Amended Returns
Individual Income Taxes
You are required to file an amended Montana tax return when information on your original return was reported incorrectly or to report changes made to your federal income tax return, including changes made by the Internal Revenue Service.
Statute of Limitations
You have 5 years from the original due date of the tax return to file an amended Montana income tax return and to correct any error(s) on your previous return.
Instructions
- You need to complete a new Montana individual income tax return that reflects the corrections that you are making to your previously filed return. For example, if you are amending 2006 tax year, use the 2006 income tax forms and complete a new tax return using the corrected information. Check the "Amended Return" box found in the upper left hand corner of the form. Attach copies of all schedules submitted with the original filing, even if none of the amounts previously reported have changed, and all new schedules that you are submitting for the first time.
- Montana Form AMD is available to assist you in reconciling the adjustments on your Montana amended tax return with your original tax return, regardless of whether the original return was filed electronically or on paper. Although not required, we suggest that you complete and attach the Form AMD, or a similar reconciliation form outlining the changes, to your corrected tax return.
- When filing multiple tax returns, please file the amended return separately from other returns.
- You will receive a statement of account if you owe any additional tax, penalties or interest.
- Late payment penalty and interest are assessed on any unpaid tax from the prescribed due date of the original return until the tax is paid. See “Late Payment Penalty and Interest” below.
- If your amended return results in a refund, a check will be mailed to you at the address included on the tax return.
Specific Tax Year Information
- The “Amended Return” box is not included on tax returns prior to tax year 2005. Instead, clearly write the words "Amended Return" on top of the first page of the return.
- Please note that Forms 2M and 2EZ cannot be used to amend years prior to tax year 2006. Also Form 2S cannot be used for tax years after 2005. Prior year tax forms
- For tax years after 2006, please check the "NOL" box in the upper left hand corner of Form 2 if you are amending your tax return to carry back a net operating loss. This option is not available on earlier tax returns so we encourage you to check this box on the Form AMD and attach it to your tax return.
Other Notes
- If you are amending a return for married individuals who filed “married filing separately on the same form,” complete a separate Form AMD for each spouse.
- If you itemized deductions, you should recalculate to see if your income changes affect the limitations for medical expenses and miscellaneous itemized deductions.
- An adjustment to income could also change the amount of your taxable social security benefits or the amount of the partial pension and annuity income exemption, or the standard deduction.
- If amending to change your filing status from joint to married filing separately on the same form or on separate forms, attach a detailed breakdown showing the allocation of income and deductions between spouses.
Internal Revenue Service Changes on Tax Returns
If the Internal Revenue Service changes your federal taxable income or if you voluntarily change your federal taxable income, you are required to file an amended Montana income tax return within 90 days of receiving notification of the change from the IRS or when you have filed your amended federal income tax return.
If you do not notify us within 90 days of the change to your federal taxable income, we have five years from the date that the changes become final on your federal return to adjust your Montana income tax return to reflect the changes made on your federal income tax return.
Late Payment Penalty and Interest
Interest is calculated from the original due date of the return being amended to the date of payment. Effective January 1, 2007, the interest rate for all unpaid individual income taxes changed from 12% annually to 8% annually. If you do not pay the full amount due with your amended return, we will send you a statement of account with penalties and interest computed to the due date of the notice.
If you file an amended return that reflects an increased tax liability, you may have the late payment penalty waived provided that you pay the tax and applicable interest in full. Simply check the “Amended Return” box on the tax return (write “Amended Return” on the face of your tax return for tax years prior to 2005). By doing so, you are requesting a waiver of the late payment penalty.
Interest is attached to overpayments of taxes at the same rate as charged on delinquent taxes.
Interest is not paid on a refund which results from a net operating loss carryback or carryforward, or a credit such as Form 2EC, Elderly Homeowner/Renter Credit.
Corporation License Taxes
Statute of Limitations
For years beginning on or after March 13, 1997, a refund or credit for any tax return that you file within three years of its original due date can be allowed without regard to an extension of time to file.
Form to Use
Use Form CLT-4 to amend your original Form CLT-4 corporation license tax return.
Special Instructions
Indicate at the top of the form that this represents an amended filing and check the box that indicates the reason(s) why you are amending your tax return. Please attach the applicable forms and statements that can explain in detail all of your adjustments. Complete the entire form using the corrected amounts.
Penalties and Interest
If you file an amended return that reflects an increased tax liability, you may not be required to pay the late payment penalty. We may waive the late payment penalty if you check the “Amended Return” box on the top left-hand corner of the tax form and pay the tax and applicable interest in full. By checking this box, you are requesting a waiver of the late payment penalty.
