Businesses with New Jersey underreported taxes and/or unfiled tax returns may now qualify for a tax amnesty program that ends on January 15, 2019.
This program provides relief from state tax liabilities for tax returns due on/after February 1, 2009 and through September 1, 2017. Taxpayers can pay back taxes, file past due tax returns, and pay half the interest due as of November 1, 2018. Most fees and penalties, not including civil fraud and criminal penalties, are waived under this amnesty program.
To obtain tax amnesty, a business must complete the following by January 15th:
- Pay the outstanding tax due
- Pay remaining half of the related interest
- File delinquent returns
The New Jersey Division of Taxation has been mailing letters to businesses and individuals that may have filing obligations. These informational notices often provide specific information about the type of tax and years involved for which New Jersey may be looking for additional payments of tax or the filing of required returns. New Jersey may pursue these items if not addressed as part of this current amnesty program.
File for Tax Amnesty
To view your outstanding liability and begin filing for tax amnesty, visit www.taxamnesty.nj.gov. Qualifying taxpayers that choose not to participate in the program will suffer an additional 5 percent penalty on any amounts not paid before January 15.
Taxpayers not able to file electronically can mail tax returns to:
New Jersey Division of Taxation
50 Barrack Street
PO Box 286
Trenton, NJ 08695-0286
Please note that New Jersey also offers a voluntary disclosure program that provides a limited look-back period for qualified business non-filers, thus making it a potentially more beneficial option than the amnesty program in certain situations. The only other state running a general tax amnesty program is New Mexico, and that program expires at the end of this year.
For more information, please contact your Sikich tax representative.
About the Author
Brian Kelley, CPA, MST
Managing Director, State and Local Tax Services
Brian Kelley, CPA, MST, focuses exclusively on State and Local Taxes (SALT). He had worked seven years with a national accounting firm and nine years with a regional accounting firm before working at Sikich, formally Kolb+Co.