New Jersey will be offering a tax amnesty program to encourage taxpayers with outstanding taxes to pay the taxes they owe. Beginning on November 15, 2018, New Jersey will provide a 60-day tax amnesty program giving taxpayers an opportunity to file and pay past due-taxes with reduced interest and no penalties. The program covers outstanding tax filings and liabilities that are reportable on a tax return due on or after February 1, 2009 and prior to September 1, 2017.
Taxpayers can benefit from a 50% reduction in interest due as of November 1, 2018 and a waiver of all penalties, including late payment penalties, late filing penalties, cost of collection, delinquency penalties and recovery fees.
Those interested in the program can visit www.taxamnesty.nj.gov starting on November 15 to view eligibility requirements, file back returns and make payments. The upcoming program is not available to any taxpayer who is under criminal investigation or charged with any state tax matter.
Payments made through the amnesty program are not eligible for a refund or credit and taxpayers will not have the right to appeal any such payment.
The amnesty ends on January 15, 2019. A 5% penalty will be imposed on any amnesty-eligible tax liability that is not satisfied through this program. This penalty is in addition to any other interest, penalties and other costs of collection, and cannot be abated or waived.
The Division of Taxation is sending letters to certain taxpayers it believes may have outstanding liabilities to encourage their participation. Taxpayers are urged to review their records to determine any existing exposures for the relevant New Jersey tax periods and to consult their Friedman LLP tax professional with any questions or further assistance.