Nebraska – Tax Reporting Responsibilities

SALT Report 1253 – The Nebraska Department of Revenue has released an information guide regarding the collection and reporting of sales and use tax.  All retailers, employers, contractors, and payors are required to collect, report, and remit sales tax.  In the state of Nebraska, sales tax is considered a “trust fund” tax and must be held for the state in a separate bank account.

Collection of Local Sales Taxes

The sales tax collected from your customer is a debt that you, as a retailer, owe to the State of Nebraska. The sales tax collected is held in trust by you pending payment to the Department. You cannot legally use these trust funds for any other purposes. Sales taxes collected from customers should be separated from other business receipts.

Record Keeping Requirements

You must keep all records, including receipts, invoices, cash register tapes, resale and exemption certificates, ledgers, spreadsheets, and workpapers used in preparing your tax returns. The Nebraska Department of Revenue may request to examine these documents in order to verify amounts required to be paid to the State.

Reporting and Paying Taxes

Retailers must report and remit all local sales taxes collected from customers using Form 10. Retailers must file Form 10 either monthly, quarterly, or annually based on their annual sales tax liability. You may be required to electronically file and pay your sales and use taxes.

The sales and use tax due date has changed from the 25th of the month to the 20th of the month and should be remitted in the following manner:

  • Monthly filers – You must file the return and remit the tax collected by the 20th day of the following month.
  • Quarterly filers – You must file the return and remit the tax collected by the 20th day of the month following the end of the quarter.
  • Annual filers – You must file the return and remit the tax collected by the 20th of January of the following year.

Your sales tax permit may be revoked if you:

  • Fail to comply with any provision of the Nebraska Revenue Act, or with any rule or regulation relating to sales tax
  • Fail to provide any books, records, documents, or items required by law, rule, or regulation for inspection or audit; or
  • Misrepresent, or fail to disclose, a material fact to the Department.

The Department will give you a minimum of 20 days’ notice in writing before a revocation hearing. If you have multiple locations, there will be a hearing for each delinquent account, unless you request otherwise. The notice will indicate the time and place of the hearing and require you to prove why your sales tax permit should not be revoked. You will receive written notice from the Department of the suspension or revocation of any of your sales tax permits.

If your permit is revoked or suspended, your business must close and remain closed.  However, the permits may be reinstated if the Department is satisfied that in the future you will comply with the provisions of the Revenue Act and any regulations relating to sales tax. Additionally, a permit reinstatement fee of $25 must be paid to the Department after the first revocation, and a reinstatement fee of $50 along with a possible security deposit must be paid for any later revocations.

For Further Information:

Nebraska Department of Revenue – Information Guide 4-787-1999