Neb. Admin. Code § 316-21-013 — Manner of Filing Nebraska Reconciliation of Income Tax Withheld and State Copies of Federal Forms W-2

013.01 Electronic Filing. Any employer who furnishes more than 50 Federal Forms W-2, Forms 1099-MISC, or other statements reporting withholding for a year must electronically file (e-file) the required copies in a manner approved by the Tax Commissioner that is compatible with federal e-file requirements or methods. 013.02 Undeliverable Forms. If an employer cannot deliver any employee copies of Federal Forms W-2 or 1099-MISC to employees after reasonable effort, these employee copies must be transmitted with the Nebraska Withholding Return, Form 941N, due the following July accompanied by a signed letter explaining that they were submitted because they could not be delivered to the employees. 013.03 Corrected or Reissued Forms. When Federal Forms W-2 or 1099-MISC are corrected by the employer or are reissued, these forms must be clearly marked either “corrected by employer” or “reissued by employer” and copies must be furnished to the employee and to the Department. If a correction is necessary, the employer may also use Federal Form W-2c to make the correction. 013.04 All Copies to be Complete and Legible. All copies of any forms prepared by the employer and furnished to the employee or to the Department must be completed in full, including the ID of the employer and the state income tax withholding, and must be legible. If the copies are not fully completed or are not legible, they will not be considered furnished by the employer in compliance with the law, and the employer may be subject to the penalties for noncompliance as provided in Reg-21-016. 013.05 Retention of Records. Every employer must retain copies of all forms filed with the Department and copies of all documents furnished to employees for at least three years. If the employer reports information electronically, the employer may retain the supporting documentation or an electronic copy. If the Department issues a balance due notice or a notice of proposed deficiency determination for a taxable year, the taxpayer must retain all records relating to that taxable year until the balance due or proposed deficiency determination has been satisfied, abated, settled, or disallowed, and has become final. 013.06 Availability of Records. The Department, or its agents, has the right to examine, inspect, or make and retain copies of any records, electronic media, and equipment of any person to audit or review the accuracy of any income tax withholding return filed; or if no return is filed by the person, to ascertain and determine the amount that must be paid. 013.07 Administrative Subpoena. The Tax Commissioner may require any person to provide records that are necessary to make a proper determination of any person's compliance with and the liability under the laws of this state. If a reasonable request to produce records is refused, the Tax Commissioner may issue an administrative subpoena. 013.07A An administrative subpoena must clearly state the scope of the demand for records and any other requirements, and state when, where, and how to comply with the administrative subpoena. 013.07B An administrative subpoena may be enforced by the Attorney General, acting on behalf of the Tax Commissioner, in an action filed in the district court for Lancaster County. 013.07C The Tax Commissioner may also apply to the district court of the county of residence for an individual, for an order directing compliance with the request for records. If the records are in the custody of a corporation, partnership, or LLC the order may be directed to any principal officer of the corporation, or any principal officer, responsible partner, or responsible member of the partnership or LLC. If any individual refuses an order from the district court, he or she is guilty of contempt of court. 013.08 Records Reconstruction. Records that are destroyed by a natural disaster should be reconstructed by the taxpayer to the greatest extent possible from records kept by financial institutions, employers, vendors, and others. (Neb. Rev. Stat. §§ 77-375, 77-2756, 77-2771, 77-2772, 77-2786(1), 77-27-109, 77-27,115, and 77-27,119(3). October 26, 2014.)