OUR THOUGHTS ON:

New Jersey and New Mexico Offer Tax Amnesty Programs

Schneider Downs|State and Local Tax|Tax

By Jack Stewart

New Jersey – Beginning November 15, 2018 and running through January 15, 2019, the New Jersey Division of Taxation is offering tax amnesty for eligible taxpayers to resolve any outstanding tax liabilities administered by the New Jersey Division of Taxation during the period of February 1, 2009 through September 1, 2017.  Taxes not administered by the New Jersey Division of Taxation are not eligible for the amnesty program. 

In accordance with the terms of the program, taxpayers must remit the full amount of the tax due, one-half of the related interest, and file any required returns by the January 15, 2019 deadline.  The program is not available to taxpayers under criminal investigation, or those who have been charged by a county prosecutor or the Attorney General for a New Jersey tax matter.  Taxpayers who have filed an administrative or judicial appeal related to a tax assessment may participate in amnesty if they withdraw the appeal, waive all rights to related future appeals and receive written approval from the Director of the Division. 

The programs imposes a 5% penalty to eligible taxpayers not participating in the amnesty program.

New Mexico – The New Mexico Taxation and Revenue Department has instituted a fresh start program for small businesses and individuals with unreported or underreported taxes.  Those who qualify and finalize enrollment in the program by the December 31, 2018 deadline may get all penalties and related interest forgiven, provided that they pay the required taxes within 180 days.

The Department is determining eligibility using the following criteria:

  • The taxpayer demonstrates a willingness and ability to comply with New Mexico’s tax laws.
  • The taxpayer demonstrates a system of internal controls and business records that are acceptable to the Department (for most taxpayers, this may become income identified on the federal return).
  • The taxpayer’s records are available to conduct the income disclosure.
  • The taxpayer has not been the subject of a criminal tax investigation.
  • The taxpayer is not in a legal dispute with the Department over the taxability of the transactions that would be included in the program.
  • The taxpayer is not including periods that are not currently under audit or already assessed.

Additional questions about the program of eligibility can be directed to the Department at (505) 841-6216, or contact your state and local tax professional for more information. 

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