New Jersey Enacts Rules to Implement Amnesty Program

New rules have been adopted for New Jersey’s tax amnesty program. The amnesty program will begin May 4, 2009 and end June 15, 2009. The amnesty will apply for all taxes administered and collected by the Division of Taxation for returns due on or after January 1, 2002 and prior to February 1, 2009. Eligible taxpayers will have to pay the amount of tax owed and one-half of the balance of interest that is due as of May 1, 2009, without and penalties or referral recovery fees. Any taxpayer under criminal investigation or charge for a state tax matter, as certified by a county prosecutor or by the Attorney General, will not be eligible for the Amnesty. If an eligible taxpayer fails to pay the tax during the amnesty period, an additional 5% penalty will be imposed. This penalty will not be waived or abated and is in addition to any other penalties, interest, or other collection costs as authorized by law. (N.J.A.C. 18:39-1.1 ~1.8, New Jersey Division of taxation, effective March 26, 2009)

Posted on April 24, 2009