This bill amends various sections of the Nebraska Revised Statutes, particularly focusing on the taxation of partnerships and small business corporations, as well as the processes for deficiency determinations and claims for refunds. A significant change is the requirement for the Tax Commissioner to provide a detailed written statement when disallowing a claim for refund, outlining the facts and reasons for the determination. The bill also clarifies the refund process, stipulating that no refund shall be made for amounts less than two dollars, and modifies penalties associated with deficiency determinations, establishing a minimum penalty of ten percent of the deficiency or twenty-five dollars, whichever is greater.

Additionally, the bill introduces provisions allowing partnerships to make an irrevocable election to pay taxes at the entity level, with specific guidelines for implementation and implications for partners' tax returns. It also clarifies the tax obligations of nonresident shareholders and members, allowing them to avoid filing Nebraska tax returns under certain conditions. The bill enhances the notification process for taxpayers regarding disallowed claims for refunds, requiring a written statement detailing the Tax Commissioner's reasoning. Furthermore, it repeals several outdated sections of the Revised Statutes, indicating an effort to streamline tax-related laws and improve clarity for taxpayers.

Statutes affected:
Introduced: 77-2708, 77-2709, 77-2727, 77-2734.01, 77-2776, 77-2786, 77-2796