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.)
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