New Jersey Tax Amnesty Program

Calculator with PencilNew Jersey has a tax amnesty gift for its delinquent tax payers.  In a nutshell, if by January 15, 2019, a taxpayer brings all back taxes current and pays 50% of the outstanding interest due, the NJ Department of Treasury will waive most penalties, collection costs and 1/2 of the interest that is due as of November 1, 2018.  To file for tax amnesty, the taxpayer must also file all past due returns.  Click here for detailed program information straight from the NJ Department of Treasury.

Filing Deadline, Eligible Periods and Forms for Amnesty Compliance

There are several deadlines NJ taxpayers must be aware of to be eligible for tax amnesty.

Amnesty Deadlines:

First, all required tax amnesty payments must be received on or before January 15, 2019.  If you want to pay by check, you must mail or go in person to one of the Regional Information Centers. To pay by e-check or credit card,  you must apply for a PIN and go through the  NJ Amnesty Processing Center.  In addition, all tax returns must be postmarked no later than January 15, 2019.

Eligible Periods and Taxes:

In order for a tax to be eligible for amnesty, it must be for a NJ state tax liability for a return that was due for the time period after February 1, 2009 through September 1, 2017.  Eligible taxes include those taxes that are collected by the NJ Division of Taxation.  Taxes that are collected by the NJ Department of Labor (real estate and payroll for example) are not a part of this program.

Forms:

Click here for the forms needed to apply for the amnesty program.

What should I do going forward?

Tax amnesty is an incredible opportunity for taxpayers to resolve outstanding New Jersey tax liabilities.  Going forward, if a taxpayer receives an assessment in the mail for the above tax periods and they are greater than what is being offered by the program – don’t settle.  Negotiate a deal that is comparable to the program.  This is an excellent time for taxpayers who might have not filed all of the required returns or perhaps may have under reported income to come to the table and get rid of those skeletons in the closet.

If you have any questions regarding this program or any other issue affecting your business, please feel free to call Doug Leavitt and the attorneys at Danziger, Shapiro & Leavitt, P.C.  We are available to assist you with your business needs.  We look forward to hearing from you.

This entry is presented for informational purposes only and is not intended to constitute legal advice.

 

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