Rule 42.17.605 - FILING REQUIREMENTS(1) The following forms are to be completed and filed in accordance with instructions provided by the department:(a) Form RW-1, Mineral Royalty Withholding Payment Voucher, must be filed quarterly unless the department establishes that the entity is exempt from the withholding requirements of 15-30-2538, MCA. A remitter may request to file a Form RW-1 on an accelerated basis. The remitter must receive approval from the department before remitting the withholding tax on a more frequent basis than quarterly; (b) A remitter who has no withholding to remit for a remittance period shall, on or before the due date, send a payment voucher showing that a zero amount is being remitted;(c) Form RW-3, Montana Annual Mineral Royalty Withholding Tax Reconciliation, must be filed on or before January 31 of each year. Form RW-3 must be accompanied by copies of each royalty owner's withholding statements on federal form 1099-MISC, Miscellaneous Income, or Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding;(d) On or before January 31 of each year, Form 1099-MISC, Miscellaneous Income, or Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, shall be furnished by the remitter to each person who has received royalties in each calendar year;(e) Each remitter that is exempt from withholding is still required to file the Form RW-3 with the department along with a copy of Form 1099-MISC, Miscellaneous Income, or Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, for every recipient of royalties. These reports are due on or before January 31 of each year; and(f) A substitute for Form 1099-MISC may be filed with the department provided it: (i) generally follows the guidelines in federal Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns; and (ii) reports all the information regarding Montana royalty payments as required in 15-30-2543, MCA, and the rules in this subchapter. (2) Electronic filing requirements for state purposes are the same as those mandated for federal purposes. (3) If a remitter does not withhold on a royalty interest owner who in the previous year met the exemption requirement in 15-30-2539, MCA, but exceeded that requirement in the current year, the department will not penalize the remitter for the lack of withholding in that current year. Mont. Admin. r. 42.17.605
AMD, 2015 MAR p. 27, Eff. 1/16/2015; AMD, 2018 MAR p. 853, Eff.4/28/2018AUTH: 15-30-2547, MCA; IMP: 15-30-2538, 15-30-2539, 15-30-2541, 15-30-2543, 15-30-2544, MCA