Nebraska Tax Relief: Payment Plans, OIC, Liens & Levies

Nebraska Tax Relief Overview

Owing Nebraska state taxes is different from owing the IRS. The Nebraska Department of Revenue (NE DOR) has its own rules, deadlines, and collection tools. Federal tax relief strategies do not automatically apply to Nebraska state tax debt.

Key difference: Nebraska DOES have an Offer in Compromise (OIC) program. Unlike some states, Nebraska allows qualifying taxpayers to settle tax debt for less than the full amount under Reg-36-017. However, Nebraska does not have a specific Innocent Spouse Relief program — it only considers settlements where the taxpayer has received a final IRS Innocent Spouse determination.

Important: Willful failure to pay Nebraska sales tax or withholding tax is a Class IV felony under Nebraska law, punishable by up to 2 years' imprisonment, up to 12 months of post-release supervision, a $10,000 fine, or both. This applies to corporate officers, employees, and anyone with a duty to pay who intentionally pays other creditors instead.

Depending on your situation, you may need one or more of the following:

• A payment plan to pay over time (up to 24 months for income tax)
• An Offer in Compromise to settle for less than the full amount
• An appeal if you received a deficiency determination you disagree with
• Penalty relief if penalties make the balance impossible to pay
• Lien release or levy resolution if collection action has started
• Filing help if you have unfiled Nebraska tax returns

If you run a business in Nebraska and owe sales tax or withholding tax, the stakes are higher. These are trust fund taxes — money collected or withheld that belongs to the state. Corporate officers and responsible persons may face personal liability under § 77-1783.01 and successor liability under § 77-2707 can make business purchasers responsible for the seller's unpaid tax.

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Nebraska Tax Relief Options at a Glance

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What Nebraska Tax Notice Did You Receive?

Select your notice type for a quick explanation of what it means and your options.

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What the Nebraska Department of Revenue Can Do to Collect

If you owe Nebraska state taxes and do not address the balance, NE DOR has a range of collection tools under the Uniform State Tax Lien Registration and Enforcement Act (Neb. Rev. Stat. §§ 77-3901 to 77-3908). Not every case reaches the most serious actions, but the longer a balance goes unpaid, the more options the state may use.

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Nebraska Tax Payment Plans

If you cannot pay your Nebraska state tax balance in full, a payment plan (installment agreement) may be an option. Nebraska offers both short-term and long-term payment arrangements under 316 Neb. Admin. Code, Ch. 36, Reg-36-005.

Short-Term Payment (Within 90 Days)

If you can pay the full delinquency within 90 days, you may do so without a written payment agreement and without submitting a financial statement. This is the simplest option if you have the funds or can raise them quickly.

Long-Term Payment Agreements (Over 90 Days)

A written payment agreement is required for arrangements exceeding 90 days. All long-term plans require electronic funds transfers (EFTs).

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Warning: Default Consequences

If you default on a Nebraska payment agreement, NE DOR may proceed with collection action without further notification. A signed payment agreement is considered a current demand for payment for the duration of the agreement. Do not miss payments.

How to Apply

Payment plans can be requested through the Nebraska Department of Revenue website under Individuals > Make a Payment Only > Payment Plan. A convenience fee applies, paid to DOR's vendor (not the state). You can also contact NE DOR directly at 402-471-5729 (toll-free: 800-742-7474 for NE and IA).

Source: 316 Neb. Admin. Code Ch. 36, Reg-36-005 | Form 8-621. Approval is discretionary. No guarantee of approval.

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Which Nebraska Tax Relief Option Fits Your Situation?

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Nebraska Offer in Compromise (OIC)

Yes, Nebraska does have an Offer in Compromise program. Under Reg-36-017, the Nebraska Department of Revenue may consider settling a delinquent tax account for less than the full amount of the liability when specific conditions are met.

Eligibility Requirements

• You are not disputing the tax, interest, penalties, and costs involved
• You are not currently in a bankruptcy proceeding

Circumstances Nebraska Considers for an OIC

NE DOR evaluates whether:

• The offer will resolve the liability, close the account, and avoid additional time and expense
• Collection cannot be accomplished by normal collection efforts
• The taxpayer does not have and will not have in the foreseeable future income, assets, or means to pay

NE DOR commonly considers OICs for: older unresolved accounts; corporate officer assessments; hardship cases; retired or limited-income taxpayers; nonresident taxpayers; over-assessed or canceled businesses.

