New Jersey Offshore Voluntary Compliance Initiative Closing Nov. 1

 – September 13, 2018
New Jersey Offshore Voluntary Compliance Initiative Closing Nov. 1

The New Jersey Department of the Treasury, Division of Taxation, is closing its Offshore Voluntary Compliance Initiative (OVCI) on Nov. 1, 2018. This corresponds with the closing of the IRS Offshore Voluntary Compliance Program on Sept. 28, 2018. 

Taxpayers who participate in the New Jersey Offshore Voluntary Compliance Initiative are not eligible for the 2018 New Jersey Tax Amnesty Program.

Taxpayers who have been accepted into the Division’s OVCI program, but have not submitted their fully executed Form 906 Closing Agreement and Form 4549 Income Tax Examination Changes, need to do so now.

As stated in the Division’s acceptance letter, in order to complete the process for this program, the following items must still be received by the Division no later than 90 days after receipt from the IRS:

  1. Copies of all IRS documents relating to and reflecting the federal tax examination changes;
  2. A fully completed Form 906 Closing Agreement; and
  3. Form 4549 Income Tax Adjustments

If the IRS or other competent authority changes or corrects a taxpayer’s federal income, the taxpayer must report those changes or corrections to the Division within 90 days after the final determination was made (N.J.S.A. 54A:8-7). Likewise, if a taxpayer files an amended federal income tax return, the taxpayer must file an amended New Jersey Income Tax Return within 90 days. See Amended New Jersey 1040-X Forms and Instructions for filing instructions.

See the Division of Taxation Offshore Voluntary Compliance Initiative for more information regarding the program.