Almost all qualify for amnesty, but failure to file means significant additional penalties.
New Jersey is administering a tax amnesty program that runs through January 15, 2019. Highlights:
- Taxpayers who come forward voluntarily during this program will pay all taxes and one-half of the interest that is due as of November 1, 2018.
- The state will waive the other half of the interest, late payment, late filing, and delinquency penalties, cost of collection and recovery fees.
- The taxpayer will be required to pay any civil fraud or criminal penalties that may arise out of an obligation imposed under any state law.
2019 New Jersey Tax Amnesty Program Eligibility
If you have delinquent taxes due and payable on or after February 1, 2009 and prior to September 1, 2017 that are unreported or under reported you are eligible for tax amnesty.
The qualifying taxes are any taxes administered and collected by the New Jersey Division of Taxation, which may be either personal or business taxes including personal income, fiduciary, composite, inheritance and estate taxes, sales, use, tobacco products, and tourism taxes. It does not apply to local property taxes, fees assessed by the Division of Revenue, and payroll taxes owed to the New Jersey Department of Labor.
Almost all taxpayers qualify for amnesty. However, taxpayers who have filed an administrative or judicial appeal related to a tax assessment may only participate in amnesty if they withdraw their appeal, waive all rights to a future appeal, and receive written approval from the Director of the Division. Taxpayers are also not eligible if they are under criminal investigation or charge for a State tax matter by a county prosecutor or New Jersey’s attorney general.
To encourage participation in the Amnesty Program, the Division of Taxation recently mailed a letter to all taxpayers who are known to have amnesty-eligible deficient and/or delinquent accounts. Additionally, the state has undertaken an extensive outreach program to reach as many taxpayers as possible.
Looking Ahead: 2019 New Jersey Tax Amnesty Program
Any taxpayer that does not take advantage of this Amnesty program before January 15, 2019 will incur a five percent penalty if found to be liable for these taxes at a later date. The five percent penalty cannot be waived or abated. The penalty will be in addition to all other penalties, interest and other costs authorized by law.
Need Assistance with the New Jersey Tax Amnesty Program?
If you have any tax obligations in New Jersey that you have been reluctant to report, now is the time to do so. Our state and local tax professionals can assist you with any issues you would like to discuss and help you navigate through the New Jersey Tax Amnesty Program to become compliant with New Jersey taxes.
Contact us here, or call us at 716.847.2651.View full article
Connecticut announced it is launching the CT Fresh Start, an amnesty program for all eligible taxes administered by the Department of Revenue Services (DRS). The program started on October 31, 2017 and runs through through November 30, 2018.
Connecticut is allowing eligible taxpayers to enter into a CT Fresh Start Agreement during this time by completing a simple online application. Taxpayers will only have to pay the tax due and ½ the interest at the time of the application filing. The state will waive all penalties and the other half of the interest that is due.
And the best part about the program? No returns are actually required to be filed!
Connecticut Tax Amnesty for Both Personal and Business Tax Delinquencies
- All qualifying delinquent taxes due and payable as of December 31, 2016 that are unreported or underreported are eligible. The qualifying taxes may be either personal or business taxes and include all taxes administered by the DRS (except for the taxes imposed under chapter 222 (IFTA), such as:
- Income tax,
- Business entity tax,
- Sales and use tax,
- Withholding tax,
- Corporation business tax, and
- Gift tax
Note that the amnesty program does not apply to local property taxes, payroll taxes administered by the CT Department of Labor, fees imposed by the Secretary of State, or taxes owed to the federal government.
What’s Not Eligible for Amnesty
Taxpayers who have received prior communications from the Department of Revenue Services for any tax type and period, such as a bill, are currently under audit, are party to a closing agreement with DRS, have made an offer of compromise that has been accepted by DRS, have protested a determination of an audit, or who are a party to litigation against the Commissioner, are not eligible under this program for that particular tax liability. However, taxpayers may be eligible to resolve other tax liabilities through the program.
More Good News: Limited Look Back Period
Another great feature of the CT Fresh Start program is that it offers a limited look-back period.
That means that while normally, there is no limit to how many years the DRS can go back to assess tax, penalties and interest on any return that was not filed, under the CT Fresh Start, the taxpayer will only be required to “look-back” and report the tax on just three years of unfiled returns. If the taxpayer complies with the terms of their agreement, all liabilities for the applicable taxes prior to the three year look-back will be abated.
In order to qualify for the limited look-back period, the taxpayer must have never been registered or filed a return for that tax type. Any taxpayer that believes they qualify for a limited look-back period, must call DRS prior to applying for CT Fresh Start.
Following the CT Fresh Start program, the taxpayer is required to be compliant with any tax return and payment for the three-year period after the date of the CT Fresh Start application. If the taxpayer does not comply with the CT Fresh Start agreement, the DRS may reinstate all applicable penalties and interest for the taxable periods covered by the CT Fresh Start agreement.
Freed Maxick Can Help You with the Connecticut State Tax CT Fresh Start Program
So if you are looking for a “fresh start”, our state and local tax professionals can assist you with getting started with the application and help you navigate through the process towards becoming compliant with Connecticut taxes.Contact us here, or call 716.847.2651 for a no cost, no obligation discussion of your situation. View full article
Ohio will be administering a tax amnesty program from January 1, 2018 through February 15, 2018. Taxpayers who come forward voluntarily during this program will pay all taxes and one-half of the interest that is due. The state will waive all penalties and the other half of the interest and the taxpayer will not have any potential civil or criminal actions taken against them with respect to the tax.
Ohio Tax Amensty Program Eligibility
If you have delinquent taxes due and payable as of May 1, 2017 that are unreported or underreported you are eligible for tax amnesty. The qualifying taxes may be either personal or business taxes including personal income and school district income taxes, financial institution, sales, use, tobacco products, and commercial activity taxes. It does not apply to municipal or township lodging tax or resort area tax.
However, taxpayers who have received prior communications from the Ohio Department of Revenue, such as a notice of assessment, bill, notice of audit, as well as taxpayers currently under audit, or who have been audited, are not eligible under this program.
The state has yet to issue full guidance on the program. Further information should be available once the program dates are closer.
Another consideration for some taxpayers is that Ohio almost always has a Voluntary Disclosure Agreement Program (VDA) available for use at any time for various taxes. The VDA is open to non-filing taxpayers who enter into and have executed an Ohio Voluntary Disclosure Agreement prior to any contact from the Ohio Department of Taxation. The VDA generally limits the look-back period to three years plus the current year. The rules of the VDA program differ from the Amnesty Program in that the non-filing taxpayer waives their right to a refund for the look-back period and must pay all taxes plus interest due when filing. In exchange, the state will waive all penalties for those tax years, plus all tax years prior to the years covered by the agreement. The Voluntary Disclosure Agreement Program may be more advisable in situations where a taxpayer may have Ohio liabilities related to periods older than three years.
Need Assistance with the Ohio Tax Amnesty Program?
If you have any operations in OH that you have been reluctant to report, now is a good time to do so. Our state and local tax professionals can assist you with any issues you would like to discuss and help you navigate through either the Amnesty or Voluntary Disclosure Agreement Program to become compliant with Ohio taxes, contact us here.View full article