Individual Income Tax Settlement Requests

For individual income tax OICs, you must submit:

• A written proposal with the settlement amount
• An explanation of why settlement is in the state's best interest
• Financial Hardship Request for Individuals (Form FHRIND-NE)
• Two months of most recent bank statements
• Two most recent pay stubs (if applicable)

Each offer is reviewed on a case-by-case basis. Approval is not guaranteed.

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Nebraska Innocent Spouse Rule: Important Limitation

Nebraska Does Not Have Specific Innocent Spouse Relief

The Nebraska Revenue Act does not specifically provide for Innocent Spouse Relief. However, NE DOR may agree to a settlement under Reg-36-017.01 where the taxpayer received a final IRS Innocent Spouse determination.

Important: NE DOR does not consider settlements based on: separation of liability relief; community property relief; equitable relief (other types of IRS relief).

To request settlement based on an IRS Innocent Spouse determination, you must submit: a written settlement offer; a copy of the IRS preliminary determination letter; a copy of the IRS final determination letter.

Statutory authority: Neb. Rev. Stat. §§ 77-2792(3) and 77-3907(2); Reg-36-017.

Source: Reg-36-017 | Individual Income Tax Settlement Requests | GIL 24-19-2 (Innocent Spouse Relief)

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Nebraska Penalty Relief

Penalty relief is different from a payment plan. A payment plan lets you pay over time. Penalty relief asks Nebraska to reduce or remove penalties when allowed under state rules.

The Nebraska Tax Commissioner has discretionary authority to waive all or part of any penalties and interest on delinquent taxes under Neb. Rev. Stat. § 77-2711(15).

Reasonable Cause Standard

Nebraska penalties may be abated if the failure to comply was due to causes beyond the taxpayer's reasonable control and not due to negligence or intentional disregard of Nebraska law. You must provide a complete explanation with supporting documentation.

How to Request Penalty Abatement

• Use Form 21 — Request for Abatement of Penalty
• You must have paid all tax and interest not subject to abatement before the request will be processed
• File separately for each penalty assessed
• Submit to: Nebraska Department of Revenue, PO Box 98903, Lincoln, NE 68509-8903, or fax to 402-471-5927

Note: Form 21 cannot be used for underpayment of estimated tax penalties (use Form 2210N/2220N) or interest abatement (use Form 21A).

What May Qualify as Reasonable Cause

• Natural disasters destroying records
• Death or serious illness of the taxpayer or immediate family
• Unavoidable absence
• Destruction of records by fire or other casualty
• Reliance on erroneous advice from DOR personnel

What Does NOT Qualify

• Financial difficulties
• Choosing to pay other creditors instead of taxes
• Reliance on a tax professional (unless professional error AND taxpayer acted in good faith)
• Ignorance of the law (generally not accepted)

Estimated Tax Penalty Waiver

The estimated tax penalty may be waived if:

• The underpayment was due to casualty, disaster, or other unusual circumstance where it would be inequitable to impose the penalty
• The taxpayer retired after reaching age 62, or became disabled, and the underpayment was due to reasonable cause

Use Form 2210N (individual) or Form 2220N (corporation) to request this waiver.

Source: Form 21 | Form 2210N

Penalty Relief vs. Payment Plan. A penalty waiver and a payment plan are separate processes. A payment plan does not automatically remove penalties. Penalty relief must be requested separately and approved based on reasonable cause. Even if penalties are waived, the underlying tax and interest must still be paid. Prior abatement history is a factor in NE DOR's determination.

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Nebraska Tax Appeals

A Notice of Proposed Deficiency Determination from the Nebraska Department of Revenue is a serious step. Once issued, it becomes the official amount Nebraska says you owe. If you ignore it, your options to challenge the balance may be limited.

Appeal Deadlines — Act Fast

• Standard: 60 days from the date the Notice of Proposed Deficiency Determination was mailed
• Drug tax or jeopardy: 10 days
• Outside the United States (income tax): 150 days

If the last day falls on a Saturday, Sunday, or approved holiday, the filing is considered timely if received or postmarked on the next succeeding business day. Missing these deadlines can severely limit your ability to challenge the assessment.

