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--- Document: NJ Taxpayer’s Bill of Rights Document ---
About New Jersey Taxes
New Jersey Taxpayers’ Bill of Rights
Publication ANJ-1
Overview
The Taxpayers’ Bill of Rights (P.L. 1992, c.175) ensures that: (1) all taxpayers are accorded the basic
rights of fair and equitable treatment under the law; and (2) all taxpayers receive the information and
assistance they need to understand and meet their State tax responsibilities. This bill also establishes
taxpayers’ rights and obligations regarding Division of Taxation procedures for refunds, collections
and appeals.
This publication gives you an overview of how the Taxpayers’ Bill of Rights legislation affects you in
your dealings with the Division. It also describes the provisions of P.L. 1998, c.106, which permits
taxpayers to apply for a refund even if they have not protested or appealed a paid assessment.
Services to Taxpayers
Taxpayers’ Right to Know – As a taxpayer, you have the right to obtain information about:
— The tax implications of any situation or transaction related to your account;
— Your liability and how it was determined;
— Any notice you receive from the Division; and
— Your responsibilities and rights.
Responsiveness – The Division of Taxation will respond to your questions within a reasonable time
period.
Statements and Notices – All notices you receive from the Division will clearly identify the purpose
of the communication and tell you how you should respond to the statement or notice.
Information Provided to Taxpayers – The Division has prepared statements that explain in simple,
nontechnical terms taxpayers’ rights and the procedures to follow when disagreeing with
assessments or protesting actions of the Division. This information is available to all taxpayers dealing
with the Division.
Reliance on the Division’s Written Advice – Penalties and interest will be waived if you can show that
you reasonably relied on written advice from the Division that ultimately proved to be erroneous,
provided the advice was not the result of your failure to provide adequate or accurate information.
General Rights
Interview Rights – You may have an attorney and/or accountant with you at any conference. Either
you or the Division may record the interview if prior notice has been given. If the Division records the
interview, a copy of the recording will be made available to you for a small fee.
Rev. 10/16
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New Jersey Taxpayers’ Bill of Rights
Registered or Certified Mail – All notices of assessment related to final audits and all “Notice
and Demand for Payment of Tax” letters will be sent by registered or certified mail.
Payment Agreements – The Director of the Division of Taxation has the authority to enter into
payment agreements with taxpayers. Requests for payment agreements will be reviewed on a case-by-
case basis. If a payment agreement is set up for you, it will include your unpaid tax, any penalties you
owe, and interest. You should be aware that although a payment agreement extends the time to pay
your liability, interest continues to accrue until the liability is paid in full.
Legal Action Against the Division – If a Division employee knowingly and recklessly disregards any
tax law or fails to release a lien, a taxpayer may sue for damages.
Award of Court Costs – You may be awarded up to $15,000 in court costs if the Tax Court
determines that the Division initiated court proceedings without reasonable cause. Likewise, the
Division can recover costs if you initiate proceedings without basis.
Tax Returns and Refunds
The Taxpayers’ Bill of Rights provides consistent treatment for assessments and refunds. The law also
standardizes the time for claiming a refund for most taxes administered by the Division of Taxation and
establishes a consistent treatment of postmark date for all State taxes.
Standardized Time for Refunds and Assessments – There is a four-year statute of limitations (time
allowed by law) for both refunds and assessments for tax returns with an original due date on and
after July 1, 1993, except when a shorter time period is specified in the tax law (i.e., income tax). If you
and the Division sign an agreement extending an assessment period, the time for filing a refund claim
also is extended.
Postmark Date – All New Jersey returns postmarked on or before the due date of the return are
considered to have been filed on time. Tax returns postmarked after the due date are considered to
be late. When a return is postmarked after the due date, the filing date for that return is the date the
return was received by the Division, not the postmark date of the return. Interest on unpaid liabilities
is assessed from the due date of the return.
Tax Assessment
In general, the Division has four years from the date you filed your return to assess additional taxes.
There is no time limit if you did not file your tax return, or if you file a false or fraudulent return.
Appeal Rights
If you disagree with a determination made by the Division, you may either:
Publication ANJ-1
New Jersey Taxpayers’ Bill of Rights
1. File a proper, written protest and request an informal administrative conference with the Conference
and Appeals Branch. Your request must be sent within 90 days of the determination date. Please see
N.J.A.C. 18:2-4 for postmark rules. You may represent yourself at the conference or be represented
by another individual of your choosing, such as an accountant, lawyer, your personal representative,
or someone else; or
2. File an appeal with the required fee to the Tax Court. Your appeal must be received by the Tax Court
within 90 days of the date of the determination; or
3. For assessments regarding tax periods commencing on or after January 1, 1999, if you paid the
entire assessment within one year after the time to protest or appeal has expired, you may thereafter
file a refund claim on Form A-1730 within 450 days after the time to protest or appeal has expired.
If you initially choose options 1 or 3 above and disagree with the outcome, you may subsequently
appeal to the Tax Court.
Penalties, Interest, Collection Fees
Paying a Bill Promptly is Cheaper – A bill sent to advise you of an underpayment will show two
“Amount Due” figures. The first “Amount Due” figure applies only if paid by the “Pay By” date shown
on the bill and is comprised of tax, interest, late filing penalty (5% per month up to 25%), and amnesty
penalty, if applicable. If a bill is not paid by the “Pay By” date indicated, the second “Amount Due”
figure, which includes a late payment penalty of 5% in addition to the items in the first amount due,
will apply. The 5% late payment penalty will be imposed on all audit assessments. A $100 per month
penalty also may be imposed for each month (or fraction thereof) the return is late.
Interest Calculation – The annual interest rate is 3% above the prime rate. Interest is imposed on
every month or fraction of a month the tax is unpaid, compounded annually at the end of each
year. For information on the Division’s current interest rate, see Technical Bulletin TB-21(R).
Collection Fees – If your tax bill is sent to our collection agency, a referral cost recovery fee of 11% of
the tax due will be added to your liability. If a certificate of debt is issued for your outstanding
liability, a fee for the cost of collection of the tax also may be imposed.
Interest Paid on Refunds for All Taxes – Interest at the prime rate, compounded annually, will be
paid on refunds made by the Division six months after the filing date, the due date of the return, the
date the refund claim was filed, or the date the tax was paid (whichever is later). This provision applies
to all New Jersey taxes administered by the Division.
For More Information
Various tax topics are available on our website. If you cannot find the information you are looking for,
contact us.