New Nevada Tax Amnesty Program Set To Begin July 1
CARSON CITY – Nevada is about to begin a new tax amnesty program in the hopes of bringing in several million dollars worth of uncollected revenue to help with a severe budget shortfall.
The amnesty program, which will run for three months beginning July 1, was approved by the Legislature in a special session in February as a way to help close an $800 million gap in the general fund budget.
The amnesty, which will allow taxpayers to pay taxes owed without any interest or penalties, is expected to bring in an estimated $10 million. It is being administered by the state Department of Taxation.
A previous amnesty authorized by Gov. Jim Gibbons in 2008 brought in more than $27 million. It only covered sales and use taxes, business license fees and modified business taxes.
The new amnesty program, as approved in Assembly Bill 6 of the 2010 special session, is broader, including cigarette taxes, liquor taxes, insurance premium taxes and other levies.
The one-time amnesty is for businesses and individuals who owe taxes that were due before July 1, 2010 and have not been paid. The program will allow penalty and interest to be waived provided the outstanding tax debt is paid in full during the amnesty period.
Certain restrictions apply to taxpayers who have already entered into settlement agreements or offers in compromise with the Nevada Department of Taxation.
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