The New Jersey Division of Taxation is providing businesses and individuals with existing tax liabilities an opportunity to resolve these matters. Under the initiative, taxpayers can pay any outstanding tax bills with reduced or eliminated penalties, no collection costs, and no recovery fees. The initiative is open to taxpayers who have outstanding tax liabilities for the tax periods 2005 through 2013. The initiative runs until November 17, 2014. Information is available on the New Jersey Division of Taxation web site at:
Under the program, taxpayers should obtain a Statement of Liability detailing the amount of tax, penalty, and interest currently on their account. Taxpayers will enter into a closing agreement with the Division, and generally remit a payment of tax and interest. Most penalties are abated, but some penalties may still apply. The closing agreement will stipulate that the matter is closed, and taxpayers will waive their right to any further administrative review or judicial appeal. Payments can be submitted through the Division’s website or by mail. After November 17, 2014, taxpayers who have not cleared their tax liabilities will remain on record as owing their full liability, which would include normal penalties, interest, collection costs, and/or recovery fees.