What Your Protest Must Include

• Identification of the taxpayer
• Identification of the assessment being protested
• Statements describing why one or more items are believed incorrect
• A concise statement of the action requested of DOR
• A request for a hearing (if desired)
• Signature by the taxpayer or authorized representative (Power of Attorney Form 33 required for representation)

How to File a Protest

• Mail: Nebraska Department of Revenue, Legal Section, PO Box 94818, Lincoln, NE 68509-4818
• Electronically: Via State File Sharing system (ShareFile) on DOR's website
• Personal delivery

Not accepted: Fax, email, or ShareFile systems other than the designated State ShareFile.

The Contested Case Process

After a petition is filed, a contested case is opened under the Administrative Procedure Act. The process includes:

• An informal conference with Department attorneys (may be held)
• The Tax Commissioner appoints a hearing officer
• A pre-hearing conference (may be held)
• A formal hearing
• Finding of facts and recommended order forwarded to the Tax Commissioner
• The Tax Commissioner issues a decision and order

Decision deadlines: The Department must decide income tax claims within 6 months or the claim is deemed denied. Sales tax claims must be decided within 180 days or the claim is deemed granted.

Judicial Appeal

If you disagree with the Tax Commissioner's final order, you may appeal to district court within 30 days. For income tax refund cases, venue is in the district court where the taxpayer resides or Lancaster County District Court. For other cases, venue is Lancaster County District Court. The review is de novo on the record established at the Department.

Source: Reg-33-003; Appeal Information | Appeal Flowchart

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Nebraska Tax Liens

Nebraska operates under the Uniform State Tax Lien Registration and Enforcement Act (Neb. Rev. Stat. §§ 77-3901 to 77-3908). A tax lien is a powerful collection tool that attaches to virtually all of a taxpayer's property.

How Nebraska Tax Liens Work

• Automatic Creation: Nebraska automatically holds a statutory lien on all property of a taxpayer who neglects or refuses to pay after demand. The lien arises at the time of assessment.
• Scope: The lien attaches to ALL property and rights to property, whether real or personal, owned at the time of assessment or acquired thereafter before the lien expires.
• Unrecorded Lien Duration: 3 years from the time of assessment, OR 1 year after expiration of a payment agreement, whichever is later.
• Recorded Lien Duration: 10 years from the time of filing with the appropriate filing officer. Recorded liens are renewable for subsequent 10-year periods by filing a continuation statement.
• Filing Deadline: Notice of lien must be filed within 3 years after assessment or within 1 year after expiration of a payment agreement.

Filing Officers

• Real property: Register of deeds of the county where property is situated (filed via Secretary of State)
• Personal property: Secretary of State
• Liens may be filed electronically by direct input to the Secretary of State's database

Lien Priority

• Priority against the IRS is determined from the date of assessment (not recording)
• Priority against all other creditors is determined when the notice of state tax lien is recorded
• The lien is valid against subsequent creditors but subject to prior liens
• The state tax lien is subject to prior mortgages/secured transactions unless the Tax Commissioner notifies the prior lienholder in writing of the recording

Lien Release and Termination

The lien is terminated when the delinquency is paid, abated, adjusted, or reduced to less than $50. The Department must record a termination statement upon termination.

NE DOR may issue a full or partial release if:

• The tax amount is sufficiently secured by a lien on other property
• A surety bond or satisfactory security has been posted
• The release will not jeopardize collection

If a lien was recorded in error, the Department must mail a termination within 7 business days and transmit a copy to major credit reporting companies.

Notice Before Recording

A demand for payment must be issued at least 10 days before recording (except in jeopardy cases). The taxpayer has the right to contest recording within 10 days after the postmark date of the demand.

Source: Neb. Rev. Stat. § 77-3904 | Reg-36-006 | NBA Article on Tax Liens

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Nebraska Tax Levies and Garnishments

Under Neb. Rev. Stat. § 77-3906, the Nebraska Department of Revenue has broad authority to levy on a taxpayer's property, including wages and bank accounts.

