Nebraska Unfiled Sales Tax Returns Checklist
Introduction
An unfiled sales tax return occurs when a business registered with the Nebraska Department of
Revenue has not submitted a required sales and use tax return by the state’s deadline. This compliance issue can affect both your tax record and business standing with the state, as unfiled returns remain on the Department’s radar and continue to be tracked.
What This Issue Means
An unfiled sales tax return means that your business has not submitted a required sales tax return to the Nebraska Department of Revenue by the due date. This refers specifically to the failure to file the form itself, regardless of whether state sales tax was owed or paid, and the state tracks which returns are missing to create a record of non-compliance in your sales tax account.
Why the State Issued This or Requires This
Nebraska requires all registered sales tax permit holders to file returns based on specific thresholds determined by their yearly tax liability. Businesses with a yearly tax liability of less than $900 must file annual returns, those with a yearly tax liability of $900 to $2,999 must file quarterly returns, and those with an annual tax liability of $3,000 or more must file monthly returns.
The state uses these filings to track sales and use tax collection across Nebraska. When returns go unfiled, the state cannot verify whether state taxes were collected and remitted properly, which is why the Department of Revenue maintains accurate tax records and compliance documentation for all registered businesses.
What Happens If This Is Ignored
If unfiled sales tax returns remain unaddressed, the Nebraska Department of Revenue sends additional notices requesting the missing filings. Over time, unfiled returns accumulate, and penalties and interest are added to your sales tax account. The penalty for failure to file the return or remit tax by the due date is 10% of the unpaid tax or $25, whichever is greater. At the
same time, interest accrues separately at tax rates specified in Nebraska Revised Statutes
45-104.02.
What This Does NOT Mean
An unfiled return notice does not automatically mean that the state has assessed a specific tax amount against your business or that your sales tax license has been revoked. It also does not mean that criminal charges or severe enforcement action have already been initiated because this is an administrative compliance matter under tax laws.
Checklist: What to Do After Identifying Unfiled Sales Tax
Returns
Follow these steps to address unfiled sales tax returns with the Nebraska Department of
Revenue
1. Gather your business records by collecting all sales records, invoices, transaction logs, and accounting documents for each period covered by unfiled returns.
2. Review the state’s notice or account to locate any notices from the Nebraska
Department of Revenue that identify which returns are unfiled.
3. Contact the Nebraska Department of Revenue by calling 800-742-7474 or 402-471-5729 to explain that you have unfiled sales tax returns and request guidance on how to proceed.
4. Calculate or reconstruct sales and use tax information using your business records to determine the total sales and sales tax owed for each unfiled period at applicable tax rates.
5. Obtain the correct forms for the unfiled periods by requesting the appropriate version of
Form 10 for each missing period.
6. Complete the return forms for each unfiled period by including all required information, such as gross sales, taxable sales, sales tax collected at current tax rates, any deductions or exemptions, and tax remitted.
7. Prepare a transmittal letter that includes your business name, sales tax permit number, the periods covered by the unfiled returns, and a note that these are late filings being submitted to achieve compliance.
8. Clarify penalty and interest amounts by asking the Department of Revenue to explain what penalties apply to your situation based on applicable tax rates and whether any relief options are available.
9. Determine payment responsibility by clarifying whether you owe additional taxes, penalties, and interest, and request information on payment methods or a potential tax refund if an overpayment occurred.
10. Submit your filings by mailing or submitting your completed return forms and transmittal letter to the Nebraska Department of Revenue, while keeping copies of everything you submit.
11. Document all communications by keeping records of all letters, emails, phone calls, and submissions related to these unfiled returns.
12. Follow up with the state after submitting your filings to confirm that the returns were received and processed correctly in your sales tax account.
13. Set up a compliance system going forward by establishing a process to ensure that future sales tax returns are filed on time according to your assigned filing frequency and current tax rates.
What Happens After This Is Completed
Once the Nebraska Department of Revenue receives your unfiled returns, the state processes them and updates your account record. The state reviews the submitted information, verifies that the calculations appear accurate at the correct tax rates, and confirms receipt in writing; if penalties or interest apply, the state issues a notice explaining the total amount due, payment terms, and any tax refund owed to you.
Common Mistakes to Avoid
- Missing communication deadlines can extend processing time and create additional
compliance issues when the state requests additional information or clarification.
- Submitting incomplete or inaccurate information may result in rejected filings, requiring
resubmission and further delays.
- Ignoring follow-up notices from the Nebraska Department of Revenue creates additional
problems because each notice requires a response.
- Failing to keep copies of submissions eliminates proof of your compliance efforts if
questions later arise about what was filed.
- Assuming the issue is resolved without confirmation can leave unfiled returns
unaddressed because written confirmation from the state is required.
- Filing returns with incorrect periods or information creates more problems than it solves
when the wrong month or quarter is reported.
Frequently Asked Questions
How far back can unfiled returns go?
Contact the state directly to learn which periods are subject to unfiled return requirements because publicly available guidance does not clearly specify this information.
Can I file unfiled returns if I no longer have business records?
Contact the Nebraska Department of Revenue to discuss how to handle periods for which records are incomplete or unavailable, because the state may accept reasonable reconstructions supported by available documentation.
What if my business closed and I never filed final returns?
Contact the Nebraska Department of Revenue to explain your situation, as the state may have specific procedures for closed businesses and may require final returns to close your account officially.
Can I request penalty relief on unfiled returns?
Nebraska has processes for penalty abatement in certain circumstances, so contact the
Department of Revenue to see whether your situation may qualify for penalty relief.
Facing State Tax Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement, and aren’t sure how to respond, our team can help you understand your options and next steps.
We help with
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
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