Frequently Asked Questions about Corporation Tax
How do I obtain an extension of time to file my corporate tax return?
Your corporation is given an automatic extension of time of six months beyond the original due date to file the return. You are not required to file any form to get this six-month extension. However, please note that interest does accrue from the original due date of the return up until the date the tax is paid. If you wish to avoid any the accrual of interest, you can submit a tentative payment on or before the original due date of the return.
The tentative payment must be submitted with the form CT (Estimated Tax Coupon). A coupon is included in the Montana Corporation License Tax return booklet or one may be requested from the department. Please include on the coupon the following: a notation that the payment is attributable to Montana Corporation License Tax, the Federal Employers Identification Number (FEIN) and the tax year for which the payment is to be applied.
Do I file a return if my corporation had no activity in the state during the year?
Yes, a Montana Corporation License Tax return must be filed. However, if the corporation had no property, payroll and sales in the state, please state so on the front of the tax return and have it signed by an officer of the corporation. The minimum tax is not due if there was no business activity conducted in Montana during the taxable period.
What are the net operating loss carryback and carryforward provisions?
Unless an election is made to forego the net operating loss carryback, the net operating loss must be carried back three (3) years and is available to be carried forward for seven (7) years. This differs from the federal provisions whereas the net operating loss can only be carried back two (2) years and is available for carryforward for twenty (20) years.
How do I obtain a "tax clearance certificate" for the purpose of withdrawing or dissolving my corporation?
A written request for a "tax clearance certificate" along with the corporation's name and Federal Employers Identification Number (FEIN) must be submitted to the Department of Revenue. Once your request is received, you will be informed of any additional information you will need to submit. In order to expedite your request you will want to check your records to see that all tax returns up to the date of withdrawal or dissolution have been filed and all taxes have been paid. Send requests to:
Montana Department of Revenue
P.O. Box 5805
Helena, MT 59604-5805
How do I get my corporation back into good standing with the Secretary of State's office?
A written request for a "Title 15 Certificate" along with the corporation's name and Federal Employers Identification Number (FEIN) must be submitted to the Department of Revenue. Your corporation must be current in filing their corporate tax returns and have no outstanding corporation tax owing. Send requests to:
Montana Department of Revenue
P.O. Box 5805
Helena, MT 59604-5805
My corporation has gone out of business. What do I need to do for your department?
You will need to file all corporation tax returns up to the date your corporation went out of business. The last return filed should be clearly marked "Final". Any tax, interest or penalties should be paid at the time your return(s) are filed.
How do I obtain a tax-exempt status with the State of Montana?
You will need to provide the department with a copy of the corporation's articles of incorporation, a copy of the by-laws, and copies of the latest financial statements. You will also need to include and affidavit showing the character of the organization, the purpose for which it was organized, its actual activities, the source and disposition of its income, and whether or not any of its income may inure to the benefit of any private shareholder or individual. In addition, if the Internal Revenue Service has granted the organization exemption from the federal income tax, a certified copy of the exemption certificate or letter should be filed. The department will review this information and will determine whether the corporation's activities are exempt under Section 15-31-102, Montana Code Annotated.
