Best Tax Lawyers in Nebraska

About Tax Law in Nebraska, United States

Tax law in Nebraska encompasses all legislation and regulations related to the collection and enforcement of taxes by state and local authorities. These taxes include state income tax, property tax, sales and use tax, inheritance tax, and corporate taxes. Nebraska taxpayers must comply with both federal and state tax obligations, with the Nebraska Department of Revenue being the primary authority for administering state-level taxation. The state works in conjunction with the Internal Revenue Service for federal tax matters, meaning individuals and businesses must often navigate rules from both levels. Nebraska tax law is subject to change through legislative updates, so it is important to stay informed or work with advisors who are up to date on current rules.

Why You May Need a Lawyer

Many individuals and businesses encounter tax situations where legal assistance is highly beneficial or even necessary. Some common reasons to seek a tax lawyer in Nebraska include:

• Receiving audit notification from the Nebraska Department of Revenue or the IRS
• Facing disputes over property tax assessments with county officials
• Dealing with back taxes, penalties, or interest due to nonpayment or late filing
• Being accused of tax fraud or evasion
• Understanding the tax implications of estate planning and Nebraska inheritance tax
• Starting or expanding a business and needing guidance on registration, exemptions, or compliance
• Responding to liens, levies, or wage garnishments related to unpaid taxes
• Negotiating offers in compromise or payment agreements
• Advising on structuring real estate transactions or asset sales to minimize tax burdens
• Navigating complex multi-state tax compliance issues for businesses or individuals who live and work in more than one state

While many routine tax filings can be managed without legal help, complicated, high-stakes, or contested tax matters often require an attorney familiar with Nebraska tax law.

Local Laws Overview

Nebraska tax law features several key aspects that impact both residents and businesses. Here are some highlights:

• State Income Tax: Nebraska imposes a progressive income tax on individuals, with rates and brackets updated periodically. There are specific deductions and credits unique to the state.
• Sales and Use Tax: The state levies a sales tax on most retail sales of goods and certain services. Local governments can add additional taxes. Use tax applies to goods purchased out-of-state but used within Nebraska.
• Property Tax: Collected at the local level, property tax is a significant source of revenue for Nebraska’s schools and public services. Tax assessments and exemptions can be complex and sometimes disputed.
• Inheritance and Estate Taxes: Nebraska enforces an inheritance tax that depends on the relationship of the heir to the deceased and the amount inherited.
• Corporate Income Tax: Businesses in Nebraska pay a corporate income tax, with specific apportionment rules for multi-state companies.
• Tax Credits and Incentives: The state offers various tax credits, including incentives for economic development, renewable energy, and investments in certain areas.
• Audit and Appeals: Taxpayers may be audited by state or local authorities. There are formal processes for contesting tax assessments or determinations through administrative appeals or litigation.

Staying informed about local updates is essential, as state and county tax regulations can evolve year to year.

Frequently Asked Questions

Do I have to file a Nebraska income tax return if I live here but work in another state?

Generally, if you are a resident of Nebraska, you must report all income, even if it was earned in another state. You may be eligible for a credit for taxes paid to other states.

What is the Nebraska state sales tax rate?

The base state sales tax rate is 5.5 percent. However, local municipalities can impose additional taxes, which can bring the total rate higher depending on your location.

How can I appeal a property tax assessment in Nebraska?

You can appeal local property tax assessments by filing a protest with your county board of equalization. If you do not receive a satisfactory outcome, further appeal is possible through the Nebraska Tax Equalization and Review Commission.

Are there exemptions from sales or use tax in Nebraska?

Yes, certain products and organizations are exempt, such as groceries, prescription medicines, and some non-profit entities. Certain manufacturing equipment and agricultural purchases may also qualify for exemptions.

What should I do if I receive a tax audit notice?

It is important to respond promptly and accurately. Gather documentation to support your filings and consider consulting a tax attorney, especially if the audit is complex or high-value.

Does Nebraska have an inheritance or estate tax?

Nebraska imposes an inheritance tax that varies depending on your relationship to the decedent and the value of property inherited. Close family typically pays less or nothing, while distant relatives and unrelated heirs may pay more.

How long should I keep my tax records if I file in Nebraska?

It is generally recommended to keep tax returns and supporting documents for at least seven years, as audits and disputes may arise years after filing.

Are Social Security benefits taxable in Nebraska?

Nebraska generally follows federal treatment, but starting tax year 2021, Nebraska implemented phased reductions in state taxation of Social Security benefits, with the intent to eliminate it by 2025.

What options do I have if I cannot pay my taxes in full?

You may be eligible for payment plans, installment agreements, or offers in compromise with the Department of Revenue. It is important to address unpaid taxes promptly to avoid penalties and interest.

Do new businesses need to register for taxes in Nebraska?

Yes, most new businesses are required to register with the Nebraska Department of Revenue for state tax purposes, including sales tax, income tax withholding, and other applicable taxes.

Additional Resources

If you are seeking information or guidance related to tax law in Nebraska, the following organizations and resources can be helpful:

• Nebraska Department of Revenue - for forms, instructions, and official guidance on state taxes
• Internal Revenue Service - for federal tax matters applicable in Nebraska
• Your local county assessor’s office - for property tax questions or appeals
• Nebraska State Bar Association - for finding licensed tax attorneys
• Volunteer Income Tax Assistance (VITA) locations - for free tax help for qualifying individuals
• Local legal aid societies - for assistance if you meet income qualifications

Next Steps

If you believe you need legal assistance with a tax-related issue in Nebraska, consider the following steps:

• Collect any documentation related to your tax issue, including notices, returns, correspondence, and financial records
• Identify the specific problem or question you need help with, such as an audit, appeal, unpaid taxes, or planning
• Contact a qualified Nebraska tax attorney or accountant for a consultation
• If you cannot afford an attorney, research free or low-cost legal resources and aid societies
• Stay in communication with tax authorities and never ignore official notices or deadlines
• Document all interactions for your records

Understanding your rights and responsibilities under Nebraska tax law is crucial. A tax professional can help you navigate the system and pursue the best outcome for your circumstances.