Nev. Admin. Code § 372.825 — 372.825

NAC 372.825    Security required for payment; waiver of security; habitually
delinquent persons. ( NRS
360.090 , 360.200 , 372.510 ,
372.725 ,
374.515 ,
374.725 )
1.  Except as otherwise provided in
subsection 2 and NRS 377B.210 ,
a person who obtains a permit to collect sales tax after July 1, 1985, shall
deposit with the Department security in an amount equal to twice the estimated
average tax due quarterly if the person files returns for quarterly periods,
three times the estimated average tax due monthly if the person files returns
for monthly periods or four times the estimated average tax due annually if the
person files returns for annual periods.
2.  A person is not required to deposit
security with the Department pursuant to subsection 1 if the amount of security
required pursuant to subsection 1 does not exceed $1,000.
3.  The Department may reexamine the amount
of security required by subsection 1 after a business has been in operation for
at least 6 months to determine if the original estimated average tax due is
accurate. If the Department determines that the original estimated average tax
due is not accurate, the Department may adjust the amount of security required
pursuant to subsection 1.
4.  Except as otherwise provided in
subsection 5, after a business that files returns for quarterly or monthly
periods has been in operation for at least 12 months, the Department shall not
increase the amount of security required pursuant to subsection 1 based solely
on business volume or an increase in the tax rate.
5.  If the Department determines that a
person knowingly made false statements relating to sales volume to minimize the
amount of security required pursuant to subsection 1, the Department may
increase the amount of security required pursuant to subsection 1 based on the
actual tax due quarterly, monthly or annually.
6.  The Department shall require any person
who is habitually delinquent to deposit with the Department additional security
pursuant to NRS 372.510 and 374.515 .
7.  If a person who files returns for
quarterly periods becomes habitually delinquent, the Department shall require
the person to file returns for monthly periods.
8.  A person may, if the person’s business
has been in operation for at least 12 months, submit a written request to the
Department for a reexamination of the person’s tax-filing history to determine
if a reduction in security is warranted pursuant to subsection 1.
9.  The Department will accept as security
pursuant to this section only:
(a) Cash.
(b) Surety bonds executed by an insurance company.
(c) Irrevocable letters of credit which are issued
or confirmed by a bank, savings bank, credit union or savings and loan
association situated in the State of Nevada upon the conditions prescribed by
the Department.
10.  A person may submit a request for a
waiver of the security required by this section to the Executive Director of
the Department, who shall forward the request to the Commission. The Commission
will consider the request and may grant such a waiver if the person satisfies
the following requirements:
(a) If the person is not a corporate taxpayer, the
person must have a satisfactory payment record.
(b) If the person is a corporate taxpayer, the
person must have a satisfactory payment record and substitute for any other
form of security required by this section:
(1) The personal surety of not less than two
principals of the corporate taxpayer; or
(2) If the corporate taxpayer consists of only
one principal, the personal surety of that principal in his or her individual
capacity.
11.  A waiver granted by the Commission
pursuant to this section may be cancelled if the person becomes habitually
delinquent.
12.  If a business structure changes through
incorporation or otherwise, but the principals or officers of the business
remain substantially the same, the Department shall consider the reporting
history of the previous business structure in determining the security
requirements applicable to the new business structure.
13.  As used in this section, unless the
context otherwise requires:
(a) “Corporate taxpayer” includes, without
limitation, a corporation, limited-liability company, business trust and
limited partnership, including a partnership that consists of corporations.
(b) “Satisfactory payment record” means a record of
tax payments that includes not more than one delinquency, late return, returned
check or return filed without full payment of the tax due during the
immediately preceding 36-month period.
(Added to NAC by Tax Comm’n, eff. 9-13-85; A by Dep’t
of Taxation, 10-18-89; A by Tax Comm’n, 9-6-96; R101-97, 11-14-97; R203-08, 10-15-2010;
R110-12, 11-1-2012)