Vegas health company in dispute with state
Thursday, Dec. 6, 2001 | 10:47 a.m.
Las Vegas-based managed-care plan provider NevadaCare Inc. is fighting the state Department of Taxation and state Taxation Commission over a $50,000 tax penalty.
NevadaCare said it was assessed $50,000 in penalties and $30,000 in interest charges after the Taxation Department found it was late in filing its third quarter 1999 tax payment of $500,000.
NevadaCare filed a petition for judicial review in Clark County District Court on Nov. 26 to request a hearing before the state Taxation Commission to appeal its decision of May 7 upholding the Taxation Department's finding.
Jim Wadhams, NevadaCare's attorney, said the tax payment due on Oct. 31, 1999, was paid on Jan. 6, 2000, because the 125-employee company "had a changeover in its accounting system and management."
"It was an inadvertent mistake. The company is current on all other tax payments except for this one and all we're asking is a chance to explain why the penalty should be reduced," he said.
But Linda Fleischmann, the Taxation Department's tax division manager, said the state isn't accepting NevadaCare's excuse.
"If a hearing officer finds a taxpayer failed to make a timely return of taxes, and it's a result of circumstances beyond its control and occurred despite the exercise of ordinary care and without intent, the department may relieve it of interest and penalties or both," she said. "But we found that wasn't the case with NevadaCare."
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