Limited Window to Resolve Outstanding Tax Liabilities in New Jersey and Massachusetts
New Jersey and Massachusetts are offering taxpayers a way to come into compliance without the help of a state auditor. Both state programs will only be offered for a limited period of time.
The Massachusetts Amnesty Program is exclusively available to certain taxpayers with recorded liabilities, and they will be notified via a Tax Amnesty Notice. Conversely, New Jersey taxpayers can come forward to determine if a reduced penalty amount is appropriate even if they are not initially issued a letter.
NEW JERSEY
The New Jersey Division of Taxation (the “Division”) is offering both businesses and individuals a limited opportunity to settle outstanding tax liabilities incurred from 2005 to 2013.
While taxpayers will still have to pay interest, the benefit is that there are reduced penalties, no collection costs, no recovery fees and elimination of the possibility of future criminal prosecution with respect to said liabilities.
Taxpayers have until November 17, 2014, to enter into a “closing agreement” with the Division in order to resolve applicable debts.
Taxpayers who have received a letter from the Division containing a schedule of liabilities will see a reduced payment amount that will be accepted in order to resolve their debt. The letter will provide instruction on how to make payment.
Taxpayers who have not received a letter from the Division can visit a regional office (there are six throughout the state), or call (609) 943-5000 in order to determine if their debt can be reduced.
For more information visit the Division’s website.
MASSACHUSETTS
The Massachusetts Department of Revenue (“DOR”) recently announced a two-month tax amnesty program that will run from September 1, 2014 through October 31, 2014.
The DOR has mailed notices showing the tax and interest due, along with the penalties to be waived, to taxpayers with outstanding tax liabilities. If taxpayers pay the tax and interest shown on the bill on or before October 31, 2014, the State will waive the unpaid penalties for the period.
The amnesty program applies to certain tax liabilities billed on or before July 1, 2014.
The following individual and business tax types are eligible for the amnesty program:
- Individual income tax;
- Withholding tax;
- Sales and use tax;
- Meals tax;
- Meals tax local option;
- Personal use tax;
- Cigarette individual excise tax; and
- Cigar/smoking tobacco tax.
In September, approximately 300,000 qualifying taxpayers received tax amnesty notices informing them that they qualify for this program. Such notices include: (1) the taxpayer’s period balance; (2) the amount of unpaid penalty to be waived if the amnesty balance is paid in full by the due date; and (3) the amnesty amount that is due.
The amnesty program is open to taxpayers who have been issued a tax amnesty notice; and:
- have an unpaid and self-assessed tax liability stated on a bill issued by the Commissioner on or before July 1, 2014, for an eligible tax type, or
- have been previously assessed a tax liability for an eligible tax type by the Commissioner on or before July 1, 2014, that remains unpaid.
Author: CJ Stroh, Esq. | [email protected]
How Can We Help?
If you have a liability that meets this critera, please contact your Withum professional or contact our National Tax Services Group by filling out the following form.