Wage Garnishment (Continuing Levy)

• A wage levy is a continuing levy effective on all future wages until the liability is satisfied
• The levy applies to all wages, salaries, or income in the control of the payor that are not exempt under Nebraska law
• NE DOR may approve a reduction in the amount subject to levy
• If a wage levy extends beyond the statutory lien expiration, the notice of state tax lien must be recorded with the Secretary of State

Bank Levy

• A levy on a bank or financial institution is effective upon all assets in the institution's control that are not exempt
• The bank must respond within 20 days by complying or requesting a determination that the levy is not valid
• The Tax Commissioner may enter agreements with financial institutions for electronic service of levy notices

Levy Prerequisites

Before issuing a levy, NE DOR must generally determine that:

• The taxpayer is delinquent in payment of Nebraska taxes
• The taxpayer has not shown satisfactory cooperation regarding delinquent taxes
• A demand for payment was sent for the total amount owing within the last 60 days

Challenging a Levy

The taxpayer, employer, bank, or financial institution may request in writing a determination that a levy is not valid within 20 days after service. NE DOR must respond in writing within 10 days of receipt. Any person disagreeing with the decision may appeal under Neb. Rev. Stat. § 84-917 (Administrative Procedure Act).

Exemptions

Property exempt from levy is the same as property exempt from execution under Nebraska laws (Neb. Rev. Stat. § 25-1552 et seq.). The taxpayer may request a determination that property is exempt within 20 days after the levy.

Seizure and Sale of Property

NE DOR may seize and sell property if the taxpayer is delinquent, has not shown satisfactory cooperation, and a demand for payment was sent within the last 60 days. The process includes:

• The Department identifying property, verifying title, and identifying other lienholders
• A writ of seizure served on the taxpayer (in person or by first-class mail)
• Property secured for a minimum of 20 days before sale
• The taxpayer and interested persons notified by mail at least 20 days before sale
• Notice published in a newspaper once per week for 4 successive weeks (or posted in 3 public places if no newspaper)

Right to redeem: the person whose property was seized may pay the amount due (plus expenses) or reach a payment agreement any time before the sale.

Source: Neb. Rev. Stat. § 77-3906 | Reg-36-008; Reg-36-009

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Nebraska Wage Garnishment for Tax Debt

Wage garnishment means Nebraska can take money directly from your paycheck to pay your state tax debt. Unlike a one-time bank levy, a Nebraska wage levy is a continuing levy that remains effective on future wages, salaries, and income until the total liability is satisfied.

How Nebraska Wage Levies Work

The levy applies to all wages, salaries, or other income in the control of the payor. It is a continuing levy — it does not expire after one paycheck. The levy covers all non-exempt income until the amount is satisfied or the levy is released. NE DOR may approve a reduction in the amount subject to levy based on hardship.

Wage Levy vs. Bank Levy

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If you have received a notice about garnishment or an intent to garnish, do not ignore it. Once garnishment starts, the money is taken before you receive your paycheck.

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Nebraska Unfiled Tax Returns

If you have not filed Nebraska tax returns for one or more years, that can block most resolution options. NE DOR may estimate your tax and issue assessments based on those estimates — sometimes higher than what you actually owe.

Filing accurate returns can sometimes reduce an incorrect balance. But do not rush or file bad returns. It's better to get the returns prepared correctly with the right income, deductions, and Nebraska credits.

Why Filing Matters: unfiled returns block payment plan eligibility; NE DOR may issue substitute returns with higher tax than you actually owe; penalty relief generally requires all returns to be filed; the statute of limitations on collections may not start until a return is filed.

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Nebraska Business, Sales Tax, and Payroll Tax Debt

Business tax debt in Nebraska carries higher risk than individual income tax debt. Sales tax and income withholding tax are trust fund taxes — money collected or withheld that belongs to the state. Nebraska takes these very seriously, and willful failure to pay is a Class IV felony.

Class IV Felony for Willful Failure to Pay

Under Nebraska law, willful failure to collect, report, or remit sales tax or willful failure to withhold income tax is a Class IV felony, punishable by:

• Up to 2 years' imprisonment, plus up to 12 months of post-release supervision
• A $10,000 fine, or both

Willful failure means the person knew or had reason to know of the liability and did not cause payment to be made. Financial difficulties and choosing to pay other creditors do not excuse willful failure.

