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Montana Administrative Register Notice 42-2-892 No. 24   12/20/2012    
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BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

 

In the matter of the amendment ARM 42.5.201, 42.5.202, and 42.5.213 relating to electronic payment and return filing

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO:  All Concerned Persons

 

1.  On January 15, 2013, at 2 p.m., a public hearing will be held in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, in Helena, Montana, to consider the amendment of the above-stated rules.

Individuals planning to attend the hearing shall enter the building through the east doors of the Sam W. Mitchell Building, 125 North Roberts, Helena, Montana.

 

2.  The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice.  If you require an accommodation, contact the Department of Revenue no later than 5 p.m., January 4, 2013, to advise us of the nature of the accommodation that you need.  Please contact Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-4375; or e-mail canderson@mt.gov.

 

3.  The rules proposed to be amended provide as follows, stricken matter interlined, new matter underlined:

 

42.5.201  ELECTRONIC PAYMENT  (1)  The department's ability to accept electronic payments is constantly evolving.  Taxpayers should check the department's web site at www.mt.gov/revenue www.revenue.mt.gov to determine which types of electronic payments the department will accept and the electronic submission options available.

(2)  A taxpayer with a tax liability of $500,000 or greater must make payment to the department electronically:

(a)  if by electronic funds transfer, to the Montana state treasurer; and

(b)  if by other method accepted by the department, to the department.  If a check, draft, or similar paper instrument is received in the amount of $500,000 or greater, it shall constitute nonpayment and be returned to the taxpayer.  Applicable late payment penalties and interest shall be applied until such time as the payment is remitted by electronic funds transfer, as required by 15-1-802, MCA.

(3)  The tax return or report must be filed and the electronic payment initiated by the tax due date or the appropriate late filing and late payment penalties, and interest will be applied.  If an electronic payment is initiated by the due date but either the department does not receive payment or credit, or the payment or credit is charged back, the tax liability is not discharged, the tax is not paid, and appropriate late payment penalties and interest will be applied.  If the department does not receive the funds submitted via an electronic funds transfer by the payment submission due date, the department shall assess any applicable penalties and interest as required by 15-1-216, MCA.

(4) remains the same.

(5)  If a paper return or report is filed and payment made electronically, the taxpayer shall place on the tax return or report a notation, stamp, or other indication informing the department that payment was made electronically.  In cases of an emergency, a taxpayer that would be required to transmit funds electronically may apply for an exception as provided in ARM 42.5.213.

 

AUTH:  15-1-803, MCA

IMP:  15-1-216, 15-1-231, 15-1-801, 15-1-802, 15-1-803, 15-30-2510, 30-18-117, 32-6-103, MCA

 

REASONABLE NECESSITY:  In accordance with 2-4-314, MCA, the department conducted a biennial review of all its administrative rules.  As a result of that review, the department is proposing to amend ARM 42.5.201.

The proposed amendments will update the department's web site address, add language to inform taxpayers where to locate information about the various electronic payment options available to them, and remove obsolete language.

The department continues to make technological advancements within its electronic payment system.  The improvements have introduced efficiencies and made it easier than ever for taxpayers to pay their taxes electronically, and the proposed amendments to this rule will provide helpful guidance to taxpayers.

The proposed amendment of (2) is necessary to advise taxpayers how tax liability payments of $500,000 or greater received in the form of a check, draft, or similar paper instrument will be handled by the department.  Section 15-1-802, MCA requires such payments to be submitted through an electronic transfer process rather than on a written paper document.  The rules are necessary to ensure compliance with this long-standing statute requiring electronic payments under certain circumstances.

The department further proposes to update the implementing citations to include all statutes that support the rule currently and as amended.

 

42.5.202  ELECTRONIC RETURNS, REPORTS, AND SIGNATURES

(1)  The department's ability to accept electronic returns and reports is constantly evolving.  Taxpayers should check www.mt.com/revenue, the department's web site at www.revenue.mt.gov, to determine which types of returns and reports the department will accept electronically and the electronic submission options that are available.

(2)  An electronic return or report is not complete unless all requested information is provided and it is signed by the taxpayer or the taxpayer's authorized representative as provided in this rule.

(3)  Providing a personal identification number (PIN) or an electronic signature as part of an electronic filing is the filer's declaration, under the penalty of false swearing, that:

(a)  the filer is the taxpayer identified in the report or return; and

(b)  the information in the report or return is true, correct, and complete.

