Tax News

CCH (cch.taxgroup.com) reports:

  The New Jersey Division of Taxation has adopted new rules implementing procedures for a state tax amnesty period that is scheduled to take place from May 4, 2009, through June 15, 2009. Pursuant to Ch. 21 (A.B. 3819), Laws 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 can 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 is 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 will be subject to a 5% penalty that may not be waived or abated. The 5% penalty will be in addition to all other penalties, interest, or collection costs otherwise authorized by law. The rules discuss eligibility for the tax amnesty program, the scope of the eligibility program, applying for tax amnesty, granting or denial of tax amnesty, special situations, the consequences of a denial of tax amnesty, the rights of taxpayers denied tax amnesty, and finality of payment.

N.J.A.C. 18:39-1.1 --1.8, New Jersey Division of Taxation, effective March 26, 2009