Sales Tax Is a Trust Fund Tax

Under Neb. Rev. Stat. § 77-3905(6), sales tax collected by a retailer constitutes a trust fund owned by the state from the time the tax is collected. Every retailer must obtain a permit, collect, and remit Nebraska sales tax.

Corporate Officer Personal Liability — § 77-1783.01

Under Neb. Rev. Stat. § 77-1783.01, any corporate officer or employee with a duty to collect, account for, or remit taxes is personally liable for willful failure to cause the corporation to pay tax.

Willful failure standard: intentional, conscious, and voluntary action. It is established if the Department shows the officer knew taxes were due, had funds available, and paid other creditors instead.

Who may be held liable: any corporate officer or employee with a duty to pay taxes imposed on the corporation; any partner, member, manager, or employee with a duty to pay taxes imposed on a partnership or LLC.

Notice requirements: a notice and demand must be issued to the corporate officer/employee. The officer has 60 days after the notice is mailed to file a petition. If a petition is filed, the Tax Commissioner may not commence collection actions until a hearing is held.

Successor Liability — § 77-2707

Under Neb. Rev. Stat. § 77-2707, a purchaser of a business must withhold sufficient purchase price to cover the seller's sales tax liability until the seller produces a receipt from the Tax Commissioner or a certificate stating no amount is due.

If the purchaser fails to do so, the purchaser becomes personally liable for the amount required to be withheld, up to the purchase price valued in money. The purchaser may request a tax clearance certificate. The Tax Commissioner has 60 days to issue the certificate or mail notice of the amount due. Note: a tax clearance letter cannot waive income tax transferee liability.

Withholding Tax Trust Fund Status

Any amount of income tax actually withheld from employees constitutes a special fund held in trust for the Department under Neb. Rev. Stat. § 77-2757. The employer is liable for payment whether or not the tax was actually collected from the employee.

Transferee Liability for Income Tax

Under Neb. Rev. Stat. § 77-27,110, a purchaser may also be liable as a transferee for withholding and delinquent income taxes, generally up to the value of assets received from the transferor. This is distinct from sales tax successor liability under § 77-2707.

Source: NE DOR Responsible Person Information (4-787) | Neb. Rev. Stat. § 77-2707 | Neb. Rev. Stat. § 77-1783.01

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Nebraska Tax Relief Tools & Resources

Use these resources to understand your Nebraska tax situation. Then request a review if the numbers show the balance is growing or collection is already active.

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Not Sure What to Do With Your Nebraska Tax Situation?

Select the card that matches your situation to jump to the relevant section.

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Frequently Asked Questions About Nebraska Tax Relief

Does Nebraska have an offer in compromise?

Yes. Nebraska does have an Offer in Compromise (OIC) program under Reg-36-017. The Nebraska Department of Revenue may consider settling a delinquent tax account for less than the full amount when collection cannot be accomplished by normal collection efforts, or the taxpayer does not have and will not have income, assets, or means to pay. However, Nebraska does not have a specific Innocent Spouse Relief program. The Department may consider a settlement only if the taxpayer has received a final IRS Innocent Spouse determination. It does not consider settlements based on separation of liability, community property relief, or equitable relief.

Is willful tax nonpayment a felony in Nebraska?

Yes. Willful failure to pay Nebraska sales tax or income tax withholding is a Class IV felony, punishable by up to 2 years' imprisonment, up to 12 months of post-release supervision, a $10,000 fine, or both. This applies to corporate officers, employees, partners, members, or managers who willfully fail to cause payment of taxes owed to the state of Nebraska when they knew taxes were due, had funds available, and paid other creditors instead. Financial difficulties and choosing to pay other creditors do not excuse willful failure.

How long are Nebraska payment plans?

Nebraska payment plans can extend up to 24 months for individual income tax liabilities and 12 months for all other tax types (sales tax, withholding tax, etc.). All long-term plans require electronic funds transfers (EFTs). Short-term payment within 90 days does not require a written agreement. The taxpayer must remain current on all future filings and payments for the tax year in question while the plan is in effect.

