Nev. Admin. Code § 360.437 — 360.437

NAC 360.437    Interpretation of certain statutory terms. ( NRS 360.090 , 360.263 )    As used
in NRS 360.263 , the Commission
will interpret:
1.  The phrase “It is unlikely that the
Department will be able to collect the entire amount of the liability of the
taxpayer” to include any case in which:
(a) The assets and income of the taxpayer are less
than the full amount of the liability of the taxpayer either paid in a single
installment or pursuant to a reasonable installment payment plan; and
(b) The taxpayer will not have, in the foreseeable
future, the money, assets or means to pay the liability of the taxpayer, either
paid in a single installment or pursuant to a reasonable installment payment
plan, after the taxpayer has paid for the basic living expenses of the taxpayer
based on an evaluation of the circumstances and facts relevant to the taxpayer
and considering the guidelines adopted by the Internal Revenue Service relating
to national and local standards for living expenses.
2.  The phrase “The amount of the liability
of the taxpayer is unclear” to include any case in which:
(a) The amount or existence of the liability of the
taxpayer is dependent upon the outcome of a good faith dispute over the
relevant facts or applicable law; and
(b) The amount of the liability of the taxpayer:
(1) Has become due to the State, as determined
by the date upon which the taxpayer is required to pay a tax, contribution,
premium, fee, interest or penalty to the State pursuant to any provision of
NRS; and
(2) Has not been reviewed by the Commission,
if applicable.
3.  The phrase “Such a compromise is
appropriate based upon considerations of equity and fairness” to include,
without limitation, any case in which:
(a) The medical condition of the taxpayer or the
medical condition of the spouse, parent, sibling or child of the taxpayer to
whom the taxpayer provides full-time medical care or living assistance was such
that the taxpayer was unable to manage the financial affairs of the taxpayer during
the period in which the liability of the taxpayer was incurred;
(b) The taxpayer incurred the liability, in whole
or in part, as a result of the misconduct of an employee of the taxpayer of
which the taxpayer was unaware;
(c) Notwithstanding the conduct which gives rise to
the liability of the taxpayer for which a compromise is sought, the taxpayer
and any business entities managed, operated or controlled by the taxpayer have
a history of compliance with all applicable filing and payment requirements; or
(d) The taxpayer was the victim of a crime, natural
disaster or other unforeseeable occurrence that significantly impacted the
ability of the taxpayer to:
(1) Pay the financial obligations of the
taxpayer as such obligations came due in the ordinary course of business; or
(2) Challenge or petition for review in a timely
manner the determination of the liability of the taxpayer when the liability
was initially assessed by the Department.
(Added to NAC by Tax Comm’n by R019-05, eff. 10-31-2005)