- New Jersey Voluntary Disclosure Initiatives
- April 17, 2014
- Law Firm: Loeb Loeb LLP - Los Angeles Office
New Jersey recently announced two limited voluntary disclosure initiatives that run from March 15, 2014, through May 15, 2014. During such period, all penalties will be waived and there will be a limited “look back” period with respect to:
- Partnerships with New Jersey-sourced income that have not filed the applicable New Jersey forms or remitted the respective tax and fees to New Jersey (“Partnership Initiative”); and
- Companies that derived income from intangible assets used in New Jersey that have not reported such income to New Jersey (“Intangible Initiative”).
Both initiatives require taxpayers to file all required returns and pay any tax liability reported within 45 days of executing a voluntary disclosure agreement and remit any interest within 30 days of assessment. The returns remain subject to audit with respect to issues not covered under the terms of the voluntary disclosure agreement with New Jersey. The Partnership Initiative limits the look back to periods beginning on or after January 1, 2010, and also applies to individual partners that have not satisfied their New Jersey filing and tax remittance requirements. The Intangible Initiative limits the look back to the later of periods beginning after July 1, 2010, or the date the business commenced and allows companies that have paid and added back royalties to their New Jersey entire net income to amend returns for open periods to claim an exception to the add back.
To participate, a taxpayer (1) cannot have had any previous contact by the New Jersey Division of Taxation or any of its agents; (2) cannot be registered for the taxes the taxpayer wishes to come forward and report; and (3) cannot currently be under any criminal investigation.