The Nevada Gaming Commission is delaying a $3.1 million tax refund to the owner of 41 casinos, including Dotty’s, to reconsider whether interest should be paid on the overpayment due to the company’s delay in requesting the refund.
Nevada Gaming Commission Delays $3.1M Casino Tax Refund to Debate Interest Payments
According to the Las Vegas Review Jornal, the owner of 41 casinos in Nevada, including Dotty’s and Bourbon Street Sports, paid over $3 million too much in gaming taxes over 32 months starting in August 2021. The company, Nevada Restaurant Services Inc. (NRSI), found out about this mistake because they didn’t properly deduct certain amounts from their earnings. Now, they want the state to give the money back, but the Nevada Gaming Commission is delaying the refund to discuss whether they should also pay interest on it.
At a hearing, the commission raised concerns about the interest that has built up since NRSI waited until now to ask for the refund. The proposed deal included the $3.1 million refund plus over $222,000 in interest, but the commissioners felt the state shouldn’t have to pay extra because of the company’s delay. They suggested renegotiating the deal, but NRSI’s lawyer said he couldn’t agree to changes without talking to the company first.
READ ALSO: $7,000 Tax-Free Savings Account Contribution Limit: Earn $1,804 in Passive Income with goeasy Stock
$3.1 Million Overpayment: Nevada Gaming Commission Debates Refund and Interest for Casino Owner (PHOTO: Las Vegas Review-Journal)
Delayed Casino Tax Refund Could Increase as Nevada Gaming Commission Reconsiders Interest Payments
The commission might look at this again in September if a new deal is proposed, but until then, the interest continues to add up, which could make the final refund even bigger. This situation shows how important it is to act quickly in tax matters to avoid costing the state more money.
READ ALSO: Retirement Tax Alert: How to Avoid Paying Too Much in Social Security Benefits Taxes
