The Expert Podcast

• 🚨 Breaking news: Major crackdown on the Montana LLC loophole used for vehicle tax evasion.
• 📌 Car and Driver Magazine reports enforcement actions have begun in multiple states, including Utah and California.
• 🔍 What is the Montana LLC loophole?
  • A method used to avoid state taxes and inspections by registering vehicles under a Montana-based LLC.
  • Exploited because Montana has no sales tax and fewer vehicle regulations.
• 🏛️ Legal gray area:
  • It’s not just about registration—using the vehicle in a different state without paying use tax constitutes tax evasion.
  • Even corporate giants like FedEx and Amazon are subject to state use taxes.
• 🚔 How authorities are catching violators:
  • License plate readers (ALPR) track Montana plates frequently seen in other states.
  • DMV task forces monitor, investigate, and cross-reference LLC ownership records.
• 💸 What’s at stake:
  • Estimated $100 million in back taxes and penalties.
  • Risk of revoked vehicle titles, fines, vehicle seizures, and criminal prosecution.
• 🧑‍⚖️ States targeting "LLC mills":
  • Companies that offer Montana registration services are under investigation.
  • Some are compared to past fraudulent title services that ended in prison time for the operators.
• 📈 Why now?
  • Coordinated efforts across multiple states.
  • States are now pulling ownership records directly from Montana’s Secretary of State to identify out-of-state registrants.
• 🚘 Context:
  • Montana has the highest per-capita vehicle ownership in the U.S., much of it due to these out-of-state registrations.
• ⚠️ Important warning:
  • Even if your intent wasn’t to evade taxes, failure to pay taxes in your home state can still trigger legal consequences.
• 📉 Difference from the Vermont registration loophole:
  • Vermont allowed temporary registration to help fix title issues, with tax payment and eventual state transfer.
  • Montana LLC was often used to dodge taxes and keep Montana plates permanently, which is a red flag.
• 🧾 Final thoughts:
  • If you’re considering the Montana method, do your research.
  • Legal consequences are ramping up—expect news of arrests, vehicle seizures, and multimillion-dollar penalties soon.