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Owe New Jersey Back Taxes? The NJ Division of Taxation Offers a Way to Resolve Unpaid Tax Debt with No Penalties

NJ Back Taxes ResolutionThe New Jersey Division of Taxation has offered businesses and individuals a way to resolve back taxes from 2005 through 2013 at a reduced cost. The details of the plan are as follows:

  • Most of the penalties that were assessed to your account will be reduced to zero.  The Amnesty Penalty (5%) imposed on taxes due on or after 1/1/2002 and before 2/1/2009 is still applicable.
  • Interest will be calculated only on the tax and the reduced penalties.
  • The 10% recovery fee which is imposed on each tax liability that is forwarded to NJ’s outsourced, collection unit, Pioneer, is waived.
  • The 10% cost of collection fee charged for filing a Certificate of Debt (Judgment) may be eliminated.

This deal sounds great, but what is the catch?

In order to execute a closing agreement with the NJ Division of Taxation, you must full pay the reduced tax balance no later than November 17, 2014. If you cannot pay the balance by November 17, 2014 or prove that you or your business does not owe the balance, then you will remain responsible for all penalties, interest, cost of collection and/or recovery fees will.  The Division announced that it will resume collection of unpaid back taxes.

What if I Have Unfiled NJ Tax Returns?

The Division is instructing taxpayers to contact its service center or to visit one of its regional offices. 

How do I get started?

The Division of Taxation is sending letters to taxpayers that owe NJ taxes.  Enclosed is a Closing Agreement and a Schedule of Liabilities.  The Schedule of Liabilities reports what is owed and the reduced amount if paid before November 17, 2014.  There is an address where to send in the payment and signed Closing Agreement.  You can also resolve your tax matter online. If you did not receive a letter, online instructions are available at:  Beginning on October 1, 2014, you will be able to view your Schedule of Liabilities online, indicate the amount you are paying and make your payment on the above website.

We’re Here to Help

The Law Offices of Todd S. Unger, Esq. handles NJ tax disputes including sales tax audits, NJ criminal tax investigations, and collection matters.  Owing New Jersey back taxes is stressful.  NJ is providing a way to resolve your matter at a reduced cost, but it may not be practical for everyone.  If you cannot full pay by the deadline or have specific questions regarding your matter, call the Law Offices of Todd S. Unger at (877) 544-4743 or contact us today. [button title=”Contact Us” link=”” description=”” width=”200px” bgcolor=”#8C0000″ color=”#FFFFFF” picture=”” height=”40px” version=”dark” position=”center” id=”cta_button”]