42.15.316    EXTENSIONS AND ESTIMATED PAYMENTS

(1) For tax years beginning after December 31, 2015, and before January 1, 2017, a six-month extension of time to file an individual income tax return is automatically allowed a taxpayer if the following conditions are met on or before the due date of the return:

(a) the taxpayer has applied for an extension of time to file their federal income tax return; and

(b) the taxpayer has paid either through withholding, estimated tax payments, or a combination of withholding and estimated payments, either of the following:

(i) 90 percent of their current year's income tax liability; or

(ii) 100 percent of their prior year's income tax liability.

(2) A taxpayer's tax liability and percent level of payment are determined as provided in ARM Title 42, chapter 17, subchapter 3.

(3) If a taxpayer does not meet either of the required payment thresholds as required by 15-30-2604, MCA, late pay and late file penalties will be applied as provided in 15-1-216, MCA.

(4) Underpayment interest, as provided in 15-30-2512, MCA, accrues to the original due date of the return. Interest from and after the original due date of the return accrues as provided in 15-1-216, MCA, whether or not the time for filing the return has been extended.

(5) The underpayment is calculated as provided in ARM Title 42, chapter 17, subchapter 3.

(6) For tax years beginning after December 31, 2011, and before January 1, 2017, an individual whose income tax liability for the current year is $200 or less, and who pays the entire tax liability and files his or her return on or before the extended due date provided for in 15-30-2604(3)(a), MCA, will not be charged interest or the penalties for late filing and late payment.

(7) For tax years beginning on or after January 1, 2017, a six-month extension of time to file an individual income tax return is automatically allowed a taxpayer if the tax, penalty, and interest are paid when the return is filed.

(8) Taxpayers who are either first time filers, or have a zero or negative taxable income for the previous year, are considered to have paid 100 percent of the previous year's tax for purposes of meeting the threshold requirements in 15-30-2604, MCA.

 

History: 15-30-2620, MCA; IMP, 15-1-201, 15-1-216, 15-30-2604, 15-30-2651, MCA; NEW, 1992 MAR p. 145, Eff. 1/31/92; AMD, 1995 MAR p. 2507, Eff. 11/23/95; AMD, 2004 MAR p. 3147, Eff. 12/17/04; AMD, 2008 MAR p. 178, Eff. 2/1/08; AMD, 2010 MAR p. 1088, Eff. 4/30/10; AMD, 2013 MAR p. 178, Eff. 2/1/13; AMD, 2016 MAR p. 2073, Eff. 11/11/16.