Nevada Tax Form Notes (Page 4 of 4) in pdf

Importer/Wholesaler, Importer/Wholesaler to Retailer) is

in the audit process. A backup of computer

subject to seizure by the Department.

records is also recommended, as it could be

helpful in the audit process.

BUSINESS RECORDS NEEDED

“ASK THE ADVISORS” BASIC TRAINING

FOR SALES AND USE TAX AND

MODIFIED BUSINESS TAX AUDITS

The Department will be presenting basic tax training as

well as industry-specific training throughout the year.

Businesses

should

retain

all

basic

records

per

The three-hour free workshops include training on

NRS 372.735 for not less than four years for businesses

Business License requirements, Sales and Use Tax,

registered with the Department, and not less than eight

Modified

Business

Tax,

Live

Entertainment

Tax,

years for businesses not registered with the Department.

collection of taxes, resale certificates, exemptions, how

Retaining proper records will expedite an audit if you

to prepare amended tax returns, how to prepare for an

are contacted for one. The following records are the

audit and your petition rights. The workshops will be held

minimum that should be retained by your business:

in the Henderson office listed on this page and begin at

9:00 a.m. and conclude at 12 p.m. The next class is

•

scheduled for Tuesday, October 17, 2006. “Ask the

Sales journal: This is an accounting device that

Advisors” classes are not scheduled in November and

records the monthly sales. It should be

December due to the holidays.

supported by individual sales invoices that show

all parts of the sales transaction. Sales invoices

“Ask the Advisors” information may also be accessed

should

pre-numbered

and

issued

from the Department’s Website at

sequential order. All documents used to file the

and “Ask the Advisors.” At this site you may view a

monthly/quarterly Sales/Use Tax returns should

Power Point presentation of the Department of Taxation

be kept together.

workshop information or plan to attend the next

•

scheduled training.

Purchase journal/cash disbursements journal:

This is a listing of all items the business

purchases whether for inventory, assets or

operating expenses. The journal is supported by

PLEASE CLOSE YOUR ACCOUNT

paid vendor invoices which are usually filed in

alphabetic order by the vendor name.

When you decide to close your business or sell it, you

must close your account with the Department of

•

The payroll journal: This is a detailed listing of

Taxation. If you fail to notify the Department of your

each employee’s pay history and is required for

business’ closure or inactivity, the Department will record

all payroll-related taxes. Records regarding

delinquencies against the account. Our new data base

healthcare benefit payments made on behalf of

could potentially use Best Information Available and file

the employees by the business should be

returns for your business and create a debt to the State,

available for the Modified Business Tax portion

which could result in collections, liens and unfavorable

of the audit. Also, all Employment Security

information filed on your credit report.

Division Reports (form NUCS 4072) should be

available for the entire audit period.

To close an account, all returns must be filed & paid in

full. Any unsold, remaining Inventory is liable for Use

•

Bank records should include a check register,

Tax. Use Tax for unsold inventory is due on the final

deposit

receipt,

bank

statements,

bank

Sales/Use Tax return.

reconciliations, and, if available, cancelled

checks. Business checks should be issued in

The security posted when the account was established,

sequential order.

may be refunded when the account is closed and all

returns are filed, entered on the account and paid in full.

•

Monthly, quarterly and annual tax returns for

State and local taxing authorities should be

supported by all working papers and details

related to filing returns.

HOLIDAY CLOSURES

•

Accounting records can be completed in-house

The Department of Taxation offices will be closed the

or by a bookkeeping/accounting service. If you

following days in the fourth quarter of 2006:

use an outside service, you should be provided

Friday, October 27, 2006 – Nevada Day

with the basic journals and ledgers in order to

Friday, November 10, 2006 – Veterans’ Day

review your business’s financial history. As your

Thursday, November 23, 2006 – Thanksgiving Day

business grows, your accounting structure

Friday, November 24, 2006 – Family Day

should be routinely re-evaluated. If you maintain

Monday, December 25, 2006 – Christmas Day

Monday, January 1, 2007 – New Year’s Day

records in a computer system, they should be

complete and timely, so that they may be used

Nevada Tax Form Notes Page 4

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