This bill amends Section 15-30-2503 of the Montana Code Annotated to provide specific protections for volunteer officers of small nonprofit corporations regarding individual liability for the failure to withhold taxes and file required statements. The new language stipulates that these officers are exempt from individual liability unless they receive monetary compensation for their services or if the small nonprofit corporation has been out of compliance with tax obligations for more than 12 months. This exemption aims to encourage volunteerism and reduce the burden on individuals serving in nonprofit capacities.

Additionally, the bill defines "small nonprofit corporation" in alignment with existing definitions while excluding organizations that employ more than 10 paid employees at any time during the calendar year. The amendments also clarify that the exemption from individual liability does not apply if the nonprofit corporation has outstanding unpaid taxes, penalties, and interest for an extended period. Overall, the bill seeks to balance the need for accountability in tax compliance with the encouragement of volunteer service in small nonprofit organizations.

Statutes affected:
LC Text: 15-30-2503