Disregarded Entities in Montana

Filing Requirements

The following types of entities are considered disregarded entities in Montana.

Disregarded entity filing requirements depend on the disregarded entity’s owner.

Disregarded entities owned by a partnership are included on the partnership’s Form PTE, Schedules VII and DE.

Qualified subchapter S subsidiaries and any other disregarded entity owned by an S corporation are included on the S corporation’s Form PTE, Schedules VII and Schedule DE.

Disregarded entities owned by C corporations are included on the C corporation’s Form CIT, Schedule M.

A SMLLC that is treated as a disregarded entity and owned by a nonresident individual must file Form DE and attach it to the owner's individual income tax return (Form 2).

A Section 761 electing partnership is required to file a Montana return in the same manner it would file a federal return each year the entity does business in Montana or has Montana source income.

Any qualified REIT as defined in IRC § 856(i)(2) with Montana income and assets, liabilities, income, deductions, and credits included on its parent REIT's federal return must file Form CIT before its parent REIT's return due date.

Every unincorporated REMIC as defined in IRC § 860D with Montana income must file a Form CIT along with a copy of its federal Form 1066, Real Estate Mortgage Investment Conduit Income Tax Return, before the federal due date, including extensions.

Generally, REMICs must file the Form 1066 by April 15. However, if the entity files its final return, Form 1066 is due by the 15th day of the 4th month following the date the REMIC ceased to exist.