The recent legislative special session resulted in some good news for Nevada taxpayers in the form of a tax amnesty program to be implemented this summer. Details are below:
Nevada Taxpayers Receive Relief from Penalties and Interest on Outstanding Taxes
On March 12, 2010, the Governor of Nevada signed Assembly Bill 6. One section of the bill enacts a new tax amnesty program in Nevada, allowing for the waiver of all penalties and interest on certain outstanding Nevada tax liabilities in exchange for full payment of the tax due. Applications for amnesty will be accepted from July 1, 2010 to October 1, 2010.
The Nevada Department of Taxation has not yet declared what tax liabilities will be covered by the amnesty program. However, it appears that the covered taxes will likely include:
- sales and use taxes;
- modified business taxes (i.e. the payroll tax);
- certain aviation and motor vehicle fuel taxes;
- net proceeds of minerals taxes (i.e. the mining tax, which also applies to geothermal projects);
- the financial institutions tax;
- certain live entertainment taxes;
- liquor and tobacco taxes;
- estate taxes;
- generation skipping transfer taxes;
- city-county relief taxes;
- certain taxes for special purposes; and
- certain infrastructure support taxes.
This tax amnesty program will be broader in scope than a prior amnesty program implemented in 2008. The 2008 amnesty program covered only sales and use taxes, modified business taxes, city-county relief taxes, certain special purposes taxes and certain infrastructure support taxes.
The amnesty program will apply to any business or individual owing the covered taxes in Nevada, regardless of whether that business or individual is still doing business in Nevada. The program applies to any covered taxes that were due and payable before July 1, 2010.
Certain restrictions apply to taxpayers who have already entered into settlement agreements or offers in compromise with the Nevada Department of Taxation.
This document is intended to provide you with general information about issues related to Nevada Assembly Bill 6. The contents of this document are not intended to provide specific legal advice. If you have any questions about the contents of this document or if you need legal advice as to an issue, please contact the attorney listed below or your regular Brownstein Hyatt Farber Schreck, LLP attorney. This communication may be considered advertising in some jurisdictions.