New Jersey Tax Amnesty Program

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The State of New Jersey has enacted a new Tax Amnesty Program. It is effective from November 15, 2018 through January 15, 2019.

Under the program, amnesty-seekers pay only the amount of the taxes they owe plus one-half of the interest which was due as of November 1, 2018. No penalties will be asserted, nor will cost recovery fees or other costs of collection be imposed.

Failure to take advantage of the program will result in an automatic 5% amnesty penalty on all eligible tax balances which remain after January 15. Once asserted, that penalty cannot be waived or abated.

The taxes for which amnesty is available are all tax liabilities incurred for tax returns due on or after February 1, 2009 and prior to September 1, 2017.

With two exceptions, all taxpayers qualify for amnesty. If a taxpayer has filed an administrative or judicial appeal related to a tax assessment, he may participate in amnesty only if the appeal is withdrawn, all rights to a future appeal are waived and written approval from the Director of the Division of Taxation is received. In addition, those under criminal investigation or charge for a State tax matter by a county prosecutor or the New Jersey Attorney General are not eligible for amnesty.

The Division of Taxation is in the process of issuing Amnesty Notices to those taxpayers who have outstanding tax liabilities for the periods covered by the amnesty program. We encourage people to timely and properly respond to those. If you have an outstanding balance and did not receive a notice but want to submit a payment or file delinquent returns, you may do so by logging onto the Division of Taxation’s Non-Outreached Portal.

To qualify for amnesty, all unfiled tax returns must be filed, and full payment of taxes and interest must be paid, by January 15, 2019. Payment plans are not available under the Amnesty Program, but taxpayers may make multiple payments on or before January 15, 2019 provided that the entire balance is paid by that date.

All required tax returns and payments which are submitted electronically must be received by 11:59 PM on January 15, 2019. All returns and payments which are mailed must be postmarked by January 15, 2019.

If you have any questions regarding the Amnesty Program, please do not hesitate to contact Tiffany Donio at (856) 616-6147 or tdonio@archerlaw.com who heads up our State Tax Practice.

DISCLAIMER: This client advisory is for general information purposes only. It does not constitute legal or tax advice, and may not be used and relied upon as a substitute for legal or tax advice regarding a specific issue or problem. Advice should be obtained from a qualified attorney or tax practitioner licensed to practice in the jurisdiction where that advice is sought.