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(1) The department may write-off any tax, penalty, or interest, when the department determines it is no longer cost effective to attempt further collection. The reason for the write-off must be documented in either the system notes or the hard file.

(2) The department's decision to write-off collection of accounts is based on the following:

(a) the department's inability to locate delinquent taxpayers to properly provide notification of assessments or the taxpayer's right to a hearing;

(b) the department's inability to reduce the assessment to a judgment lien by filing a warrant for distraint within a reasonable time;

(c) the anticipated cost of collection significantly exceeds the projected amount of recovery in accordance with existing department collection policies;

(d) the time period for collection provided by law has expired; or

(e) the taxpayer is deceased and the department is unable to locate either an estate or pending probate, or any property or other assets vested in the taxpayer's name.

(3) Unpaid tax obligations are not forgiven and are still payable after the department writes off the obligation and discontinues collection efforts. The department will not actively incur further expense to attempt collection on these obligations, but may resume active collection of an account if:

(a) the time period for collection of the assessment or a filed warrant for distraint has not expired; and

(b) the department receives information which significantly changes the original basis for write-off.

(4) The financial condition of a delinquent taxpayer is not considered for write-off of an obligation unless one or more of the elements set forth in (2) is present, or unless a properly completed closing agreement has been authorized.

(5) Upon the final decision of a United States bankruptcy court, barring further collection of a debt, the department shall write off the obligation and permanently discontinue collection of any tax, penalty, or interest.


History: 15-70-105, MCA; IMP, 15-70-105, MCA; NEW, 2016 MAR p. 1849, Eff. 10/15/16.

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