Montana State Tax Enforcement Decision Checklist

• If tax is not paid within 30 days of the due date, the Department may issue a notice

stating that a warrant may be issued if payment is not received within 30 days of that notice date.

• Thirty days after the notice date, the Department may issue the warrant if payment is not

received.

What Happens If This Is Ignored

Ignoring enforcement notices typically results in escalation to more serious collection tools. The state may file a warrant for distraint that creates a lien on property, garnish wages through a notice of levy, levy bank accounts, or offset state payments such as tax refunds.

Multiple enforcement actions may occur simultaneously under the warrant authority.

Enforcement costs increase because additional interest and penalties continue to accrue on the unpaid balance.

What This Does NOT Mean

Enforcement does not automatically mean the state has won a judgment against the taxpayer in court, though it may pursue that option later. Criminal charges have not been filed, and jail time is not likely for owing taxes.

Opportunities to challenge the assessment typically remain available through the hearing and appeal process. All assets will not be seized immediately; enforcement is usually staged, beginning with notice and escalating if a payment arrangement is not made.

Steps to Take After Receiving an Enforcement Notice

• Look for the type of action by identifying whether the notice describes a warrant for
• Identify the tax period or year the debt relates to by reviewing the notice for specific
• Note any deadline mentioned in the notice for response because missing this date may
• Locate the amount owed, including penalties and interest, to understand the total
• Find contact information for the Montana Department of Revenue so you can reach out

1. Step 1: Identify the Specific Enforcement Action

   Read the entire notice carefully to understand what is happening: distraint, notice of levy, lien notice, wage garnishment notice, or account offset notice. dates and filing periods. eliminate your opportunity to challenge the action. balance the state claims you must pay. to discuss your situation and available options.

2. Step 2: Verify the Debt and Tax Assessment

   Confirm the debt details are correct before responding by reviewing your own tax records for the year in question and comparing the amount stated in the enforcement notice to any prior notices received. Check whether you filed a return for that tax year and what was reported. Determine whether the assessment appears accurate or if errors may exist. Keep copies of any documentation you have related to the tax period.

• Call (406) 444-6900 or visit the official website at revenue.mt.gov to initiate contact with
• Have your notice, Social Security Number, or business ID, and basic financial
• Explain your circumstances clearly and listen to what options the Department describes
• Ask about installment agreements, payment plans, or hardship provisions if payment in
• Request written confirmation of any arrangement discussed to create a permanent
• Document the date, time, and name of the person you speak with so you have accurate

3. Step 3: Contact the Montana Department of Revenue

   Reach out to the Department to discuss your situation and options: the Montana Department of Revenue. information ready before you call or visit to ensure the conversation is productive. so you understand all available pathways to resolution. full is not possible because the Department may offer alternatives. record of the agreement terms. records if questions arise later.

4. Step 4: Request a Hearing if You Dispute the Debt

   If the assessment itself is wrong or you believe enforcement was issued in error, request a hearing. Look for instructions in the enforcement notice about how to request a hearing and submit a written request within the timeframe specified.

   Clearly state which part of the assessment or enforcement action you dispute. Provide supporting documentation such as receipts, returns, calculations, or correspondence. Keep copies of everything submitted to the Department.

5. Step 5: Respond in Writing to the Notice

   Create a written record of your response and actions taken by sending correspondence to the address listed in the enforcement notice. Include your name, Social Security Number or business ID, and the tax period.

   State what you are doing: making a payment, requesting a payment plan, disputing the debt, or requesting a hearing. Include any supporting documentation relevant to your response and use certified mail or email if the Department accepts it. Keep a copy for your records.

• Ignoring the notice entirely: Continuing to ignore enforcement typically accelerates
• Missing response deadlines: If the enforcement notice includes a deadline for dispute
• Sending payment to an incorrect address: Make sure the payment is sent directly to
• Assuming the debt will go away if ignored: Unpaid tax debts continue to accrue
• Not keeping records of communications: Documentation of what you discussed,
• State enforcement actions and notices
• Payroll tax debt review and resolution
• Penalty and interest reduction options
• Payment plans and compliance solutions
• Representation before state tax agencies

6. Step 6: Follow Up on Any Agreement Reached

   If an arrangement was made, ensure it is being honored on both sides. Confirm the terms in writing by requesting a copy of the payment plan or agreement.

   Make payments on the exact schedule agreed to because late payments may trigger additional enforcement. Monitor your bank account and paychecks to watch for wage garnishment or levies. Contact the Department immediately if you cannot make a scheduled payment.

   What Happens After This Is Completed

   After you respond to enforcement, the Montana Department of Revenue typically reviews your response and situation. If an agreement, such as a payment plan, is reached, the state usually suspends immediate enforcement action while the plan remains current.

   Requesting a hearing to dispute the assessment prompts the state to schedule the hearing and notify you of the date and time. Specific appeal timelines are established by statute: appeals to the State Tax Appeal Board must be filed within 30 days of receipt of the final department decision.

   Common Mistakes to Avoid escalation and makes the situation more difficult to resolve. or response, missing that date may eliminate opportunities to challenge the action. the Montana Department of Revenue at the address specified in the notice

   . interest and penalties, and enforcement typically becomes more severe over time. when, and with whom becomes important if disputes arise later.

   Frequently Asked Questions

   Can I lose my job because of wage garnishment?

   Montana Code Annotated 39-2-302 states without qualification: “No employer shall discharge or lay off an employee because of attachment or garnishment served on the employer against the wages of the employee.”

   If I set up a payment plan, does enforcement stop?

   Typically, yes. If an agreement is reached and honored, active enforcement, such as levies or garnishments, usually ceases while the plan remains current.

   Can I get penalties and interest removed?

   The Montana Department of Revenue may waive penalties for reasonable cause at its discretion under Montana Code Annotated 15-1-206. Interest waiver is more restricted: the

   Department may waive interest only if it also waives the penalty for which the interest accrued.

   Will enforcement affect my credit?

   Tax liens were removed from consumer credit reports by major credit bureaus in 2017. A warrant for distraint filed in district court creates a public record lien that appears in property records but does not directly appear on consumer credit reports.

   Responding to Montana State Tax Enforcement

   State enforcement is serious, but it is manageable with prompt action. Enforcement represents a formal collection action under Montana’s warrant for distraint authority, not a criminal matter or a sign that the situation is hopeless.

   Reading the notice carefully, understanding what it means, and responding promptly are the most important steps. The Montana Department of Revenue is typically willing to work with taxpayers to establish payment plans or discuss legitimate disputes.

   Facing State Enforcement or Payroll Tax Issues?

   If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.

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