Current through March 20, 2024
010.01 Requirements
as to reporting changes made by the Internal Revenue Service
Any changes made by the Internal Revenue Service in the
estate's or trust's federal income tax return must be reported by filing the
appropriate amended Nebraska fiduciary income tax return for the taxable year
involved. The amended return for Nebraska must be filed within ninety (90) days
of the final determination of the change. Reportable changes include all
changes made to the federal return by the Internal Revenue Service Processing
Center or any other Internal Revenue Service office.
010.02 Method of reporting changes
Any adjustments made on a federal amended return which do not
result in a federal refund or credit must be reported to the Nebraska
Department of Revenue within ninety (90) days of the filing of the federal
amended return. Any adjustments made on a federal amended return which result
in a federal credit or refund must be reported to the Nebraska Department of
Revenue within ninety (90) days of the taxpayer's receipt of proof that the
federal credit or refund was accepted by the Internal Revenue Service or within
any other applicable period provided by law, whichever is later.
010.02A Adjustments made on a federal amended
return or by the Internal Revenue Service shall be reported to the Tax
Commissioner by filing an amended Nebraska Fiduciary Income Tax Return for the
taxable year involved.
010.02A(1) The amended
return for Nebraska must be filed separately and should not be attached to a
return for another taxable year. Payment of any additional tax must accompany
the amended return. In reporting any change to, or amendment of, the federal
income tax return, the taxpayer must furnish the Nebraska Department of Revenue
complete information regarding the amount of income reported and taxes paid to
the United States. The report must include copies of the federal amended
return, Internal Revenue Service report, or other document which substantiates
the adjustments claimed and concede the accuracy of any final determination or
give a statement outlining the specific errors of the final
determination.
010.03 Final determination
For the purpose of determining when adjustments in federal
income tax constitute a final determination, the following acts will be
considered to be a final determination even though the taxpayer and the
Internal Revenue Service may still be contesting the amount due:
010.03A A decision by the tax court or a
judgment, decree, or other order by a court of competent jurisdiction which has
become final;
010.03B A closing
agreement authorized by Section 7121 of the Internal Revenue Code which relates
either to the total tax liability of the taxpayer for a particular taxable year
or years or to one or more separate items affecting tax liability. A closing
agreement becomes final for purposes of this regulation on the date of its
approval by the Internal Revenue Service;
010.03C The final disposition by the Internal
Revenue Service of a taxpayer's claim for a refund;
010.03D Any informal agreement between the
taxpayer and the Internal Revenue Service made for the express purpose of
serving as a determination in respect to the tax liability of the taxpayer.
Such an agreement must include a waiver by the taxpayer of restrictions on
assessment and the collection of any deficiencies resulting from the
agreement;
010.03E The acceptance
of an examining officer's findings in regard to the income of a partnership or
a fiduciary;
010.03F The payment of
any additional tax by the taxpayer. Any deposit made with the IRS that can be
returned at the request of the taxpayer is not considered the payment of the
tax by the taxpayer until the deposited amount is applied. The additional tax
will be considered paid when the IRS applies the deposit; or
010.03G Any other final judgment effecting
changes in reported federal taxable income.
010.04 Failure to report changes
If the fiduciary fails to file an amended Nebraska return,
the Tax Commissioner may mail to the taxpayer a notice of deficiency at any
time. If the fiduciary properly files an amended Nebraska return and reports
any change in federal taxable income or federal tax liability, the Tax
Commissioner may make an assessment relating only to the change at any time
within two (2) years after the report or amended return was
filed.
010.05 Claim for
Credits or Refunds
The amended return reporting a change that results in an
overpayment of tax for Nebraska is a claim for credit or refund.
010.05A The amount of the credit or refund
shall not exceed the amount of the Nebraska tax attributable to such federal
change, correction, or the items amended on the federal return.
010.05B If the amended return is not filed
within ninety days of the final determination of the change, interest shall not
accrue after the ninetieth day.
010.05C If the amended return is not filed
within two years and ninety days from the final determination of the change, no
credit or refund shall be granted.
