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August 02, 2018 | Posted in:

Tax Amnesty Program Coming to New Jersey

As the final details of the state budget trickled out in recent weeks, it was revealed that the State of New Jersey will again be offering a tax amnesty program for taxpayers who owe back taxes. The exact dates of the program have yet to be finalized but most of the details have been set.

Who can benefit?

Taxpayers owing back taxes for tax returns due on or after February 1, 2009 through September 1, 2017. An exception applies to taxpayers who are under criminal investigation or prosecution for tax matters within the state. While past amnesties have allowed those not yet referred for prosecution to take advantage of the program, enforcement during the current amnesty window remains unclear.

What are the savings?

The 2018 Tax Amnesty Program will provide delinquent taxpayers with a window during which penalties for late filing, late payment, delinquency, collection fees and recovery fees on late taxes will be forgiven. Additionally, interest due on the taxpayer’s outstanding amount will be reduced by half, resulting in an effective interest rate of 3.5%. Lastly, any balance not settled when the tax amnesty window closes will incur an additional 5% non-abatable penalty.

When will it happen?

While the final dates of the program have not yet been set, the bill as passed allows for a 90-day window that may not begin before November 1, 2018 and will end by January 15, 2019. Notice, those dates are only 76 days apart so there may be some changes as the state finalizes the program.

Where can I get help?

To take advantage of this program, contact your Alloy Silverstein tax advisor or give us a call at (856)667-4100.

 

Author: Matthew McCarthy

 

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