Montana License Plate Loophole Exposed After YouTuber’s Tax Evasion Arrest

A popular YouTuber faces felony charges linked to his exotic car purchase. Cody Detwiler, known as WhistlinDiesel, was arrested last week in Tennessee. He was charged with two counts of tax evasion related to a $400,000 Ferrari.

The arrest centers on his use of Montana license plates on the car. This practice is a well-known but legally risky strategy among supercar enthusiasts. It has now drawn intense legal scrutiny.

How a Viral Video Led to Felony Charges

According to court documents, Detwiler unlawfully tried to evade state taxes. The taxes were due on his January 2023 purchase of a Ferrari F8 Tributo. The indictment states the evasion exceeded $500, the minimum for a felony charge.

The actual tax owed on such a high-value car would be tens of thousands. Detwiler was booked and later released on a $20,000 bond. His first court hearing is scheduled for November 19.

The Allure and Risk of the Montana LLC Scheme

The case highlights a common loophole. Montana allows non-residents to form LLCs to own vehicles. These cars can then be registered in Montana, a state with no sales tax.

This saves buyers from paying their home state’s large levies. For a multi-million dollar car, the savings can exceed half a million dollars. Montana also has no emissions testing, sidestepping strict rules in states like California.

However, the law is clear. A car must be registered where the owner lives and where it is primarily kept. Using a Montana LLC for a car kept elsewhere is illegal tax evasion. Authorities are now cracking down.

Social media has made enforcement easier. Videos and photos provide clear evidence of where these cars are actually driven. Detwiler’s own viral content, showing the Ferrari in Tennessee, reportedly contributed to the case.

This arrest sends a clear message to exotic car owners nationwide. The perceived Montana license plate loophole carries serious legal peril. What was once an open secret is now a visible target for prosecutors.

A quick knowledge drop for you

What is the Montana license plate loophole?

It is a method where a buyer forms a Montana LLC to own a vehicle. The car gets registered in Montana to avoid sales tax and emissions tests in the owner’s home state.

Is using a Montana LLC for car registration legal?

It is only legal if the vehicle is primarily kept and used in Montana. If the owner lives and drives the car in another state, it is considered tax evasion.

What are the penalties for this kind of tax evasion?

Penalties vary by state but can include felony charges. Consequences involve repaying all taxes owed, hefty fines, and potential prison sentences of one to six years per count.

Why is this scheme so popular with supercar owners?

The financial incentive is huge. It can save owners hundreds of thousands in sales tax on multi-million dollar cars. It also avoids complex and costly emissions compliance in strict states.

Will this arrest stop the practice?

It will likely increase scrutiny and fear. State tax authorities are now more aware of the scheme. High-profile cases make the legal risks much more tangible for owners.