New Jersey Enacts Tax Amnesty Bill

Enacted legislation requires the New Jersey Division of Taxation to establish a 90-day state tax amnesty period that ends no later than January 15, 2019.

The Legislature had previously passed a bill requiring a six-month amnesty period that had to end by December 31, 2018. (TAXDAY, 2018/06/26, S.12) However, Gov. Phil Murphy conditionally vetoed the bill and signed it into law after the Legislature concurred with the Governor’s recommendations.

Relief Available

A taxpayer who pays the required tax and one-half of the balance of interest that is due as of November 1, 2018, will not be liable for:

– the remaining one-half of the balance of interest that is due as of November 1, 2018;

– late payment penalties;

– late filing penalties;

– cost of collection;

– delinquency penalties; or

– recovery fees.

However, a taxpayer is required to pay any civil fraud or criminal penalties arising out of an obligation imposed under any state law.

Eligibility Requirements

To receive amnesty, a taxpayer has to make full payment of any tax owed and one-half of any interest due as of November 1, 2018. The amnesty only applies to state tax liabilities for tax returns due from February 1, 2009, to September 1, 2017. If the taxpayer has not previously filed a tax return to report the tax due for which the taxpayer is seeking amnesty, the taxpayer must file the required return(s) on or before the last day of the amnesty period. Also, amnesty is not available to any taxpayer who at the time of payment is under criminal investigation or charge for any state tax matter.

Subscribers can view the legislation at http://www.njleg.state.nj.us/2018/Bills/A3500/3438_R2a.PDF.

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