This bill amends Section 15-30-2503 of the Montana Code Annotated to provide that certain volunteer officers of small nonprofit corporations are exempt from individual liability for the corporation's failure to withhold taxes and file required statements. The exemption applies only if the small nonprofit corporation has not been out of compliance for more than 12 months with outstanding unpaid taxes, penalties, and interest. Additionally, the exemption does not apply if the officer or director receives monetary compensation for their services, or if they are involved in fraud, embezzlement, or intentional misconduct.

The bill defines a "small nonprofit corporation" as one that does not employ more than 10 paid employees at any time during the calendar year. The new legal language inserted into the current law clarifies the conditions under which the exemption from individual liability applies, including the stipulation that the exemption is limited to a 12-month period of non-compliance. This legislative change aims to protect volunteer officers from personal liability while ensuring accountability for tax obligations within small nonprofit organizations.

Statutes affected:
LC Text: 15-30-2503
HB0665_1(1): 15-30-2503
HB0665_1(2): 15-30-2503
HB0665_1(3): 15-30-2503
HB0665_1(4): 15-30-2503
HB0665_1(5): 15-30-2503
HB0665_1: 15-30-2503
HB0665_2(1): 15-30-2503
HB0665_2(10): 15-30-2503
HB0665_2(11): 15-30-2503
HB0665_2(2): 15-30-2503
HB0665_2(3): 15-30-2503
HB0665_2(4): 15-30-2503
HB0665_2(5): 15-30-2503
HB0665_2(6): 15-30-2503
HB0665_2(7): 15-30-2503
HB0665_2(8): 15-30-2503
HB0665_2(9): 15-30-2503
HB0665_2: 15-30-2503
HB0665_X(1): 15-30-2503
HB0665_X(10): 15-30-2503
HB0665_X(11): 15-30-2503
HB0665_X(12): 15-30-2503
HB0665_X(13): 15-30-2503
HB0665_X(14): 15-30-2503
HB0665_X(2): 15-30-2503
HB0665_X(3): 15-30-2503
HB0665_X(4): 15-30-2503
HB0665_X(5): 15-30-2503
HB0665_X(6): 15-30-2503
HB0665_X(7): 15-30-2503
HB0665_X(8): 15-30-2503
HB0665_X(9): 15-30-2503
HB0665_X: 15-30-2503