Neb. Admin. Code § 316-24-046 — Adjustments of Federal Income Tax

046.01 Any changes made by the Internal Revenue Service (IRS) to the federal taxable income of a corporate taxpayer, a member of a unitary group, or the unitary group must be reported to the Nebraska Department of Revenue (Department) within 60 days after the final determination of the change. 046.01A Reportable changes include changes made to the federal return by either the IRS Processing Center or any other IRS office. 046.01 B When reporting any change to federal taxable income, the taxpayer must be furnish the Department complete information regarding the amount of income reported and taxes paid to the United States. The report must also concede the accuracy of the final determination or give a statement outlining the specific errors in the final determination. 046.02 Any adjustments made on federal amended returns which do not result in a federal credit or refund must be reported to the Department within 60 days after filing the federal amended return. Any adjustments made on federal amended returns which result in a federal credit or refund must be reported to the Department within 60 days after the taxpayer's receipt of proof that the federal credit or refund was accepted by the IRS, or within any other applicable period provided by law, whichever is later. 046.03 Adjustments made on a federal amended return or by the IRS must be reported to the Department by filing an Amended Nebraska Corporation Income Tax Return, Form 1120XN, for the taxable year involved. 046.03A The amended return for Nebraska must include copies of the federal amended return, IRS report, or any other document which substantiates the adjustments claimed. 046.03B Each amended return for Nebraska must be filed separately and cannot be attached to a return for another taxable year. Any additional tax that is due must be paid when the amended return is filed. 046.04 The following acts are considered a final determination: 046.04A A decision by the tax court or a judgment, decree, or other order by a court of competent jurisdiction which has become final; 046.04B A closing agreement authorized by IRC § 7121 which relates either to the total tax liability, or to one or more separate items affecting the Nebraska tax liability. A closing agreement becomes final for purposes of this regulation on the date it is approved by the IRS; 046.04C A final disposition by the IRS of a claim for refund; 046.04D Any informal agreement between the corporate taxpayer or a member of a unitary group and the IRS made for the express purpose of determining the tax liability of the taxpayer. To be considered a final determination, the agreement must include a waiver of restrictions on assessment and collection of any deficiencies resulting from the agreement; 046.04E Acceptance of an examining officer's findings with regard to the income of a partnership, a fiduciary, or a limited liability company; 046.04F Payment of any additional tax by the corporate taxpayer or unitary group; or 046.04G Any other final judgment causing changes in reported federal taxable income. 046.05 If a taxpayer fails to report any change or correction which increases its federal tax liability, fails to report any change or correction which is treated as a deficiency for federal income tax purposes, or fails to file an amended Nebraska return as required by this regulation, the Tax Commissioner may issue the taxpayer a notice of deficiency at any time. If a taxpayer properly reports any change in its federal tax liability, the Tax Commissioner must make an assessment relating to the change within two years after the report or amended return was filed. 046.06 An amended return reporting a change that results in an overpayment of tax for Nebraska is considered a claim for credit or refund. 046.06A The amount of the credit or refund cannot exceed the amount of the Nebraska tax attributable to the federal change, correction, or the items amended on the federal return. 046.06B If the amended return is not filed within 60 days after the final determination of the change, interest does not accrue after the 60th day. 046.06C If the amended return is not filed within two years and 60 days after the final determination of the change, no credit or refund will be granted. (Neb. Rev. Stat. §§ 77-2774, 77-2775, 77-2786, and 77-2793. July 3, 2013.)