Your clients rely on your financial expertise. So if you are an advisor to businesses or individuals who are sinking into debt from the penalties of unpaid taxes, make sure they're aware of New Jersey Tax Amnesty. It's a program that could potentially save your clients thousands of dollars in 2009.

Here's how it works: New Jersey Tax Amnesty allows qualified participants to wipe the slate clean by settling their unpaid State taxes without penalties and with less interest. But they'll have to act fast because New Jersey Tax Amnesty is a limited-time offering, from May 4 through June 15.

When the Tax Amnesty period ends, additional fees, interest and collection costs will be imposed and the New Jersey Division of Taxation will pursue these outstanding debts aggressively as authorized by law.

Virtually everyone throughout the country is impacted by the current tough economic environment. More and more, businesses and individuals are struggling to stay afloat with the accrual of high penalties and interest because of unpaid State taxes. That is one of the main reasons for this limited Tax Amnesty — to bring relief to those experiencing economic anxiety and uncertainty.

Below are the answers to some New Jersey Tax Amnesty Frequently Asked Questions:

1. What tax periods are included?

   Tax liabilities incurred for tax returns due on or after January 1, 2002 and prior to February 1, 2009, are eligible for Amnesty.

2. Why should citizens who have already paid their taxes support the concept of Tax Amnesty for people who have not paid what they owe?

   In the long run, Amnesty benefits everyone. When some people don't pay their taxes, everyone else pays more. A limited Amnesty gives people who have not paid the proper amount of taxes a final chance to satisfy their obligations, before additional penalties, interest and fees are assessed.

   Further, a Tax Amnesty encourages non-registered taxpayers to voluntarily come forward to pay past tax obligations and be added to the rolls for the future. This reduces the burden on the rest of the taxpaying public and allows the Division to concentrate on the pursuit and prosecution of serious tax evaders.

3. Can Amnesty be denied?

   Yes. Amnesty can be denied for several reasons:

   • Amnesty will be denied to anyone who fails to complete all the terms of the agreement under which this Amnesty is being offered, which include signing the Payment/Waiver Statement, filing appropriate returns and making full payment for the Amnesty Amount Due.
   • Amnesty can be denied for tax matters pending before the Conference and Appeals Branch, or for tax matters pending before the Tax Court of New Jersey or other judicial body. Specific approval from the Director of the Division of Taxation must be granted to receive Amnesty for either of these situations.
   • A dishonored payment will result in denial of Amnesty.

4. Does everyone qualify for Amnesty?

   Almost everyone qualifies for Amnesty. However, a taxpayer who is under criminal investigation or charge for a State tax matter, as certified by a county prosecutor or by the Attorney General, is not eligible for Amnesty. Also, any taxpayer who has filed an administrative or judicial appeal related to a tax assessment may be granted tax amnesty only upon written approval by the Director and agreement to waive all appeal rights.

5. If I cannot pay the entire tax liability, is partial Amnesty available?

   To receive Amnesty for any eligible tax period you are required to pay the entire tax amount due plus the required interest. However, if you have tax liabilities for multiple tax periods, you are not required to satisfy every period. You may elect to satisfy only some of the periods.

6. Are any payment arrangements available?

   To qualify for Amnesty, we must receive payment for the appropriate Amnesty Amount Due for any tax and period owed no later than June 15, 2009. Once the Tax Amnesty period ends, no further payments will be eligible for Amnesty.

Getting Started

To learn more about New Jersey Tax Amnesty, as well as finding all the necessary paperwork to get started, visit the New Jersey Tax Amnesty Web site, TaxAmnesty.nj.gov. You can also get specific questions answered at our toll-free Tax Amnesty Hotline, 800-781-8407. Hotline hours of operation are 8:00 AM to 8:00 PM, Monday through Friday and 8:00 am to 4:00 pm on Saturdays.