PT-AGR: Pass-Through Entity Owner Tax Agreement (Form PT-AGR) (Revision)

Who files this form

Form PT-AGR is for these pass-through entity owners who agree to file a Montana tax return and pay any applicable tax:

• Nonresident individuals, trusts or estates.
• Foreign C corporations that are not engaged in or doing business in Montana.
• Qualifying domestic second-tier pass-through entities.

A foreign C corporation doing business in Montana does not need this agreement and must file a corporate tax return.

A second-tier pass-through entity is an owner that is itself a pass-through entity. It must qualify as domestic to use this form. Its ownership must be entirely held, directly or indirectly, by the Montana-based owners described in the instructions. It must also provide direct and indirect owner information, establish that all its Montana-source income will be accounted for on Montana income tax returns filed by Montana-based taxpayers, and agree to report ownership changes.

Disregarded entities included on their owners’ Form PTE or CIT are not required to file Form PT-AGR.

What you'll need

Have the following information ready:

• The beginning and ending dates of the tax year covered by the agreement.
• The pass-through entity’s name, FEIN, mailing address, entity type, contact name and phone number.
• The owner’s or fiduciary’s name, mailing address, entity type, SSN or FEIN, and phone number.
• The required signature and date. For a foreign C corporation, also provide the signatory’s printed name and title.

For a domestic second-tier pass-through entity, complete page 2 with its entity type and FEIN. List all direct and indirect owners, including each owner’s name, address, entity type, SSN or FEIN, the FEIN of the entity in which the owner holds an interest, and ownership percentage. Make copies of page 2 if more space is needed.

How to file

Identify the tax year and complete Parts 1 and 2. To make an agreement, complete and sign Part 3. Complete page 2 if the owner is a domestic second-tier pass-through entity.

The pass-through entity can file electronically through Montana’s TransAction Portal, or mail Form PT-AGR to:

Montana Department of Revenue

Attn: Form PT-AGR

P.O. Box 5805

Helena, MT 59604-5805

File the form separately. Do not attach it to the owner’s tax return or Form PTE. An attached agreement will not be considered filed.

The entity does not need to file a new agreement each year. It must file currently effective agreements for new qualifying owners and retain other owners’ agreements as tax records.

Common mistakes

• Attaching the agreement to a tax return. It will not be considered filed if attached to the owner’s return or Form PTE.
• Leaving the agreement unsigned or undated. The agreement is not valid without the owner’s signature and date.
• Completing both Parts 3 and 4. Complete either the agreement in Part 3 or the revocation in Part 4, not both.
• Skipping required page 2 information. Domestic second-tier pass-through entities must complete page 2 and include all owners. Use copies of that page for extra space. Other formats are not accepted, and missing required information will result in denial of the waiver request.
• Using the form for a second-tier entity that does not qualify as domestic. The instructions say not to file Form PT-AGR for those owners.
• Failing to file returns or pay taxes as agreed. The department may notify the pass-through entity that the agreement is no longer effective.

Questions people ask

How long does the agreement last?

It applies to the tax year identified on the form and all following tax years until revoked.

What happens if an owner does not sign an agreement?

If the owner does not complete and sign the agreement or participate in the entity’s composite return, the pass-through entity must remit tax to the Department of Revenue on the owner’s behalf.

How do I revoke an agreement?

Complete Parts 1, 2 and 4 of a new Form PT-AGR. Also give the pass-through entity a copy of the revocation so it knows the agreement is no longer effective. To reinstate an agreement for a future tax year, file a new Form PT-AGR.

Where can I ask questions?

Call (406) 444-6900, or Montana Relay at 711 for the hearing impaired.

Official sources

• https://revenuefiles.mt.gov/files/Forms/Pass-Through_Entity_Owner_Tax_Agreement_Form_PT-AGR.pdf