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January 8, 2021
2021-0057

Nevada tax amnesty program to run February 1, 2021 through May 1, 2021

The Nevada Department of Taxation (Department) announced that the tax amnesty program established by SB 31 will begin February 1, 2021 and end May 1, 2021. Individuals and businesses that participate in and comply with the terms of the amnesty program will have otherwise applicable penalties and interest waived upon the full payment of eligible unpaid taxes, fees or assessments. For the amnesty to apply, the base tax due must be paid in full during the amnesty period. Amnesty applies to unpaid taxes, fees or assessments due for periods ending March 31, 2020 and before April 30, 2020 for quarterly filers and periods ending May 31, 2020 and before June 30, 2020 and/or outstanding tax debts. For unreported tax, taxpayers must file a return for each period in which tax was not reported.

Taxes eligible for amnesty include:

  • Commerce tax
  • Modified business tax
  • Sales and use tax
  • Bank branch excise tax
  • Insurance premium tax
  • Centrally assessed property tax
  • Liquor tax
  • Tire tax
  • Live entertainment tax (non-gaming)
  • Short term lessor (passenger car) fee
  • Exhibition facilities fees
  • Transportation connection tax
  • Net proceeds of mineral tax
  • Cigarette and other tobacco products taxes
  • Cannabis tax

Amnesty does not apply to lodging tax, real property transfer tax and locally assessed property tax.

Unregistered businesses must register with the Department, file tax returns for the periods since the business began operations (an eight-year lookback period applies) and pay the additional tax only. Registered businesses that find an error that increases any tax due will need to correct the error by filing an amended amnesty return "as far back as necessary, but not earlier than [three] years."

Taxpayers going through an audit can participate in the amnesty program if the audit has been finalized. If the audit is in the redetermination phase, a participating taxpayer must fill out the Audit Amnesty form, which provides that the taxpayer waives all administrative rights and the audit is final. Amnesty is not available if the Department has not issued a final notice of deficiency determination.

The amnesty program is not open to a taxpayer that (1) has entered into a compromise or settlement agreement with the Department or the Nevada Tax Commission regarding any unpaid tax, fee or assessment or (2) is unable to pay the outstanding tax in full.

Taxpayers that are currently in bankruptcy or filed bankruptcy within the last five years should contact the Department to see if they qualify for amnesty.

Additional information on the amnesty program, including information on the order in which amnesty payments will be applied and how to file and pay tax due, is available on the Department's amnesty webpage.

Implications

Eligible taxpayers should consider participating in the amnesty program to have otherwise applicable penalties and interest waived. There are no penalties for non-participation.

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Contact Information
For additional information concerning this Alert, please contact:
 
State and Local Taxation Group
   • Allan Holzer (allan.holzer@ey.com)
   • Steve Shiffrin (steve.shiffrin@ey.com)

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ENDNOTE

1 Nev. Laws 2020 (Special Sess.), ch. 4 (SB 3), signed by the governor on July 20, 2020.

 

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