Kellie M. Smith, CPA, Senior Tax Manager
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.