Hearings

Hearings

Types of Hearings

The Department of Taxation administers various types of taxes. When a Taxpayer disputes a tax liability, an Administrative Hearing may be held. See Hearing FAQs.

Petition for Redetermination of Deficiency Notice or Deficiency Determination

  • If you think the Department incorrectly issued a Deficiency Notice or Deficiency Determination for state taxes, it’s your responsibility to prove the determination is incorrect.
  • This means the Department’s decision will stand unless you can show evidence that it is mistaken. The Department will also have the chance to provide evidence to support its determination.
  • See NRS 360.360, NAC 360.130.

Petition for Claim on Property

  • If you believe that the Department incorrectly seized property from you, or from someone in possession of your property, you have the burden to show that the Department’s seizure was incorrect and that the property should be returned to you.
  • In other words, the property will not be returned to you unless you show that the Department has no authority to retain the seized property. The Department will also be allowed to present evidence to support its seizure.
  • See NRS 360.530 and NAC 360.612.

Order to Show Cause: Revocation of Seller’s Permit

  • If the Department is asking for your seller’s permit to be revoked because of non-compliance with Nevada tax laws, it is the Department’s responsibility to prove their case.
  • This means that you can keep running your business unless the Department can show why your seller’s permit should be revoked.
  • You will have the opportunity to provide evidence that you should be allowed to continue to operate your business.
  • See NRS 360.5975.

Order to Show Cause: Suspension or Revocation of Tobacco License

  • If the Department is seeking to suspend or revoke your tobacco license because you have not complied with Nevada’s tobacco laws, it is up to the Department to prove their case.
  • This means that you can keep running your tobacco business unless the Department can convincingly demonstrate why your license should be suspended or revoked. 
  • You are also allowed to present evidence to show that you should be allowed to continue your tobacco operations.
  • See chapters NRS 370 and NAC 370.

Order to Show Cause: Responsible Person Determination

  • If the Department requests a finding that you are individually responsible for the state tax debt of a Nevada business, the burden of proof lies with the Department.
  • This means that you will not be considered personally liable for the debts of the business unless the Department can demonstrate that you meet the criteria as a responsible person.
  • You will have the right to present evidence proving that you do not fit the definition of a responsible person.
  • See NRS 360.297.

Order to Show Cause: Successor’s Liability Determination

  • If the Department claims that you or your business is the successor to, or purchased substantial assets of, a business which had a state tax debt, it’s up to the Department to prove this claim.
  • This means that you will not be held accountable for the previous owner’s tax debt unless the Department successfully shows you fulfill the criteria of being a successor. 
  • You will have the opportunity to present evidence that you do not meet the successor criteria.
  • See NRS 360.525.

Appeal of Property Tax Assessment: Abatements

  • If you believe the property tax abatement, also known as a “tax cap,” was wrongly applied to your property, it is your responsibility to show that the county assessor incorrectly applied the property tax abatement to your tax bill.
  • This means that your property tax bill will stay the same unless you can demonstrate that the county assessor improperly applied the tax abatement.
  • The county assessor can also provide evidence to support their decision.
  • An Administrative Law Judge (ALJ) will conduct a hearing to review the case and then recommend a decision to the Nevada Tax Commission.
  • The Commission will decide whether to accept, change, or reject the ALJ’s recommendation.
  • Both you and the county assessor have the right to challenge the ALJ’s decision by filing objections with the Commission if either party disagrees with it.
  • See NRS 361.4734 and NAC 361.6105 through NAC 361.61074 inclusive.

Appeal of Denial of Refund Request or Credit Request

  • If you think the Department incorrectly denied your request for a state tax credit or refund, the responsibility to prove your entitlement lies with you.
  • This means that you need to provide evidence that you are entitled to the refund or credit you’re asking for.
  • The Department also has the opportunity to present evidence that supports its decision to deny your request for a refund or credit.
  • See NRS 372.630 through NRS 372.720, NAC 360.490, NAC 372.765.

Appeal of Administrative Law Judge’s Decision to Nevada Tax Commission

  • If either you or the Department disagree with the decision of the Administrative Law Judge (ALJ), both parties have the right to appeal to the Nevada Tax Commission (Commission).
  • The party initiating the appeal carries the burden of proof, meaning they must demonstrate that the ALJ’s decision was incorrect.
  • The ALJ will forward all the evidence and information presented at the original hearing to the Commission for review.
  • See Appeals to the Nevada Tax Commission, NRS 360.245, NAC 360.130, and NRS 233B.135.

