Nevada tax payment plan for sales and business taxes
The option is called a payment installment plan by Nevada’s Department of Taxation. Plans that last more than 36 months or exceed $100,000 must receive final approval from the Nevada Tax Commission.
- Tax charged on personal income
- No tax charged
- Commission review
- Over 36 months
- Or if the balance is above
- $100,000
- Interest that is charged on tax
- 0.75% per month
No income tax in Nevada, but business taxes remain due
Nevada does not tax personal wages. On the Department of Taxation’s tax types page, sales and use tax appears. Payroll under the Modified Business Tax and gross revenue under the Commerce Tax are also covered, along with lodging, liquor, cannabis and other taxes. No personal income tax appears on that list.
In most cases, a shop, an employer or another business owes the money owed in Nevada. Interest on unpaid tax grows by 0.75% each month, according to the Commerce Tax FAQs. The same 0.75% rate appears on the sales and use tax page.
How a Nevada payment installment plan works
The state document Payment Installment Plan Request (Form REV-F019) lays out an agreement to pay tax delinquencies under a regular payment schedule. Your finances determine the amount you pay and how long your plan lasts. The Department approves a plan only once every tax return has been filed.
The size of the plan decides who signs off. Plans running past 36 months or exceeding $100,000 need final approval from the Nevada Tax Commission, according to the instructions. After eligibility has been confirmed by staff, the Revenue Officer prepares a formal payment agreement along with a personal guaranty. The officer serves as the Department’s collections employee. Under the guaranty, a person promises to repay what the business owes. Each document must be notarized unless you sign them before that officer.
What comes with the request?
Three items suffice for a plan lasting 36 months or less with an amount under $100,000: the plan request form, your signed agreement and the guaranty. Larger plans also need:
- Any extension request, plus the federal income tax return that is most recent
- Evidence of your income or wages
- For every account you hold, include the two latest bank statements
- Financial statements for the business, provided it is still active
Where should the request go?
Send the form, its attachments and your first installment by mail to the Carson City main office. Hand delivery also works at a Carson City, Las Vegas or Reno office, following Form REV-F019. You also sign a payment agreement waiver of limitation. During the years the plan lasts, it halts the time limits under the law for collection, seizure and garnishment. After that, you make electronic payments through My Nevada Tax, since Nevada does not accept cash.
Liens, defaults and what happens if you do nothing
Having a plan does not prevent liens in Nevada. Form REV-F019 lists the statutory liens the Department will file. They secure the amount owed under the agreement. Under the guaranty, the Department may also place liens on the guarantor in a personal capacity. According to the Department’s lien FAQs, the county recorder officially records liens. When you finish paying the full amount, you get a release. Bring that release to the county and have it recorded there for a fee.
If you miss new returns, the plan is in default and regular collection action begins again. Bankruptcy does not help you avoid sales tax. Under the FAQs for sales tax, this debt has priority and a Chapter 7 discharge can never remove it.
Ways to reduce the bill and pay the IRS too
If a payment was late for reasons beyond your control, you can request a waiver of penalty and interest. Submit the request using Form TAX-F011 under NRS 360.419. The Department reviews your request only after you pay the tax itself. If paying the full amount seems doubtful or would cause undue hardship, you may be able to settle for less through an offer in compromise. An accepted deal may include an installment agreement, according to the sales and use tax page.
The IRS plan is separate from the Nevada plan. One covers state business taxes and the other covers federal tax and each has its own payment date. Keep up with both payments, because missing one can cause that agency to resume collection.
Nearby states
Do you owe money to both Taxation and the IRS?
Do you operate a Nevada business that owes the Department of Taxation money and also owes the IRS money? A licensed tax pro can set up both installment plans during a free call.
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