In the spirit of giving, New Jersey "regifts"

  iStock and Raich Ende Malter

iStock and Raich Ende Malter

Posted by Sam Federman, CPA

The state of New Jersey has now provided taxpayers with a limited time amnesty offer. The state refers to this as a gift. The last time this opportunity was offered was 2014. Specifics to the amnesty program can be found on the state’s web site – taxamnesty.nj.gov – but a few pertinent details are listed below.

  • Deadline to apply: January 15, 2019

  • Applications must be completed online

  • Relief of penalties and half of total interest due on tax liability

Caveats

All taxes must be paid and all returns must be filed by the deadline. There is no option for a “partial” amnesty.

Once payment is made, none of the taxes can be appealed. The payments made are not eligible for refund or credit.

Taxpayers who do not take advantage of amnesty may be subject to an additional 5% penalty for taxes that were not satisfied during the amnesty period.

Eligibilty

The program applies to outstanding tax filings or payments that are reportable on a tax return due after January 31, 2009 and before September 1, 2017.

Amnesty participation is available for virtually all taxes (income, sales tax, etc.) administered by the state. Taxes that are not eligible include local property taxes and certain portions of payroll taxes.

Special note

The state has acknowledged that, due to the mass mailing nature of the tax amnesty program, many erroneous notices have been sent. If you believe you received a notice in error, don’t panic. You are not alone.

This opportunity will not last much longer and may help you sleep better at night. Contact your REM tax adviser to determine whether this program is right for you.