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New Jersey Launches Tax Amnesty Program

March 2009

Governor Corzine recently signed a bill creating a New Jersey Tax Amnesty Program (“Amnesty Program”). The Division of Taxation has announced that the Amnesty Program will begin on May 4, 2009 and end on June 15, 2009 (the “Amnesty Period”).

The Amnesty Program, which applies to all unpaid state tax liabilities for returns due on or after January 1, 2002 and prior to February 1, 2009, provides that if a taxpayer pays the tax owed, plus one half of the interest due as of May 1, 2009, then the taxpayer will not be liable for any recovery fee or any civil or criminal penalties (and will not pay the other half of the interest). An additional requirement for participation in the Amnesty Program is that all filing requirements must be satisfied for delinquent returns. Taxpayers who are under criminal investigation or charge for any state tax matter are not eligible for the Amnesty Program.

Any state tax liability that is eligible to be satisfied during the Amnesty Period, and which is not satisfied, will be subject to a 5% penalty. The penalty cannot be waived or abated and is in addition to any other applicable penalties, interest or costs of collection.

The Amnesty Program is estimated to generate $100 million in additional revenue for the State of New Jersey in the year 2009. We expect additional details regarding the Amnesty Program from the Division of Taxation in the near future.


For more information, please contact:David L. Schlossberg at (973) 530-2010 or via e-mail at: dschlossberg@wolffsamson.com; Sean M. Aylward at (973) 530-2105 or via e-mail at: saylward@wolffsamson.com; Stephen L. Ferszt at (973) 530-2020 or via e-mail at: sferszt@wolffsamson.com and Farah N. Homsi at (973) 530-2044 or via e-mail at: fhomsi@wolffsamson.com.

This Client Alert should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult your own lawyer concerning your specific situation or any legal questions you may have.