Require corporations to file electronic income tax returns
Impact
The potential impact of SB24 on state laws primarily centers around the digitization of tax filing processes. By mandating electronic submissions, it seeks to modernize tax administration in Montana, potentially increasing efficiency and reducing paperwork for both businesses and the state government. However, corporations with gross receipts of $750,000 or less are exempt from this requirement, which aims to reduce the burden on smaller businesses. Additionally, the bill allows for waivers in cases of hardship or technological challenges, indicating an effort to balance modern requirements with practical realities faced by some businesses.
Summary
Senate Bill 24 (SB24) aims to require corporations operating in Montana to file their corporate income tax returns electronically. The bill specifies that for income tax periods beginning after December 31, 2022, corporations must transmit their tax returns in an electronic format approved by the state’s Department of Revenue, along with related federal forms. This requirement is intended to streamline tax collection and improve compliance rates among corporations. The bill also grants rulemaking authority to the Department of Revenue to establish further details regarding the electronic filing process.
Sentiment
The sentiment surrounding SB24 is generally supportive from government officials who view electronic filing as a progressive step forward in tax administration. Proponents argue that this shift will ease tax processing and encourage more timely submissions, which can benefit state revenue. However, there are concerns among some business owners about the transition to mandatory electronic filing, especially regarding potential technological challenges and the ability to meet the requirements. Thus, while many see the bill as a positive progression, others express caution and a need for support during the transition.
Contention
Notable points of contention include the balance of compliance requirements against the administrative capabilities of smaller corporations. Critics fear that the push for electronic filing may disproportionately affect smaller businesses that may lack the resources or technology to comply effectively. The provision for waivers seeks to mitigate these concerns but raises questions about the implementation process and how accessible these waivers will be. The discourse around the bill highlights broader themes of modernization in government processes versus accessibility for all types of businesses.
Authorizes the secretary of the Dept. of Revenue to require the filing of electronic tax returns and the payment of taxes by electronic funds transfer (EN NO IMPACT See Note)
In personal income tax, further providing for imposition of tax, for when withholding not required, for returns and liability and for return of Pennsylvania S corporation.
Relating to appointment of and performance of notarial acts by an online notary public and online acknowledgment and proof of written instruments; authorizing a fee and creating a criminal offense.