Nevada Sales Tax License Revocation and Business
Shutdown: What You Need to Know
Understanding Sales Tax Account Closure
Nevada requires most businesses that sell taxable goods or services to register for a sales tax permit and file regular sales tax returns. When your business closes, relocates, or stops operations, the Nevada Department of Taxation requires you to notify them and take specific steps to finalize your sales tax account.
An inactive or abandoned sales tax account can result in penalties, ongoing filing requirements, and collection actions even after your business stops operating. Proper account closure ensures your sales tax obligations end correctly and protects you from future compliance issues.
What Account Closure Means
Closing your sales tax account means you are formally telling Nevada that your business is no longer operating or will no longer be collecting and remitting sales tax. This administrative action closes your sales tax account with the state.
Once your account is closed, you are no longer authorized to collect sales tax, and you must stop filing regular sales tax returns. The state needs this information to remove your account from active compliance tracking and to process any final payments or refunds that may be owed.
Why Nevada Requires Notification
Nevada requires businesses to notify the Department of Taxation when they stop collecting sales tax because the state needs to maintain accurate records of which businesses are operating and which are not. Failing to notify the state can leave your account open indefinitely, which means you may still receive notices demanding payment or filing compliance.
The state uses these notifications to manage its enforcement resources and to prevent penalties from accumulating on closed businesses. Businesses that stop filing without notifying the state remain subject to penalties and collection activity.
Consequences of Not Closing Your Account
The state continues to expect sales tax returns and payments on your original filing schedule if you do not formally close your sales tax account with Nevada. Missed filings can result in penalties and interest charges that accumulate over time.
The state may initiate collection actions, place a lien on business assets, or pursue other enforcement measures against an inactive account. You may continue to receive notices demanding compliance even though your business is no longer operating. Without formal closure, your liability does not automatically end.
What Closure Does Not Resolve
Closing your sales tax account does not automatically forgive any taxes, penalties, or interest owed to the state. The process does not mean your account is closed if you have not formally requested closure using the proper form. Closure also does not resolve disputes with the state about past filings or payments.
Closing your business's doors without notifying the state does not stop the state’s collection or enforcement authority. This process is an administrative notification that stops future filing requirements but does not eliminate past obligations.
Steps to Close Your Sales Tax Account
Step 1: Gather Account Information
Locate your Nevada Taxpayer ID number. You can find this on past sales tax returns, correspondence from the Nevada Department of Taxation, or your business registration documents. Have this information ready before you contact the state.
Step 2: Determine Your Final Return Date
Identify the last date your business collected sales tax or operated. You will need to file a final return that covers all sales activity through this date. Note this date for your records and for completing the closure form.
Step 3: Complete Your Final Sales Tax Return
File your final Nevada sales tax return covering the period from your last filed return through the date you stopped collecting sales tax. Report all sales, taxable transactions, and tax collected during this period. Submit this return by the deadline for your filing frequency.
Step 4: Complete the Close Account Form
Obtain and complete Form REV-F020, the official Close Account Form available from the
Nevada Department of Taxation website. This form requires your Nevada Taxpayer ID, business name, close date, and reason for closure. The form includes instructions for canceling your account and requesting a refund of any security deposit or credits to which you may be entitled.
Step 5: Submit Final Documents
Send your final sales tax return and any payment owed to the Nevada Department of Taxation.
Submit the completed Close Account Form according to the instructions provided with the form.
Keep copies of everything you send for your records.
Step 6: Provide Contact Information
Include a forwarding address and phone number on your closure form where the state can reach you regarding any follow-up questions or notices related to your closed account. This ensures you receive any final notices, refund checks, or additional documentation the state may need to send.
Step 7: Wait for Processing Confirmation
The Nevada Department of Taxation will process your closure request through its administrative system. Standard administrative processing applies based on account complexity and workload.
Contact the Call Center at (866) 962-3707 if you have not received confirmation after several
weeks.
Step 8: Monitor for Follow-Up Notices
Watch for any additional correspondence from Nevada regarding your closed account. The state may send final reconciliation notices, refund checks, or requests for further information about past returns. Respond promptly to any such correspondence.
- Filing your final return late can result in penalties and interest, even though you are
- Some businesses close without filing a final return for their last period of operation,
- Not using the official Close Account Form (REV-F020) may delay processing and leave
- Providing incomplete information on the closure form can complicate processing and
- Ignoring follow-up notices after you submit your closure request can complicate your
- Failing to pay all sales tax owed before closure leaves you subject to collection actions
- 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
Step 9: Retain All Records
Keep copies of your final return, payment receipts, the Close Account Form, and confirmation of closure. Nevada law requires registered businesses to keep sales tax records for at least 4than four years from the date of creation or making. Businesses that were unregistered or did not file returns must keep records for eight years. These requirements continue to apply even after account closure.
What Happens After Submission
The Nevada Department of Taxation processes your closure request through its administrative system after you submit your final return and Close Account Form. The state reviews your final
return to ensure all sales tax owed has been reported and paid. The Department processes any refunds through standard administrative procedures if you reported a refund due.
Once your closure is approved, your business is removed from active filing requirements, and you should stop receiving regular notice demands for sales tax returns. The state may send additional notices related to account reconciliation or to address any discrepancies found during processing.
Common Mistakes to Avoid closing your business. which leaves unreported sales tax liability on the account. your account open to continued notices. prolong the time your account remains open. account closure. that closure does not eliminate.
Frequently Asked Questions
Do I need to close my sales tax account if I am temporarily closing my business?
Contact the Nevada Department of Taxation to discuss your specific situation if you expect to reopen your business and resume collecting sales tax. Temporary closures may be handled differently from permanent business closures.
What if I owe back taxes or penalties when I close my business?
Outstanding taxes and penalties remain your responsibility even after your account is closed.
The state will pursue collection through other means if necessary.
Can I request a refund of sales tax I collected but did not owe?
Report any overpayment on your final return if you collected more tax than you owed. The state will process refunds in accordance with standard administrative procedures. Contact the
Department at (866) 962-3707 for status updates on refund processing.
What if I move out of Nevada after closing my business?
Provide the Nevada Department of Taxation with a forwarding address before you move. This ensures you receive any final notices or refund checks related to your closed account.
What if I discover I made an error on my final return after I submit it?
Contact the Nevada Department of Taxation as soon as you identify that you can file an amended return to correct the mistake. The state can explain the process for your specific situation.
Can someone else close my sales tax account on my behalf?
A licensed representative or authorized agent can handle tax matters on your behalf if you grant them proper authorization. Contact the Nevada Department of Taxation for specific requirements regarding who can request account closure.
Contact Information
The primary toll-free number for the Nevada Department of Taxation Call Center is (866)
962-3707. Local office numbers include Carson City at (775) 684-2000, Reno at (775)
687-9999, and Las Vegas at (702) 486-2300. Contact the Call Center for questions about account closure or other tax matters.
Final Guidance
Closing a business requires proper steps to finalize your sales tax account with Nevada. Formal account closure notifies the state that you are no longer operating and stops future filing requirements.
Following the steps in this guide helps ensure your business is closed correctly and reduces the risk of penalties or collection activity after it stops operating. Keep all documentation related to your final return and closure request. Taking these steps now prevents future complications.
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.
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