Important Notice for Business Income Tax Licensing

LB 512, signed into law on May 30, 2019, requires all S corporations, limited liability companies, and partnerships with Nebraska source income to file a Nebraska return for all tax years beginning on or after January 1, 2019. 

Previously, pass-through entities were not required to file a return if all shareholders, members, and partners were Nebraska residents and all of the entity’s income was from Nebraska sources. LB 512 requires these entities to file for all tax years beginning on or after January 1, 2019.

The Nebraska Department of Revenue (DOR) encourages all S corporations, limited liability companies, and partnerships to e‑file their pass-through entity returns. When e-filing a pass-through entity return, a Nebraska state ID is required.

Businesses that have an existing Nebraska state ID issued by DOR should e-file using the income tax withholding or sales tax number. Businesses that do not have an existing Nebraska state ID, should apply using DOR’s Online Nebraska Tax Application.

Any person or business paid to prepare and file 25 or more Nebraska corporate income tax, or partnership returns in the prior calendar year must electronically file all corporate income tax or partnership returns they are paid to prepare in the current calendar year. For additional information, see Neb. Rev. Stat. § 77‑1784.