Nevada: Amnesty program to begin February 1, 2020

Last summer, legislation was signed into law authorizing a tax amnesty program to be held before the end of the state fiscal year on June 30, 2021.  Recently, the Nevada Department of Taxation announced that the program will begin on February 1, 2021 and run through May 1, 2021. Under the program, a business will be relieved of all penalties and/or interest imposed related to unpaid taxes, fees, or assessments that were due and payable on or before June 30, 2020. This includes monthly tax returns due on May 31, 2020 or before, and quarterly tax returns due April 30, 2020 or before. The liability may be due to unfiled tax returns, filing returns but not paying the taxes, past audits, large untaxed purchases, or errors found in prior tax returns. To qualify for amnesty, the tax balance must be paid in full during the program. The types of taxes included in the amnesty program are Sales & Use Tax, Modified Business Tax, Commerce Tax and Excise Taxes which are made up of Cigarette Tax, Other Tobacco Products Tax, Liquor Tax,  Bank Branch Excise Tax, Insurance Premium Tax, Tire Tax, Live Entertainment Tax, Short Term Lessor (Passenger Car), and Exhibition Facilities Fees, Transportation Connection Tax, and Cannabis Tax.  Excluded tax types are Lodging Tax, Real Property Transfer Tax, and Locally Assessed Property Tax. Amnesty is not available to taxpayers that have entered into settlement agreements or compromises with the Department regarding unpaid taxes, fees or assessments, or to taxpayers that are being audited by the Department and have not yet been issued a final notice of deficiency determination by the Department. Finalized audit assessments may be paid under the amnesty program. If the audit is in the redetermination phase, there is an Audit Amnesty form that requires the taxpayer to agree to waive all administrative rights. The Department has issued FAQs that explain how to file returns and pay taxes under the amnesty program.  Please contact Sarah McGahan at 713-449-9748 or Stacey Matthew at 949-431-7232 with questions.