Nev. Admin. Code § 360.438 — 360.438

NAC 360.438    Submission and withdrawal of offer to compromise; action by Department
and Commission; effect of compromise. ( NRS
360.090 , 360.263 )
1.  A person may request that the Commission
compromise the liability of the person for a tax, contribution, premium, fee,
interest or penalty assessed pursuant to the provisions of chapter 360 , 360B , 362 ,
363A , 363B , 363C , 368A , 369 ,
370 , 372 ,
372A , 374 , 377 ,
377A or 444A of NRS, NRS 482.313 , or chapter 585 or 680B of NRS as administered or audited
by the Department by submitting to the Department, on a form prescribed by the
Department, an offer to compromise the liability of the person.
2.  An offer to compromise the liability of a
person submitted pursuant to subsection 1 must include:
(a) A statement of the grounds upon which the
compromise is sought and any other information to support the offer;
(b) Copies of such financial information and
documentation as may be required by the Department, including, without
limitation, financial statements, bank records, accounting ledgers and a
statement or explanation of any assets that may be acquired by the person
pursuant to the resolution of a pending claim, cause of action, settlement or
insurance disbursement, inheritance or an unsatisfied judgment or court order;
(c) An affirmation, signed under penalty of
perjury, attesting to the truthfulness and accuracy of all information and
documentation submitted with the offer to compromise; and
(d) A written statement signed by the person
consenting to suspend any and all statutory periods of limitation relevant to
the collection of the liability of the taxpayer or the seizure, attachment,
garnishment or execution upon property or assets of the taxpayer to satisfy the
liability of the taxpayer during the period in which the Commission considers
whether to accept or reject the offer of compromise.
3.  The Department shall review, analyze and
verify an offer of compromise and any accompanying information and
documentation submitted pursuant to subsection 1.
4.  If, after reviewing, analyzing and
verifying the offer pursuant to subsection 3, the Department determines that:
(a) The offer does not comply with subsection 1 or
does not include adequate supporting information and documentation, the
Department shall return the offer to the person who submitted the offer with a
written explanation of the deficiencies.
(b) Except as otherwise provided in paragraph (c),
the offer complies with subsection 1, the Department shall forward to the
Commission the offer and the recommendation of the Department as to whether the
Commission should accept or reject the offer.
(c) The offer complies with subsection 1 and the
Department will recommend that the Commission reject the offer, the Department
shall advise the person submitting the offer in writing that the Department
will recommend that the Commission reject the offer before forwarding the offer
and the recommendation of the Department to the Commission pursuant to
paragraph (b). A person so advised may withdraw the offer.
5.  Except as otherwise provided in this
subsection, if a person submits an offer pursuant to subsection 1, the
Department shall cease, and shall not commence, any action related to the
collection of the liability of the taxpayer or the seizure, attachment,
garnishment or execution upon property or assets in satisfaction of the
liability until the Commission accepts or rejects the offer. If the Department
determines that the offer submitted pursuant to subsection 1 was offered for
the purpose of delaying or avoiding the collection of the liability of the
person, the Department may continue or commence any action related to the
collection of the liability of the taxpayer or the seizure, attachment,
garnishment or execution upon property or assets in satisfaction of the
liability.
6.  The Commission will review an offer
received from the Department pursuant to subsection 4 and issue a written
decision as to whether the Commission accepts or rejects the offer of
compromise.
7.  If the written decision of the Commission
issued pursuant to subsection 6 is the acceptance of the offer of compromise,
the Commission may:
(a) Make the acceptance of the offer contingent
upon the satisfaction of conditions as the Commission deems appropriate,
including, without limitation, that all or part of the amount of the compromise
be paid within a specific time frame.
(b) Allow the person submitting the offer to pay
the amount of the compromise in reasonable installments. If the Commission
allows the person submitting the offer to pay the amount of the compromise in
reasonable installments, the Commission may make the acceptance of the offer
contingent upon the person complying with the schedule of installment payments.
8.  If the Commission makes the acceptance of
an offer of compromise contingent upon the satisfaction of a condition pursuant
to subsection 7, the Commission will hold a hearing before finally accepting or
rejecting the offer to determine whether the conditions upon the acceptance of
the offer were satisfied. If the Commission determines that the conditions upon
the acceptance of the offer were satisfied, the Commission will issue a written
decision to accept the offer of compromise. If the Commission determines that
the conditions upon the acceptance of the offer were not satisfied, the
Commission will issue a written decision specifying the manner in which such
conditions failed to be satisfied.
9.  Except as otherwise provided in
subsection 10, after the Commission has accepted an offer of compromise and the
person has tendered the full amount of money offered in the compromise, the
compromise will be deemed to be an accord and satisfaction of the liability of
the person for that liability which is the subject of the compromise.
10.  If, after a hearing, the Commission
determines that the acceptance by the Commission of an offer of compromise was
procured through fraud, misrepresentation or concealment or resulted from a
mutual mistake of fact, the Commission may issue a written decision to
reinstate the liability of the taxpayer in the amount originally assessed by
the Department. The written decision of the Commission is a final decision for
the purposes of judicial review.
11.  The acceptance of an offer of compromise
by the Commission pursuant to this section shall not be deemed to be a
limitation on the rights and remedies of the Department with respect to any
person not named or identified in the offer of compromise.
(Added to NAC by Tax Comm’n by R019-05, eff. 10-31-2005;
A by R110-12, 11-1-2012; R123-15, 6-28-2016)
VOLUNTARY DISCLOSURE OF FAILURE TO FILE RETURN