Nevada Sales Tax Nonpayment Risk Checklist
Introduction
Sales tax nonpayment in Nevada occurs when a registered sales tax account falls behind on required tax payments or filings. This issue matters because Nevada’s Department of Taxation treats unpaid sales tax seriously, and the state has legal tools to collect overdue amounts.
Unpaid sales tax can trigger penalties, interest charges, liens, and collection enforcement actions that grow more costly over time. The longer an account remains unpaid, the more difficult the situation becomes to resolve.
What This Issue Means
Sales tax nonpayment means that a business or individual with a Nevada sales tax permit has not paid all or part of the sales tax owed to the state within the required timeframe. This can occur when a return was filed late, when a return was filed but payment was not submitted, when a return was not filed at all, or when a payment was submitted but was incomplete or incorrect.
Why the State Requires This
Nevada requires all sales tax accounts to remit taxes collected from customers by specific monthly or quarterly deadlines. Effective January 1, 2026, these deadlines changed from the last day of the month to the 20th day of the month following each reporting period.
What Happens If This Is Ignored
If nonpayment is ignored, the state sends reminder notices, and penalties and interest continue to accumulate on the unpaid amount. After multiple notices, the Department of Taxation may take enforcement action such as placing a lien on the taxpayer’s property, issuing a levy against bank accounts or wages, or referring the account to a collection agency.
In some cases, the state may suspend or revoke a business's sales tax permit, meaning the company can no longer legally collect or remit sales tax in Nevada. The longer the nonpayment continues, the larger the total amount owed becomes due to interest and penalties.
What This Does NOT Mean
Nonpayment of sales tax does not automatically mean criminal charges have been filed against the taxpayer. The state’s initial collection efforts are civil administrative actions, not criminal prosecution.
Checklist: What to Do After Identifying Nonpayment or
Receiving a Notice
Step One: Locate Your Notice or Identify the Issue
- Find any notice from the Nevada Department of Taxation related to unpaid sales tax.
● If no notice has been received, check the department’s online account portal or call (866)
962-3707 to confirm whether your account shows past-due amounts.
- Document the date on the notice if received, the tax period or periods involved, and the
total amount listed as past due.
- Keep all correspondence from the state in one place for reference.
Step Two: Gather Required Documentation
1. Collect copies of sales tax returns that relate to the past-due amount.
2. Locate payment records, bank statements, or canceled checks showing any payments made toward the past-due tax.
3. Gather receipts, invoices, or other records that show how much sales tax was collected during the period in question.
4. If the account is a business, collect any profit and loss statements or accounting records from the relevant period.
5. Write down the exact dates payments were made, if any, and the amounts.
Step Three: Calculate or Verify the Amount Owed
Review the notice to identify the exact tax period or periods for which tax is unpaid. Compare the amount shown on the notice with your business records to determine whether the amount appears correct.
Step Four: Understand Penalties and Interest
Identify the breakdown of the past-due amount shown on the notice, including tax owed, penalties, and interest. Note the date the notice was issued, as interest continues to accrue after that date. Nevada uses a graduated penalty scale under NAC 360.395 for payments made within 30 days of the due date.
Payments not more than 10 days late incur a 2 percent penalty, payments more than 10 days late but not more than 15 days late incur a 4 percent penalty, payments more than 15 days late but not more than 20 days late incur a 6 percent penalty, payments more than 20 days late but not more than 30 days late incur an 8 percent penalty, and payments more than 30 days late incur a 10 percent penalty.
Step Five: Contact the Department of Taxation
Call the Department of Taxation at (866) 962-3707 during business hours to speak with a representative about the account. Provide the account number, business name, and the notice number if available.
Step Six: Review Payment Options
Ask the Department of Taxation whether the account qualifies for a payment plan. Request information about the terms of any available payment plan, including the number of installments, the number of payments, and due dates.
Note that installment agreements exceeding 36 months or $50,000 in tax liability require
Nevada Tax Commission approval. Request written confirmation of any payment plan terms offered.
Step Seven: File Any Missing Returns
Determine whether any sales tax returns have not been filed for the past-due periods. If returns are missing, obtain blank return forms from the Nevada Department of Taxation website or by calling (866) 962-3707.
Step Eight: Submit Your Response or Payment
Determine whether you will pay the full amount, submit a payment plan request, or request penalty consideration. If paying in full, include the payment with a cover letter identifying the account and stating that the payment is for the past-due sales tax.
If requesting a payment plan, include a written request explaining the proposed payment schedule. Send all materials to the Nevada Department of Taxation at the address provided on the notice or on the department’s website.
Common Mistakes to Avoid
Ignoring state notices does not make the debt go away. The state continues collection efforts, and the total amount owed continues to grow due to interest and penalties.
Always send copies of receipts, checks, statements, or other records, and keep originals in your files. If a payment plan is agreed upon, missing even one payment can result in the state declaring the agreement void and resuming full collection action.
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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