316 Neb. Admin. Code, ch. 23, § 014

Current through September 17, 2024

Section 316-23-014 - ADJUSTMENTS OF ANOTHER STATE'S FIDUCIARY INCOME TAX

014.01 Reporting Changes from Other States

Any fiduciary who is required to file an income tax return in another state, and who receives changes made by such state in the fiduciary's state income tax return which are material to the tax liability owed to this state or to the amount of distributable income attributable to Nebraska must report the changes to the Nebraska Department of Revenue within ninety days of the final determination of the change. Reportable changes include changes made to the state's return by any competent authority of the state. In reporting any change to the other state's tax return, the fiduciary must furnish the department complete information regarding the amount of income reported and taxes paid to the other state. The report must also concede the accuracy of the final determination or give a statement outlining the specific errors of the final determination.

014.02 Amended Returns Used to Report Changes

Any adjustments made by the other state's amended returns or by the other state's revenue service must be reported to the department by filing an amended Nebraska Fiduciary Income Tax Return for the taxable year involved. The amended return for Nebraska must be filed within ninety days of the filing of the amended return for the other state, and must include copies of any reports issued by state authorities. A fiduciary who files an amended return with the other state as a protective claim is not required to file an amended return with Nebraska. The acceptance of the claim, or the payment of the refund, constitutes a state change that must be reported. A protective claim is a claim filed to protect the taxpayer from the expiration of the statute of limitations while a separate action challenging a position of the other state is pending.

014.03 Each Amended Return is Filed Separately

The amended return for Nebraska must be filed separately and should not be attached to or filed with a return for another taxable year. Payment of any additional tax must accompany the amended return.

014.04 Final Determination

For the purpose of determining when adjustments in state income tax constitute a final determination, the following acts will be considered to be a final determination even though the taxpayer and the other state may still be contesting the amount due:

014.04A A decision by a state tax court or a judgment, decree, or other order by a court of competent jurisdiction which has become final.

014.04B A closing agreement authorized by state law which relates either to the total tax liability of the fiduciary for a particular taxable year or years or to one or more separate items affecting tax liability. A closing agreement becomes final for purposes of this regulation on the date of its approval by the other state.

014.04C The final disposition by the other state of a fiduciary's claim for a refund.

014.04D Any informal agreement between the fiduciary and the other state made for the express purpose of serving as a determination in respect to the taxable income or tax liability of the taxpayer. Such an agreement must include a waiver by the fiduciary of restrictions on assessment and the collection of any deficiencies resulting from the agreement.

014.04E The acceptance of an examining officer's findings in regard to the income of a partnership or fiduciary.

014.04F The payment of any additional tax by the fiduciary. Any deposit made with the other state that can be returned at the request of the fiduciary is not considered the payment of the tax by the taxpayer. The additional tax will be considered paid when the other state applies the deposit.

014.04G Any other final judgment effecting changes in the reported taxable income or distributable income in the other state.

014.05 Notice of Deficiency Determination after State Change

If a fiduciary fails to file an amended return reporting any change or correction which increases its Nebraska taxable income, tax liability, or distributable income, the department may mail a notice of deficiency to the fiduciary at any time. If a fiduciary properly reports any change in the other state's taxable income, tax liability, or distributable income, the department may make an assessment relating to the change at any time within two years after the amended return was filed.

014.06 Failure to Report Change to Other State

Any change in the other state's adjusted taxable income, tax liability, or distributable income which has not been reported to the other state cannot be used as the basis for a change or reduction in the Nebraska liability.

014.07 Claim for Credit or Refund

The amended return reporting a change that results in an overpayment of tax for Nebraska is a claim for credit or refund.

014.07A The amount of the credit or refund shall not exceed the amount of the Nebraska tax attributable to such state's change, correction, or the items amended on the other state's return.

014.07B If the amended return is not filed within ninety days of the final determination of the change, interest shall not accrue after the ninetieth day.

014.07C If the amended return is not filed within two years and ninety days from the final determination of the change, or within ten (10) years of the original due date of the return, whichever is earlier, no credit or refund shall be granted.

316 Neb. Admin. Code, ch. 23, § 014

Section 77-2775(2), R.S.Supp., 1998, and section 77-2786(4) and (5), and 77-2793(55), R.R.S. 1996. November 11, 1998.