On September 18, 2014, the Christie administration announced a limited New Jersey tax relief measure that could give some taxpayers a break on their back tax debt obligations and the associated penalties. Though this "two-month only" relief measure aims to generate more revenue for the state, many taxpayers stand to benefit in the process.
From now until November 17, 2014, the New Jersey Division of Taxation is making it easier for both businesses and individuals with unpaid tax liabilities to request and enter into what's known as a closing agreement to satisfy the debt on back taxes they owe. The limited tax relief measure only applies to tax periods from 2005 through 2013.
Some taxpayers will receive a letter with a Schedule of Liabilities detailing a reduced amount that they can be paid in full settlement of the liability. If you received a letter but feel that it doesn't accurately reflect the reduction you expected, or you have unpaid liabilities but did not receive a letter, contact your Untracht Early advisor so we can explore the matter further with the New Jersey Division of Taxation. In order to investigate, we will need to have a copy of the Schedule of Liabilities document you received.
If you do, in fact, qualify, most penalties and the recovery fees charged by collection agencies can be waived. Additionally, the interest owed can be somewhat reduced in that it will only be calculated on the tax and reduced penalties.
It's important to note that the full amount of what the taxpayer ultimately owes must be paid, in full, by November 17, 2014 at which time the relief measure will expire.
If you're interested in learning more about the New Jersey limited tax relief measure and whether or not it applies to you, simply contact your Untracht Early advisor to see if you qualify for the program and what type of reduction you might expect.