reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 5 - REFUNDS › Section 18:2-5.1 - Purpose

Current through Register Vol. 56, No. 14, July 15, 2024
This subchapter provides rules for the administration of refund
				  procedures pursuant to the applicable provisions of the State Uniform Tax Procedure
				  Law, 54:48-1 et seq., as well as certain
				  provisions of the Sales and Use Tax Act,
				  54:32B-1 et seq., and the New Jersey
				  Gross Income Tax Act,
				  54A:1-1 et seq.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 5 - REFUNDS › Section 18:2-5.2 - Claims for refund; when allowed

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Taxpayers may claim
				a refund for overpayment of taxes by filing a return, Claim for Refund (Form
				A-3730), or Claim for Refund - Urban Enterprise Zone Businesses (Form A-3730-UEZ),
				except that with respect to a claim for refund of a payment of an additional tax
				assessment as permitted by
				54:49-14.b and
				18:2-5.5(b)1,
				taxpayers are to use Claim for Refund of Paid Audit Assessment (Form
				A-1730).
(b) Any taxpayer may file a
				claim for refund within four years from the payment of any original or additional
				tax assessed against the taxpayer, unless a shorter time limit is fixed by the law
				imposing a particular tax statute.
(c)
				The statute of limitations period for filing a claim for refund of New Jersey Sales
				Tax is four years after the tax is paid, except for refund claims that are based on
				the UEZ purchase exemption, which is one year after the tax is paid.
(d) The statute of limitations period for filing a
				claim for refund of gross income tax is three years after the return is filed or two
				years after the tax is paid, whichever is later.
(e) The Transfer Inheritance Tax Law generally
				provides for a three year statute of limitations on applications for refunds. See
				18:26-10.1 2.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 5 - REFUNDS › Section 18:2-5.3 - Claim not required or permitted until final determination

Current through Register Vol. 56, No. 14, July 15, 2024
(a) No claim for
				refund is required or permitted to be filed with respect to a tax paid, after
				protest has been filed with the Director, or after appeal proceedings have been
				commenced, until such protest or appeal has been finally determined. Should the
				protest or appeal with respect to a tax paid be finally determined in favor of the
				taxpayer, then the refund claim shall be processed by the Director in accordance
				with the Director's final determination after protest or the judgment of the Tax
				Court upon appeal.
(b) The provision in
				(a) above, not permitting or requiring refund claims to be filed, does not apply to
				any tax paid which is not implicated by, or the subject of, a protest duly filed
				with the Director, or appeal proceedings duly commenced in the Tax Court. In the
				case of such taxes paid, a refund claim may be filed pursuant to
				54:49-14 and
				18:2-5.2.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 5 - REFUNDS › Section 18:2-5.4 - Credit against outstanding tax liabilities

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In examining a claim
				for refund, if the Director determines that there has been an overpayment of tax,
				the amount of the overpayment will be credited against any outstanding State tax
				liability of the taxpayer. If there is no outstanding State tax liability, the
				taxpayer will be entitled to a refund of the overpayment and interest on the
				overpayment, if any.
(b) Refunds or
				credits of erroneous or illegal tax payments for which no refund claims have been
				filed will be made strictly according to the provisions of
				54:49-16.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 5 - REFUNDS › Section 18:2-5.5 - Items previously assessed

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following terms,
				when used in this section, shall have the following meanings:
1. "Delinquency tax assessment," "arbitrary tax
				assessment," or "estimated tax assessment" each mean an assessment made pursuant to
				54:49-5, or any substantially similar
				provision under a specific State tax statute, whereby the taxpayer has failed to
				file a return or report as required under any tax law, or has filed a return or
				report that is insufficient for the Director to evaluate its accuracy, and the
				Director has estimated and assessed the taxes, fees, penalties, and interest due
				from the taxpayer.
2. "Additional tax
				assessment" means an assessment of additional tax made pursuant to
				54:49-6, Deficiency assessment in
				certain cases, or any substantially similar provision under a specific State tax
				statute, whereby the taxpayer has filed a tax return or report, and the Director
				determines that there is a deficiency with respect to the payment of tax due because
				the amount of tax shown due on the report or return is less than the amount of tax
				due after adjustment of the amount due upon examination or audit of the return or
				report by the Director. The assessment of additional tax shall include interest and
				penalty imposed under any State tax law. For purposes of this section, the term
				"additional assessment" does not include an assessment issued because the amount of
				tax actually paid is less than the amount due as shown on the taxpayer's return or
				report.
3. "Jeopardy tax assessment"
				means an assessment made under the circumstances set forth at
				54:49-7,
				54A:9-14, or any substantially similar
				provision under a specific State tax statute.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 5 - REFUNDS › Section 18:2-5.6 - Appeal

