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General Questions for All Businesses
Further Questions?
Contact Nebraska Taxpayer Assistance
at 800-742-7474 (NE & IA) or 402-471-5729
How do I register my business and obtain a Nebraska state identification number?
The Nebraska Tax Application, Form 20, allows you to register for any or all of the following tax programs:
Sales Tax, Use Tax, Income Tax Withholding, Corporate Income Tax, Partnership Income Tax, Fiduciary Income Tax, Financial Institution Tax, Tire Fee, Lodging Tax, Litter Fee, Severance and Conservation Tax, Wholesale Cigarette Dealers Tax, License to Transport Unstamped Cigarettes, Tobacco Products Tax.
You may also need to contact:
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Do I need to file a return if there is nothing to report for the tax period?
Yes, a "zero" return is required to be filed by the due date, even if there is no tax information to report or tax to be remitted.
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How do I report a change of address to the Department of Revenue?
To change an address for a business account, mark through the incorrect information and write clearly the new address directly on the tax return; or you can file a Nebraska Change Request, Form 22.
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What are the due dates of tax returns?
Tax Calendar
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Can I request a payment plan for the amount I owe?
The Department will consider setting up a payment plan for you if your financial situation does not allow you the ability to pay your balance in full. The Department offers an automatic withdrawal plan from either your checking or savings account. If you need to request a payment plan, contact the Department of Revenue office nearest you, or call Taxpayer Assistance at 800-742-7474 (NE & IA) or 402-471-5729, and speak with a representative who will explain the payment agreement procedure.
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What is the interest rate assessed on state taxes?
The rate of interest on delinquent payments of any taxes or special assessments is:
6% January 1, 2003 through December 31, 2006
8% January 1, 2007 through December 31, 2008
5% January 1, 2009 through December 31, 2012
3% January 1, 2013 to present.
See Revenue Ruling 99-12-1.
What do I do if I am filing a tax return or being audited and my records have been destroyed by natural disaster (tornado, flood, etc.)?
The Nebraska Department of Revenue will be reasonable and work with you if your records have been destroyed by natural disaster. This does not, however, exclude you from filing returns or reports or from being audited.
Every effort should be made to find lost records, or partial records that may have "survived" a disaster. If partial records are recovered, they are the best place to begin a reconstruction.
A reconstruction of records is best approached in reverse order. In other words, begin with the end of the year and work backward. The following steps may be helpful in the reconstruction process:
- Determine exactly what has been lost.
- Determine if you lost the only copy of an item.
- For those items where you lost the only copy, rank the relative importance of the lost items, starting with those of highest importance.
- Make a list of the items you determine warrant the time and expense of reconstruction.
- Determine if there is a state, federal, or other agency from which you can request a copy of a lost report. For instance, you can request either a transcript of a filed return or a photocopy of a filed return from the Nebraska Department of Revenue. Either can be certified as an actual copy and can take the place of your copy of a lost return. Transcripts are available at no cost by filing a Nebraska Tax Return Copy Request, Form 23.
- For items of public record, contact your local courthouse for a copy.
For bank records, contact your bank. It could be expensive to get copies of canceled checks, but they are available.
In order to continue the filing or audit process, there are options available:
- The Department of Revenue can get data from a similar business in the area and use that to estimate the taxable percentages for your business.
- A vendor analysis can show the tax generally charged by that vendor – the missing records may be allowed as “tax paid to the vendor.” You can also contact your vendors to get copies of invoices, if necessary.
- Auditors can also work with records that you do have – many times, they can look at current records and project backwards.
- Be sure to check for the existence of electronic records available to be reviewed and tied to items such as asset purchases.
Nebraska Revised Statute Section 77-27, 115 provides penalties for willful failure to file or to maintain records. Penalty may be abated if the lack of records was due to a natural disaster or other casualty.
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Purchasing an Existing Business
Should I contact the Department of Revenue if I am considering the purchase of an existing business?
Yes. You could unwittingly be buying a debt to the Nebraska Department of Revenue when you purchase an existing business.
Most purchase contracts include a statement that the seller's business is free and clear of all encumbrances. However, without a certificate from the department stating that all taxes have been paid, the contract alone is not sufficient to protect the buyer from assuming the seller's tax liability. Contacting the department will help protect the purchaser's interests and assist with the purchaser's licensing responsibilities.
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Can I be held liable for any unpaid taxes of the seller?
Yes. Purchasers of a business must withhold sufficient money from the purchase price to ensure that all taxes owed to the department by the previous owner(s) have been paid. Failure to withhold a portion of the purchase price results in the purchaser becoming personally liable as the successor for any sales or use taxes due, or as the transferee for any income taxes due (including employee withholding). See sections 77-2707 and 77-27,110 of the Nebraska Revised Statutes.
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How can I protect myself from being held responsible for unpaid state taxes of the business I am purchasing?
To protect yourself, the purchaser (or seller) may request from the State Tax Commissioner a notification either stating that no tax is due (certificate of clearance) or identifying the amount of taxes owed. If the purchaser makes the request, the purchaser must verify that he or she is purchasing the business by submitting a copy of the contract or other evidence. If the seller requests the certificate or notice and would like the department to send it to the purchaser, he or she must provide the purchaser's address and Nebraska identification number.
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