On September 17, 2014, the New Jersey Division of Taxation announced a limited tax initiative for individuals and businesses who have unpaid New Jersey tax liabilities. The years covered under the program are tax periods 2005 through 2013.
Under the 2014 Fall Outreach Initiative, the Division will be sending letters to taxpayers who have outstanding tax liabilities with the state. The Division is offering taxpayers an easy way to resolve their outstanding liabilities, while reducing or eliminating their accumulated penalties, collection, and recovery fees, if full payment of the liability is made by November 17, 2014.
In order to participate, taxpayers must enter into a closing agreement with the Division of Taxation and remit the liability due by November 17. Under the agreement, such remittances are considered the full and final satisfaction of the outstanding tax liability. The tax liability will not be subject to further audit and no refund can be claimed by a taxpayer on this matter. If full payment is not made by November 17, all penalties, costs of collection, and recovery fees will remain due.
Should a taxpayer not receive a letter from the Division of Taxation, or if a taxpayer has unfiled New Jersey tax returns, he too may be eligible to participate in the initiative. The taxpayer must contact the Division about entering into a closing agreement and will need to submit all unfiled returns and tax balances due by November 17.
For additional details regarding the initiative and how to participate, please contact your Friedman, LLP representative or Alan Goldenberg at 212-897-6421.