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New Jersey – Pardon Me, Excuse Me, or Give Me Amnesty

11.19.18 | SALT Chat

The timing could not have been any better. New Jersey’s latest holiday gift presents itself as the long anticipated start date for the latest in tax amnesty.

While it might seem exciting to get your own personalized pardon, hopefully all you need is a little amnesty.  Generally, a pardon is limited to an individual and you must have already committed a crime to get one. You probably will need some strong political connections and a large bankroll to pay the legal fees. We already know the “excuse me” excuse does not work (see SALT TALK March 27, 2017). Amnesty, where a person or group of people are told they will be forgiven for a particular misdeed, is the perfect holiday gift for all.

Effective November 15, 2018, the program will run through January 15, 2019. Eligible tax periods are for tax returns due on or after February 1, 2009 through September 1, 2017.

The program applies to most taxes administered by the Division of Taxation including, but not limited to, sales and use, corporate business tax, personal income, and fiduciary income.

While taxpayers will need to pay 100% of any tax due:

  • penalties will be waived, and
  • interest will be reduced by half.

Eligible taxpayers that decline to participate will be assessed an additional 5% penalty on any tax that the amnesty would cover.

Many New Jersey taxpayers have received notice regarding their eligibility to apply for the program. However, all taxpayers with delinquencies are encouraged to apply. Applications must be completed online through the State’s Amnesty Processing Center.

Those accepted must have all tax returns and payments submitted by 11:59 p.m. on January 15, 2019. Taxpayers should strongly consider the benefits offered by this program. Happy Thanksgiving.

If you have questions, contact me at WBerkowitz@BerdonLLP.com or your Berdon advisor.

Wayne K. Berkowitz, a tax partner and head of the State and Local Tax Group at Berdon LLP, advises on the unique requirements of governments and municipalities across the nation.