News From the SALT Minds-March 4, 2014
New Jersey is offering two new voluntary disclosure initiatives for partnerships with New Jersey sourced income that have not remitted the taxes due and for companies that have received income from the use of intangible assets in New Jersey.
New Jersey's voluntary disclosure initiative begins on March 15, 2014 and runs through May 15, 2014. In these two months, penalties will be waived for partnerships and certain companies that have been subject to taxes in New Jersey and have not been paying them. These companies are able to voluntarily come forward to comply with the tax requirements, however there are some conditions attached to this offer.
The look back period is limited to periods beginning on or after January 1, 2010. All required forms must be submitted and all taxes paid within 45 days, as well as payment of interest within 30 days of assessment. The division will waive all penalties however all returns will remain subject to audit for issues that are not forgiven by this voluntary disclosure initiative.
This initiative will not apply to every person or corporation; if there was previous contact with the taxpayer by the division or any of its Agents or if the taxpayer is currently under any criminal investigation then the offer will not apply. The taxpayer must also not be currently registered for the taxes that they wish to volunteer and be willing to pay outstanding liabilities and file prior year returns within a reasonable period.
This specific initiative applies to business taxes for partnerships with sourced income from New Jersey and companies with income from the use of intangible assets in New Jersey. If a company owes these taxes and/or other taxes, only the penalties for these will be forgiven. Regardless of a company's exposure, all clients with a presence in New Jersey that may have overlooked registration should consider the benefits and do so quickly.
Prager Metis' Take.
Although New Jersey has a standard voluntary disclosure program for most business taxes, there are certain restrictions with regard to income generated from partnerships with New Jersey sourced income and income from the use of intangible assets in New Jersey. This new program allows a small window of opportunity for Taxpayers that have not complied in the past. If you have any questions regarding this program please call Chris Vignone or Frank Fioretti.