NE 21-17-1 Income Tax Withholding 2017-11-08

Which Nebraska income tax withholding revenue rulings were rescinded, and where did their guidance go?

Short answer: It clears out 14 old rulings that were folded into the regulations. Revenue Ruling 21-17-1 (issued November 8, 2017) rescinds 14 Nebraska income tax withholding revenue rulings issued between 1976 and 2007, stating that they 'have been incorporated into the Department's Income Tax Withholding Regulations.' The rescinded rulings covered topics such as predecessor-successor employer returns (21-76-1), resident Indians (21-76-2), substitute Form W-2 approval (21-82-1), 401(k) qualified contributions (21-83-1), nonresidents providing personal services (21-87-1, 21-90-2, 21-93-2), gambling winnings (21-89-1, 21-94-1), bonuses/supplemental wages/taxable awards (21-90-1, 21-94-2), pensions and annuities (21-94-3), magnetic-tape W-2 retention (21-77-1), and payments to nonresident board directors (21-07-1). For any of these withholding topics, rely on the current Income Tax Withholding Regulations rather than the withdrawn rulings.

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This page answers the general question as of 2017. Ezel answers yours, under current Nebraska tax law, with citations.

Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

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Plain-English summary

This is a cleanup ruling covering income tax withholding. In one document, the Nebraska Department of Revenue rescinds 14 older withholding revenue rulings issued between 1976 and 2007, explaining that their content "have been incorporated into the Department's Income Tax Withholding Regulations." In other words, the guidance was not eliminated -- it was moved into the regulations, and the standalone rulings were retired to avoid duplication or conflict.

The 14 rescinded rulings and their topics:

21-76-1 -- Employer's Returns and Payment of Withheld Taxes (Predecessor-Successor Relationship) (Apr. 7, 1976)
21-76-2 -- Resident Indians (Oct. 1, 1976)
21-77-1 -- Retention of Magnetic Tape Containing W-2 Information (Jul. 22, 1977)
21-82-1 -- Approval of Substitute Wage and Tax Statement, Federal Form W-2 (Sep. 20, 1982)
21-83-1 -- Internal Revenue Code Section 401(k) Qualified Contributions (Jun. 27, 1983)
21-87-1 -- Nonresidents Providing Personal Services (Aug. 18, 1987)
21-89-1 -- Gambling Winnings (Oct. 4, 1989)
21-90-1 -- Bonuses, Supplemental Wages, and Taxable Awards (May 21, 1990)
21-90-2 -- Nonresidents Providing Personal Services (Jun. 7, 1990)
21-93-2 -- Nonresidents Providing Personal Services (Jul. 23, 1993)
21-94-1 -- Gambling Winnings (Mar. 2, 1994)
21-94-2 -- Bonuses, Supplemental Wages, and Taxable Awards (Mar. 2, 1994)
21-94-3 -- Pensions and Annuities (Jul. 8, 1994)
21-07-1 -- Payments Made to Nonresident Board Directors (Mar. 6, 2007)

What this means for you

Employers and payroll administrators

If you were relying on any of these older withholding rulings -- for example, on how to handle withholding on bonuses and supplemental wages, gambling winnings, pensions, or nonresident service providers -- go to the Nebraska Income Tax Withholding Regulations instead. The rulings are withdrawn, but the substance was carried into the regulations.

Tax professionals

Treat citations to any of these 14 rulings as superseded. The current authority for these withholding topics is the Department's Income Tax Withholding Regulations, not the individual rulings.

Common questions

Q: What does Revenue Ruling 21-17-1 do?
A: It rescinds 14 Nebraska income tax withholding revenue rulings issued between 1976 and 2007.

Q: Was the guidance in those rulings eliminated?
A: No. The Department states the content was incorporated into its Income Tax Withholding Regulations; only the standalone rulings were retired.

Q: Where do I look now for these withholding rules?
A: The Nebraska Income Tax Withholding Regulations.

Citations and references

Rescinds 14 withholding revenue rulings (1976-2007): 21-76-1, 21-76-2, 21-77-1, 21-82-1, 21-83-1, 21-87-1, 21-89-1, 21-90-1, 21-90-2, 21-93-2, 21-94-1, 21-94-2, 21-94-3, and 21-07-1.
Guidance relocated to: the Nebraska Income Tax Withholding Regulations.

Source

Original ruling text

Revenue Ruling 21-17-1

Nebraska Income Tax Withholding

November 8, 2017

Income Tax Withholding—Revenue Rulings Rescinded
This guidance document is advisory in nature but is binding on the Nebraska Department of
Revenue (Department) until amended. A guidance document does not include internal procedural
documents that only affect the internal operations of the Department and does not impose
additional requirements or penalties on regulated parties or include confidential information or
rules and regulations made in accordance with the Administrative Procedure Act. If you believe
that this guidance document imposes additional requirements or penalties on regulated parties,
you may request a review of the document.
This guidance document may change with updated information or added examples. The
Department recommends you do not print this document. Instead, sign up for the subscription
service at revenue.nebraska.gov to get updates on your topics of interest.
The following income tax withholding revenue rulings are hereby rescinded. They have been incorporated
into the Department’s Income Tax Withholding Regulations.
Number

Subject

Date Issued

21-76-1

Employer’s Returns and Payment of Withheld Taxes –
Predecessor-Successor Relationship

April 7, 1976

21-76-2

Resident Indians

October 1, 1976

21-77-1

Retention of Magnetic Tape Containing W-2 Information

July 22, 1977

21-82-1

Approval of Substitute Wage and Tax Statement,
Federal Form W-2

September 20, 1982

21-83-1

Internal Revenue Code Section 401(k) Qualified Contributions

June 27, 1983

21-87-1

Nonresidents Providing Personal Services

August 18, 1987

21-89-1

Gambling Winnings

October 4, 1989

21-90-1

Bonuses, Supplemental Wages, and Taxable Awards

May 21, 1990

21-90-2

Nonresidents Providing Personal Services

June 7, 1990

21-93-2

Nonresidents Providing Personal Services

July 23, 1993

21-94-1

Gambling Winnings

March 2, 1994

21-94-2

Bonuses, Supplemental Wages, and Taxable Awards

March 2, 1994

21-94-3

Pensions and Annuities

July 8, 1994

21-07-1

Payments Made to Nonresident Board Directors

March 6, 2007

APPROVED:

Tony Fulton
Tax Commissioner
November 8, 2017

Nebraska Department of Revenue, PO Box 94818, Lincoln, Nebraska 68509-4818

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