Bill > LB401

This bill makes several technical changes to Nebraska's tax laws regarding partnerships, small business corporations, and tax notices. Specifically, the bill modifies provisions related to tax returns, deficiency determinations, and refund claims by requiring the Tax Commissioner to provide more detailed written explanations when issuing notices of deficiency or disallowing refund claims. The bill clarifies and updates rules for partnerships and small business corporations that elect to pay taxes at the entity level, including provisions for how nonresident partners and shareholders are taxed. Key changes include allowing entity-level tax elections to be made on tax returns for tax years beginning in 2023, establishing more precise requirements for how and when these elections can be made, and standardizing the requirements for notices that explain the reasoning behind tax assessments or refund denials. The bill aims to provide more transparency in tax determination processes and create more consistent rules for how pass-through entities handle state income tax obligations, particularly for businesses with non-resident owners.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59028