Business amnesty program starting slowly

Tuesday, May 21, 2002 | 11:11 a.m.

CARSON CITY -- The amnesty program to encourage Nevada businesses to pay their back taxes without penalty or interest has yet to catch fire.

But Dave Pursell, director of the state Department of Taxation, said last week he expects a rush during the last month of the amnesty period.

So far 55 to 60 businesses have paid $800,000 in back taxes. The program started Feb. 1 and ends June 30.

"I'm told by other states they get a rush during the last month," said Pursell who retired last week. "I expect June to be big."

In 1993 the state conducted an amnesty period and it applied only to back money due from the use tax. That resulted in 1,850 new accounts and about $2.8 million in collections.

Carole Vilardo, executive director of the Nevada Taxpayer Association, said she was surprised that so few companies have taken advantage of the amnesty. Companies have been given the opportunities to avoid the penalties and taxes. And when the period ends, Vilardo said the tax department will resume its audits and some firms will get "slammed."

Pursell said he thought the receipts would be higher this time with the expansion of new businesses in Nevada.

The amnesty is aimed partly at these new companies that have moved to Nevada and never filed taxes. An unregistered business must sign up with the taxation department, file tax returns for the periods since the company started but not earlier than eight years back and pay the tax due.

The companies that have paid are a mix of new and existing business, Pursell said. In addition, he said there are 10 applications from companies that want to be included in the amnesty program. But no decision has been made whether they qualify, said Pursell.

He's hoping the chambers of commerce in Las Vegas and Reno and the Nevada Taxpayers Association get the word out to encourage these delinquent companies to pay up. And he hopes to get some time on television states to tell delinquent businesses they still have more than a month left.

Vilardo said her organization has sent reminders in six of its publications. And groups such as the chambers, the retail association, the Nevada Motor Transport Association, the Nevada Manufacturers Association and others have notified their members of the amnesty.

Vilardo doubted any members of these trade association are not registered with the state Taxation Department. But she said some may be unknowingly avoiding a tax in its payment schedule.

She echoed Pursell's comments that there may be a big rush in the final months by companies to get in under the deadline.