(4)  The department is part of a federal-state joint-filing program that allows taxpayers to electronically file certain federal and state tax returns together at the same time.  If a taxpayer files an electronic Montana return as part of the federal-state joint-filing program, the taxpayer's federal signature or pin is considered the taxpayer's signature or PIN on the Montana electronic return.

(5)  If the department permits a taxpayer to file a report or return electronically outside the federal-state joint-filing program, including by telephone, without providing a PIN or an electronic signature, the act of filing the return or report electronically constitutes the filer's declaration, under the penalty of false swearing, that:

(a)  the filer is the taxpayer identified in the report or return; and

(b)  the information in the report or return is true, correct, and complete, and constitutes the taxpayer's signature.

(6)  Except as permitted in the federal-state joint-filing program described in (4), a A return or report may not be made electronically for a taxpayer unable to make the taxpayer's own return by an authorized agent or by a guardian or other person charged with the care of the person or property of the taxpayer as provided in ARM 42.15.303.

(7)  The act of electronically filing a return on behalf of a taxpayer constitutes a declaration by the filer, under penalty of false swearing, that the information in the return is true, correct, and complete, and that the person is authorized to act on behalf of the taxpayer.

(8)  A return that is submitted electronically is subject to the same filing deadlines as a paper return.

 

AUTH:  15-1-803 15-1-201, MCA

IMP:  15-1-231, 15-1-801, 15-1-802, 15-1-803, 15-30-2602, 15-30-2620, 30-18-102, 30-18-105, 30-18-106, 30-18-110, 30-18-113, 30-18-117, MCA

 

REASONABLE NECESSITY:  In accordance with 2-4-314, MCA, the department conducted a biennial review of all its administrative rules.  As a result of that review, the department is proposing to amend ARM 42.5.202.

The proposed amendments will update the department's web site address, add language to inform taxpayers where to locate information about the various electronic filing options available to them, and remove obsolete language.

The department continues to make technological advancements within its electronic filing system.  The improvements have introduced efficiencies and made it easier than ever for taxpayers to file returns electronically, and the proposed amendments to this rule will provide helpful guidance to taxpayers.

The department further proposes to update the authorization and implementing citations to include all statutes that support the rule currently and as amended.

 

42.5.213  BACKUP SITUATION  (1)  With prior approval of In an emergency situation, the department, for those taxpayers that are required to make electronic payments whenever the amount due is has the discretion to allow a taxpayer with a tax liability of $500,000 or greater, as stated in 15-1-802, MCA, the department will allow, in an emergency situation, fed wire fund transfers or paper bank drafts (checks) to submit payment in the form of a check, draft, or similar paper instrument.

(2)  An emergency situation is considered on a case-by-case basis and includes, but is not limited to, a natural disaster, hospitalization, physical illness, infirmity, or mental illness.

(3)  The department will consider a written request to submit payment in the form of a check, draft, or similar paper instrument when the request is supported by:

(a)  statement explaining the circumstances; and

(b)  documentation substantiating the circumstances.

(4)  Exception requests should be mailed, postage prepaid by U.S. Postal Service to:

 

Montana Department of Revenue

P.O. Box 5805

Helena, Montana 59604-5805

 

AUTH:  15-30-2620, MCA

IMP:  15-1-802, 15-30-2510, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.5.213 to inform taxpayers paying a liability of $500,000 or more what might constitute an emergency that would prohibit the taxpayer from paying the tax liability through an electronic funds transfer, and provide information on how to apply for such an exception.

 

4.  Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing.  Written data, views, or arguments may also be submitted to: Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-4375; or e-mail canderson@mt.gov and must be received no later than January 22, 2013.

 

5.  Cleo Anderson, Department of Revenue, Director's Office, has been designated to preside over and conduct the hearing.

 

6.  An electronic copy of this notice is available on the department's web site at www.revenue.mt.gov.  Select the "Laws and Rules" link in the left hand column, and click on the "Rules" link within to view the options under the "Current Rule Actions – Published Notices" heading.  The department strives to make the electronic copy of this notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered.  While the department also strives to keep its web site accessible at all times, in some instances it may be temporarily unavailable due to system maintenance or technical problems.

 

7.  The Department of Revenue maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notice regarding particular subject matter or matters.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  A written request may be mailed or delivered to the person in 4 above or faxed to the office at (406) 444-4375, or may be made by completing a request form at any rules hearing held by the Department of Revenue.

 

8.  The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

 

 

/s/ Cleo Anderson                            Dan R. Bucks

CLEO ANDERSON                         DAN R. BUCKS

Rule Reviewer                                 Director of Revenue

 

Certified to Secretary of State December 10, 2012

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                        

 

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