Nevada Bank Levy Checklist

Nevada Bank Levy Checklist

Introduction

A Nevada state tax lien is a legal claim filed by the Nevada Department of Taxation against your property when you owe unpaid business taxes. This enforcement action means the state has formally registered its right to collect from you before other creditors can pursue payment.

Nevada does not impose a state income tax on individuals, so state tax liens apply only to business-related taxes such as Modified Business Taxes, sales and use tax, commerce tax, and various excise taxes. A tax lien affects your ability to borrow money and can complicate selling or refinancing property.

What This Issue Means

A Nevada state tax lien is a formal legal claim filed by the Nevada Department of Taxation against your real estate, personal property, or other assets. The lien gives the state a legal right to be paid from the proceeds of any sale of your property before other creditors receive payment.

Why the State Issued This Action

Nevada files a tax lien after unpaid business taxes remain outstanding following required statutory notices. The state files a lien to protect its claim against your property and assets, create a legal record that becomes part of public records, and establish priority over other creditors. Under Nevada law, taxpayers receive written notice of tax determinations with specific timeframes to file a petition for redetermination before enforcement actions occur. These notice requirements are mandatory legal procedures, not merely typical practices.

What Happens If This Is Ignored

The state may escalate enforcement if a Nevada state tax lien remains unresolved. Additional collection actions can include wage garnishment, where money is deducted directly from your paycheck; bank levies, which seize funds from your bank accounts; or property seizure, which may result in the sale of real estate or personal property to satisfy the debt.

What This Does Not Mean

Receiving a Nevada state tax lien notice does not mean your property will be immediately seized or sold. None of your assets are frozen or inaccessible, and criminal charges have not been filed against you.

Steps to Take After Receiving a Tax Lien Notice

1. Read the entire notice, including the tax year or years involved, the amount owed, and any deadlines listed on the document. Check that the tax year, amount, and your identifying information are correct before proceeding.

2. Collect copies of your tax returns for the year or years listed on the lien notice. Locate any correspondence with the Nevada Department of Taxation, including notices, letters, account statements, cancelled checks, or payment confirmations you have received.

3. Call the phone number listed on the lien notice to speak with a representative in the collection or lien department. Verify that the lien was filed in your name and confirm the amount is accurate based on state records.

4. Request a current account statement showing the principal tax amount, penalties, and interest that have accumulated on the debt. Ask the state to explain any charges you do not recognize and confirm whether the debt includes sales tax, use tax, Modified

Business Taxes, commerce tax, or multiple tax categories.

5. Determine whether you can pay the full amount owed in a lump sum payment to resolve the lien immediately. Calculate what you can realistically afford to pay monthly if a payment plan becomes necessary.

6. Ask the state whether a payment plan is available for your debt and what terms the

Nevada Department of Taxation offers for installment agreements. Inquire about settlement options through offers in compromise, temporary payment deferrals, or financial hardship programs if your circumstances warrant such consideration.

7. Contact the Department and request information about the formal dispute process if you genuinely believe the lien was filed in error. Explain clearly why you think the debt is incorrect and ask whether you need to file a petition with the Nevada Tax Commission for formal review.

8. Write down the date, time, and name of each person you speak with at the Department.

Keep detailed notes on what was discussed and any agreements reached during conversations.

What Happens After Action Is Taken

The Nevada Department of Taxation responds according to the action you have taken. Setting up a payment plan means the state expects monthly payments according to the agreed schedule.

Under Nevada law, the state must release liens immediately upon payment of taxes or upon meeting other statutory conditions, as guaranteed by the Nevada Taxpayer Bill of Rights.

Disputing the lien while the state upholds the debt means the lien remains in place unless you pursue additional appeals through the Tax Commission or other available remedies.

Common Mistakes to Avoid

Missing deadlines or failing to keep up with payment plan obligations can result in additional enforcement actions or loss of payment plan eligibility. Ignoring lien notices leads to escalated enforcement efforts, including potential wage garnishment or asset seizure.

Frequently Asked Questions

Do Nevada state tax liens appear on credit reports?

No, since April 16, 2018, Equifax, Experian, and TransUnion stopped including all tax liens on consumer credit reports as part of the National Consumer Assistance Plan.

Can I dispute a Nevada state tax lien if I disagree with the amount owed?

Yes, the Nevada Department of Taxation has a formal dispute process for taxpayers who believe a lien was filed in error or the tax assessments are incorrect. You may need to petition the Nevada Tax Commission for formal review if the dispute cannot be resolved at the department level.

Will a payment plan remove the lien from public records immediately?

No, under Nevada law, the lien remains on public property records while you make payments under an approved installment agreement.

What if I cannot afford to pay anything right now?

Contact the Department and explain your financial hardship in detail. Ask whether temporary payment deferrals, hardship programs, or reduced payment arrangements are available based on your circumstances.

Can the state take my property if I have a Nevada state tax lien?

A lien gives the state a claim on your property, but does not automatically result in seizure. The state may pursue the sale of property to satisfy the debt if enforcement efforts escalate and the debt remains unpaid.

What types of Nevada business taxes can result in a state tax lien?

State sales and use tax obligations and other business-related taxes can result in lien filings.

The Nevada Tax Commission oversees appeals related to these tax assessments. Property taxes are handled separately by county assessors and treasurers, not the Nevada Department of Taxation.

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.