BLOG

Limited Time Available to Resolve Unpaid Tax Liabilities with New Jersey

Limited Time Available to Resolve Unpaid Tax Liabilities with New Jersey

For a limited time the New Jersey Division of Taxation is offering business and individuals that have unpaid tax liabilities from tax periods 2005 through 2013 an easy way to request and enter into a closing agreement with the Division in order to satisfy outstanding tax liabilities.

A “closing agreement” is a contract that both a taxpayer and the Division sign which states a taxpayer will pay, and the Division will accept, an amount that reflects reduced or eliminated penalties and no costs of collection or recovery fees in full and final satisfaction of the outstanding liability.

You may be able to save money.

  • 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.

The New Jersey Division of Taxation has recently mailed letters to individuals and businesses affected, stating the reduced liability due.  Should you have an unsettled tax liability, did not receive your letter, or believe you have not filed past income tax returns, please contact one of our tax professionals to assist.

Taxpayers have until November 17th to take advantage of entering into a closing agreement with the New Jersey Department of Taxation, including full payment of the agreed upon sum.

Any amounts not settled by November 17th, will continue to accrue interest, penalties, and any associated fees.

November 3, 2014