Interest is computed on overpayments of tax or additional tax due at the rate of 12% per year. Interest is not paid on a refund that results from a net operating loss carryback or carryforward.
S Corporation Return
Statute of Limitations
If you discover that your income tax return was incorrect, you have five years from the due date of the original tax return to file an amended Montana S corporation tax return and to correct any mistake on your previous tax return.
Form to Use
Use Form CLT-4S to amend your original Form CLT-4S tax return.
Special Instructions
Check the box at the top of the form that this represents an amended filing and check one or more of the boxes below indicating the reason(s) for amending your tax return. Attach the applicable forms and statements that will explain all of your adjustments in detail. Complete the entire Form CLT-4S and its applicable schedules using the corrected amounts. If your amended tax return results in a change to income or a change in the distribution of any income or other information provided to any shareholder, you will also need to file an amended federal Schedule K-1 along with your amended Form CLT-4S. You will need to give a copy of the amended tax return to each shareholder.
Internal Revenue Service Changes on Tax Returns
If the Internal Revenue Service changes or makes corrections to your federal Form 1120S or if your S corporation amends its federal tax return, you must file an amended Form CLT-4S within 90 days of receiving the Internal Revenue Service’s notification of the corrections made to your federal Form 1120S or filing your amended federal tax return.
Penalties and Interest
If you file an amended tax return that reflects an increased tax liability, you may have the late payment penalty waived. In order to request the waiver, simply check the “Amended Return” box on the tax form and pay the tax and applicable interest in full. By checking this box, you are requesting a waiver of the late payment penalty.
Partnership Return
Statute of Limitations
If you discover that your income tax return was incorrect, you have five years from the due date of the original tax return to file an amended Montana partnership tax return and to correct any mistake on your previous tax return.
Form to Use
Use Form PR-1 to amend your original Form PR-1 tax return.
Special Instructions
Check the box at the top of the tax return that this represents an amended filing and check one or more of the boxes below indicating the reason(s) for amending your tax return. Attach the applicable forms and statements that will explain all of your adjustments in detail. Complete the entire Form PR-1 and its applicable schedules using the corrected amounts. If your amended tax return results in a change to income or a change in the distribution of any income or other information provided to any partner, you will also need to file an amended federal Schedule K-1 along with your amended Form PR-1. You will need to give a copy of the amended tax return to each partner.
Internal Revenue Service Changes on Tax Returns
If the Internal Revenue Service changes or makes corrections to your federal Form 1065 or if your partnership amends its federal tax return, you must file an amended Form PR-1 within 90 days of receiving the Internal Revenue Service’s notification of the corrections made to your federal Form 1065 or filing your amended federal tax return.
Penalties and Interest
If you file an amended tax return that reflects an increased tax liability, you may have the late payment penalty waived. In order to request the waiver, simply check the “Amended Return” box on the tax form and pay the tax and applicable interest in full. By checking this box, you are requesting a waiver of the late payment penalty.
Estate and Trust Taxes
Statute of Limitations
If you discover that your income tax return was incorrect, you have five years from the due date of the original tax return to file an amended Montana fiduciary tax return and to correct any mistake on your previous tax return.
Form to Use
Use Form FID-3 to amend your original Form FID-3 estate and trust tax return.
Special Instructions
Check the box at the top of the form that this represents an amended filing. Attach the applicable forms and statements that will explain all of your adjustments in detail. Complete the entire Form FID-3 and its applicable schedules using the corrected amounts. If your amended tax return results in a change to income or a change in the distribution of income or other information provided to any beneficiary, you will also need to file an amended federal Schedule K-1 along with your amended Form FID-3. You will need to give a copy of the amended tax return to each beneficiary. If you are amending your tax return to carry back a net operating loss, please check the “NOL” box found on the upper left hand corner of Form FID-3.
Internal Revenue Service Changes on Tax Returns
If the Internal Revenue Service changes or makes corrections to your federal Form 1041 or if the estate or trust amends its federal tax return, you will need to amend your Form FID-3 within 90 days of receiving the Internal Revenue Service’s notification of the corrections made to your federal Form 1041 or filing your amended federal tax return.
Penalties and Interest
If you file an amended tax return that reflects an increased tax liability, you may have the late payment penalty waived. In order to receive the waiver, simply check the “Amended Return” box on the left-hand corner of the tax form and pay the tax and applicable interest in full. By checking this box, you are requesting a waiver of the late payment penalty.
