Nev. Rev. Stat. § 368A.240 — Credit for amount of tax paid on account of certain charges taxpayer is unable to collect; violations

NRS  368A.240    Credit for amount of tax paid on account of certain charges
taxpayer is unable to collect; violations.
1.  If a taxpayer:
(a) Is unable to collect all or part of an
admission charge or charge for live entertainment provided by an escort, which
was included in the taxable receipts reported for a previous reporting period;
and
(b) Has taken a deduction on his or her federal
income tax return pursuant to 26 U.S.C. § 166(a) for the amount which the
taxpayer is unable to collect,
Ê the taxpayer
is entitled to receive a credit for the amount of tax paid on account of that
uncollected amount. The credit may be used against the amount of tax that the
taxpayer is subsequently required to pay pursuant to this chapter.
2.  If the Internal Revenue Service
disallows a deduction described in paragraph (b) of subsection 1 and the
taxpayer claimed a credit on a return for a previous reporting period pursuant
to subsection 1, the taxpayer shall include the amount of that credit in the
amount of taxes reported pursuant to this chapter in the first return filed
with the Board or the Department after the deduction is disallowed.
3.  If a taxpayer collects all or part of
an admission charge or charge for live entertainment provided by an escort, for
which the taxpayer claimed a credit on a return for a previous reporting period
pursuant to subsection 2, the taxpayer shall include:
(a) The amount collected in the charges reported
pursuant to paragraph (a) of subsection 1; and
(b) The tax payable on the amount collected in
the amount of taxes reported,
Ê in the first
return filed with the Board or the Department after that collection.
4.  Except as otherwise provided in
subsection 5, upon determining that a taxpayer has filed a return which
contains one or more violations of the provisions of this section, the Board or
the Department shall:
(a) For the first return of any taxpayer that
contains one or more violations, issue a letter of warning to the taxpayer
which provides an explanation of the violation or violations contained in the
return.
(b) For the first or second return, other than a
return described in paragraph (a), in any calendar year which contains one or
more violations, assess a penalty equal to the amount of the tax which was not
reported.
(c) For the third and each subsequent return in
any calendar year which contains one or more violations, assess a penalty of
three times the amount of the tax which was not reported.
5.  For the purposes of subsection 4, if
the first violation of this section by any taxpayer was determined by the Board
or the Department through an audit which covered more than one return of the
taxpayer, the Board or the Department shall treat all returns which were
determined through the same audit to contain a violation or violations in the
manner provided in paragraph (a) of subsection 4.

OVERPAYMENTS AND REFUNDS