Obtaining an Installment Payment Agreement When You Owe Taxes to the State of Nevada

Although Nevada taxpayers can breathe a sigh of relief that they do not owe a state income tax, the Nevada Department of Taxation still collects and administers a number of different taxes. If you are a Nevada taxpayer with a tax delinquency, you may be eligible to pay your liability over time in reasonable monthly installment payments with help from a Las Vegas Tax attorney.

Generally, under NRS 360.2915, the Department is authorized to accept installment payments after an installment payment agreement is executed between the taxpayer and the Department. Specific rules and regulations governing installment payment agreements have been adopted by the Nevada Tax Commission in NAC 360.450 through 360.464.

All installment payment agreements start with a request by the taxpayer. Depending on how long the taxpayer proposes to pay off the liability, and the amount of the liability, the taxpayer may be required to submit documents such as an individual financial statement, a business financial statement, recent Federal income tax returns, proof of income (Forms W-2, for example), and recent bank statements for all accounts. In all cases, the Department will assign a revenue officer to review the taxpayer’s documents, financial status, and tax compliance history. The Department may deny an installment agreement request if the taxpayer has defaulted on any previous installment agreement.

Once the Department’s revenue officer reviews the taxpayer’s information and agrees that the taxpayer qualifies for a payment installment plan, the revenue officer will prepare a formal payment agreement and personal guaranty for final signature. Under NAC 360.452, a personal guaranty is required for all installment payment agreements.

In addition, installment agreements that exceed 36 months or are over $50,000 in tax require final approval from the Nevada Tax Commission. After an agreement is executed between the taxpayer and the Department’s revenue officer, the Department will place the agreement on a Nevada Tax Commission agenda for final approval. The Nevada Tax Commission generally meets only once a month. A personal appearance by the taxpayer or the taxpayer’s attorney may be required.

After the installment payment agreement is executed and approved by the Nevada Tax Commission, the taxpayer must make all monthly payments on time for the lifetime of the agreement. In addition, pursuant to NRS 360.473, the Department will record personal and corporate liens with the county recorder to secure the tax debt in case the taxpayer defaults on the installment agreement.

Under NAC 360.450(b)–(c), taxpayers must continue to file all required tax returns and pay the tax due on those returns through the lifetime of an installment payment agreement. The Department may terminate an installment agreement if a taxpayer fails to remain current on all return filing requirements. NAC 360.462. Once an installment agreement is terminated, the Department can immediately resume all normal collection activity, including wage garnishments, bank levies, and sales and use tax permit revocations.

If you have concerns about Nevada tax delinquencies or Nevada installment payment agreements, a Las Vegas federal tax lawyer may be able to help you. Silver Law PLC is a respected tax law firm in Phoenix and Las Vegas that has experience handling Nevada tax audits and collection activities. Our tax attorneys have all worked as prosecutors for the IRS, so they have a unique perspective on how to defend your case. Contact us today to talk with a tax lawyer about your legal options.