Nevada Taxing Information
Appeals & Petitions
If you have received a tax notice that you do not agree with, you have the right to appeal the decision through a series of increasingly formal procedures. If an audit assessment or deficiency determination is in question, you may complete a petition for re-determination form, clearly stating the amount of the determination being contested and the grounds for seeking a re-determination. The form must be returned to the Department within 45 days from the date of the notice. If you fail to file within the allowed time period the determination is considered final and you will be considered to have waived your appeal rights.
If, after a review of the petition for re-determination, the issue is still in disagreement, the matter will be forwarded for an evidentiary hearing, also called an Oral or Administrative Hearing, before an Administrative Law Judge.
If do not agree with the decision of the Administrative Law Judge, you may appeal the decision to the Nevada Tax Commission by filing a Notice of Appeal within 30 days of the issuance of the Hearing Decision.
If you are not satisfied with the decision of the Nevada Tax Commission you may appeal within 30 days to the appropriate District Court of Nevada.
If financial reasons prevent you from being able to pay the entire amount of taxes, penalties and interest due, the Department may consider an installment agreement that allows you to pay your taxes, interest and penalties over a period of 12 months or less. You must submit the request in writing and provide accurate and complete information that the Department will use to determine approval for an installment agreement. The Department may require a lien or other form of security to be provided to protect the interest of the state. The Department may terminate an agreement if it is determined that the agreement is in jeopardy, if the terms of the agreement are broken, or if your financial condition changes allowing you to be able to pay the full amount owed.
Interest will be added to any taxes that are not paid on time. In general, interest accrues at a rate of 1% for each month or portion of a month past due.
Waiver of Interest: If your failure to make a timely tax return of payments was the result of circumstances beyond your control and occurred without intent you may be able to qualify for a waiver or reduction of interest. The Department will take into consideration, among other things, your his
Joint and Several Liability
If you are the officer or employee of a corporation, partnership or limited liability company who is responsible for the collection and payment to the Department of any tax or fee or who attempts to evade the payment of any such tax or fee, you may be held jointly and severally liable with any other person who is required to pay such a tax or fee for the tax or fee owed plus interest and all applicable penalties. The responsible person shall pay the tax or fee upon notice from the Department that it is due.
The Department may issue a warrant for the enforcement of a lien for the purpose of collecting delinquent taxes. The warrant allows the Department to levy upon any property, real or personal. A levy is when the state seizes your assets such as bank accounts, real estate, personal property and rights to property, and then sells them to satisfy your outstanding tax liability.
If any tax administered by the Department is not paid when due, the Department may file a certificate of delinquency, which states the amount due including interest and penalties. The filing amounts to a lien upon all real and personal property of the delinquent taxpayer and has the effect and priority of a judgment lien. A tax lien is a public notice of debt and it can negatively affect your credit and prevent you from being able to buy or sell real estate. A lien allows for enforced collections to proceed.
Offer in Compromise
The Nevada Tax Commission has the authority to compromise liability of taxpayers under certain circumstances. A compromise is when the Tax Commission agrees to accept an amount that is less than the full amount necessary to satisfy the liability. A majority of the members of the Nevada Tax Commission must determine upon affirmative vote that:
- It is unlikely that the Department will be able to collect the liability of the taxpayer in its entirety;
- The amount of the liability of the taxpayer is unclear; or
- Such a compromise is appropriate based upon considerations of equity and fairness.
Before an offer in compromise can be made, you must have exhausted all other administrative petition rights. Acceptance may depend on your history of compliance with all other requirements. While the department is processing your offer further collection activity will not occur on the liability that is included in the offer until a decision of acceptance or rejection has been made.
Failure to file or pay your taxes on time may result in additional penalties being added to the original liability.
- Failure to file a return: a penalty of 10% of the amount of tax due shall be imposed.
- Penalty for deficiency resulting from negligence or intentional disregard of tax code will result in a penalty of 10% of the amount of the determination.
- Penalty for deficiency resulting from fraud or intentional evasion of payment of tax is 25%. If the tax is in regard to a vehicle, vessel or aircraft, the penalty may be 3 times the amount of the determination
- Penalty for failure to pay tax is 10% of the amount of the tax.
Waiver of Penalty: If your failure to make a timely tax return of payments was the result of circumstances beyond your control and occurred without intent you may be able to qualify for a waiver or reduction of penalty charges. The Department will take into consideration, among other things, your history of compliance and timely payments, evidence that supports your circumstances, and other factors deemed to be relevant.
Permit or License Revocation/Suspension
The Department may suspend or refuse to issue or renew your license or permit if you have delinquent taxes. Anyone who continues to engage in business after having a license or permit suspended is guilty of a misdemeanor. If after notice, you continue to engage in business without the license or permit, the Department may order the place of business to be locked or sealed with the assistance of the sheriff.
You may represent yourself or you may choose to have an attorney, accountant or other authorized representative such as an enrolled agent, appear on your behalf by submitting a Nevada General Durable Power of Attorney form. Attorneys must be licensed in the United States and, if not admitted in Nevada, associated with an attorney who is licensed in Nevada.
If you are purchasing an existing business you need to be aware that you may be held personally liable for any taxes that were due from the prior owner. You may request a "Certificate of Amount Due" for any tax or fee administered by the department or for any tax or fee administered by the department of revenue.