2020 - 2021 Tax Amnesty FAQs
Q: What is Amnesty?
A: The 31st Special Session
of the Nevada Legislature enacted Senate Bill 3 which provides for a
onetime penalty and interest amnesty program beginning February 1,
2021 and ending May 1, 2021 for persons and
companies doing business in Nevada who may have a current tax
liability.
The amnesty program shall relieve a business
and/or persons who have not paid a tax, fee or assessment required to be
paid to the Department of all the monetary penalties and/or interest imposed
with regard to the unpaid tax, fee, or assessment for period end
dates March 31, 2020 and prior due on or before April 30,
2020 for quarterly filers and period end dates May 31, 2020 and prior due
on or before June 30, 2020 and/or outstanding tax debts. To
qualify, outstanding tax debt(s) must be paid in full during the amnesty
period. The amnesty period will begin February 1, 2021 and
end May 1, 2021. 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 Property Tax that is
Locally Assessed.
Q: Who is the Amnesty Program for?
A: The amnesty program is for businesses and
individuals who owe taxes for
period end dates March 31, 2020 and prior due on
or before April 30, 2020 for quarterly filers and period end
dates May 31, 2020 and prior due on or before 6/30/20 for monthly
filers which have not been paid. 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. In order to
qualify for amnesty, the tax only balance (base tax) must
be paid in full.
Q: Who does the program not apply to?
A: The amnesty program does not apply to any person
or business that is in bankruptcy, has entered into a compromise or
settlement agreement with the Department of Taxation or Nevada Tax Commission
regarding the unpaid tax, fee or assessment, and it does not apply to a person
or a business that is not able to pay the outstanding tax in full.
Q: How do you take advantage of the program?
A: Beginning February 1, 2021, entities can file/pay online or download the
missing tax returns available on the Department’s website https://tax.nv.gov/. The base tax in a specific period must be paid
in full during the amnesty filing dates of February 1, 2021 through
May 1, 2021 in order for amnesty to apply.
If you are an unregistered business
you must register with the Department either by applying online or by sending a
completed and signed Nevada Business Registration and Supplemental Registration
form, file tax returns for the periods since your business began operation, but
not earlier than 8 years back, and pay the additional tax only.
If you are a registered business
and found a mistake that needs to be corrected which increases any tax due, you
must file an amended amnesty return showing the corrections as far back as
necessary, but not earlier than 3 years. Instructions on how to amend a return
can be found on the Department’s website.
If you are an individual or business
who purchased an aircraft, vessel, automobile or other tangible personal
property, you must provide a copy of the bill of sale, buyer’s order, or
purchaser’s agreement and pay the tax due.
Q: How do I file and pay for amnesty?
A: The easiest way to file and pay is on our Nevada
Tax website https://www.nevadatax.nv.gov/#.
**Note Currently the only tax types that can be filed
through the Nevada Tax website are Sales and Use Tax, Consumer Use Tax,
Modified Business Tax, and Commerce Tax.
Unfiled Excise tax returns should be mailed to the Department’s Carson
City Office. Excise tax payments can be
mailed with the unfiled tax return or
can be paid on our Nevada Tax website once the debt has been established on
your account.
Most tax types (including Excise tax) with
established debt can be paid in the Nevada Tax website.
In order to report unfiled taxes by mail, AMNESTY
must be clearly written on each tax return being submitted. Any
payments for established taxes owed should be paid online or can be mailed into
any of our offices with AMNESTY clearly written on your payment. If mailed, AMNESTY must be
clearly written on the outside of the envelope, return and/or check or money
order.
For tax returns please go to the Departments
website at https://tax.nv.gov/Forms/ under “Tax Forms”.
You will find the tax returns for all prior years as well as the Nevada
Business Registration Form and Supplemental Registration Form.
Q: Will I have to file tax returns for each month separately?
A: Yes. If you have unreported tax that you will be reporting, you need to complete a return for each period that you were requried to report.
Q: Can I pay under Amnesty if I'm going through an audit?
A: Yes. If your audit has been finalized, you can pay under Amnesty. If you audit is in the redetermination phase, you must fill out the Audit Amnesty form that can be found on our website which states you are waiving all administrative rights and your audit is final. If you audit has not been finalized, you are not eligibile to pay under amnesty.
Q: Can I pay under amnesty if my account is in bankruptcy?
A: If
your account is currently in bankruptcy or filed bankruptcy within the last
five years, please contact the Department to see if you qualify.
Q: How do I pay for my taxes already reported but not paid?
A: Sales Tax, Use Tax, and Modified Business taxes can be paid via the Department's website located at https://www. nevadatax.nv.gov/#. The Department does allow for the use of a credit/debit card to pay such taxes.
*NOTE: The credit card payment option is not available for Centrally Assessed Property Tax or Net Proceeds of Mineral Tax. These tax types must be paid by check or money order.
If you need to pay in cash, only cash payments over $5,000 will be accepted and require an appointment which can be made through our online scheduler at: https://nevadatax.as.me/schedule.php.
Q: How are payments applied to tax types?
A: All amnesty payments will be applied in a specific
tax type order. Payments will be applied
to tax types that are distributed to the State’s General Fund first.
Payments for accounts with debt on multiple tax
types and periods will be applied in tax type order, then tax period within the
tax type. Each period within that tax
type, starting with the oldest debt, must be paid in full before moving to the
next tax period/tax type.
The tax type payment order will depend on which
tax types on your account currently have debt established/due on or before
6/30/20.
If you pay
amnesty debt through Nevada Tax (Dept’s online tax filing option), the debt
will be listed in the order available to be paid. You may make a partial payment in the first
(oldest) period on the amnesty list. In
order to make a partial payment in any other period, the previous period(s)
must be paid in full. See example below:
Tax Type/Tax Period Payment
Example:
The example below has debt on 3
different tax types (MBT, OTP, SUT). This example displays the order
that amnesty payments will be submitted/paid. The oldest period end
date, then the tax type, then location within the tax type. Base tax (excluding penalty and interest) must
be paid in full before moving to the next period/tax type.
In the example below, you can make a partial
payment to the 3/31/17 MBT period and submit your payment. If you want to make a partial payment in the
6/30/18 MBT period, you must pay the 3/31/17 MBT period in full first. Each period must be paid in full before you
can make a partial or full payment in the next period.
MBT
03/31/2017 - 476.92
06/30/2018 - 42.81
OTP
7/31/19 - 2762.48
SUT
10/31/2019 - 486.21
MBT
03/31/2020
- 976.44
Application of Amnesty Payments
All amnesty payments will be applied in a specific tax type order. Payments will be applied to tax types that are distributed to the State's General Fund first.
Payments for accounts with debt on multiple tax types and period will be applied in tax type order, then tax period within the tax type. Each period within that tax type, starting with the oldest debt, must be paid in full before moving to the next tax period/tax type.
The tax type payment order will depend on which tax types on you account currently have debt established/due on or before June 30, 2020.
If you pay amnesty debt through Nevada Tax (Department's online tax filing option), the debt will be listed in the order available to be paid.
Tax Type/Tax Period Payment Example:
The example below has debt on 3 different tax types (MBT, OTP, SUT). This example displays the order that amnesty payments will be submitted/paid. The oldest period end date, then the tax type, then location within the tax type. Base tax (excluding penalty and interest) must be paid in full before moving to the next period/tax type.
MBT
03/31/2017 - $476.92
06/30/2018 - $42.81
OTP
07/31/2019 - $2762.48
SUT
10/31/2019 - $486.21
MBT
01/20/2020 - $976.44