• New Jersey Announces Offshore Voluntary Compliance Initiative
  • November 13, 2009 | Author: David W. Bunning
  • Law Firm: Greenberg Traurig, LLP - New York Office
  • On November 4, 2009, the New Jersey Division of Taxation ("Division") announced an Offshore Voluntary Compliance Initiative. Individuals and entities that participate in the program will pay tax, interest and a five percent "amnesty penalty," but they will avoid all other civil penalties, including the 50 percent fraud penalty with respect to undisclosed offshore account activity. This initiative is an outgrowth of the Internal Revenue Service's offshore account initiative, which expired on October 15, 2009. It is intended to benefit taxpayers who had undisclosed offshore financial accounts who wish to declare them and to come into compliance with their reporting obligations.