Quote Originally Posted by phorner View Post
Just a heads up regarding the Montana LLC registered coaches.

A friend of mine has just recently received notice from the State of Massachusetts. Apparently the state is demanding back taxes, interest, penalties, etc. not only for the current coach, but also for the one owned by them previously. Not a pretty picture as the dollars are very high.

It looks as though the state compared a list of LLC registered vehicles against a list of state residents.

No matter how this turns out, there will certainly be the cost of defending their position as well as many sleepless nights.

Nearly every state is experiencing a fiscal crisis and I'm sure that they have attorneys working overtime trying to figure out ways to add revenues to their budgets.
This situation was resolved this past summer. The owner of the bus ended up writing a check for $105,000. The "original" tax liability was about $35,000. Interest and penalties added $70,000 to the tab.

Commonly most states will negotiate the amount owed seeking primarily the original tax.

Not in this case.