September 30, 2014
New Jersey Announces Limited Opportunity To Clear Outstanding Tax Bills
A special thanks to article contributor Barbara Pastorick, Senior, Tax & Business Services.
The New Jersey Division of Taxation has announced a limited-time opportunity for individuals and businesses with unpaid tax liabilities to enter into closing agreements with the state and resolve these liabilities. The program covers all types of taxes from 2005 through 2013 and will end on November 17, 2014.
Under this online program, most penalties can be reduced to zero. Interest will be calculated only on the tax due and recovery fees and costs of collection may be waived or eliminated. The closing agreement will stipulate that the matter is closed, and the taxpayer will waive rights to further administrative review or judicial appeal. In order for the closing agreement to be accepted, full payment must be made by November 17, 2014.
Taxpayers who received a letter from the Division of Taxation providing a schedule of liabilities listing a reduced amount due should use that amount for the closing agreement program. Taxpayers who did not receive such a letter can contact the Division of Taxation by phone or in person at a regional office to see if a reduced payment amount is possible.
Taxpayers who have not been contacted by the division and are not registered for the type of tax they wish to disclose may also wish to consider New Jersey’s ongoing Voluntary Disclosure Program. Voluntary disclosure permits anonymous application, relief from late filing and late payment penalties, and a look-back period limited to the current year plus prior three years. In certain circumstances participation in the Voluntary Disclosure Program may be more beneficial to the taxpayer than the current Closing Agreement process.
Please contact your Marcum State and Local Tax Professional with any questions or to allow us to assess your options for settling any back tax issues.