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NE 24-90-1 Financial Institution Tax 1991-01-16

When is a Nebraska financial institution tax return due when the bank has a short tax year?

Short answer: By the 15th day of the third month after the short year ends. Under Revenue Ruling 24-90-1, when a financial institution has a short tax year, its Nebraska financial institution tax return must be filed and the total franchise tax paid on or before the fifteenth day of the third month following the end of that short tax year. Under Neb. Rev. Stat. § 77-3806, the return and tax are due the fifteenth day of the third month after the end of the taxable year, and the end of the taxable year is fixed by the last day of the institution's actual operations — not the projected year-end it would have had without the short year.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Nebraska tax law, with citations.

Currency note: this ruling is from 1991
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
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Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it.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

Nebraska taxes financial institutions with a franchise tax measured under the financial institution tax. This ruling fixes the deadline for the return and payment when a bank has a short tax year — a tax period shorter than a full year, which typically happens when the institution is acquired or ceases operations partway through the year.

The rule: the financial institution tax return must be filed, and the total franchise tax paid, on or before the fifteenth day of the third month following the end of the short tax year.

This comes straight from Neb. Rev. Stat. § 77-3806, which sets the return and payment date at the fifteenth day of the third month after the end of the institution's taxable year. The ruling makes one clarification that matters for a short year: the "end of the taxable year" is determined by the last day of the institution's actual operations — not the projected calendar year-end the institution would have had if it hadn't experienced a short year. So the three-month clock runs from when operations actually end.

Approved by State Tax Commissioner M. Berri Balka on January 16, 1991. (The companion Revenue Ruling 24-91-1 uses this same deadline when explaining how average deposits are computed on a short-period return.)

What this means for you

A bank being acquired or winding down mid-year

Your short-period financial institution tax return and the full franchise tax are due by the 15th day of the third month after your operations actually end — for example, operations ending September 30 make the return due December 15. Don't measure from the calendar year-end you would otherwise have had.

Accountants handling a bank merger or dissolution

Anchor the filing deadline to the institution's last day of operations, then count three months and file by the 15th. Pair this with Revenue Ruling 24-91-1 for how to compute average deposits on that short-period return.

Common questions

Q: When is a Nebraska financial institution's short-period return due?
A: On or before the fifteenth day of the third month following the end of the short tax year.

Q: How is the end of the short tax year determined?
A: By the last day of the institution's actual operations — not the projected year-end it would have had without the short year.

Q: Does the same deadline apply to paying the tax?
A: Yes. The total franchise tax is due on the same date the return is due.

Citations and references

  • Neb. Rev. Stat. § 77-3806 — requires a financial institution to file its return and pay its tax by the fifteenth day of the third month after the end of its taxable year.
  • Revenue Ruling 24-91-1 (Average Deposits of Short-Period Returns) — the companion ruling that applies this deadline when computing average deposits.

Source

Original ruling text

Revenue Ruling 24-90-1
January 16, 1991
Financial Institution Tax -- Filing Requirements of Short-Period Returns. A FINANCIAL
INSTITUTION TAX RETURN IS TO BE FILED, AND THE TOTAL AMOUNT OF THE
FRANCHISE TAX IS DUE, ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH
FOLLOWING THE END OF A SHORT TAX YEAR.
Advice has been requested as to when the Nebraska Financial Institution Tax Return is due, and the
tax liability payable, in the event that a financial institution has a short taxable year.
Section 77-3806 of the Nebraska statutes provides that a financial institution is required to file
its tax return and pay its tax liability on the fifteenth day of the third month after the end of its
taxable year. The end of the financial institution’s taxable year is determined as of the last day of
the financial institution’s operations and not as of the financial institution’s projected year-end had
it not experienced a short tax year. Thus, a financial institution is to file its short tax year return on
or before the fifteenth day of the third month following the end of its short tax year.
APPROVED:

M. Berri Balka
State Tax Commissioner
January 16, 1991

Nebraska Department of Revenue, P.O. Box 94818, Lincoln, Nebraska 68509-4818

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