Governor Phil Murphy has signed legislation that requires the Division of Taxation to conduct a tax amnesty during a period that will last no longer than 90 days and end no later than January 15, 2019. The start date of the tax amnesty program has not yet been determined.
A taxpayer who has failed to pay any state tax on or before the day on which the tax is required to be paid may pay to the Division on or before the last day of the period established by the Division, the amount of that tax and one-half of the balance of interest that is due as of November 1, 2018, but without the remaining one-half of the balance of interest that is due as of November 1, 2018 and without any late payment penalty, late filing penalty, cost of collection, delinquency penalty or recovery fee that may otherwise be due. The taxpayer will be required to pay any civil fraud or criminal penalty arising out of an obligation imposed under any state tax law.
The amnesty program applies only to state tax liabilities for tax returns due on or after February 1, 2009 and prior to September 1, 2017. The taxes that qualify under the amnesty program include unassessed amounts as well as amounts under audit or being contested with the Division of Taxation, and all state taxes administered by the Division of Taxation matter (not including unemployment type taxes administered by the Department of Labor).
The amnesty is not available to a taxpayer who has been notified by the Office of Criminal Investigation in the Division of Taxation that he or she is under criminal investigation for a state tax
In summary, all New Jersey businesses with non-compliance issues should consider this amnesty program, as there is a 5% penalty, which is not subject to waiver or abatement, in addition to all other penalties, interest, or costs of collection otherwise authorized by law, upon any state tax liabilities eligible to be satisfied during the period established that are not satisfied during the amnesty period.
This is an excellent opportunity to clear any past due tax liabilities, with no penalty assessment and reduced interest costs. We have experienced professionals dealing with IRS and state amnesty programs who can assess liability exposure for non-compliance, identify options and determine the proper course of action. We understand the importance of ensuring tax returns submitted for amnesty are prepared completely, accurately and filed timely to ensure the full benefits of tax amnesty are realized. Please contact us to discuss this, or any other issue.