Nebraska tax payment plan with the Department of Revenue

The 24-month rule for Nebraska

The DOR FAQs explain that you may make an agreement for an unpaid balance, provided it clears within the 24 months allowed. For every electronic check payment, the state’s vendor adds a $1.75 convenience fee. A $20 fee applies if a bank returns a payment and no one can remove it.

The balance due options page explains how to clear the entire bill within 90 days using equal payments spaced 30 days apart. An arrangement lasting more than 90 days must be in writing under Regulation 36-005. Whenever possible, you should make electronic payments.

While you keep paying, interest still runs. Under Nebraska Revised Statute 45-104.02, the Tax Commissioner resets the late tax rate every other year. The federal government’s short-term borrowing rate sets the base and three percentage points are added.

What do I need before I can begin a plan?

Your online plan starts with a balance due notice. After you file a return showing money owed, the notice arrives in the mail. The individual payment plan page explains this. You register with Tyler Technologies first and it runs the system. Prepare the following:

• Your balance due notice shows the DOR-issued Nebraska ID number
• Your Social Security number and, for a joint return, your spouse’s number too
• Your phone number and a working email address
• Either a checking or savings account, where automatic payments come from

Business tax plans, including sales tax

Owners should follow the business tax payment plan page: file the return, pay as much as possible by the due date, then ask the Department about a plan of up to 24 months. Any new return due while the agreement is active must be filed separately and paid in full.

For individual income tax plans paid electronically and cleared within 24 months, Regulation 36-005 waives the financial statement. Business taxes are covered by that waiver for up to 12 months. Trust fund taxes cover money collected from customers and workers, which belongs to the state. This group includes sales tax and withheld wages.

Can you get more time if 24 months is not enough?

For a longer plan, the plan setup page lists two hardship forms: the Payment and Authorization Agreement (Form 27D) and the Financial Hardship Request for Individuals (Form FHRIND-NE). If you have them, send bank statements from the two most recent months and your two most recent pay stubs.

The settlement requests page says the Department reviews offer in compromise cases involving retirees, people with low income, hardship cases, older accounts and nonresidents. This is a deal in which you pay less than the full debt. Put your offer in writing, include an amount and explain how the state benefits from accepting it.

What happens if you do not pay a Nebraska tax bill?

The Chapter 36 collection rules set out the steps. The Department sends a payment demand first. It allows at least ten days to pass before the state puts a tax lien on record, which publicly claims your property for the debt. It can then levy your wages or bank accounts, which means money is taken directly from your employer or bank. It can also seize property and sell it. Following a hearing, tax permits may be suspended and debts may go to a private collection agency.

Missing a plan payment is a default, so under the rules the Department may begin collection without sending another notice. If your pay or bank account is already subject to a levy, first put an approved payment agreement in place. The levy help page tells you to ask Collections to stop it.

Handling IRS and Nebraska payments together

A single plan does not cover the IRS and Nebraska DOR together. Each agency signs off on its agreement and takes a separate monthly installment of its own. Since Nebraska wants its balance paid off within 24 months, reserve funds for each payment before signing either agreement.

States in the surrounding area

• Iowa
• South Dakota
• Kansas
• Missouri
• Colorado
• All states