Before the Hearing

The following information describes what you can expect before a hearing and how you can prepare.

The Hearing Notice and Continuances

Except in cases related to a Petition for Claim on Property, you will get a letter from either the Department of Taxation or the Administrative Law Judge (ALJ) at least 10 days before your hearing.

  1. This letter will set the hearing’s date, time, and location.
    See NRS 233B.121, NRS 360.370(1), and NAC 360.095.
  2. This letter will also include details about the hearing and deadlines for sending documents to the ALJ. Make sure to read this information carefully and meet the deadlines.
  3. If you can’t make it to the hearing on the specified date, you need to request a continuance to have the hearing rescheduled.
    See NAC 360.120.
  4. This request must be in writing and sent to the ALJ, explaining why you can’t attend as planned. Your request might not be approved unless you provide valid reasons for the continuance.
  5. If you fail to get a continuance and don’t show for the hearing, the ALJ will make a decision in your absence, without considering your side.
    See NAC 360.125.

Review Documents Sent to You by the Department

Before the hearing, you’ll receive information from either the Department or the Attorney General’s Office. It’s important to carefully go through this information.

  1. As you review the documents, write down any questions that come to mind or if you think there’s a reason the Administrative Law Judge (ALJ) shouldn’t consider a particular document.
  2. If you find anything in the documents that you believe is incorrect, make sure to collect any evidence you have that supports your view and be prepared to present this to the ALJ.

Get Your Evidence Together

The hearing is your chance to show the Administrative Law Judge (ALJ) all the evidence or information that backs your position. The decision on your case will be made solely on the evidence both you and the Department present during the hearing. It’s your responsibility to make your case.

  1. You can present evidence through documents and by having witnesses testify.
  2. Start by listing all the points you want the ALJ to consider.
  3. Then, gather the documents and/or identify witnesses who can convey this information to the ALJ.
  4. You won’t be allowed to introduce new evidence to the Commission that wasn’t presented to the ALJ, unless you have valid reasons for not presenting it earlier.
    See NAC 360.175(5).

Documents

  1. It is important to get your documents together before the hearing.
  2. If you would like to present documentary evidence such as your bank statements or federal income tax returns, you must provide those documents to the ALJ by the due date in the hearing notice letter. 
  3. If you do not timely submit the documents, the ALJ may not consider them.
  4. Make sure the documents you submit to the ALJ are in order and that you can easily refer to the important parts of the documents.

Witnesses

  1. If there are individuals who have information which is important and relevant to your case, you may ask them to testify at the hearing.
  2. The witnesses must have first-hand knowledge about information that is relevant to your case.
  3. Make sure you inform the witnesses of the date, time and place for the hearing.
  4. Advise the ALJ if you will be presenting witnesses.
  5. Provide the ALJ with the name and address of each person who will be testifying. Also, provide that person’s title if they work(ed) for your business.
  6. You may ask the ALJ to issue a subpoena to compel the attendance of a witness.
  7. At least 20 days prior to the hearing, submit your request to the ALJ with the name and address for the witness, as well as a summary of the information you believe that individual will testify to.
  8. You must arrange for service of the subpoena on the witness.

Special Accommodations

  • If you need special accommodations for the hearing such as an interpreter or other accommodations as allowed under the Americans with Disabilities Act, please inform the ALJ as soon as possible.
  • See NRS 233B.1235.

During the Hearing

A hearing offers a way to resolve Nevada tax disputes with an impartial third-party involved. At this hearing, the Department of Taxation’s authority and grounds for taking certain actions can be examined.

  1. The hearing before the Administrative Law Judge (ALJ) is confidential, only Department employees and individuals you authorize can attend this private hearing before the ALJ.
  2. The hearing takes place in a conference room within a state or county office building, with all participants, including the ALJ, seated around a conference table.
  3. The ALJ records the hearing, though you may arrange for a court reporter instead.
  4. At the start of the hearing, the ALJ will introduce themselves and ask all participants to do the same.
  5. They will then explain the order in which evidence will be presented, ensuring that the party bearing the burden of proof has the last chance to present their case.
  6. For more information on burden of proof, see NAC 360.130 and the Types of Hearings section.
  7. Both sides will present their evidence, which can include witness testimonies or documents. Before the hearing concludes, ensure all your evidence is submitted for the judge’s consideration.
  8. See NRS 233B.123 and NAC 360.145.

