Utah has begun using insurance records to identify taxpayers who exploit a Montana business-registration loophole to avoid state taxes. The strategy allows Utah to detect residents who hold assets or income through Montana entities, which offer greater privacy and tax advantages, without needing to launch costly investigations.
The approach is notable because it relies on administrative data rather than police powers, potentially making it easier for other states to replicate. As states face budget pressures, this kind of civil enforcement could become more common.
The article notes that Utah's method is one possible strategy, and that other states may develop their own variations. No other sources were available for comparison, so the full scope of adoption remains unclear.