Nevada Announces Tax Amnesty Plan For 2020 State Taxes

As we’re all aware, the global COVID-19 pandemic has thrown the economy into turmoil. The state of Nevada, which depends on tourism revenue, is definitely no exception. In response, Nevada lawmakers convened the 31st Special Session of the Nevada Legislature to sign Senate Bill 3, which provides a special tax amnesty period.

Dates: start February 1^st, 2021; end May 1^st, 2021
Applicable: For all businesses and individuals for the tax year 2020
What: All penalties and interest will be waived for outstanding tax delinquencies to the state

State of Nevada Department of Taxation Tax Amnesty Program – press release

What is Tax Amnesty?

“Amnesty” is another word for “pardon,” which is what the Nevada tax amnesty program does for delinquent tax costs. The amnesty bill will allow Nevada businesses and residents to pay their delinquent taxes without additional penalties or interest, from February to May of 2021. This is part of a legislative push to collect taxes without burdening taxpayers with additional fees, as part of a larger budget-balancing measure.

What are the Qualifying Conditions for Nevada Tax Amnesty?

Business and individual delinquent taxes qualify provided they meet the following criteria:

- The delinquent tax amount was due and payable on or before June 30^th of 2020

- The due amount was on a monthly, quarterly, or annual tax return

- The due amount is paid in full for that return. Multiple returns may qualify as well

- The due amount is paid in full during this amnesty period of 2/1/2021 – 5/1/2021

The types of taxes that qualify for the Nevada tax amnesty program include:

- Sales and Use Tax

- Modified Business Tax

- Cigarette Tax

- Other Tobacco Products Tax

- Liquor Tax

- Bank Branch Excise Tax

- Insurance Premium Tax

- Tire Tax

- Non-Gaming Live Entertainment Tax

- Short Term Lessor

- Exhibition Facilities Fees

- Commerce Tax

- Transportation Connection Tax

- Wholesale and Retail Marijuana Excise Tax

- Centrally Assessed Property Tax

- Net Proceeds of Mineral Tax

Note that taking advantage of this tax amnesty period does not bar you from being audited later for this period. Businesses or individuals who have filed bankruptcy in the last five years may still qualify for the amnesty but are advised to contact the Nevada Department of Taxation for determination.

What Conditions Do Not Qualify for Nevada Tax Amnesty?

EXCEPTIONS: The following types of tax DO NOT qualify for this Nevada tax amnesty measure:

- Lodging Tax

- Real Property Transfer Tax

- Locally Assessed Property Tax

The amnesty measure also does not apply to businesses or individuals who have:

- A current compromise or settlement agreement with the Department of Taxation or the Nevada Tax Commission regarding this delinquent tax or its assessment, OR

- Are currently in audit but have not received a final deficiency determination before the expiration of the tax amnesty period.

How Can Businesses and Individuals Take Advantage of Nevada Tax Amnesty?

Businesses and individuals may use the amnesty period while making a payment online or by mail.

Online:

- Go to NevadaTax.NV.gov

- Pay by Visa, MasterCard, Discover Card, or debit card

By mail:

- Write “AMNESTY” at the top of the tax return

- Include a check for payment in full

- Mail it to:

Department of Taxation

1550 College Parkway, Suite 115

Carson City, NV 89706

More Background Information About Nevada Tax Amnesty

Tax amnesty programs are rare, but not unheard of. At this current time, besides the state of Nevada, there are also active tax amnesty programs in North Carolina, affecting only corporate taxpayers, and Washington, which also only applies to businesses. Nevada is currently the only state offering tax amnesty to private individuals.

Tax amnesty programs are enacted to collect more taxes sooner, by offering taxpayers an incentive to pay delinquent taxes via waiving interest and penalties. In short, this is a wholesale “debt compromise” offered to everyone, “no questions asked.” This is a great opportunity for Nevada residents and business owners to settle due to tax debt at savings.

For more information, Nevada taxpayers may visit the Nevada Department of Taxation website or call (866) 962-3707.

If you think you could benefit from the help of a tax attorney, schedule a consultation with one of our expert tax attorneys here or call us at (888) 515-4829.