BEFORE THE Department of REVENUE

OF THE STATE OF MONTANA

 

In the matter of the adoption of New Rules I through III, the amendment of ARM 42.2.304, 42.2.503, 42.2.504, 42.2.505, 42.2.510, 42.2.511, 42.3.102, 42.3.103, 42.3.115, 42.14.204, 42.15.315, 42.15.316, 42.30.103, and 42.30.107, the transfer and amendment of ARM 42.3.105 and 42.3.107, and the repeal of ARM 42.2.306, 42.15.320, and 42.23.605 pertaining to the application of penalties and interest and reasonable cause; and also pertaining to the timeframe for appealing notices of assessment

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NOTICE OF ADOPTION, AMENDMENT, TRANSFER AND AMENDMENT, AND REPEAL

 

TO: All Concerned Persons

 

1. On September 23, 2016, the Department of Revenue published MAR Notice No. 42-2-963 pertaining to the public hearing on the proposed adoption, amendment, transfer and amendment, and repeal of the above-stated rules at page 1668 of the 2016 Montana Administrative Register, Issue Number 18.

 

2. On October 13, 2016, a public hearing was held to consider the proposed adoption, amendment, transfer and amendment, and repeal. No members of the public appeared for the hearing and no written comments were received.

 

3. The department adopts New Rule I (42.2.508), New Rule II (42.2.507), and New Rule III (42.2.506), amends ARM 42.2.503, 42.2.504, 42.2.505, 42.2.510, 42.2.511, 42.3.102, 42.3.103, 42.3.115, 42.15.315, 42.15.316, 42.30.103, and 42.30.107, and repeals ARM 42.2.306, 42.15.320, and 42.23.605 as proposed.

 

4. The department transfers and amends ARM 42.3.105 and 42.3.107 as proposed, but with the following revisions to the destination rule numbers:

 

42.3.105 (42.2.506 42.2.512) REASONABLE CAUSE (1) through (8) remain as proposed.

 

42.3.107 (42.2.507 42.2.513) PROOF OF REASONABLE CAUSE OR LACK OF NEGLECT (1) through (3) remain as proposed.

 

5. The department amends ARM 42.2.304 and 42.14.204 as proposed, but with the following changes to correspond with the destination rule number revisions in 4, new matter underlined, deleted matter interlined:

 

42.2.304 DEFINITIONS The terms used by the department are, in great part, defined in Titles 15, 16, 39, and 72, MCA. In addition to these statutory definitions, the following definitions apply to ARM Title 42, unless context of a particular chapter or rule provides otherwise:

(1) through (49) remain as proposed.

(50) "Reasonable cause" means the taxpayer exercised ordinary business care and prudence and was nevertheless unable to file the return, pay the tax within the prescribed time, or object to a department action as provided for in ARM 42.2.510. Examples of what does or does not constitute reasonable cause may be found in ARM 42.2.506 42.2.512.

(51) through (63) remain as proposed.

 

42.14.204 PENALTIES AND INTEREST (1) Upon request, the late pay and late file penalty may be waived pursuant to ARM 42.2.506, 42.2.507 42.2.512, 42.2.513, 42.3.101, 42.3.102, 42.3.103, 42.3.104, 42.3.106, 42.3.108, 42.3.109, 42.3.110, 42.3.111, 42.3.113, 42.3.115, and 42.3.120.

 

 

/s/ Laurie Logan                                           /s/ Mike Kadas

Laurie Logan                                               Mike Kadas

Rule Reviewer                                             Director of Revenue

 

           

Certified to the Secretary of State October 31, 2016.