What is Nebraska's successor liability rule?

Under Neb. Rev. Stat. § 77-2707, a purchaser of a business becomes personally liable for the seller's unpaid Nebraska sales tax up to the purchase price if the purchaser fails to withhold sufficient purchase price or obtain a tax clearance certificate from the Nebraska Department of Revenue. The Tax Commissioner has 60 days to issue a certificate or provide notice of amounts due. A tax clearance letter cannot waive income tax transferee liability.

Can I get a payment plan for Nebraska state taxes?

Yes, Nebraska offers payment plans through the Department of Revenue. Short-term plans allow payment within 90 days without a written agreement. Long-term plans extend up to 24 months for income tax and 12 months for other taxes, and require electronic funds transfers (EFTs). All plans require the taxpayer to timely file all future income tax returns and pay all future taxes. A financial statement may be required if conditions are not met. If you default, NE DOR may proceed with collection action — including a levy — without further notification.

Does a Nebraska payment plan stop penalties and interest?

No. A payment plan lets you pay over time, but interest continues to accrue on the unpaid balance during the plan. Penalties already assessed remain unless separately waived through Nebraska's reasonable cause process (using Form 21). The plan does not erase the underlying tax debt. If you default, collection action — including a bank or wage levy — may resume immediately without further notice.

Who qualifies for a Nebraska Offer in Compromise?

Nebraska considers OICs on a case-by-case basis when: (1) the offer will resolve the liability and avoid additional time and expense, (2) collection cannot be accomplished by normal collection efforts, or (3) the taxpayer does not have and will not have in the foreseeable future income, assets, or means to pay. Meeting these income requirements is assessed individually — you must not be disputing the tax and must not be in bankruptcy. Common qualifying situations include older unresolved accounts, corporate officer assessments, hardship cases (including taxpayers who are disabled or on limited income), retired or limited-income taxpayers, nonresidents, and over-assessed or canceled businesses.

How long do I have to appeal a Nebraska tax assessment?

Nebraska taxpayers generally have 60 days from the date a Notice of Proposed Deficiency Determination was mailed to file a petition for redetermination. The deadline is 10 days for drug tax or jeopardy determinations, and 150 days if the taxpayer was outside the United States when the notice was mailed (income tax only). If the last day falls on a weekend or holiday, filing on the next business day is timely. Missing these deadlines can severely limit your ability to challenge the assessment. Judicial appeals of a final order go to district court, with most cases venued in Lancaster County District Court.

Can Nebraska file a tax lien?

Yes. Under the Uniform State Tax Lien Registration and Enforcement Act, Nebraska automatically holds a statutory lien on all property of a taxpayer who neglects or refuses to pay after demand. The lien attaches to all property and rights to property, real or personal. Unrecorded liens last 3 years from assessment; recorded liens last 10 years from filing and are renewable for additional 10-year periods. The lien must be filed within 3 years after assessment. A demand for payment must be issued at least 10 days before recording (except in jeopardy cases). Liens on real property are filed with the register of deeds in the county where the property sits — for example, Lancaster County — via the Secretary of State.

Can Nebraska levy a bank account?

Yes. Nebraska can levy bank accounts and financial institutions holding a taxpayer's assets. The levy is effective upon all non-exempt assets in the institution's control. The bank must respond within 20 days by complying or requesting a determination that the levy is not valid. The Tax Commissioner may also enter agreements with financial institutions for electronic service of levy notices. Notices of levy may be issued without recording a notice of state tax lien first.

Can Nebraska garnish wages for state taxes?

Yes. The Nebraska Department of Revenue may issue a continuing wage levy that remains effective on all future wages, salaries, and income until the liability is satisfied. The levy applies to all non-exempt income in the control of the payor. NE DOR may approve a reduction in the amount subject to levy based on hardship. This is different from a one-time bank levy — wage garnishment continues every pay period until the debt is paid.

What if I have unfiled Nebraska tax returns?

Unfiled returns can block most resolution options. NE DOR may estimate your tax and issue assessments that are higher than what you actually owe. Filing accurate income tax returns can sometimes reduce an incorrect balance. Do not rush or file bad returns — get them prepared correctly with the right income, deductions, and credits. All returns must be filed before applying for a payment plan, OIC, or penalty relief.

