Revise laws related to extension of individual income tax statute of limitations
Impact
By enacting SB 64, Montana's tax law will include provisions that enhance the ability of taxpayers to navigate the complexities around income tax assessments. The bill effectively suspends the statute of limitations during certain periods, which could provide relief for taxpayers facing challenging circumstances that impact their ability to comply fully with tax obligations. Importantly, this extension applies both to the assessment process and to claims for refunds or credits, which can significantly impact the financial planning of residents and their interactions with state tax authorities.
Summary
Senate Bill 64, introduced by D. Zolnikov at the request of the Department of Revenue, provides a framework for extending the statute of limitations for individual income tax assessments in Montana. This bill amends Section 15-30-2606 of the Montana Code Annotated, allowing taxpayers to enter into written agreements that extend the time the Department of Revenue has to assess individual income tax. Such written agreements will be valid during periods where federal tax assessments are suspended, adding an extra layer of flexibility for both the taxpayers and the revenue department.
Sentiment
General sentiment surrounding SB 64 appears to be neutral to positive, primarily as it is seen as an effort to better accommodate taxpayers in Montana. Proponents argue that the bill is a necessary adjustment to address the complexities involved in tax assessments and ensure fairness during particularly volatile tax periods. The lack of substantial opposition in legislative records suggests that most stakeholders view this measure as a reasonable change rather than a controversial one.
Contention
While SB 64 seems to have garnered broad support, potential points of contention may arise regarding its implementation and the implications for tax revenue. Critics may question whether extended timeframes for filing and assessment could ultimately lead to confusion or disputes between the state and taxpayers. There may be concerns about the administrative burden this introduces for tax officials and whether similar provisions could invite inappropriate extensions that hinder timely tax collection. Nonetheless, the overall framing of the bill leans towards enhancing taxpayer rights without significant opposition.
Adapts new federal partnership audit regime under gross income tax, ends COVID-related State tax extensions, and eliminates requirement to affirmatively elect New Jersey S Corporation status.
Adapts new federal partnership audit regime under gross income tax, ends COVID-related State tax extensions, and eliminates requirement to affirmatively elect New Jersey S Corporation status.