(1) A partnership, S corporation, and disregarded entity with one or more foreign C corporation owners, during any part of a tax year for which an information return is required by this chapter, must for each foreign C corporation:

(a) file a composite return as provided in ARM 42.9.202 and include the foreign C corporation in the filing;

(b) obtain from the foreign C corporation and file with its information return the pass-through entity owner tax agreement to timely file a Montana corporate license tax or corporate income tax return, to timely pay tax due, and to be subject to the state's tax collection jurisdiction on the Montana pass-through entity owner tax agreement, Form PT-AGR (Montana Pass-through Entity Owner Tax Agreement) ; or

(c) remit an amount on the foreign C corporation's account, determined as provided in (3) , with the Pass-through Entity's Information Return, Forms CLT-4S, PR-1, or DER-1; and

(d) provide Form PT-WH to the foreign C corporation setting forth the amount of withholding remitted to the department of revenue which can be used as an estimated payment against the tax liability of the foreign C corporation upon filing a Montana corporation license tax return or income tax return.

(2) The pass-through entity is not required to attach new agreements each year, but must attach a currently effective agreement for each new foreign C corporation owner.

(3) The amount that must be remitted by the due date described in (4) is the tax rate in effect under 15-31-121 , MCA, multiplied by the foreign C corporation's share of Montana source income reflected on the pass-through entity's information return.

(4) The due date for the remittance described in (1) (c) is the due date of the entity's information return.