Text/HTML

Contact Information


Voluntary Disclosure Program

Mailing Address:

Voluntary Disclosure Program
P.O. Box 5805
125 North Roberts
Helena, Montana 59604-5805

By Phone

(406) 444-6900

By Fax

(406) 444-2900

National Nexus Program

Mailing Address:

National Nexus Program
Multistate Tax Commission
444 North Capitol St., Suite 425
Washington, D.C. 20001-1538

 

By Phone

(202) 508-3800

By Fax

(202) 624-8819

Multi-state Voluntary Disclosure allows a tax non-filer with potential liability in multiple U.S. states (including the District of Columbia) to negotiate a settlement agreement regarding back liability on favorable terms through a single point of contact and a single, uniform procedure. To Apply:

Multistate States Tax Commission's Voluntary Disclosure application

 

 


 Text/HTML

Violation of the Agreement


The Voluntary Disclosure Agreement can be voided by the Department if the qualified entity or individual:

- misrepresents material facts relevant to the agreement;

- fails to file returns or pay taxes and statutory interest for the lookback period within the time specified in the agreement;

- reneges on an installment payment arrangement; or

- fails to continue to comply with Montana tax law.


 Text/HTML

Executing the Voluntary Disclosure Agreement


When the terms of the agreement have been established, the Department will forward the agreement to the taxpayer or their representative. The taxpayer will have 45 days to execute the agreement and an additional 15 days to submit the executed agreement to the Department. The taxpayer will remain anonymous until the signed agreement is returned to the Department.

The taxpayer will then have 90 days to register with the Secretary of State (if applicable), submit the tax returns, and pay the tax. Upon receipt, the Department will issue a bill to the taxpayer for interest owed at the statutory rate. If the taxpayer is a partnership that has 100 or more partners, the partnership is required to e-file returns for tax years beginning after December 31, 2013.    

If an offer is denied, a letter will be sent to the taxpayer or their representative.


 Text/HTML

Voluntary Disclosure Application Process


The Department will accept telephone inquiries about the program; however, formal requests to participate in the program must be in writing and must contain the following information:

If an Entity: If an Individual:

- identify entity type that is applying for participation, i.e. C   corporation, S corporation, LLC, etc.

- a full and accurate statement of the individual's activities in     Montana for five immediately preceding filing periods; 

- a full and accurate statement of the entity's activities   everywhere for five immediately preceding filing periods; 

- the addresses at which the individual has resided for the       five immediately preceding filing periods;

- a full and accurate statement of the entity's activities in   Montana for five immediately preceding filing periods;

- the number of years the individual maintained a place of   abode in Montana;

- the number of years the entity has been doing business in     Montana;

- the type of tax or taxes for which the individual is requesting   an agreement for voluntary disclosure;

- the type of tax or taxes for which the entity is requesting     an agreement for voluntary disclosure;

- an explanation for the failure to file Montana returns and   pay taxes;

- an explanation for the failure to register with the Secretary of   State;

- proposed voluntary disclosure agreement terms; and

- an explanation for the failure to file Montana returns and pay   taxes;

- an estimate of the tax liability for the lookback period. 

- proposed voluntary disclosure agreement terms; and

 

- an estimate of the tax liability for the lookback period.

 

An application will not be considered until a full written disclosure has been made setting out all pertinent facts and circumstances concerning the information required by the Department. Based on the information submitted, the application will be approved or rejected or a counter proposal will be made. The Department will offer a draft agreement for review and approval by the taxpayer or their representative.

Company representatives may preserve confidentiality by not revealing the name of the company or any information that could readily identify the company to the Voluntary Disclosure Program staff until the agreement is finalized.


 Text/HTML

Qualifying for Voluntary Disclosure Program


Do I Qualify for the Voluntary Disclosure Program?

Each voluntary disclosure request is considered separately on its own facts and circumstances. Before the Department will consider a request, an entity or individual must meet all of the following criteria:

1. Has not filed a return for the tax type covered by the agreement within the last five years;

2. Has had no previous contact by the Department or its agencies, including the Multistate Tax Commission, regarding a tax covered by the agreement, including, but not limited to, notification of audit, review, assessment, request for information, letter from the Department following a foreign company’s registration with the Montana Secretary of State, or a letter from the Department following a domestic company’s formation by filing documents with the Montana Secretary of State;

3. Has had no notification of an impending audit by the Department or its agencies, including the Multistate Tax Commission;

4. Has voluntarily come forward and made an application for a VDA;

5. Agrees to file returns specified in the agreement and pay all the taxes and statutory interest for the entire lookback period within the time period and manner specified in the agreement without further action by the Department;

6. Agrees to register with the Montana Secretary of State, file returns, and pay all taxes for periods after the lookback period without further action by the Department; and

7. Has not been a party to any criminal investigation or pending civil or criminal litigation for nonpayment, delinquency, or fraud in relation to any tax due.


 Text/HTML

Voluntary Disclosure Program


The Montana Department of Revenue encourages businesses and individuals that are not in compliance with Montana tax laws to voluntarily come forward to register and pay prior tax obligations. The Department’s Voluntary Disclosure Program is designed to help resolve prior tax liabilities. This applies to any tax administered by the Department and to any type of domestic or foreign taxpayer who is subject to tax in Montana.

The Voluntary Disclosure Program allows qualified entities and individuals to disclose their tax liabilities voluntarily and settle their tax obligations in a Voluntary Disclosure Agreement (VDA). Qualified entities and individuals that choose to participate in the Voluntary Disclosure Program are required to disclose their Montana tax liabilities and file returns for the immediately preceding five taxable years.

Impacted taxpayers may contact the Montana Department of Revenue directly or use the services of the Multistate Tax Commission’s National Nexus Program. The Department encourages those entities engaged in multistate activities to use the services of the National Nexus Program to come into compliance in multiple jurisdictions in which returns should have been filed. The National Nexus Program offers a single point of contact and substantially uniform procedures. Information regarding the National Nexus Program can be found at www.mtc.gov.

NOTES:

- Interest will be assessed on the tax liability due for each period covered under the agreement.

- The Department will waive all penalties for periods covered under the agreement.

- The Department has a five year disclosure, or lookback, period to allow qualified entities and individuals to come into compliance   with the State of Montana filing requirements.