Header Right

Sales & Use Tax

NJ Tax Amnesty: Cool Savings Despite Sizzling Summer Heat

by

 Businesses and individuals facing unpaid NJ tax liabilities may be able to get a break on penalties according to the tax amnesty measure signed into law on July 1, 2018. The amnesty period will not begin before November 1, 2018 and will end by January 15, 2019. The program will apply to state tax liabilities for tax returns due on and after February 1, 2009 and prior to September 1, 2017. The measure will apply to all state taxes including gross income, corporate business tax and sales and use tax. However, it does not apply to unemployment type taxes administered by the Department of Labor. 

Why should I do this now? Because under this limited-time offer (remember, the clock runs out by January 15, 2019) the Division of Taxation will forgive all penalties, and one-half of the accrued interest due at Nov. 1, 2018. 

Here are some more details

    • The program will also apply to amounts currently under audit or being contested with the NJ Div. of Taxation.
    • A start date for the program has not yet been announced.
    • NJ Amnesty will provide relief for 2009 – 2016 delinquent individual or business tax return filers.
    • The program also forgives all penalties and 50% of interest for delinquent sales and use tax filings for quarters ending Dec. 31, 2009 – June 30, 2017.

Is there a hitch?  Sort of. The bad news is that if a taxpayer is eligible for amnesty and does not take advantage of it, an additional 5% penalty will be added to the already imposed penalties and interest on the original tax liability.

To see if this program is right for you, please contact our Tax Manager, Steven Citron

 

 

Hurricane Sandy Repairs Subject to NJ Sales Tax?

by

After Hurricane Sandy hit, the NJ Division of Taxation was flooded (no pun intended) with inquiries regarding the taxability of repairs. As a result, a helpful “Sales and Use Tax – Frequently Asked Questions” page has been added to its website. This article has the answers, including whether charges for demolition services or tree removal are subject to NJ Sales Tax. To view the article, click here: NJ Division of Taxation FAQ

NJ Issues Technical Bulletin on Sales and Use Tax for Attorneys

by

On January 15, 2013, the NJ Division of Taxation issued a technical bulletin on the taxability of purchases made by lawyers and law firms.  Lawyers who practice in New Jersey are not liable for collecting sales tax on charges for professional services performed by their practice. They are, however, required to pay sales or use tax on all purchases of taxable tangible property, specified digital products, and certain services used by their firm, unless otherwise exempted by law. Purchases subject to sales and use tax that are common to law firms include: [Read more…] about NJ Issues Technical Bulletin on Sales and Use Tax for Attorneys

NJ Office of Taxpayer Advocate Taking Sales & Use Tax Cases

by

Beginning, Aug. 1, 2011, the Office of the Taxpayer Advocate (OTA) will start considering cases involving sales and use tax. Previously, the OTA had only considered cases that involved gross income tax. To be deemed eligible for OTA assistance, the following conditions must be met:

  • You face a threat of immediate adverse action for a disputed liability, or believe that you did not receive adequate notification of the Division’s actions or that the Division’s actions are unwarranted, unfair, or illegal.
  • You have experienced a delay of more than 120 days to resolve a tax account problem or in receiving a response to an inquiry to the Division.
  • You are experiencing undue hardship or are about to experience undue hardship, which is defined as undue economic harm resulting from the way in which the tax laws, regulations or policies are being administered by the Division of Taxation. Personal or economic inconvenience is not considered undue hardship. [Read more…] about NJ Office of Taxpayer Advocate Taking Sales & Use Tax Cases