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Nebraska sales tax notices

Got a letter from the Nebraska Department of Revenue (DOR)? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

Nebraska Department of Revenue (DOR) (opens in a new tab)

Disagree with a notice?

To dispute a Notice of Deficiency Determination, file a written Petition for Redetermination (protest) with DOR. File it through DOR's electronic protest portal (ShareFile), or by mail or personal delivery to the Legal Section, PO Box 94818, Lincoln, NE 68509-4818. DOR does not accept protests by fax or email. The protest must identify the taxpayer and the assessment, explain why items are wrong, state the action requested, request a hearing if you want one, and be signed. Beginning July 1, 2026, you may need to pay a $40 protest filing fee, or file Form 371P-W to ask for a waiver, within 30 days from the protest due date. There is no fee for assessments of $5,000 or less. The process may include an informal conference, a pre-hearing conference, a formal hearing, and a final order of the Tax Commissioner.

Deadline: 60 days from the assessment postmark for sales and use tax (10 days for jeopardy assessments)

Source: Nebraska Department of Revenue (DOR) (opens in a new tab)

Balance due

A bill for tax, penalty, or interest the authority says is unpaid.

Balance due

Balance Due Notice

A notice that a return was filed but the tax was not paid in full when due. If you do not pay or make arrangements, DOR follows up with a written demand for payment.

Why you got it

  • Filing a return without paying the full amount due
  • No payment arrangement in place for the unpaid amount

What to do

  1. Check the balance against your return and payment records. If you think it is wrong, mail your response to the address on the notice, not the protest portal
  2. Pay the tax, or contact DOR to set up a payment agreement, before a demand for payment is issued and collection begins
  3. If a penalty was added and the late payment was beyond your reasonable control, request abatement on Form 21 once the tax and interest are paid

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Chapter 36 - Rules for the Collection of Delinquent Taxes | Nebraska Department of Revenue (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

Assessment

Notice of Deficiency Determination

A sales and use tax assessment of additional tax, interest, or penalties. DOR issues it after an audit or examination, or when a business does not file a required return. If no return was filed, DOR bases the amount on the best information it has.

Why you got it

  • An audit or examination of the business's books and records
  • Failure to respond to a DOR request to file a Nebraska return
  • Other information available to DOR, such as data from the IRS

What to do

  1. Review the schedules and work papers against your records
  2. If the notice is for a missing return, file the return. Filing is not a protest, and the notice still becomes final unless you protest
  3. Pay the tax you agree with, or ask DOR for a payment agreement
  4. If you disagree, file a written Petition for Redetermination on time (portal or mail, not email or fax). You can request penalty abatement on Form 21 at the same time, and interest abatement on Form 21A in limited cases

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 60 days from the assessment postmark for sales and use tax; otherwise the assessment becomes final

Source: How to Protest a Notice of Deficiency Determination or Proposed Assessment Information Guide (7-149) (opens in a new tab)

Assessment

Notice of Jeopardy Determination

An immediate assessment and demand for payment. DOR issues it when the Tax Commissioner finds that collection of tax is at risk. The tax period can be ended early, and collection may start right away.

Why you got it

  • The Tax Commissioner finds the taxpayer is about to take an action that puts collection at risk, as described in Reg-36-003.03

What to do

  1. Contact DOR right away about paying or securing the amount. If penalties are included, you can later request abatement on Form 21
  2. If you disagree, file a Petition for Redetermination within the short 10-day window

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Protest within 10 days of the assessment postmark; the notice is final 10 days after mailing, but collection may begin immediately

Source: Chapter 36 - Rules for the Collection of Delinquent Taxes | Nebraska Department of Revenue (opens in a new tab)

Audit

A request for records or notice that the authority is examining your returns.

Audit

Audit Confirmation Letter

A letter confirming a sales/use tax audit. It follows a phone call from the Audit Section and lists the proposed audit periods and the records the auditors need.

Why you got it

  • The business has been selected for a DOR audit

What to do

  1. Confirm the audit date and gather the listed records, such as sales and purchase invoices
  2. Contact the auditor with questions or if records are missing
  3. If a representative will handle the audit, file Power of Attorney Form 33
  4. You may be asked to sign Form 872N, which extends the statute of limitations. Signing is optional

Source: What to Expect During an Audit Information Guide (7-246) (opens in a new tab)

Audit

Voluntary Compliance Letter (VCL)

A letter sent with final work papers after a DOR tax examination shows that more tax is owed. Signing the VCL accepts the liability and voluntarily reports the tax due.

Why you got it

  • A DOR tax examination found additional tax due

What to do

  1. Review the work papers and send any more documentation within 20 days
  2. If you agree, sign and return the VCL, postmarked by the 20th day. If you don't sign, expect a formal assessment from DOR's Legal Section, which you can protest
  3. Pay in full, or request a payment plan. Paying early reduces interest
  4. If penalties are included, follow the penalty abatement information in the VCL. DOR considers abatement only after all tax and interest are paid

Response window: 20 days after the date of the letter

Source: What to Expect When Selected for a Tax Examination Information Guide (7-304) (opens in a new tab)

Collections

Enforcement on unpaid balances, such as liens, levies, warrants, or referral to a collection agency.

Collections

Demand for Payment

A notice of the final amount due, including tax, interest, penalties, and costs. It warns that DOR may start collection if you do not pay or make arrangements by the stated deadline. Collection can include liens, levies, seizure of property, and permit revocation.

Why you got it

  • An unpaid balance after a Balance Due Notice
  • A Notice of Deficiency Determination that became final without payment

What to do

  1. Pay the full amount, or sign a payment agreement by the deadline in the notice
  2. If you think recording a state tax lien would be an error, tell DOR within 10 days of the demand's postmark date
  3. Keep any payment agreement current. If you default, DOR can collect without further notice
  4. Once the tax and interest are paid, you can still request penalty abatement on Form 21

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Pay or make arrangements by the due date stated in the demand; DOR issues the demand at least 10 days before recording a notice of state tax lien (except in jeopardy cases)

Source: Chapter 36 - Rules for the Collection of Delinquent Taxes | Nebraska Department of Revenue (opens in a new tab)

Ask for penalty relief

Penalties on a Nebraska notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Request for Abatement of Penalty

Form 21
  1. Pay the tax and any interest not subject to abatement first; DOR will not process the request until the tax, interest and fee are paid
  2. Complete a separate Form 21 for each penalty, explaining how the failure was beyond your reasonable control and not due to negligence, with supporting documents
  3. Mail it with the nonrefundable fee ($25 for 2026) to Nebraska Department of Revenue, PO Box 94818, Lincoln, NE 68509-4818
  4. If you are protesting a Notice of Deficiency Determination, you can file Form 21 in addition to your petition

What qualifies: Causes beyond your reasonable control and not due to negligence or intentional disregard of Nebraska law

Interest: Interest can be abated only for the specific reasons on Form 21A, Request for Abatement of Interest (for example, an error or unreasonable delay by DOR, or erroneous written advice from DOR); a fee applies

Source: Request for Abatement of Penalty, Form 21 (2026) - Nebraska Department of Revenue (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the Nebraska sales tax guide.

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