New Jersey to Offer Amnesty Program

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Governor Jon Corzine recently signed a bill into law that requires the Director of the New Jersey Division of Taxation to establish a tax amnesty period.

Governor Jon Corzine recently signed a bill into law that requires the Director of the New Jersey Division of Taxation to establish a tax amnesty period, not to exceed 45 days in duration, which shall end no later than June 15, 2009.

The amnesty applies only to state tax liabilities for tax returns due on and after January 1, 2002  and before February 1, 2009. During the amnesty period, a taxpayer who has failed to pay a state tax could pay the tax and one-half of the balance of interest that is due as of May 1, 2009, without the imposition of the remaining one-half of the balance of interest that is due as of that date, recovery fees, and civil or criminal penalties arising out of the tax obligation. The amnesty would not be available to a taxpayer who, at the time of payment, is under criminal investigation or charge for any state tax matter.

If a taxpayer eligible for the amnesty fails during the amnesty period to pay taxes owed, that taxpayer could be subject to a 5% penalty that may not be waived or abated. The 5% penalty would be in addition to all other penalties, interest, or collection costs otherwise authorized by law.

More information will be posted on a special website that is being planned and developed. In addition, a public awareness campaign is planned and is expected to be implemented on or about mid-April.

The Division of Taxation plans an outreach mailing to all taxpayers who are known to have amnesty-eligible deficient and/or delinquent accounts. In addition, a phone number will be established for the public to reach a special Call Center where representatives will be trained to answer specific inquiries. The Call Center is expected to be established on or about the week of April 27.