Witnesses

  1. The witnesses are placed under oath; this is the same oath that is used in a standard court of law and the person under oath is subject to the same penalties of perjury as those in a standard court of law.
  2. After the witness testifies, the opposing party will be allowed to ask the witness questions. This process will repeat for each witness.
  3. When it is your opportunity to ask questions of the witness, be sure to ask questions that obtain information from the witness rather than arguing with the witness.
  4. You will be given an opportunity later to explain why you disagree with the witness.

Documents

  • If you will be presenting documents such as contracts or business records that help prove your case, the documents must be clear and accurate copies of the original documents.
  • You must prove that the documents you submit are authentic.

Admissibility

The Administrative Law Judge (ALJ) decides whether to consider the evidence you offer, based on its relevance to the case’s disputes. Hearsay evidence, which is information reported by someone not directly involved, may also be allowed.

  1. If the evidence is relevant and faces no valid objections, the ALJ will admit it for consideration.
  2. The ALJ then evaluates the reliability of the admitted witnesses and documents.
  3. They may ask questions to better understand the parties’ positions or to assess the evidence’s credibility more closely.
  4. Once all evidence and testimony has been presented, both sides get the chance to make a closing statement. This is your opportunity to highlight the evidence and argue why you should prevail in your case.
  5. Remember, your summary must stick to facts that were revealed through witnesses or documents during the hearing.

Please note: During the hearing, recesses or breaks can occur. During those times you may use the restroom or eat. The ALJ will tell you how long the recess will last.

  1. Hearings are held Monday through Friday during normal business hours of 8:00 a.m. through 5:00 p.m.
  2. Do not assume that the ALJ will allow the hearing to continue past 5:00 p.m. even if you or your witnesses have come from out of town.
  3. If a hearing does not conclude at the end of the business day, the hearing will likely be rescheduled for a further hearing date.

For more information, see NAC 360.043-360.155 inclusive.

Conduct for the Hearing

The following guidelines are set to ensure all individuals feel comfortable and secure while attending a hearing. 

  1. No weapons are allowed in the hearing facility. 
  2. No smoking, eating, or drinking (except water) during the hearing. 
  3. No shorts, tank tops, or T-shirts which show offensive slogans or pictures are allowed. 
  4. Hats should be removed before entering the hearing room. 
  5. Do not bring children to the hearing. 
  6. All cellular telephones and electronic devices must be silenced prior to the hearing.
  7. The use of profanity is prohibited. 
  8. The parties should address the Administrative Law Judge (“ALJ”) as “Your Honor” or “Judge” and treat the ALJ with  courtesy, respect and deference. 
  9. Each hearing participant must treat all other hearing participants with courtesy, respect and dignity. Animosity, angry  outbursts, threats of hostility, or any other disruptive or disrespectful behavior will not be tolerated.
  10. Each participant must follow the instructions of the ALJ and allow the ALJ to control the hearing.
  11. The hearing will be recorded so take turns speaking and do not talk over one another. 
  12. As space in some hearing facilities is limited, please limit the number of individuals who will observe, but not  participate in, the hearing.
  13. See NAC 360.060. 

After the Hearing

  1. The Administrative Law Judge (ALJ) will retain the documents and the audio recording of the hearing.
  2. All of the evidence and information received by the ALJ, including documents and testimony, is called the “Record.”
    See NRS 233B.121(6).
  3. The ALJ will review the evidence in the Record, both testimonial and documentary, and issue a decision called a “Findings of Fact, Conclusions of Law and Final Decision.”
    See NRS 233B.125 and NAC 360.170.
  4. The ALJ generally has 60 days to prepare a written decision. The hearing decision will be sent to you by certified mail. 
  5. It is your responsibility to advise the ALJ if your address changes following the hearing. It is also your responsibility to stay in compliance with Nevada tax laws during the hearing process.
  6. If you are dissatisfied with the ALJ’s decision, you may appeal the decision to the Nevada Tax Commission by filing a Notice of Appeal Form.
  7. An appeal to the Commission must be filed within 30 days of the ALJ’s decision.

