Tax Alert:
New Jersey Launches Tax Amnesty Program
Governor Jon Corzine recently signed a bill creating a New Jersey Tax Amnesty Program ("Amnesty Program") that will begin on May 4, 2009 and end on June 15, 2009 (the "Amnesty Period"). The measure, which reduces interest owed on back taxes for the past seven years, is designed to raise much-needed capital for the State of New Jersey this year. The voluntary Amnesty Program requires:
- The Payment of all unpaid state tax liabilities related to tax returns due on or after January 1, 2002 and prior to February 1, 2009.
- A 50% reduction on interest that is owed for this period.
- All filing requirements must be satisfied for delinquent returns. Taxpayers who are under criminal investigation or charge for any state tax matter are not eligible for the Amnesty Program.
Taxpayers who participate in this program will not be liable for any recovery fee or any civil or criminal penalties involved in future collection efforts by the state.
Any state tax liability that is eligible to be satisfied during the Amnesty Period, and which is not satisfied, will be subject to a 5% penalty. The penalty cannot be waived or abated and is in addition to any other applicable penalties, interest or costs of collection.
The Amnesty Program is estimated to generate $100 million in additional revenue for the State of New Jersey in 2009.
Should you have questions about New Jersey’s Tax Amnesty Program, contact your Anchin relationship partner or Clarence Kehoe, partner-in-charge of Anchin’s Tax Department, at Clarence.kehoe@anchin.com. |
