Division of Taxation Acknowledges Tax Amnesty Calculation Error

 – February 22, 2019
Division of Taxation Acknowledges Tax Amnesty Calculation Error

Several NJCPA members noticed a potential error in the calculation of interest in penalities for some taxpayers participating New Jersey's recent tax amnesty program.

The New Jersey Division of Taxation issued a memo acknowledging the situation. The memo, in part, states:

"The Division of Taxation became aware that the payment module automatically calculated the Delinquency penalty and corresponding interest on some periods of delinquent (missing returns) tax filing periods [that] may not have had a notice issued. Once all payments are applied and amnesty abatements conducted, any delinquent tax period satisfied during Amnesty which should not be assessed a $100 Delinquency penalty will generate an overpayment of interest. This interest overpayment will be refunded to the taxpayer. This process is expected to be completed by April 1, 2019."

Read the full memo.