Nebraska: Sales Tax Handbook

How to appeal a sales tax audit or penalty in Nebraska

In Nebraska, the Department of Revenue will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.

If you disagree with a penalty or ruling made by the Nebraska Department of Revenue, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Department of Revenue, to an administrative appeal body, and through the courts.

Sales Tax Statute of Limitations in Nebraska

In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Nebraska sales tax return in the event of underpayment, incorrect reportings, etc. The Department of Revenue cannot begin an audit or issue a penalty after this timeframe.

The statute of limitations in Nebraska is three years from later of either the return due date or the last day of the calendar month directly after the tax period. It must be noted that if no return was filed, a fraudulent report was filed which was intended to avoid the tax, or if any amount have been left out of any return that is larger then 25% of the amount of tax that will be stated, the statute of limitations becomes six years from the very last day of the month which directly follows after the period where the amount will be determined.

Appealing to the Department of Revenue in Nebraska

If you do not agree with a penalty or decision made by the Nebraska Department of Revenue, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Tax Commissioner within sixty days after service of notice of deficiency

Administrative Sales Tax Appeals in Nebraska

This district has no administrative appeal body

Judicial Sales Tax Appeals in Nebraska

If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the District Court within thirty days after the service of the final decision