  8. See NRS 360.245 and NAC 360.175.

You should file the Notice of Appeal with:

  • Dawne Hernandez, Administrative Assistant III
    3850 Arrowhead Drive
    Carson City, NV 89706
  • If you do not file a Notice of Appeal within 30 days of the ALJ’s decision, the ALJ’s decision becomes final and binding.
  • See NRS 360.245(1) and NRS 360.390(1).

Standard of Proof 

Your appeal must show that the ALJ’s decision was: 

  1. In violation of constitutional or statutory provisions; 
  2. In excess of the statutory authority of the agency; 
  3. Made upon unlawful procedure; 
  4. Affected by other error of law; 
  5. Clearly erroneous in view of the reliable, probative and substantial evidence on the whole record; or 6. Arbitrary or capricious or characterized by abuse of discretion.
  6. See NAC 360.175 and NRS 233B.135. 

The Record on Appeal 

  • If you appeal the ALJ’s decision to the Commission, the ALJ will send a copy of the “Record,” all of the documents  considered by the ALJ, to the Commission.
  • See NRS 233B.121(6).
  • However, a transcript of the audio recording will not be provided.
  • If you want the Commission to consider the transcript from your hearing before the ALJ, you must bear the cost of having the audio recording transcribed and you must provide a copy to the Department free of charge.
  • See NAC 360.058.  

Information for Representatives

Types of Representatives

  • If Taxpayer is a business, officers or authorized employees of the Taxpayer may represent Taxpayer at the hearing.
  • If Taxpayer is an individual, he or she may represent him or herself at the hearing.
  • Taxpayers may also choose to have an attorney, accountant or other authorized representative such as an enrolled agent, appear on the Taxpayer’s behalf.
  • Attorneys must be licensed in the United States and, if not admitted in Nevada, associated with an attorney who is licensed in Nevada.
  • The representative, if other than an officer or authorized employee of Taxpayer, must file with the Administrative Law Judge (ALJ) or Nevada Tax Commission (Commission) a statement from the Taxpayer authorizing the representative to appear on Taxpayer’s behalf for the duration of the case.
  • The representative must also immediately notify the ALJ or Commission if the representation ceases.

  • See NAC 360.085.

The Pre-Hearing Conference

The Administrative Law Judge (ALJ) may ask the parties to attend a Pre-hearing Conference.

The Pre-hearing Conference is intended to:

  1. Identify whether an evidentiary hearing is necessary or if the parties would like to submit stipulated facts and legal briefs setting out their respective positions.
  2. Clarify the legal and/or factual issues.
  3. Set time lines for the filing of Pre-hearing Statements, witness lists, and exhibits and to schedule hearing dates.
  4. Deal with any preliminary evidentiary or other issues.
  5. You should speak with opposing counsel prior to the date of the Pre-hearing Conference to discuss the points listed above in order to ensure an efficient and orderly Pre-hearing Conference.
  6. See NAC 360.100.

Pre-Hearing Statements

You may, but are not required to, file a statement of your position prior to the hearing. 

  • The Pre-hearing Statement should be filed at least ten (10) days prior to the hearing or by the date set out in the Hearing Notice. (In all cases, if a date is specified in the Hearing Notice, that date controls.)
  • Your Pre-hearing Statement should be filed with the ALJ and served on the opposing party.
  • If you rely on case law in your Pre-hearing Statement, you must include a copy of each of the cases to which you cite with your Pre-hearing Statement.

The Pre-hearing Statement should be limited to ten (10) pages, double spaced and should include:

  1. a summary of the undisputed facts,
  2. a summary of the disputed facts,
  3. a statement of the issues,
  4. a summary of your position,
  5. any legal authority supporting your position.

Subpoenas

  • If you wish to compel the attendance of witnesses through subpoena, you must send a written application for a subpoena to the ALJ along with the proposed subpoena to the ALJ.
  • See NAC 360.135.

Evidence

  • The formal Rules of Evidence do not strictly apply in administrative hearings.
  • As a result, the ALJ has more discretion to admit evidence into the record.
  • See NRS 233B.123 and NAC 360.145.
  • Evidence is anything used to prove or disprove a fact.