Current through Register Vol. 56, No. 14, July 15, 2024
The taxpayer will be notified if a claim for refund is rejected.
				  The taxpayer may appeal a refund determination under the procedures of N.J.A.C.
				  18:1-1.8.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 5 - REFUNDS › Section 18:2-5.7 - Extension of time; sales and use tax exception

Current through Register Vol. 56, No. 14, July 15, 2024
(a) If a taxpayer and
				the Division sign an agreement to extend the time during which an assessment can be
				made, the taxpayer's refund application period is automatically extended until the
				last date by which the parties agree that any assessment of New Jersey taxes must be
				made. The refund application period only applies to the particular taxes and periods
				expressly included in the extension agreement. A taxpayer's opportunity to apply for
				a refund under such an agreement is extended to and includes the last date by which
				the parties agree that any assessment of New Jersey taxes must be made. An extension
				agreement will not revive refund application rights that expired prior to the
				agreement's execution. For example, if the Division makes an assessment by the last
				date permitted under the agreement, but the taxpayer does not make an otherwise
				appropriate refund claim prior to the last permissible date for making an assessment
				under the agreement, the taxpayer has 90 days to protest the assessment only under
				54:49-18.a. Under
				54:49-18.a, a taxpayer has 90 days to
				protest any refund claim rejected pursuant to
				54:49-15.
(b) Pursuant to
				54:32B-27(c)  of the
				Sales and Use Tax Act, sales or use tax refund claims may be filed up to six months
				after the last date by which the parties agree that any assessment of sales or use
				tax may be made. The refund application period only applies to sales or use tax
				overpayments made during periods expressly included in the extension
				agreement.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 5 - REFUNDS › Section 18:2-5.8 - Refund claim procedures

Current through Register Vol. 56, No. 14, July 15, 2024
(a) When applicable, certain amended returns may
				be required to be submitted electronically. Copies of paper forms are available at
http://www.state.nj.us/treasury/taxation/forms.shtml
.
				Procedures for filing for a refund after a return has been submitted are as shown in
				(b) through (e) below.
(b) For gross
				income tax:
1. Employer refunds: If the taxpayer
				made an overpayment when remitting employee withholdings with a Return of Gross
				Income Tax Withheld (Form NJ-500), the taxpayer should make the adjustment on the
				next NJ-500 filed electronically after the error is discovered. A written
				explanation should be included with a legible copy of the erroneous Form NJ-500, any
				calculations, and the amount of tax remitted should be adjusted accordingly on the
				subsequently filed Form NJ-500. Alternatively, the taxpayer may apply for a refund
				of an overpayment when filing a Gross Income Tax Reconciliation of Tax Withheld
				(Form NJ-W-3) at the end of the calendar year along with the documents described
				above. If the error is discovered after all NJ-500 and the NJ-W-3 forms are filed,
				the taxpayer should complete another NJ-W-3, write "Amended" across the top of the
				form, and submit it with the corrected information and supporting
				documentation.
2. Individual refunds:
				The taxpayer may amend a gross income tax return and request a refund by filing an
				Amended Income Tax Resident Return (Form NJ-1040X) either electronically or by mail
				for the year in question. There is no amended return for nonresident filers.
				Nonresident filers should complete an Income Tax Nonresident Return (Form
				NJ-1040-NR) for the appropriate tax periods and write "Amended" across the
				top.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 5 - REFUNDS › Section 18:2-5.9 - Interest on overpayments

