New Jersey Enacts Voluntary Disclosure Initiative for Certain Out-of-State Sellers

The New Jersey Division of Taxation has announced a voluntary disclosure program for out-of-state sellers with click-through agreements with businesses in New Jersey. New Jersey had previously enacted click-through nexus legislation, effective July 1, 2014. The voluntary disclosure program will run from August 21, 2017 to November 21, 2017. Businesses will be able to enter into an agreement with the Division and comply with the state’s registration and reporting requirements based on these terms:

• The taxpayer must file any required returns for the two quarters between January 1, 2017 and June 30, 2017. All prior periods will be considered closed.
• All penalties will be waived.
• Statutory interest (prime rate plus 3% as applicable to each period at issue) will be assessed.
• Within 45 days of the execution of an agreement with the Division, taxpayers will register with the Division of Revenue and Enterprise Services. They will electronically file quarterly Sales and Use Tax returns, report all sales subject to New Jersey Sales Tax, and remit payment of the tax due.
• The taxpayer will pay statutory interest within 30 days of filing the Sales and Use Tax returns.
• Participants must not have been contacted by the Division of Taxation regarding sales and use tax compliance.

This program is in addition to the MTC Online Seller Amnesty in which New Jersey is also participating. This program will be available to those with click through nexus rather than inventory in a 3rd party warehouse which is available under the MTC Online Seller Amnesty.

To participate in the program, taxpayers should contact Stephen L. Szabo III, Auditor, Nexus Audit Group at New Jersey Division of Taxation, PO Box 269, 50 Barrack St., Trenton, NJ 08695-0269. He can also be contacted at 609-984-7985 or [email protected]. (New Jersey Offers Voluntary Disclosure Program to Out-of-State Sellers with Customer Referral Agreements, August 17, 2017)