Tax Law Center Blog

By Parag P. Patel, Esq. | Updated September 14, 2010

In an effort to address the large backlog of cases awaiting an administrative hearing pursuant to N.J.S.A. 54:49-18, the NJ Division of Taxation recently announced its reallocating resources in order to increase the number of staff available to hold conferences. The increase in staffing is needed since our office’s backlog of protest cases is over 2 years.

In order to accommodate more conferences, it will be necessary to maintain control of the calendar and limit unwarranted delays and postponements. To enhance productivity, all of the relevant documentation supporting the taxpayer’s position should be provided to the conferee prior to the date of the conference. The required documentation for a protest is set forth in the Division’s regulations. N.J.A.C. 18:32-1.1 et seq. See also the Division’s publication “Preparing for your Protest and Conference in New Jersey,”
available at: http://www.state.nj.us/treasury/taxation/pdf/pubs/misc/cab300.pdf

A taxpayer that is prepared to resolve the protested matter may request consideration for an abatement of penalties, other than the 5% amnesty penalty. These requests must be in writing and must indicate reasonable cause for failure to file any return or pay any tax due, as set forth in N.J.A.C. 18:2-2.7. Abatement requests are conditioned upon payment in full of the tax. N.J.A.C. 18:2-2.7

If a mutually agreeable resolution cannot be reached, a Final Determination will be issued and the taxpayer may then exercise their further appeal rights. Ensuring that the Branch has updated information for telephone and e-mail contacts for taxpayers and their representatives is important to streamline this process.

About the Author

Parag P. Patel, Esq. brings over three decades of experience to individuals and businesses facing complex tax problems. Holding advanced degrees from Georgetown University Law Center (J.D.) and New York University School of Law (LL.M. in Tax Law), the nation’s top tax programs, Mr. Patel delivers sophisticated and creative strategies in complicated federal and state audits, penalty abatements, and foreign asset/income reporting. His practice emphasizes international tax matters, specifically foreign financial account reporting (FBAR), voluntary disclosures, and penalty defense.

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