The New Jersey Division of Taxation has issued a notice informing taxpayers of the new terms and condition of the voluntary disclosure program effective at the close of the 2009 amnesty program, which is June 15, 2009. However, the state will still honor the current terms and conditions for agreements that were entered into prior to May 4, 2009, as long as they are fully executed by June 15, 2009.
The Voluntary Disclosure Program is a means for taxpayers who realize that their activities create nexus for New Jersey state tax purposes to come forward and file the appropriate returns, registration materials, and pay outstanding tax liabilities. A significant change to the program is that the look-back period will change from four years (three years, plus the current year) to seven years (six years, plus the current year). In order to be eligible, taxpayers must not have had any previous contact with the Division or any of its agents, be willing to pay all outstanding tax liabilities, and file the appropriate returns within a reasonable period (60 days). When applying for the program, the state will still allow the taxpayer to remain anonymous pending an agreement. In exchange, the Division will waive the late filing penalties and criminal penalties. A non-abateable penalty of 5% for not taking advantage of the 2009 amnesty program will be imposed. In addition the 5% late payment penalty will be imposed in all instances, along with statutory interest. (Press Release, State of new Jersey Department of the Treasury, Division of Taxation, June 5, 2009)