If you are an individual or business who owes New Jersey taxes and would like to clean the slate potentially at a reduced cost, then the recently announced 2014 Tax Amnesty program is worth considering.
Until November 17, 2014 the New Jersey Division of Taxation is offering businesses and individuals that have unpaid tax liabilities and unfiled returns from tax periods 2005 through 2013 a way to request and enter into a closing agreement with the Division in order to satisfy outstanding tax liabilities with no or reduced penalties.
According to the New Jersey Division of Taxation, most penalties can be reduced to zero. The exception would be an Amnesty Penalty imposed on taxes due on or after 1/1/2002 and before 2/1/2009. This reduction can mean a 5% to 30% decrease in liabilities. Interest will be calculated only on the tax and reduced penalties. Recovery fees may be waived and costs of collection eliminated. [TO READ MORE, CLICK ON "READ MORE" TO THE RIGHT]
However, if you do not pay the balance due or provide sufficient proof that you or your businesses do not owe it by November 17, 2014, any and all penalties, interest, costs of collection, and/or recovery fees will remain due. The Division may also pursue further collection activity. You may pay the balance due in one lump sum or you may make several payments to satisfy the amount due, but the full amount must be paid by November 17, 2014 in order to take advantage of the reduced penalties and eliminated costs of collection and recovery fees.
Some New Jersey taxpayers with tax debts have received letters with a Schedule of Liabilities. If you received a letter from the New Jersey Division of Taxation with a Schedule of Liabilities showing a reduced amount you are ready to move ahead and resolve your debt. If you did not receive a letter with the reduced schedule of liabilities you can contact the Division and learn if you can reduce your debt.
You will need to enter into a closing agreement with the State. A closing agreement is a contract that both a taxpayer and the Division sign which states a taxpayer will pay, and the Division will accept, an amount that reflects reduced or eliminated penalties, no costs of collection or recovery fees and full and final satisfaction of the outstanding tax liability. The tax liability will not be subject to further audit and no refund can be claimed by the taxpayer on this matter.
If some or the entire amount you are paying is under judgment, you must make your payments with guaranteed funds (certified funds or bank check) or the Division may not be able to issue a Warrant of Satisfaction for at least six months. If you pay by check, you authorize the Division to use your check to make a one-time electronic funds transfer from your account.
If you are interested in learning more about this program or getting into it contact the Law Office of David Neufeld at (609)919-0919 or David@DavidNeufeldLaw.com.