Montana Taxing Information
Execution of Warrant
Upon the issuance of a warrant, the State may execute upon it with the same authority as a court judgment. This means that the State may levy any real or personal property, including earnings. Such a levy remains in effect for a set length of time or until the liability is resolved, whichever comes first.
If the period for appeals has passed, the State may intercept any tax refunds or state-issued wages due to a taxpayer, and apply them directly to that taxpayer’s liability.
If you are unable to pay your initial tax bill in full, you may be able to arrange a payment agreement with the Department of Revenue. Any additions to your liability, such as penalties and interest, will still accumulate on whatever portion of your bill remains unpaid. As the State is concerned with protecting its interests, you may be required to comply with a range of conditions, based upon your ability to pay and the amount that you owe.
Failure to pay or otherwise address your taxes on time may result in additions to your total liability in the form of penalties. Penalty amounts vary according to circumstance and the type of tax they are associated with.
If you can prove reasonable cause for your failure to pay your taxes on time, you may qualify to have penalties waived.
Priority One: Stopping Aggressive Enforced Collections
While you may represent yourself before the Department of Revenue, you may authorize someone else to do so in your stead. However, the State Tax Appeal Board and District Court require that you either represent yourself or have an attorney represent you. In order to authorize one or more individuals to represent you, you must complete the appropriate documentation.
If you disagree with a decision made by the Department of Revenue, including notices of assessment or proposed disallowance, you may file an appeal. It is important to note that any penalties and interest will continue to accrue during the appeals process. Appeals begin with an informal review from the Business and Income Taxes Division, and can continue upward in terms of formality and requirements if you continue to be dissatisfied with the outcome.
Warrant for Distraint (Lien)
If you fail to address a tax by its due date, and fail to address any subsequent notices from the State, a warrant for distraint may be issued. Also known as a lien, it is an order for a sheriff or other authorized agent to levy and sell your real or personal property as a means of resolving your liability.