NAC360.437. Interpretation of certain statutory terms.

As used in NRS 360.263, the Commission will interpret:

     1. The phrase “It is unlikely that the Department will be able to collect the entire amount of the liability of the taxpayer” to include any case in which:

     (a) The assets and income of the taxpayer are less than the full amount of the liability of the taxpayer either paid in a single installment or pursuant to a reasonable installment payment plan; and

     (b) The taxpayer will not have, in the foreseeable future, the money, assets or means to pay the liability of the taxpayer, either paid in a single installment or pursuant to a reasonable installment payment plan, after the taxpayer has paid for the basic living expenses of the taxpayer based on an evaluation of the circumstances and facts relevant to the taxpayer and considering the guidelines adopted by the Internal Revenue Service relating to national and local standards for living expenses.

     2. The phrase “The amount of the liability of the taxpayer is unclear” to include any case in which:

     (a) The amount or existence of the liability of the taxpayer is dependent upon the outcome of a good faith dispute over the relevant facts or applicable law; and

     (b) The amount of the liability of the taxpayer:

          (1) Has become due to the State, as determined by the date upon which the taxpayer is required to pay a tax, contribution, premium, fee, interest or penalty to the State pursuant to any provision of NRS; and

          (2) Has not been reviewed by the Commission, if applicable.

     3. The phrase “Such a compromise is appropriate based upon considerations of equity and fairness” to include, without limitation, any case in which:

     (a) The medical condition of the taxpayer or the medical condition of the spouse, parent, sibling or child of the taxpayer to whom the taxpayer provides full-time medical care or living assistance was such that the taxpayer was unable to manage the financial affairs of the taxpayer during the period in which the liability of the taxpayer was incurred;

     (b) The taxpayer incurred the liability, in whole or in part, as a result of the misconduct of an employee of the taxpayer of which the taxpayer was unaware;

     (c) Notwithstanding the conduct which gives rise to the liability of the taxpayer for which a compromise is sought, the taxpayer and any business entities managed, operated or controlled by the taxpayer have a history of compliance with all applicable filing and payment requirements; or

     (d) The taxpayer was the victim of a crime, natural disaster or other unforeseeable occurrence that significantly impacted the ability of the taxpayer to:

          (1) Pay the financial obligations of the taxpayer as such obligations came due in the ordinary course of business; or

          (2) Challenge or petition for review in a timely manner the determination of the liability of the taxpayer when the liability was initially assessed by the Department.

     (Added to NAC by Tax Comm’n by R019-05, eff. 10-31-2005)