The Nevada Legislature has enacted a one-time tax amnesty program for qualified businesses or individuals doing business in Nevada.
Benefits Of Amnesty
The program allows for penalty and interest to be waived on outstanding taxes that were due and payable on or before June 30, 2020, which includes monthly tax returns due on May 31, 2020 or before, and quarterly tax returns due April 30, 2020 or before.
The amnesty period is February 1, 2021 – May 1, 2021.
Taxes Covered Under Amnesty Program
The following tax types are eligible for amnesty:
- Sales and Use Tax
- Modified Business Tax
- Cigarette Tax
- Other Tobacco Products Tax
- Liquor Tax
- Bank Branch Excise Tax
- Insurance Premium Tax
- Tire Tax
- Live Entertainment Tax (non-gaming)
- Short Term Lessor (Passenger Car Governmental Service Fee)
- Exhibition Facilities Fees
- Commerce Tax
- Transportation Connection Tax
- Wholesale Marijuana Excise Tax
- Retail Marijuana Excise Tax
- Centrally Assessed Property Tax
- Net Proceeds of Mineral Tax
Taxes NOT Covered Under Amnesty Program
Taxes that are not included in the amnesty program include:
- Lodging Tax
- Real Property Transfer Tax
- Property that is locally Assessed
Overview and Considerations
Businesses or individuals that have entered into a compromise or settlement agreement with the Nevada Department of Taxation or Nevada Tax Commission regarding an unpaid tax or assessment, or are currently under audit but have not received a final deficiency determination prior to the last day of the amnesty period, do not qualify for the amnesty program. Businesses or individuals that have filed bankruptcy in the past five years may not qualify for the amnesty program.
The delinquent tax amount was paid in full for the period. If a taxpayer has several delinquent returns, but is only able to pay one or more periods, the penalty and interest may be waived for each period providing the tax was paid in full and the delinquent tax is paid during the upcoming amnesty period.
Amnesty Program Does Not Apply
The amnesty program does not apply to businesses or individuals who have:
- Entered into a compromise or settlement agreement with the Department of Taxation or Nevada Tax Commission regarding the unpaid tax or assessment.
- Are currently under audit and have not received a final deficiency determination prior to the last day of the amnesty period.
- A business or individual who pays the delinquent tax during the amnesty program may be selected for an audit in the same manner as a person who does not pay delinquent taxes during the amnesty program.
Freeman Law works with tax clients across all industries, including manufacturing, services, technology, oil and gas, financial services, and real estate. State and local tax laws and rules are complex and vary from state to state. As states confront budgetary deficits due to declining tax revenues and increased government spending, tax authorities aggressively enforce state tax laws to recapture lost revenues.
At Freeman Law, our experienced attorneys regularly guide our clients through complex state and local tax issues—issues that are frequently changing as states seek to keep pace with technology and the evolution of business. Staying ahead requires sophisticated legal counsel dedicated to understanding the complex state tax issues that confront businesses and individuals. Schedule a consultation or call (214) 984-3000 to discuss your local & state tax concerns and questions.