Nevada Governor Jim Gibbons has approved a tax amnesty program that will be effective from July 1, 2010 to September 30, 2010. Specific rules regarding the amnesty program have not yet been announced, but are expected soon.
In general, tax amnesty programs encourage people to file and to pay back taxes without incurring interest or penalties. In return, the tax jurisdiction benefits by collecting delinquent revenues and fees.
Nevada last enacted a tax amnesty in 2008. For that amnesty, companies with delinquent Sales/Use Tax liabilities, Modified Business Tax liabilities, and Business License Fees were included in the group allowed to participate in the amnesty program. Under the 2008 amnesty program, taxpayers who were delinquent were required to remit all taxes owed to the state by the end of the amnesty program period to receive a full waiver of penalties and interest. However, the 2008 amnesty program only applied to taxpayers registered with the state. Additionally, participating in the amnesty program did not preclude a business from being randomly selected for audit. I believe the rules for the 2010 amnesty will mirror the rules of 2008.
If you are an unregistered taxpayer and owe taxes to Nevada, you are not allowed to participate in the amnesty program and will have to request a voluntary disclosure agreement from the state to become compliant. Unlike amnesty programs, voluntary disclosure is always available. Prescribed rules by the Nevada Department of Taxation must be followed in order to qualify. Like amnesty, voluntary disclosure allows a business to become compliant, while having interest and penalties abated.
Questions? Call Rich at (702) 233-0049.