The Director of the New Jersey Division of Taxation announced the beginning of the New Jersey Tax Amnesty Program. The program runs from November 15, 2018, to January 15, 2019.
This program allows eligible taxpayers to disclose and pay outstanding taxes administered by the New Jersey Division of Taxation for which returns were due between February 1, 2009, and September 1, 2017. If you would like more information about the program and how it may apply to your business, contact us.
Who Is Eligible, and How Does It Work?
The New Jersey Tax Amnesty Program only applies to taxes administered and collected by the New Jersey Division of Taxation. Taxes not administered by the New Jersey Division of Taxation, such as local property taxes, annual report fees, motor carriers’ road use tax and payroll taxes are ineligible.
Under the terms of the program, a taxpayer must apply during the amnesty period, file all delinquent tax returns, and pay the taxes owed and one-half of the related interest by January 15, 2019. Upon approval, related penalties and cost-of-collection fees will be waived.
Once agreement is reached with the Division of Taxation, taxpayers relinquish all rights to administrative and judicial appeal. No tax payment made under the amnesty program is eligible for credit or refund.
Most taxpayers are eligible for amnesty, with some exceptions. Reasons for disqualification include failure to complete any of the terms of the amnesty agreement, bounced or rejected amnesty payments, or being under criminal investigation for a New Jersey tax matter.
Taxpayers who have already filed an administrative or judicial appeal to a tax assessment may still request amnesty, but doing so will require withdrawal of the appeal and approval by the Director of the New Jersey Division of Taxation.
Additional information regarding the program is located on the New Jersey Tax Amnesty’s website.
How Does This Affect My Business?
Taxpayers should give careful consideration to the decision to participate in an amnesty program like this, as they often require taxpayers to give up their rights to appeal. The New Jersey Tax Amnesty Program does require a waiver of the right to appeal. At the same time, taxpayers who are eligible for the amnesty program but choose not to participate will be hit with a 5% penalty on eligible balances.
Authored by Joe Gaytan, Blake Fuqua and Shane Stewart. Weaver’s State and Local Tax Services professionals can help you sort out the pros and cons of the New Jersey amnesty program. If you would like more information about the program and how it may apply to your business, contact us.