NAC361.590. Waiver or reduction of penalty or interest.

     1. The Department may waive or reduce the penalty or interest for a delinquent payment of property tax which is imposed pursuant to NRS 361.483 and 361.535 if it finds that the proximate cause of the delinquent payment was:

     (a) Circumstances completely beyond the control of the taxpayer who was required to make the payment, or the agent of the taxpayer;

     (b) Justifiable neglect or justifiable inadvertence, and that the taxpayer making the payment has no history of habitually delinquent payments; or

     (c) For other good cause shown.

     2. Any application for waiver or reduction of the penalty or interest for delinquent payment must be filed in writing under oath with the Department within 60 days after the date the tax is due setting forth the circumstances which caused the delinquent payment. The Department shall provide a copy of the application to the county tax receiver who may, within 15 days, submit relevant information regarding the application to the Department. The Department will provide notice to the tax receiver and the taxpayer, or the agent of the taxpayer, of its determination. The notice will specify any action that the Department has directed must be taken.

     3. In determining whether or not the circumstances which caused the delinquent payment in any particular case were completely beyond the control of the taxpayer required to make the payment, or the agent of the taxpayer, the Department shall consider only evidence which shows that the delinquent payment was proximately caused by fire, earthquake, flood or other acts of God, theft or similar causes not directly related to the actions of the taxpayer who was required to make the payment, or the agent of the taxpayer, whether intentional or not, and that the tax was paid as soon as reasonably possible thereafter. In these circumstances, all of the penalty or interest, or both, will be waived.

     4. If the Department finds that the proximate cause of a delinquent payment was justifiable neglect or justifiable inadvertence, and that the tax was paid as soon as reasonably possible thereafter, the penalty or interest imposed for the delinquent payment will be reduced to a total of not more than 50 percent of the penalty or interest imposed.

     5. In determining whether the proximate cause of the delinquent payment was for other good cause shown, the Department will require the taxpayer to submit, without limitation, evidence that the tax was paid as soon as reasonably possible and that the assessment of penalties and interest:

     (a) Constitutes an extreme financial hardship; or

     (b) Is extremely unfair or extremely inequitable under the circumstances.

     6. As used in this section, “extreme financial hardship” means that the taxpayer who owes the tax has the present ability to pay the tax but payment of the penalties and interest will render the taxpayer insolvent.

     (Added to NAC by Tax Comm’n, eff. 9-6-96)—(Substituted in revision for NAC 361.610)