In order to encourage taxpayers to voluntarily report and pay tax arrears, many states across the country have developed tax amnesty and voluntary advertising programs. Under these programs, businesses and individuals who volunteer to disclose and pay all taxes due may be entitled to rights, including the prevention of heavy fines and possible prosecutions and criminal investigations. Taxpayers in New Jersey, New York and Pennsylvania who have unpaid tax obligations can participate in a national voluntary advertising program. While these government programs are generally less structured than the IRS Voluntary Disclosure Program, there are still many requirements and conditions that taxpayers must meet in order to participate and receive favourable treatment. Taxpayers in the New York, New Jersey and Greater Philadelphia areas should discuss their options with an experienced IRS lawyer in New Jersey before providing voluntary information to their tax authorities. Agreements may provide an alternative solution for subjects considering a VDA and for a VDA according to the division`s guidelines. The department is prepared to enter into negotiations leading to a tax agreement with a taxpayer willing to disclose all relevant information. Since any request for a VDA or final agreement is reviewed on a case-by-case basis, the department may request additional information during the evaluation process. The New Jersey VDP should not be confused with a voluntary disclosure program for online marketplace sellers currently implemented through the Multinational Tax Commission (MTC), although New Jersey is also participating. Send all copies of the signed agreement, return (s) and cheque payable to « State of New Jersey – TGI » to: We will waive the late deposit and payment of penalties related to the tax years included in the agreement. For more information on the market seller`s volunteer program, visit the Avalara Sales Tax Amnesty Resource Center or the MTC website.
The taxpayer must pay all unpaid tax debts contained in the agreement and file the previous year`s tax returns within a reasonable period of time after the agreement is concluded (normally 60 days). The department does not accept deferred payment plans under this program. The department waives the late filing of penalties and criminal penalties in relation to tax returns and cooling-off periods submitted to the agreement. An unwavering amnesty fine of 5% is imposed for non-use of the tax amnesty programme which ended on 15 June 2009. In addition, in all cases, the 5% fine is imposed. Legal interest is calculated at the premium rate plus 3 per cent for tax returns and periods included in the agreement. Once an agreement has been reached with the taxpayer, the division will sign copies of the agreement and return them to the taxpayer`s signature. After receiving all tax returns, taxes, applicable penalties and legal interest, we will return to the subject a fully executed agreement. In addition to the above conditions, the taxpayer should meet all future tax obligations. All applications submitted to the Division receive an identification number and are audited by department management. The terms of an agreement specify the taxes that are covered by the agreement and the date of the tax authorization.