42.23.303    CHANGE IN FEDERAL TAX OR RETURN

(1) Taxpayers are required to report to the department adjustments or corrections to their taxable income made by the IRS or other competent authority by filing an amended Montana corporate income tax return within 180 days of the final determination date. If the adjustments or corrections result in an overpayment of tax, the refund claim must be made within the statute of limitation set forth in 15-31-509, MCA.

(a) If the taxpayer files an amended Montana corporate income tax return or a federal adjustment report more than 180 days after the final determination date and has not by written agreement suspended the federal statute of limitations, the period within which a deficiency in tax may be assessed extends for three years from the date the changes or corrections in the taxpayer's federal taxable income become final and are filed with the department or three years from the date the amended federal return was filed.

(b) If the taxpayer fails to file an amended Montana corporate income tax return or a federal adjustments report, the department may at any time assess tax or begin a proceeding in court for the collection of the tax without assessment pursuant to 15-31-544, MCA.

(2) If a taxpayer files an amended federal income tax return for any year changing or correcting its taxable income, the taxpayer is required to file a corresponding amended Montana corporate income tax return within 180 days after filing the amended federal return. If the adjustments or corrections result in an overpayment of tax, the refund claim must be made within the statute of limitations set forth in 15-31-509, MCA.

(a) If the taxpayer files an amended Montana corporate income tax return or a federal adjustments report more than 180 days after filing the amended federal return and has not by written agreement suspended the federal statute of limitations, the period within which a deficiency in tax may be assessed extends for three years from the date the amended Montana return is filed.

(b) If the taxpayer fails to file an amended Montana corporate income tax return or a federal adjustments report, the department may at any time assess tax or begin a proceeding in court for the collection of the tax without assessment pursuant to 15-31-544, MCA.

(3) Changes or corrections by a taxpayer to federal taxable income, including changes that increase or decrease a net operating loss must be reported to the department through the filing of an amended Montana corporate income tax return within the time prescribed in 15-31-509, MCA, regardless of whether or not an amended federal income tax return was filed.

(4) No de minimis standard applies to the requirements for reporting changes or corrections to federal taxable income. Taxpayers are required to report all such changes and corrections to the department.

History: 15-31-501, MCA; IMP, 15-30-3401, 15-31-506, 15-31-509, 15-31-544, MCA; Eff. 12/31/72; AMD, 2001 MAR p. 2046, Eff. 10/12/01; AMD, 2016 MAR p. 2198, Eff. 11/26/16; AMD, 2022 MAR p. 1763, Eff. 9/10/22.