Can Nebraska waive penalties?

Yes. The Nebraska Tax Commissioner has discretionary authority to waive all or part of penalties and interest on delinquent taxes. Penalties may be abated if the taxpayer shows reasonable cause and not willful neglect. Use Form 21 to request abatement. Reasonable cause includes causes beyond the taxpayer's control — natural disasters, death or serious illness (including accident or illness affecting the taxpayer or immediate family), destruction of records, or reliance on erroneous DOR advice. Financial difficulties and choosing to pay other creditors instead of taxes do not qualify. Your prior year's abatement history is also a factor in NE DOR's determination. All tax and interest not subject to abatement must be paid before the request will be processed.

What if my Nebraska tax debt is from sales tax or payroll withholding?

Sales tax and payroll withholding are trust fund taxes in Nebraska. Sales tax collected is a trust fund owned by the state from the time of collection. Withheld income tax is a special fund held in trust for the Department. Corporate officers, partners, members, or employees who willfully fail to pay may be held personally liable under Neb. Rev. Stat. § 77-1783.01. Willful failure to pay these taxes is a Class IV felony punishable by up to 2 years' imprisonment, up to 12 months of post-release supervision, and a $10,000 fine. Business purchasers may also face successor liability under § 77-2707.

Can a corporate officer be held personally liable for Nebraska business taxes?

Yes. Under Neb. Rev. Stat. § 77-1783.01, any corporate officer or employee with a duty to collect, account for, or remit taxes is personally liable for willful failure to cause the corporation to pay tax. Willful failure means intentional, conscious, and voluntary action. It is established if the Department shows the officer knew taxes were due, had funds available, and paid other creditors instead. The officer has 60 days after notice and demand to file a petition. If a petition is filed, collection actions are stayed until a hearing is held.

Where can I find application forms for Nebraska tax relief options?

Application forms vary by the option you're pursuing. Form 21 is used for penalty abatement requests, Form 8-621 provides payment plan information, and Form FHRIND-NE is the Financial Hardship Request used in individual income tax OIC submissions. All forms are available through the Nebraska Department of Revenue's official site, and taxes levied by the state are ultimately administered and enforced by the Tax Commissioner regardless of which relief option applies.

Sources Used

These are the official government sources used for this page. Always check the current official source for the most up-to-date information.

• Nebraska Department of Revenue — Official Portal: revenue.nebraska.gov →
• Nebraska Department of Revenue — Collection Regulations (Reg-36-005 through Reg-36-017): 316 Neb. Admin. Code Ch. 36 →
• Neb. Rev. Stat. § 77-3904 — Tax Lien: nebraskalegislature.gov →
• Neb. Rev. Stat. § 77-3906 — Distraint and Sale: nebraskalegislature.gov →
• Neb. Rev. Stat. § 77-2707 — Successor Liability: nebraskalegislature.gov →
• Neb. Rev. Stat. § 77-1783.01 — Corporate Officer Liability: nebraskalegislature.gov →
• Neb. Rev. Stat. § 77-2757 — Employer's Liability / Withholding Trust Fund: nebraskalegislature.gov →
• Neb. Rev. Stat. § 77-2713(15) — Tax Commissioner Penalty Waiver Authority
• Reg-36-017 — Offer in Compromise: NE DOR Regulations →
• Reg-33-003 — Appeal Deadlines: 7-149 PDF →
• GIL 24-19-2 — Innocent Spouse Relief: NE DOR PDF →
• Form 21 — Request for Abatement of Penalty: f_21.pdf →
• Form 8-621 — Payment Plan Information: 8-621.pdf →
• NE DOR — Responsible Person Information (4-787): 4-787.pdf →
• Nebraska Legislature — Chapter 77 (Revenue): nebraskalegislature.gov →

Disclaimer: This page provides general information about Nebraska state tax collection procedures and is not legal advice. Tax laws and agency procedures change. Always consult the official Nebraska Department of Revenue website or a qualified tax professional for advice specific to your situation. No guarantee of any particular outcome is expressed or implied. Approval for payment plans, Offers in Compromise, penalty relief, and other resolutions is discretionary.