New Jersey to Offer Amnesty Program

Governor Jon S. Corzine signed a bill into law that requires the Director of the New Jersey Division of Taxation to establish a tax amnesty which began on May 4, 2009 and ends on June 15, 2009. In accordance with the law, amnesty “shall apply only to State tax liabilities for tax returns due on or after January 1, 2002 and prior to February 1, 2009 and shall not extend to any taxpayer who at the time of payment is under criminal investigation or charge for any State tax matter, as certified by a county prosecutor or the Attorney General to the director.” In accordance with the provisions of the law, the program will offer a waiver of all penalties, referral cost fees, and one-half of the balance of the interest that remains due as of May 1, 2009, provided payment of all tax owed and one-half of the balance of the interest that remains due is paid in full during the amnesty period. In addition, all filing requirements must be satisfied for delinquent returns.

If a taxpayer is eligible for the amnesty program, but does not take advantage of it before the June 15th deadline, an additional 5% penalty will be applied to any unpaid taxes. This penalty cannot be waived.

More information can be found at the New Jersey Division of Taxation’s website https://www.taxamnesty.nj.gov/.

NOTICE FROM ACTING DIRECTOR OF THE NJ DIVISION OF TAXATION DATED 6/1/09

The Division of Taxation is sending this message to thank the tax professional community for their cooperation with the ongoing Tax Amnesty program. Many of you have heeded the recommendation to reach us early to settle outstanding tax obligations for your clients under Amnesty, which ends at midnight on June 15, 2009. As a result, there has been unprecedented participation early in the program. As a matter of fact, the early participation and encouraging collections have resulted in the doubling of the revenue goal to $200 million.

With 15 days remaining, we have processed more than 48,000 payment transactions totaling in excess of $60 million, and we have agreements in place for several large cases that have us positioned to reach our goal with plenty of time to spare.

However, there has been some feedback from the tax professional community about waiting to the end of the program for more favorable settlement terms for outstanding cases. So that your clients do not lose the expansive benefits of the 2009 Amnesty program due to belated response, I urge you to reconsider if you or any of your colleagues have clients with complex issues. Unlike the 1996 and 2002 Amnesty programs, the 2009 Amnesty requires payment of tax and the appropriate interest plus the necessary tax returns by June 15, 2009. Once the clock strikes midnight on June 15, Tax Amnesty is over.

The large cases I mentioned earlier have taken several days to resolve with many requiring a settlement agreement. If you haven’t contacted us yet or you’re waiting for someone to contact you, I strongly urge you to act immediately. If you have contacted a Division caseworker and are not satisfied with the communication, please send an e-mail to me with the subject line “2009 Tax Amnesty,” at [email protected]
with the details of your client’s case including your proposal or issue, whom you contacted and when. I’d be happy to facilitate a prompt response by forwarding your concerns to the appropriate manager.

Thanks again for your cooperation during this program. Please feel free to share this e-mail with your colleagues who might not be part of the Division’s e-mail distribution network.

Cheryl Fulmer
Acting Director
NJ Division of Taxation
50 Barrack Street
Trenton, New Jersey 08695
Tax Amnesty Hotline: 800-781-8407