There are three types of evidence:

  1. Testimonial evidence is what someone says under oath or affirmation at the hearing.
  2. Documentary evidence encompasses any document, including photographs, blueprints, checks, contracts, etc.
  3. Demonstrative evidence is physical evidence that can be seen or touched. Practice Tip: Parties are encouraged to convert such items to a documentary form, such as photos that can be admitted in evidence.

Admissible evidence is evidence that the Administrative Law Judge admits into evidence as part of the official record.

  • Admissible evidence does not mean that the evidence is true.
  • It means that there are no valid objections for its consideration by the Administrative Law Judge.
  • Credibility determines the weight given to evidence by the Administrative Law Judge.
  • Relevant evidence is evidence that reasonably tends to make the existence of a fact more probable or less probable than it would be without the evidence.
  • Hearsay is a statement (offered by the testimony of another or through a document) made outside of the hearing that is offered to prove what was stated.
  • The ALJ may admit and consider hearsay evidence. However, the ALJ will determine the weight (credibility), if any, to give to such hearsay evidence.
  • Practice Tip: It is always better to avoid hearsay evidence because the ALJ cannot base his or her decision solely on this type of evidence.

Questioning Witnesses

A party should remember the following tips when questioning a witness during direct and cross-examination:

  1. A party must ask relevant and informative questions;
  2. A party must ask questions that will assist the Administrative Law Judge in making an informed decision;
  3. A party may not argue with a witness or make statements or comments in response to a witness’ answer;
  4. A party may not ask prejudicial questions;
  5. A party may not ask questions that are designed solely to harass a witness;
  6. A party may not repeatedly ask a witness the same question;
  7. A party must allow a witness a reasonable amount of time to answer a question;
  8. A party may not interrupt a witness during the witness’ answer; and
  9. A party should refrain from asking multiple or compound questions within one question.

Format of the Hearing

  1. The ALJ will call the hearing to order. Parties and representatives are identified. The ALJ will administer oaths and affirmations to witnesses and describe the order to be followed for the hearing.
  2. Before evidence is taken, parties may make opening statements. 
  3. This is the opportunity for the parties to outline their respective positions. 
  4. Opening statements are not evidence. It is not the time to present your entire case. 
  5. You should prepare a short overview of what your case is about, what you will prove, and how. 
  6. The ALJ may ask you to waive opening statements if you have filed a Pre-hearing Statement.
  7. After the conclusion or waiver of opening statements, the party with the burden of proof generally proceeds by presenting evidence. 
  8. The party may present testimonial and documentary evidence subject to cross-examination by the opposing party or counsel.
  9. Upon completion of that party’s presentation, the opposing party may, but is not required to, present evidence in support of its position. 
  10. Any witness presented by that party is subject to cross-examination by the opposing party.
  11. Upon completion of that presentation, the party with the burden of proof may request an opportunity to present rebuttal evidence. 
  12. However, such evidence should not be redundant, repetitive or cumulative to the party’s prior evidence.
  13. After all evidence has been presented, the parties are then given an opportunity to present closing statements. 
  14. If Post-hearing Briefs are requested, the ALJ may ask you to include your closing statement in your Brief.
  15. See NAC 360.155.
  16. Unless otherwise ordered by the ALJ, a hearing is concluded upon the submission of all evidence, the presentation of all closing arguments, or the submission of all post- hearing written memoranda, whichever occurs last.
  17. Practice Tip: Sometimes the ALJ will change the normal order of presentation to make the hearing go more smoothly.
  18. See NAC 360.130.

Post-Hearing Briefs

  • If you would like the opportunity to submit Post-hearing Briefs, you may make that request to the ALJ at any time prior to the close of the evidentiary hearing.
  • The ALJ will set the due dates for the briefs (Briefing Schedule) if the ALJ grants your request.
  • If you rely on case law in your Brief, you must include a copy of each of the cases to which you cite with your Brief.

The Record

  • The ALJ will make an audio recording of the hearing but will not provide a court reporter.
  • If you wish to have the hearing reported, you must arrange for and bear all costs associated with the court reporter.
  • You may obtain a copy of the audio recording of the hearing by making a written request to the ALJ for a copy and paying the copying costs.
  • The ALJ will maintain the official copy of the record in the proceedings including: exhibits, audio recording and/or transcript, motions, orders, briefs, and decision.
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