NJ Tax Amnesty Program
Opportunity to Avoid Penalties &
Reduce Interest Assessments
New Jersey has announced that it will be implementing a tax amnesty program that will run from Mid-November 2018 through January 15, 2019. NJ has stated that not all details of the program are currently available and further announcements about the program will be made.
For taxpayers granted amnesty, NJ will abate all penalties, 50% of the accrued interest, and waive cost of collection and recovery fees.
While some restrictions apply, currently announced eligible tax periods cover NJ tax liabilities for tax returns due on or after February 1, 2009 through September 1, 2017. The program will begin November 15, 2018 and end by January 15, 2019 (exact dates to be announced in the future).
What happens if you are eligible to participate in the program and decide not to participate? NJ will assess an additional 5% non-abatable penalty on any eligible debts not resolved during the amnesty program.
NJ will hopefully soon announce who is eligible and how to participate in its amnesty program.
TAX PLANNING TIP #1: If the NJ amnesty program is anything like last year’s PA amnesty program, taxpayers need to act immediately. The PA amnesty program allowed taxpayers to file unfiled prior years’ returns. If you have failed to file prior years’ NJ returns, you need to act now (assuming NJ will allow such returns to be filed and included in its amnesty program).
TAX PLANNING TIP #2: One of the major challenges with the PA amnesty program was that PA was showing unfiled tax returns that taxpayers had already filed. PA required that the taxpayer prove that a missing return had been filed and prove that any liability on the returns had been paid. Accordingly, start today by locating all 2008 through 2016 tax returns and the related payments with respect to those returns.
TAX PLANNING TIP #3: If you believe that you should be filing or have been told by a tax professional that you should be filing NJ returns and are not doing so, consideration should be given to filing those returns now (if eligible to do so as part of the amnesty program) to take advantage of NJ’s amnesty program.
If you would like to discuss your business or personal tax planning, tax preparation and other financial concerns with an experienced tax professional, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation. You can also schedule a consultation at Click Here.
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About F. Bryan Haarlander, EA, CTRS:
Bryan Haarlander is an IRS licensed Enrolled Agent and who owns and operates a specialized tax services firm serving clients in the western suburbs of Philadelphia, PA, which includes the cities of Chester Springs, Coatesville, Collegeville, Devon, Downingtown, Exton, Frazer, King of Prussia, Paoli, Philadelphia, Phoenixville, Pottstown, Radnor, Reading, Wayne, West Chester in Berks, Chester, Delaware, Montgomery and Philadelphia Counties, as well as clients in Delaware, New Jersey, New York and throughout the continental USA.
A Certified Tax Resolution Specialist, Bryan is well-known for his IRS tax resolution expertise and his book How to Resolve Your IRS Tax Debt Problems.