BEFORE THE DEPARTMENT OF REVENUE
OF THE STATE OF MONTANA
In the matter of the amendment of ARM 42.17.101 and 42.17.204, relating to withholding taxes
TO: All Concerned Persons
1. On September 2, 2010, at 9:00 a.m., a public hearing will be held in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, at Helena, Montana, to consider the amendment of the above-stated rules.
Individuals planning to attend the hearing shall enter the building through the east doors of the Sam W. Mitchell Building, 125 North Roberts, Helena, Montana.
2. The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Revenue no later than 5:00 p.m., August 23, 2010, to advise us of the nature of the accommodation that you need. Please contact Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-4375; or e-mail firstname.lastname@example.org.
3. The rules proposed to be amended provide as follows, stricken matter interlined, new matter underlined:
42.17.101 DEFINITIONS The following terms pertain to this chapter:
(1) through (4) remain the same.
(5) "Lookback letter" means the letter sent to employers notifying them of their filing frequency for wage withholding.
(5) through (13) remain the same but are renumbered (6) through (14).
AUTH: 15-30-2547, 15-30-2620, MCA
IMP: 15-30-2501, 15-30-2538, MCA
REASONABLE NECESSITY: The department is proposing to amend ARM 42.17.101 to include a definition for the "lookback letter" as this term is included in several administrative rules and providing a definition will be beneficial to taxpayers.
42.17.204 REMITTANCE OF TAX BY EMPLOYERS (1) The remittance schedule is established annually by the department pursuant to 15-30-2504, MCA. On or before November 1 of each year, the department shall notify the employers of the employers' remittance schedules for the following calendar year based upon the department's review of the preceding lookback period. The lookback letter will not be sent to employers whose remittance frequency for the next calendar year remains the same.
(2) Every employer must report information to the department on an approved payment voucher
provided by the taxpayer or upon alternative remittance methods in conjunction with the department's electronic remittance program. The remittance schedule is established annually by the department pursuant to 15-30-2504, MCA. The department may request any information from the employer necessary for the collection of the tax.
(2) through (4) remain the same but are renumbered (3) through (5).
AUTH: 15-30-2620, MCA
IMP: 15-30-2504, MCA
REASONABLE NECESSITY: The department is proposing to amend ARM 42.17.204 to reflect a change in the lookback letter notification process. As proposed, lookback letters will only be sent to employers whose filing frequency will change for the next year, rather than to all employers. This change will reduce unnecessary mailing costs for the department which are ultimately paid for by taxpayers. Any additional communication to the employers that may have been sent with the lookback letter can be posted on the department's web site or with the Form MW-3 "Montana Annual Wage Withholding Tax Return", which is mailed to the employers every year.
4. Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing. Written data, views, or arguments may also be submitted to: Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-4375; or e-mail email@example.com and must be received no later than September 10, 2010.
5. Cleo Anderson, Department of Revenue, Director's Office, has been designated to preside over and conduct the hearing.
6. An electronic copy of this Notice of Public Hearing is available through the department's site on the World Wide Web at www.mt.gov/revenue, under "for your reference"; "DOR administrative rules"; and "upcoming events and proposed rule changes." The department strives to make the electronic copy of this Notice of Public Hearing conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.
7. The Department of Revenue maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding particular subject matter or matters. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the person in 4 above or faxed to the office at (406) 444-4375, or may be made by completing a request form at any rules hearing held by the Department of Revenue.
8. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
/s/ Cleo Anderson /s/ Dan R. Bucks
CLEO ANDERSON DAN R. BUCKS
Rule Reviewer Director of Revenue
Certified to Secretary of State August 2, 2010