Large Case Delinquent Taxpayer List
Overview
This is a list of 219 individuals and businesses owing the greatest tax debts to the State of Montana.
The list:
- contains only tax debts of $20,000 or more.
- does not include any unpaid taxes owed to local governments.
- is current as of August 8, 2008. The amounts change daily thereafter, based on additional interest and penalty.
- reports delinquent taxpayers who owe a total tax debt of $10.9 million.
- contains no taxpayer accounts that are participating in a department-approved payment plan. Also removed from the list were any taxpayer accounts in appeal, litigation or bankruptcy.
Highlights
Montana residents and businesses owe about $7.9 million of the taxes on this list. Out-of-state taxpayers owe just over $3 million.
93% of the taxes owed--about $10.3 million--are related to individual income tax, either owed by individuals (76%) or by employers through income tax withholding (17%). However, the individual income tax debts include estimated assessments for taxpayers who do not cooperate in providing information. Often, those debts are subsequently reduced when taxpayers finally provide information.
Other tax types owed were corporation license and lodging facilities use taxes.
About 22% of the taxes owed are "trust" taxes that businesses collect from others on behalf of the State of Montana. Businesses are required to report and remit these tax revenues to the state on a regular basis. Examples are the use tax that lodging facilities collect from their guests and the individual income tax that employers withhold from their employees' paychecks.
Action Items
The Department of Revenue is taking these actions to resolve large case taxpayer delinquencies:
- Shifting the departments priorities to focus more on high value debts.
- Filing court actions, which may include requiring the taxpayer to appear in court to explain the nature of the delinquency and to disclose personal and/or business financial information.
- Hiring special investigators who will actively seek hidden taxpayer assets.
- Hiring outside counsel as needed to pursue legal action.
- Utilizing the capabilities of the department's new Integrated Revenue Information System (IRIS) to improve collection efficiency.
- Analyzing special problem areas and developing action plans, such as placing an increased emphasis on compliance for the lodging facility tax.
- Considering legislative proposals for improved collection tools.
- Increasing public awareness of large case taxpayer delinquencies, by providing information to the media and posting information on this website.
