 or greater, it will be treated as a non-payment and returned to the taxpayer.  The taxpayer will be subject to late payment penalties and interest until the payment is remitted by electronic funds transfer.

ARM 42.5.202 – This rule is amended to clarify that the act of electronically filing a return on behalf of a taxpayer constitutes a declaration by the filer, under penalty of false swearing, that the information in the return is true, correct, and complete, and that the person is authorized to act on behalf of the taxpayer. The rule also states that returns submitted electronically are subject to the same filing deadlines as paper returns.

ARM 42.5.213 – This rule is amended to clarify that under certain circumstances, taxpayers who have liabilities of $500,000 or more and experience what might constitute an emergency that would prohibit the taxpayer from paying their tax liability through an electronic funds transfer, will be permitted to submit their payment in the form of a check, draft, or other paper instruments.  The rule provides examples of situations that would be considered an emergency as well as information on how to apply for the exception.

For Further Information

Montana Department of Revenue – ARM 42.5.201, 42.5.202, and 42.5.213