New Jersey Implements Tax Amnesty
By Francis Johnson, Staff Accountant, Tax & Business Services
The New Jersey Division of Taxation’s 2018 Tax Amnesty Program went into effect November 15 and will terminate on January 15, 2019. The program provides relief to taxpayers with outstanding tax returns and/or back taxes with due dates falling between February 1, 2009, and August 31, 2017. The program applies to assessed and unassessed amounts, in addition to amounts presently under audit or being challenged by the New Jersey Division of Taxation.
Most taxpayers will be notified by mail of any outstanding liabilities and receive instructions on how to participate in the amnesty program. The program requires taxpayers to sign an agreement acknowledging taxes owed and waiving the right to appeal.
The program forgives 100% of penalties and collection fees, plus 50% of the interest accrued. Taxes eligible for this program are those administered by the New Jersey Division of Taxation, including individual taxes and business taxes. Taxes not included under the program include local property taxes, payroll taxes, motor carriers’ road use taxes, fees assessed by the Division of Revenue, SOIL (Set-Off of Individual Liability) debts from other New Jersey agencies, as well as any other taxes not administered by the New Jersey Division of Taxation.
Amnesty payments must be made by the final day of the program; no payment plans or partial amnesty is available. If a taxpayer elects not to file and pay any outstanding tax liabilities by the final day of the program, all penalties and interest be reinstated, and an additional 5% amnesty penalty will be assessed. The penalty cannot be waived.
Please contact your Marcum State and Local Tax (SALT) professional for assistance.