Recently, the Director of the Montana Department of Revenue, Brendan Beatty, spoke to the Taxation Committee of the Montana State Bar, of which I am the Chairman. Director Beatty previously served for over 20 years as legal counsel for the Montana Department of Revenue and was appointed in 2021 as DOR Director by Governor Greg Gianforte.
Director Beatty made the following noteworthy remarks:
- His goal is to be the most citizen-oriented tax department in the country.
- He wants the Montana Department of Revenue to be better communicators and to be better able to deal with tax issues of Montanans.
- The Montana Department of Revenue’s job is to carry out the will of the legislature. He will not be an activist director.
- Past Directors of Revenue have been involved in legislating from the executive branch, but not him.
- While he is not afraid of a fight when it comes to Montana taxation principles, he is also “not a recreational fighter.”
- He requests ideas of what to clean up when it comes to taxation administrative rules.
- Governor Gianforte has a general philosophy of improving our economy.
- He will emphasize that remote workers in Montana are subject to Montana income taxation.
- In the recent past, local Department of Revenue offices in some counties have been closed. This has proven to not be popular.
- While President Biden is pushing to expand the number of employees at the IRS, he has not seen a big push to expand the number of auditors with the Montana Department of Revenue.
- Montana is in the first year of a new property tax cycle for tax year 2021. Real property taxes are based on values as of 2019. Given the sharp increase in real property values recently in the state, he expects that the next property tax cycle in tax year 2023 will be more contentious.
Practice Point. I have litigated Montana tax cases against Director Beatty for 20 years. I can confirm that he is not afraid of a fight and is a zealous and talented litigator. But I have also had him spearhead reasonable settlements of tax disputes. I appreciate the desire for good communication that he wants to bring to the Montana Department of Revenue and I look forward to working with him and his Department.
About the Author. Jared M. Le Fevre is a Partner in the Tax, Trusts and Estates Practice Group of Crowley Fleck PLLP. Mr. Le Fevre represents taxpayers before the IRS, IRS Independent Office of Appeals, Tax Court, Federal District Court and state tax agencies throughout Montana, Wyoming, North Dakota, Idaho, and Utah. Mr. Le Fevre is involved in federal, state and local tax audits, appeals, and tax resolution throughout these western states. Mr. Le Fevre also advises clients on the tax effects of business and real estate transactions.