Shame on Montana Department of Revenue!

Small business owner be aware of a new Montana Penalty and interest revenue tactic that I started to see this year. If you are a small business owner and sole wage earner in an S Corporation you will be targeted if you did not withhold taxes on the wages paid from your corporation to yourself. No matter how small the wages were you may get a letter from a Montana Department of Revenue Auditor that asks for a copy of your W-4 showing how many exemptions you were claiming. You must comply with this in writing a phone call is not documented and you will get charged a penalty that could be $500.00 or more. The letter is going out this year for wages paid in 2011 and prior. If you paid estimated taxes or your total tax owed to Montana was less that $500 you will still get this letter and must reply in writing or face the interest and penalties.