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 1st, 2021; end May 1st, 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
“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.
Business and individual delinquent taxes qualify provided they meet the following criteria:
The types of taxes that qualify for the Nevada tax amnesty program include:
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.
EXCEPTIONS: The following types of tax DO NOT qualify for this Nevada tax amnesty measure:
The amnesty measure also does not apply to businesses or individuals who have:
Businesses and individuals may use the amnesty period while making a payment online or by mail.
Online:
By mail:
Department of Taxation
1550 College Parkway, Suite 115
Carson City, NV 89706
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.
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