Tax Overview: Nebraska
Nebraska tax debts are handled by the Department of Revenue and can trigger liens, levies, and wage garnishments. The state offers an OIC program and installment agreements, though the without-financials term is limited to just 3 months. Nebraska is undergoing significant tax reform — Social Security is fully exempt starting 2024 and rates are being phased down toward a 3.99% flat rate by 2027.
Key Tax Facts
- OIC available — must include proposed settlement amount, reasoning, and Financial Statement (Form FSIND-NE)
- Must be fully compliant with all returns for OIC consideration
- Installment agreements up to 3 months without financials
- Over 3 months: Form 27D (Payment and Authorization Agreement) for EFT
- Penalty abatement via Form 21 — Request for Abatement of Penalty
- Social Security fully exempt from state tax starting 2024
- Phased rate reductions targeting 3.99% flat rate by 2027
Common Tax Issues
The 3-month limit without financials is one of the shortest nationally — most taxpayers will need to provide documentation
OIC applications require a compelling case for why the settlement is in the state's best interest
Resolution Options in Nebraska
Payment Plans (Installment Agreements)
Without financials: Up to 3 months
With financials: Up to 12 months
3 months without financials. Over 3 months: Form 27D for EFT setup.
Offer in Compromise (OIC)
Available: Yes
Does NOT stop collections while pending
Form: Form FSIND-NE
Must include proposed amount, reasoning why it's in state's best interest, and financial statement. Must be fully compliant.
Penalty Abatement
Available: Yes
Form 21 — Request for Abatement of Penalty.
Recent Tax Changes
- Social Security fully exempt from state tax starting 2024
- Phased rate reductions targeting 3.99% flat rate by 2027
Official Resources
How Tax Advocate Group Helps Nebraska Taxpayers
Whether you're dealing with the IRS, the Nebraska Department of Revenue, or both — we provide comprehensive tax resolution services to Nebraska residents and businesses.