Limited time period available to resolve unpaid New Jersey tax liabilities.

Published on October 8, 2014.

For a limited period of time the State of New Jersey Division of Taxation is offering businesses and individuals with unpaid tax liabilities for the tax periods 2005 through 2013 the opportunity to enter into a closing agreement to satisfy these outstanding tax liabilities.  Under the terms of such an agreement, the Division will accept as payment in full an amount that reduces or eliminates penalties and excludes collection or recovery fees.

Taxpayers have until November 17, 2014 to enter into the closing agreement and pay in full the amount due.  The Division has recently mailed letters to affected taxpayers reflecting the reduced amount owed.  If you have not received a letter, but you have unpaid tax liabilities that may be eligible or you have unfiled returns, you should contact us to discuss.

According to the Division’s website, the following benefits are available:

•      Most penalties can be reduced to zero.  The exception would be an Amnesty Penalty imposed on taxes due on or after 1/1/2002 and before 2/1/2009.  This reduction can mean a 5% to 30% decrease in liabilities.

•      Interest will be calculated only on the tax and reduced penalties.

•      Recovery Fees may be waived.  This 10% fee is imposed on each tax liability that is forwarded to the Division’s authorized collection agency because the first bills were not paid.

•      Costs of Collection may be eliminated.  When the Division must secure a tax debt by filing a Certificate of Debt (judgment), a 10% fee is applied to cover additional legal and collection costs.

Additional information is available on the Division’s website

at  www.state.nj.us/treasury/taxation/fall2014 or by calling 609-943-5000.

If you have any questions or would like to discuss this matter, please contact us.

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