316 Neb. Admin. Code, ch. 24, § 227 - INCOME TAX RETURNS; EXTENSIONS OF TIME FOR FILING OR PAYMENT

227.01 Extensions of Time for Filing. The Department may grant an extension of time to file the Nebraska Corporation Income Tax Return. Form 1120N, the Nebraska S Corporation Income Tax Return, Form 1120-SN, or the Nebraska Return of Partnership Income, Form 1065N, if the taxpayer files an Application for Automatic Extension of Time to File Nebraska Corporation Fiduciary, or Partnership Return. Form 7004N. To be granted an extension a corporate taxpayer must also pay the amount of tentatively computed tax liability on or before the original due date for filing the Form 1120N.

227.01A If the taxpayer has been granted a federal extension of time, a state extension will be granted if confirmation that the federal application for automatic extension of time to file is submitted with the Form 1120N, 1120-SN. or 1065N when filed.

227.01B Affiliated and Unitary Groups. A corporate taxpayer filing a combined return with Nebraska must list each corporation to be included in the combined return in the request for an extension of time to file. The Form 7004N must include the name, address. and federal ID number of each corporation to be included in the combined return on the applicable schedule attached to Form 7004N. An automatic extension of time granted to the corporate taxpayer will not apply to any nonunitary member of an affiliated group filing a separate return with Nebraska.

227.01C Length of Extension. The Department may authorize a Nebraska extension up to, but not exceeding, seven months from the original due date of the Form 1120N, 1120-SN, or 1065N.

227.01D Interest. When the time for filing the return is extended, interest will be imposed from the original due date of the return to the date the tax is paid, at the rate specified in Neb. Rev. Stat. § 45-104.02, on the difference, if any, between the amount of tax ultimately due, and the sum of the tentative remittance, any estimated payments made, and any applicable credits. The amount ultimately due includes both income tax required to be withheld from nonresident individual owners under Reg-24-225 and remitted on Form 1120-SN or Form 1065N, and corporation income tax due from a corporate taxpayer on Form 1120N.

227.01E Approval or Denial. If an application for extension to file is denied, the Department will send a notice of denial to the taxpayer at the address specified by the applicant on the extension form. If the application is approved, no notice will be sent.

227.01F Termination of Extension. The Tax Commissioner may terminate a corporate taxpayer's extension at any time by a mailing the taxpayer a notice of termination at least 10 days prior to the termination date as fixed in the notice. This will allow the taxpayer 10 days after the date of the termination notice to file the Form 1120N.

227.02 Extensions of Time for Payment. A corporate taxpayer may make a request to the Department for an extension of time for paying the tax due. Any request for an extension of time for payment must be made prior to the original due date for payment. All applications for extension of time for payment must contain a complete statement of the reasons for the request.

227.02A The Tax Commissioner may grant an extension of time for payment upon a proper showing that payment by the due date will result in undue hardship upon the corporate taxpayer.

227.02B An extension of time for payment granted by the Tax Commissioner cannot exceed seven months.

227.02C If an extension of time for payment is granted, the Tax Commissioner may require the corporate taxpayer to furnish a bond in an amount not exceeding double the amount of tax due, or to furnish other security that is approved in advance by the Tax Commissioner. If a bond is required, it must be filed with the Department within 10 days after the notice that a bond is required is received. The bond must comply with the terms of the extension of time for payment and must be approved by the Tax Commissioner with regard to form and content before it will be accepted as security by the Department.

227.02D If an extension of time for payment is granted, the tax must be paid on or before the expiration of the extension, together with interest at the rate specified in Neb. Rev. Stat. § 45-104.02. Interest is due on the tax payment from the original due date for payment until the date the payment is actually made, regardless of any extension of time.

227.02E Termination of Extension. The Tax Commissioner may terminate an extension of time for payment at any time by mailing the taxpayer a notice of termination at least 10 days prior to the termination date as fixed in the notice. This will allow the taxpayer 10 days after the date of the termination notice to make payment If payment is not made within the 10 days, any bond or other security required under Reg-24-227.02C will be executed.

Notes

316 Neb. Admin. Code, ch. 24, § 227

Adopted effective 7/5/2020