Our firm recently successfully filed several client's state amnesty applications.
New Jersey Tax Amnesty program
Today the New Jersey Division of Taxation announced the launch of their Tax Amnesty program. The program is intended to provide individuals and businesses with the opportunity to pay back taxes or file past returns with no penalties and reduced interest.
“We are pleased to offer taxpayers a chance at compliance and a fresh start through the New Jersey Tax Amnesty program,” said John Ficara, acting director of the Division of Taxation. “Since Tax Amnesty is offered for a limited time, we’re encouraging taxpayers to take advantage of the program before the January 15 deadline or risk incurring greater penalties.”
The Tax Amnesty program applies to outstanding tax filings or payments that are due on or after February 1, 2009, and prior to September 1, 2017. The Division of Taxation recently mailed a letter to all taxpayers who are known to have amnesty-eligible deficient and/or delinquent accounts.
According to the Division, almost everyone—including businesses—may qualify for amnesty. That’s true even if you are currently on a payment plan (contact your assigned caseworker for more information). However, if you have filed an administrative or judicial appeal related to a tax assessment, you may participate in amnesty only if you withdraw your appeal, waive all rights to a future appeal and receive written approval from the Director of the Division. You are not eligible for amnesty if you are under criminal investigation or charge for a State tax matter by a county prosecutor or New Jersey’s Attorney General.
Eligible taxpayers should act now: The New Jersey Tax Amnesty program runs from November 15, 2018, through January 15, 2019. It’s also important to note that requests for amnesty must be filed electronically.
- If you received a letter, you can log in to the New Jersey Amnesty Processing Center and view your balance due and any delinquent tax returns, as well as make payments.
- If you didn’t receive a letter and you want to participate, you’ll need to register or self-report through the Non-Outreach Portal.
- If you received a tax amnesty notice but lost it, contact the Tax Amnesty Hotline at 1-800-781-8407.
Under the program, late filing and late payment penalties will be waived, as well as one-half of the balance of interest due as of November 1, 2018. It’s a fresh start.
Taxpayers who do not participate will incur a 5% penalty that cannot be waived or abated. This is in addition to all other penalties, interest and other costs.
Certain taxes are not covered under the amnesty program. These taxes include SOIL (Set-Off of Individual Liability) debts from agencies other than the Division of Taxation; local property taxes; fees assessed by the Division of Revenue; Motor Carriers Road Use Taxes; payroll taxes owed to the Department of Labor (except for the New Jersey Gross Income tax, reported on line 7 of NJ-927). And just in case you were hoping for a holiday miracle, the State of New Jersey also clarifies that your federal liabilities are not included under the program. You’ll find more guidelines for taxpayers here.
For more information, call 1-800-781-8407 Monday through Thursday from 8 a.m. until 6 p.m. and Friday from 8 a.m. until 5 p.m., or click over to TaxAmnesty.nj.gov. You can also reach out to your tax professional.