BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 42.17.101, 42.17.103, 42.17.105, 42.17.111, 42.17.113, 42.17.114, 42.17.120, 42.17.122, 42.17.131, 42.17.133, 42.17.134, 42.17.135, 42.17.304, 42.17.305, 42.17.306, 42.17.308, 42.17.309, 42.17.310, 42.17.311, 42.17.312, 42.17.313, 42.17.314, 42.17.315, 42.17.316, 42.17.317, 42.17.601, 42.17.602, 42.17.603, 42.17.604, 42.17.605 and repeal of ARM 42.17.136, 42.17.137, and 42.17.138 relating to withholding taxes

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NOTICE OF AMENDMENT AND REPEAL

 

TO:  All Concerned Persons

 

1.  On October 29, 2009, the department published MAR Notice No. 42-2-812 regarding the proposed amendment and repeal of the above-stated rules at page 1912 of the 2009 Montana Administrative Register, issue no. 20.

 

2.  A public hearing was held on November 24, 2009, to consider the proposed amendment and repeal.  No one appeared at the hearing to testify.  Written testimony was received subsequent to the hearing and is summarized as follows along with the response of the department:

 

COMMENT NO. 1:  Mr. Terry Hilgendorf, President of the Montana Land Title Association, stated a concern with ARM 42.17.122 as it doesn't appear to be consistent with the Internal Revenue Service (IRS) regulations guiding when 1099s are to be filed.  The proposed rule change refers only to "conform to specification" which appears to mean the technical specification when transmitting the information.  Montana Land Title Association is concerned that the omission excludes the provision to follow the IRS timetable, which allows for electronic filing of 1099s as late as March 31st, or later as approved by extension.

Without that additional language, title agents have to file their 1099s by February 28th, rather than March 31st, which the IRS allows.  Montana Land Title Association had understood that the department recommends and was willing to follow the IRS guidelines.

Ms. Mary Whittinghill, President of the Montana Taxpayers Association, provided written comment in support of the comments provided by the Montana Land Title Association as stated above.

 

RESPONSE NO. 1:  The department appreciates the comments submitted by the Montana Land Title Association and the Montana Taxpayers Association, and amends ARM 42.17.122 as shown below to address this concern. 

 

3.  As a result of the comments received the department amends ARM 42.17.122 with the following changes:

 

42.17.122   RETURNS OF INFORMATION AGENTS  (1)  Federal form 1099s, U.S. Information Returns are required to be filed for certain dividends, interest in excess of $10, royalties, payments to retirement plans, rents, salaries, wages, prizes, awards, annuities, pensions, and real estate transactions as specified in 15-30-2616, MCA.  Federal form 1099s may be filed on paper documents, or electronically.  They are due on or before February 28 following the close of the calendar year with respect to which the payments made are being reported The dates for filing the information returns with the department are the same as the due dates for filing the corresponding federal return.  The returns are to be filed with:

Montana Department of Revenue

P.O. Box 5835

Helena, Montana 59604-5835.

(2) and (3) remain as proposed.

 

AUTH: 15-30-2620, MCA

IMP: 15-30-2616, MCA

 

4.  The department amends ARM 42.17.122 with the amendments shown above and amends ARM 42.17.101, 42.17.103, 42.17.105, 42.17.111, 42.17.113, 42.17.114, 42.17.120, 42.17.131, 42.17.133, 42.17.134, 42.17.135, 42.17.304, 42.17.305, 42.17.306, 42.17.308, 42.17.309, 42.17.310, 42.17.311, 42.17.312, 42.17.313, 42.17.314, 42.17.315, 42.17.316, 42.17.317, 42.17.601, 42.17.602, 42.17.603, 42.17.604, and 42.17.605, and repeals ARM 42.17.136, 42.17.137, and 42.17.138 as proposed.

 

5.  An electronic copy of this Adoption Notice is available through the department's site on the World Wide Web at www.mt.gov/revenue, under "for your reference"; "DOR administrative rules"; and "upcoming events and proposed rule changes."  The department strives to make the electronic copy of this Adoption 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.  In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

 

/s/ Cleo Anderson                                         Dan R. Bucks

CLEO ANDERSON                                      DAN R. BUCKS

Rule Reviewer                                               Director of Revenue

 

Certified to Secretary of State January 4, 2010