Nevada’s Limited-time Tax Amnesty Period

By Daniel Giudici

The Nevada Department of Taxation is offering a limited-time amnesty program for businesses and individuals with delinquent taxes. The authorization originates from Senate Bill 3 of the Nevada Legislature’s 31st Special Session. The period begins February 1, 2021, and lasts until May 1, 2021.

Under the amnesty program, penalties and interest associated with certain outstanding unpaid tax liabilities are waived. Some of the specific taxes eligible for the amnesty program include the Sales and Use Tax, Modified Business Tax, Commerce Tax, Wholesale Marijuana Excise Tax, and Retail Marijuana Excise Tax. The amnesty period does not apply to taxpayers currently under audit or who entered into a compromise or settlement with the Department. Additionally, not included in the amnesty are Lodging Tax, Real Property Transfer Tax, and Locally Assessed Property Tax.

The delinquent tax liability must have occurred on or before June 30, 2020. Outstanding taxes must be paid in full during the amnesty period by the delinquent taxpayer. For example, if the taxpayer has several delinquent returns and can only pay one or more periods; the Department may waive the penalties and interest for each period provided the taxes were paid in full.

Businesses and individuals that take advantage of the amnesty program are still subject to audit. Nevertheless, the Department appears willing to work with companies and individuals that have filed bankruptcy within the last five years.

Reach out to Flynn Giudici’s lawyers to see how they can help assist you with this matter.