Nevada Department of Taxation announces that upcoming amnesty program begins February 1

Overview

The Nevada Department of Taxation (Department) recently announced that Nevada's tax amnesty program will begin on February 1, 2021 and end May 1, 2021.¹ This tax amnesty program will apply to most taxes and fees that the Department administers, including but not limited to sales and use tax, property tax that is centrally assessed (but not property tax that is locally assessed), modified business tax, and commerce tax.² In exchange for participating, qualifying taxpayers potentially may receive a waiver of all underlying interest and penalties.³

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Overview of tax amnesty program

Nevada is providing a one-time tax amnesty program for businesses or individuals doing business in Nevada who have outstanding liabilities.⁴ The amnesty program allows penalty and interest to be waived if the following criteria are met:

• The tax was due and payable on or before June 30, 2020, which includes monthly and quarterly returns,
• The delinquent tax was paid in full for the period, and
• The delinquent tax is paid during the amnesty period beginning February 1, 2021 and ending May 1, 2021.⁵

However, the amnesty program is not available to businesses or individuals who have:

• Entered into a compromise or settlement agreement with either the Department of Taxation or the Nevada Tax Commission regarding the unpaid tax or assessment,
• Are in bankruptcy, or
• Are currently under audit and have not received a final deficiency determination prior to the last day of the amnesty period.⁶

Taxpayers who meet the conditions above and would like to participate in the amnesty program should 1) prepare and file the missing or amended tax returns for each qualifying tax period as necessary and 2) pay the outstanding tax for each period in full during the amnesty window of February 1, 2021 through May 1, 2021.⁷ Per the amnesty program guidelines on the Department's website, a participating taxpayer may be selected for an audit in the same manner as a person who does not participate in the amnesty program.

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Considerations

Although this Tax Alert covers the more notable parts of the amnesty program, it does not cover the program in its entirety. Taxpayers seeking more information should consult with their Nevada tax advisors on the amnesty program.

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Multistate Tax alert archive

The Multistate Tax alert archive includes external tax alerts issued by Deloitte Tax LLP's Multistate Tax practice during the last three years. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons.

View the list of archived Multistate Tax alerts.

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