Anonymous Voluntary Disclosure Program Available in New Jersey to Deal Anonymous Voluntary Disclosure Program Available in New Jersey to Deal

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Title:
Anonymous Voluntary Disclosure Program Available in New Jersey to Deal Anonymous Voluntary Disclosure Program Available in New Jersey to Deal
Date:
November 1, 2010
Publication:
From the November 2010 Riker Danzig Tax and Trusts & Estates UPDATE
Author(s):
Area(s) of Practice:
Estate Planning & Administration, Tax Law

While New Jersey is not the only state to have a voluntary taxpayer disclosure program, its program is unique in that you do not have to disclose your identity until the Division of Taxation sends a letter confirming your acceptance into the program. New Jersey's Voluntary Disclosure Program is available to both individual and business taxpayers who want to "come clean" on unreported taxes. The benefit of contacting the New Jersey Division of Taxation before they contact you is that you will be eligible for relief from late filing and late payment penalties. In addition, the general look-back period is four years (i.e., you must file returns for the current year and the three prior years).

Generally, taxpayers are eligible to participate in the Voluntary Disclosure Program if:

  • There has been no previous contact with the taxpayer by the Division of Taxation;
  • The taxpayer is not merely filing an amended return;
  • The taxpayer is not currently under any criminal investigation; and
  • The taxpayer is willing to pay outstanding tax liabilities and file returns within a reasonable period of time.