42.3.120    DEPARTMENT DETERMINATION FOR COST EFFECTIVENESS AND SUBSEQUENT ACCOUNT WRITE OFF

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

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

(a) the inability of the department to locate delinquent taxpayers in order to properly provide notification of assessments or their right to a hearing, within a reasonable time;

(b) the inability of the department to properly 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 taxpayers' name.

(3) Unpaid tax obligations, the collection of which is written off by the department are not forgiven and are still payable, but the department will not actively incur further expense to attempt collection on these obligations. However, the department 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 as set forth in (2).

(4) The financial condition of a delinquent taxpayer is not an area of consideration for write-off of collection 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 collection of any tax, penalty, or interest.

History: 15-1-201, MCA; IMP, 15-1-207, 15-1-216, MCA; NEW, 1992 MAR p. 1243, Eff. 6/12/92; AMD, 2007 MAR p. 509, Eff. 4/27/07.