Posted on January 14, 2021
Who Qualifies and How Can you Benefit?
Legislation has been enacted which requires the Nevada Department of Taxation to implement a tax amnesty program. Businesses and individuals doing business in Nevada, which currently have a tax liability, may want to take advantage of this one-time tax amnesty program. Taxpayers can remit delinquent taxes and Nevada may waive both penalties and interest which would normally be assessed. If the amount of delinquent tax is significant or dates back over prior years, this can result in significant savings to a business or individual. There are, however, a few requirements which must be met in order to qualify for this waiver of penalties and interest. The tax must have been due and payable on or before June 30, 2020 and it must be paid in full by May 1, 2021.
There are some companies or individuals who will not qualify for the Tax Amnesty Program. Taxpayers who have already entered into a compromise or settlement agreement with the Department of Taxation or Nevada Tax Commission relating to unpaid tax, will not qualify. Additionally, taxpayers who are presently part of an ongoing open audit who have not received a final notice of deficiency determination, will not qualify. Lastly, taxpayers who have filed bankruptcy within the last five years will need to contact the Department of Taxation to discuss amnesty qualifications options in more detail.
When Does the Program Begin and What Tax Types are Covered?
The amnesty period begins February 1, 2021 and ends on May 1, 2021.The program is broad and includes many different types of tax including, 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, and Net Proceeds of Mineral Tax.
It is important also to note that taxpayers who choose to participate in this tax amnesty program, could still be selected for audit by the Nevada Department of Taxation as would any other taxpayer.
Tips for the Taxpayer
It is in the best interest of Nevada taxpayers and those who should be considered Nevada taxpayers to conduct a nexus review and determine if there is any existing tax liability and assess the level of any potential exposure, risk and cost. After reviewing all Nevada sales and purchases, consider if utilizing the Nevada Tax Amnesty Program could be beneficial. Calculate the potential savings of waived interest and penalties. Stay updated with the latest legislation, details of the program, and future notices. Consult a tax professional for clarity and expertise.
How Can We Help?
Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large US and global corporations. We use that experience to your advantage.
Allyn has significant experience assisting businesses with reviews of their sales and purchases, nexus, registrations, and amnesty programs. As tax laws change and amnesty programs are created, we can use our experience to help your business improve compliance, minimize costs, reduce liabilities, and increase profits.
We can help your business maintain compliance with federal and state tax responsibilities and put procedures in place to ensure future streamlining of processes and increased data accuracy for tax purposes.
Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact: firstname.lastname@example.org.
For More Information
If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News & Publications at www.allynintl.com.
Contributor: Sabrina Miller
About Allyn International
Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.