Current through March 20, 2024
012.01 The Tax
Commissioner may require any taxpayer to file a bond or other security
(security), to ensure payment and collection of any tax, in an amount that the
Tax Commissioner prescribes and as provided by 012.04.
012.02 Security may be required in the
following circumstances.
012.02A Existing
Permitholders. Existing permitholders may be required to post security in the
following circumstances:
012.02A(1) If the
taxpayer files returns on an annual basis and has had one or more delinquencies
in remitting tax or filing timely returns during the last 24 months;
012.02A(2) If the taxpayer files returns on a
quarterly basis and has had two or more delinquencies in remitting tax or
filing timely returns during the last 24 months; or
012.02A(3) If the taxpayer files returns on a
monthly or more frequent basis and has had four or more delinquencies in
remitting tax or filing timely deposits or returns during the last 24 months.
012.02B Applicants for
New Permits. Applicants for new permits may be required to post security in the
following circumstances:
012.02B(1) When the
applicant has previously held a tax permit and met one of the conditions of
012.02A(1)
through
012.02A(3) at
that time;
012.02B(2) When the
applicant previously held a sales tax permit that was revoked;
012.02B(3) When the business location was
previously used for a similar business or businesses that met one of the
conditions of
012.02A(1)
through
012.02A(3) at
that time; or
012.02B(4) When an
investigation of the applicant's financial status by the Department shows that
the applicant will likely be unable to timely remit the tax.
012.03 Security may be
posted by the taxpayer to release a state tax lien, or secure the return of
property seized from the taxpayer.
012.04 Amount of Security
If one of the conditions in
012.02A or
012.02B is met,
or if the taxpayer chooses to post security to avoid a collection action, the
Tax Commissioner may require up to three times the average reporting period
liability on any permit.
012.04A If
the permitholder has been habitually delinquent, the Tax Commissioner may
require up to five times the average reporting period liability. A permitholder
will be considered habitually delinquent if the permitholder is delinquent for
three or more months or has previously had a permit revoked for nonpayment of
taxes.
012.04B A specific amount of
security may be required in an order for continuance issued following the
scheduling of a revocation hearing, or may be an amount reasonably determined
by the Department.
012.05 Length of Time of Security
If security is required, it may be held for three years
after the security is posted, if there are no violations. It may be held for a
reasonable time after termination of a permit to allow for an audit or
examination of the taxpayer's records.
012.06 Forms of Acceptable Security
The following may be posted as security:
012.06A Nebraska state tax bond, underwritten
by a surety company licensed to transact business in this state by the Nebraska
Department of Insurance;
012.06B
Certificate of deposit, issued by a federally insured Nebraska financial
institution;
012.06C Passbook
savings account, issued by a federally insured Nebraska financial
institution;
012.06D Irrevocable
letter of credit issued by a federally insured Nebraska financial
institution;
012.06E Cash,
cashier's checks, money orders, or certified checks, if they will be held for
less than 60 days. Any of these forms of security which are held, or expected
to be held, longer than 60 days should be converted to a passbook or
certificate of deposit;
012.06F Any
other security must be approved by the Department in writing.
012.07 Form of Ownership
Certificates of deposit or passbook savings accounts must be
held in the Department's name. If any changes are made to the security, the
form of ownership must be updated.
012.07A The financial institution must be
provided the taxpayer's federal identification number or Social Security number
for interest reporting purposes.
012.07B All withdrawals from any form of
security must be made in the form of a bank draft or cashier's check.
012.08 To enforce collection of
any tax, interest, penalties, and costs not paid when due, the Tax Commissioner
may make demand upon any security which has been submitted to the Tax
Commissioner on behalf of the taxpayer. If necessary, the security may be sold
by the Tax Commissioner in the manner provided by Neb. Rev. Stat. §
77-27,131.
Neb. Rev. Stat. §§
77-2710,
77-27,131,
and
77-3907.
July 3, 2013.
