Press Room: Tax Release
New Jersey Announces Closing Agreement Program
The New Jersey Division of Taxation has announced that it will, for a limited time, offer individual and business taxpayers the opportunity easily to satisfy and close outstanding tax liabilities. Under the Division’s Closing Agreement Program, taxpayers having unpaid tax liabilities from 2005 through 2013 may be able to reduce most penalties to zero, calculate interest only on the tax and reduced penalties thereon, and, for accounts that have been forwarded to the Division’s authorized collection agency, waive the 10% recovery fee imposed on those liabilities and eliminate collection costs.
Taxpayers that have received a letter from the Division showing a schedule of reduced liabilities may proceed to take advantage of the Program. Taxpayers that have not received a letter may call the Division or visit a regional office of the Division to attempt to establish a reduced amount. Taxpayers need only show good and sufficient reasons for desiring a closing agreement, whereupon the Division may determine that the State will sustain no disadvantage through that agreement.
Taxpayers participating in the Program should note that if some or all of the amount they are paying is under judgment, they must make their payments with guaranteed funds (certified funds or bank check). Otherwise, the Division will not be able to issue a Warrant of Satisfaction for at least six months. Taxpayers should also note that payments must be made by November 17, 2014 in order for the Division to accept the closing agreement.