New Jersey Legislature Passes Tax Amnesty Bill

The New Jersey Legislature passed a bill that would require offering tax amnesty in 2018. The amnesty period would have to:

  • be 6 months; and
  • end by December 31, 2018.

If enacted, the bill would take effect immediately.

Relief Under Tax Amnesty

A taxpayer who qualifies for amnesty will receive relief from:

  • one-half of any interest due as of May 1, 2018;
  • recovery fees;
  • civil penalties, or
  • criminal penalties.

Eligibility for New Jersey Amnesty

To receive amnesty, a taxpayer would have to pay:

  • any tax owed; and
  • one-half of any interest due.

Amnesty would only apply to state tax liabilities for tax returns due from January 1, 2012, to December 31, 2017.

It would not be available if the taxpayer is under criminal investigation or charge for any state tax matter.

Failure to Pay Penalty

A 5% penalty would be imposed on an eligible taxpayer that does not pay taxes owed during the amnesty period. The penalty would not be waived or abated. It would also be in addition to all other penalties, interest, or collection costs allowed by law.

Appeals and Rights of Appeal

Taxpayers would lose all rights of appeal that have not expired as of the date payment is made.

In addition, an amnesty payment would not be accepted without approval for any tax assessment that is already on appeal.

A.B. 3438, as passed by the New Jersey Legislature on June 21, 2018

Indiana has a tax amnesty in 2018. The one-time voluntary disclosure initiative runs through December 31, 2018.

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CCHTaxGroup

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