Preclude non-profit officers from personal liability for unpaid tax withholding

This bill modifies Montana's tax withholding laws to protect volunteer officers of small nonprofit organizations from personal liability for unpaid taxes and missed filings. The exemption applies only to officers and directors who do not receive monetary compensation and only covers a 12-month period of non-compliance. Small nonprofits are defined as those that employ 10 or fewer paid employees at any time during the calendar year. If a small nonprofit fails to withhold taxes or file required statements for more than 12 months, or if an officer receives wages, they lose this protection and become individually responsible for the unpaid amounts. The legislation amends existing state code to clarify these conditions and limit liability for unpaid taxes, penalties, and interest.