On July 1, Gov. Phil Murphy signed into law a tax amnesty measure that offers relief to many taxpayers in a variety of situations and will help bridge the revenue shortfall in the state budget. It requires the Director of the Division of Taxation to establish a period not exceeding 90 days in duration, which shall end no later than Jan. 15, 2019. Anyone behind on taxes owed for the time period between Feb. 1, 2009, and Sept. 1, 2017, would be eligible to participate, as long as they are not under criminal investigation.
Similar to New Jersey’s prior six amnesty initiatives, the new law provides for complete forgiveness of all penalties and one-half of the balance of accrued interest that is due as of Nov. 1, 2018, in return for non-refundable payment of the tax and remaining one-half of accrued interest due, and a waiver of the right to appeal any liability paid under amnesty.
Additionally, a significant aspect of this amnesty law is that it not only applies to un-assessed amounts, but also to amounts currently under audit or being contested with the Division of Taxation, either at its Conference Branch or in the New Jersey Tax Court.
The new law applies to all state taxes administered by the Division of Taxation (e.g., gross income, sales and use tax, corporate business tax, motor fuels and so on) but does not apply to unemployment-type taxes administered by the Department of Labor.
Specifically, it applies to state tax liabilities for tax returns due on and after Feb. 1, 2009, and prior to Sept. 1, 2017. Consequently, for example, it can be used to obtain relief for a taxpayer’s 2009 through 2016 gross income tax, corporate business tax returns, and for all sales and use tax quarters ending Dec. 31, 2009, through June 30, 2017.
The Division of Taxation has not yet announced starting date for the amnesty period, which must end by Jan. 15, 2019. Thus, the taxpayers will have to make an amnesty payment within the time period established by the Director to take advantage of amnesty relief.
SELIG & Associates. Aggressive Tax Advocates We Solve Serious Tax Problems. For a FREE legally privileged consultation with a Federal Tax Practitioner and licensed Attorney call (212) 974-3435
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