Does Montana Accept a Federal Extension?

Taxpayers often wonder if a federal income tax extension also satisfies state filing requirements. Montana has specific provisions for individual income tax extensions, particularly concerning their interaction with federal extensions.

Montana’s Automatic Extension Provision

Montana generally provides an automatic six-month extension for individual income tax returns. If a taxpayer needs additional time to file, the deadline for submitting the return moves from April 15 to October 15. This automatic extension does not require a separate application form if a federal extension (IRS Form 4868) has been filed and accepted.

This extension grants additional time to file the return, but not to pay any taxes owed. To avoid late payment penalties and interest, taxpayers must still pay any estimated tax liability by the original April 15 due date. Late payment penalties can accrue at 0.5% of the unpaid tax per month, up to a maximum of 12% of the unpaid tax, calculated daily from the original due date.

Situations Requiring a Separate Montana Extension

While Montana offers an automatic extension, a separate Montana extension might be necessary in specific circumstances. This includes situations where a federal extension was not filed, such as if the taxpayer does not have a federal filing requirement but still needs to file a Montana return. A separate Montana request may also be considered if an extension is needed beyond the standard six-month federal period.

A separate Montana extension is also used when making a payment with the extension, even if a federal extension was filed. Sending any payment due with an extension form ensures proper credit and helps avoid underpayment penalties. The Montana Department of Revenue may assess a late filing penalty, which is 5% of the unpaid tax per month, up to 25% of the unpaid tax, with a minimum penalty of $50.

Submitting a Montana Tax Extension

For situations requiring a separate Montana extension, taxpayers should use the Montana Individual Income Tax Payment Voucher (Form IT). This form is available on the Montana Department of Revenue website and requires taxpayer identification details and the tax year for which the extension is requested.

Any payment of estimated tax due should accompany the Form IT to avoid penalties and interest. Payments can be made electronically through the Montana TransAction Portal (TAP) using e-check or credit/debit card, or by mailing the completed Form IT along with a check or money order to the Montana Department of Revenue.