MT penalties, withholding provisions amended for pass-through entities

Recently enacted Montana legislation limits the penalty for pass-through entities that fail to file a required report to a maximum of $2,500 per tax period applicable to tax years beginning after December 31, 2015. Currently, Montana does not set a limit on these penalties, although the Department of Revenue does have the authority to waive penalties if reasonable cause exists. The legislation also revises withholding and filing requirements for pass-through entities by eliminating nonresident consent agreements and second-tier pass-through statements for tax years beginning after December 31, 2015. (S.B. 386, Laws 2015, effective October 1, 2015, applicable as noted above.)

For more information on this and other topics, consult the Visit our News Library.