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

(a) file a composite return as provided in ARM 42.9.202 and include the nonresident individual in the filing;

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

(c) remit an amount on the individual's account, determined as provided in (4), with the Pass-through Entity Information Return, forms CLT-4S or PR-1; and

(d) provide form PT-WH or Montana Schedule K-1 to the nonresident individual setting forth the amount of withholding remitted to the department which can be used as a withholding payment against the tax liability of the nonresident individual upon filing a form 2, Montana income tax return.

(2) A disregarded entity with one or more nonresident individual owners, during any part of a tax year for which an information return is required by this chapter, must for each nonresident individual:

(a) obtain from the nonresident individual and file with its information return the pass-through entity owner tax agreement to timely file a Montana individual income tax return, to timely pay tax due, and to be subject to the state's tax collection jurisdiction on form PT-AGR, Montana Pass-through Entity Owner Agreement; or

(b) remit an amount on the individual's account, determined as provided in (4), with form DER-1, Disregarded Entity Information Return; and

(c) provide form PT-WH or Montana Schedule K-1 to the nonresident individual setting forth the amount of withholding remitted to the department which can be used as a withholding payment against the tax liability of the nonresident individual upon filing a form 2, Montana income tax return.

(3) The pass-through entity is not required to attach new agreements each year, but must attach a currently effective agreement for each new nonresident individual owner.

(4) The amount that must be remitted by the due date described in (5) is the highest marginal rate in effect under 15-30-2103, MCA, multiplied by the share of Montana source income of the nonresident individual reflected on the pass-through entity's information return.

(5) The due date for the remittance described in (1)(c) and (2)(b) is the due date of the entity's information return.

(6) A publicly traded partnership as defined in section 7704(b) of the IRC, that is treated as a partnership for federal purposes, is exempt from the requirements in (1) for tax years beginning after December 31, 2008, if certain information is provided to the department. This information includes the name, address, taxpayer identification number, and Montana source income of each partner that had an interest in the partnership during the tax year. This information must be provided in an electronic format approved by the department.