As the year comes to a close, and we all look forward to the holidays, the state of New Jersey is offering something that will light up some of its residents with even more joy. The New Jersey Division of Taxation or “Division,” has mailed letters to all taxpayers, both individual and businesses, who may be eligible for tax amnesty on delinquent accounts. For those who have fallen behind on their taxes or have failed to file, the New Jersey Division of Taxation is offering a very narrow window of opportunity to get right with the state without penalties and with reduced interest.
The New Jersey Tax Amnesty program runs only for a minimal time. It began November 15, 2018, and you have only until January 15, 2019, to take advantage of it. It will not reduce your tax liability, but it will waive late filing and payment penalties and half the balance of interest due as of November 1, 2018, for tax filings and payments that were due from February 1, 2009, until the end of August 2017. The Division will not waive fraud and criminal penalties.
Eligibility for the New Jersey Tax Amnesty Program
- Both individuals and businesses may benefit.
- It applies only to tax filings or payments that were due from February 1, 2009, until the end of August 2017.
- You are still eligible even if you are on a payment plan.
- Eligibility for the program only applies to those who owe taxes administered and collected by the New Jersey Division of Taxation.
- You are ineligible if you have filed an administrative or judicial appeal related to a tax assessment, but you may regain eligibility if you withdraw your appeal, waive your rights to a future appeal and get written approval from the Director of the New Jersey Division of Taxation.
- If you are being investigated for criminal activities for a tax matter or have been charged with such activities by the New Jersey Attorney General or a county prosecutor, you are ineligible for this tax amnesty program.
Types of Taxes that Fall Under the NJ Tax Amnesty Program
The amnesty program applies to a wide range of taxes administered by the New Jersey Division of Taxation. Taxes that fall under the program consist of:
- Business taxes and fees including the following and many, many more:
- Corporation business tax
- Inheritance and estate taxes
- Insurance premium taxes
- Sales and use tax
- Transitional Energy Facility Assessment
- Uniform Transitional Utility Assessment
- Personal Income Tax
- Resident return
- Non-resident return
- Fiduciary return
- Composite return
- Inheritance and estate taxes
Taxes that are ineligible include
- Local property taxes
- Federal liabilities
- Fees assessed by the New Jersey Division of Revenue such as the annual report fee for business entities and reinstatement fees
- Road use taxes for motor carriers
- Payroll taxes owed to the New Jersey Department of Labor
How to Request New Jersey Tax Amnesty
To take advantage of this program, you must
- File all delinquent returns by January 15, 2019, which is the end of the amnesty period.
- Pay the tax that is due and half the interest by the end of the amnesty period. You cannot get credits or refunds for any payments made through the program, and you lose your right to appeal the amount due.
Take these steps to request amnesty:
- Find out how much you owe by going to the New Jersey Tax Amnesty website.
- File all your delinquent tax returns electronically. If it is impossible to file your returns electronically, mail them to
New Jersey Division of Taxation
50 Barrack Street
PO Box 286
Trenton, NJ 08695-0286.
They must be postmarked no later than January 15, 2019
- Make a complete payment of your taxes and half the interest you owe, and acknowledge the payment and waiver statement online, even if you mail a paper tax return. You must do this before January 15, 2019.
Visit the New Jersey Tax Amnesty website or call the Tax Amnesty Hotline 1-800-781-8407 with additional concerns. If you received a notification but lost it, call the hotline. If you did not receive one, you could visit the Non-Outreach Portal.
What Happens if You Miss the New Jersey Tax Amnesty Deadline
If you are eligible for the New Jersey Tax Amnesty Program but do not take advantage of it, the New Jersey Division of Taxation will impose an additional 5% penalty.
Disclaimer: We are not giving legal or accounting advice but just general information. For advice on your specific circumstances, contact a licensed tax professional.