Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.2 - GENERAL DEPARTMENT RULES › Subchapter 42.2.8 - Ethics Rules › Rule 42.2.804 - EXAMPLES OF SITUATIONS WHERE DISCLOSURE OF AN ETHICAL ISSUE IS REQUIRED

Current through Register Vol. 13, July 5, 2024
(1) The following are examples of situations
				where the employee is required to make full, complete and timely disclosure:
(a) A tax auditor employed by the department
				prepares federal and state income tax returns for a private client on his own
				time. The private client is later identified as an income tax audit candidate,
				and it is possible the auditor could be assigned to conduct the audit. As soon
				as the auditor becomes aware of these facts he must disclose the potential
				conflict of interest created by his involvement with the private client's taxes
				so that the department can take steps to avoid a conflict of interest (such as
				by assigning an auditor without the conflict).
(b) The department hires an attorney whose
				sister is an attorney and partner in a local law firm. The attorney's sister
				brings an action on behalf of a client against the department. The department
				employee must disclose the ethical issue as soon as it is known so that a
				different attorney can be assigned to work on the case. Disclosure of the
				potential conflict as soon as the attorney is hired would be preferable but the
				disclosure needs to occur in time to prevent a clear conflict of
				interest.
(c) A department employee
				responsible for audits of oil companies owns stock in an oil company. The
				employee must disclose her ownership interest in the oil company. If the
				interest is small and the outcome of an audit will have little or no direct
				impact on the employee, the department may determine that no actual conflict of
				interest exists. However, disclosure is still required in order to allow the
				employee and the department to prevent a conflict of interest or appearance of
				conflict of interest from occurring.
(d) An employee is a real property appraiser
				for property tax purposes. The appraiser also has a private fee appraisal
				service. He conducts a private fee appraisal for a certain property owner. If
				the appraiser may be assigned to appraise the property owner's property as part
				of his duties with the department, the appraiser must disclose the ethical
				issue. The employee and the department must take steps to insure that the
				appraiser does not do both appraisals on the same property. Disclosure is also
				required if the employee is in a position of reviewing a department appraisal
				of the property. Disclosure may also be required if the employee has any other
				business relationship with a particular property, such as a sale by an employee
				who is a real estate agent.
(e) A
				department employee performs computer programming and analysis on her own time
				for a private corporation. If the employee is aware that the corporation is
				actively seeking a significant contract to provide consulting services to the
				state or is providing services to the state, the employee must disclose this
				outside employment. The outside employment may create a conflict of interest or
				appearance of conflict of interest. Upon disclosure the department and employee
				can determine whether a conflict or appearance of conflict exists and what
				steps can be taken to cure any potential problems.