The New Jersey Division of Taxation has released details on its 2018 tax amnesty program, which began on November 15, 2018 and will run until January 15, 2019. Under the amnesty program, a taxpayer with tax liabilities for returns due on or after February 1, 2009 and prior to September 1, 2017 can pay the required tax plus one half of the interest due as of November 1, 2018. Penalties, costs and the other half of the interest due will be waived. Taxpayers who file electronically must file all required tax returns and make all required amnesty payments by 11:59 PM on January 15, 2019. Tax returns submitted by mail must be postmarked by January 15, 2019. Payments on returns received after January 15, 2019 will not be eligible for amnesty.
Taxpayers under criminal investigation or charge for a state tax matter are not eligible. If you have filed an administrative or judicial appeal related to a tax assessment, you may participate in amnesty only if you withdraw your appeal, waive all rights to a future appeal and receive written approval from the Director of the Division of Taxation.
Payments made under amnesty are not eligible for refund or credit. Also, a 5% amnesty penalty will be imposed on all outstanding amounts that were eligible for amnesty but were not paid during the amnesty period. This penalty cannot be waived or abated. In other words, failure to take advantage of the amnesty program will actually increase the amount of any New Jersey state tax debt.
If you have questions about the amnesty program and how it applies to you or your business, please contact Robert Daleo at rdaleo@riker.com, Jason Navarino at jnavarino@riker.com or Stephen Pagano at spagano@riker.com.