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Interest will be allowed and paid on
				overpayments of tax at the prime rate, determined for each month or fraction
				thereof, compounded annually at the end of each calendar year, from the date that
				such interest commences to accrue to the date of the refund. "The date of the
				refund" shall be deemed the date set forth on the check or the documents authorizing
				electronic funds transfer (EFT). If interest must be paid, it will be calculated to
				accrue from the later of the date of the filing of a refund claim, the date the tax
				is paid, or the due date of the return. No interest shall be allowed or paid on an
				overpayment of less than one dollar; or on an overpayment refunded within six months
				after the last date prescribed, or permitted by extension of time, for filing the
				return; or within six months after the return is filed, whichever is later. Interest
				will not be paid on overpayments where the taxpayer has requested that the
				overpayment be applied to the taxpayer's tax liability.
(b) No interest will be paid on a refund of an
				overpayment issued pursuant to
				54:49-16 unless and until six months
				after the taxpayer files a claim for refund.
Example 1: Corporation Business Tax Return (calendar year
				  taxpayer)
Due Date:
April 15
Postmarked:
March 2
Return with overpayment received by the Division of Taxation:
March 12
A refund of overpaid taxes would accrue interest if not refunded
				  by October 15 (six months after the due date of the return, April 15).
Example 2: Corporation Business Tax Return (calendar year
				  taxpayer)
Due Date:
April 15
Return and overpayment (unknown to taxpayer at time return
						  was filed) received by Division of Taxation:
April 15
Claim for refund received by Division of Taxation:
May 1
Interest would accrue on an overpayment not refunded by November
				  1 (six months after the claim for refund date of May 1).
Example 3: Same as above, except no claim filed. The Division of
				  Taxation discovers the overpayment within two years of payment. No interest is due
				  on the refund of the overpaid tax.
(c) No interest shall be paid on a refund of an
				overpayment unless the claim for refund or amended return contains:
1. The taxpayer's name, address, and identifying
				number and the required signatures; and
2. Sufficient information (whether on the refund
				claim, amended return and necessary attachments) to permit the verification of the
				claim, including a full narrative description of the basis for the claim. (See also
				18:2-5.8, Refund claim
				procedures.)
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 5 - REFUNDS › Section 18:2-5.10 - Separate claims required

Current through Register Vol. 56, No. 14, July 15, 2024
Each taxpayer shall file a separate refund claim. A refund claim
				  on behalf of a class is not permitted. If a sales and use tax refund claim is
				  submitted by a person required to collect the tax, the refund claim must be able to
				  identify each individual customer, the specific transactions at issue, and the
				  amount of tax paid by each customer. See
				  18:2-5.8(d)4.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 6 - CONFIDENTIALITY AND DISCLOSURE › Section 18:2-6.1 - Records confidential

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Division of Taxation records and files are
				confidential and privileged.
(b)
				Division officers and employees, former Division officers and employees, any
				Division employee engaged in the custody or administration of Division records, and
				any person who may have secured information from Division records, may not divulge,
				disclose or use for their own personal advantage any information obtained from
				Division records, from the examination or inspection of the property of any person,
				or any copy of a federal return or federal return information required to be
				attached to or included in any New Jersey return.
(c) The Division of Taxation is not required to
				produce any records or files for inspection of any person or use in any action or
				proceeding except when the records or files are shown to be directly involved in an
				action or proceeding under the State Uniform Tax Procedure Law,
				54:48-1 et seq., or other State tax
				law, or where the determination of an action or proceeding will affect the validity
				or amount of State claims for taxes, or any lawful proceeding for the investigation
				and prosecution of violations of the criminal provisions of the State Uniform Tax
				Procedure Law or other State tax law.
(d) Violation of these provisions is a crime of
				the fourth degree.
(e) Requests for
				information from Division records, including requests for information pursuant to
				54:50-9, should be directed to the
				Division of Taxation Office of Legislative Analysis and Disclosure.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.1 - Purpose

Current through Register Vol. 56, No. 14, July 15, 2024
The purpose of this subchapter is to define the requirements
				  imposed on taxpayers for the maintenance and retention of books, records, and other
				  sources of information where all or a part of the taxpayer's records are received,
				  created, maintained or generated through various computer, electronic and imaging
				  processes and systems.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
For purposes of this subchapter, the following terms are defined
				  as follows:
"Database management system" means a software system that
				  controls, relates, retrieves, and provides accessibility to data stored in a
				  database.
"Electronic data interchange" or "EDI technology" means the
				  computer-to-computer exchange of business transactions in a standardized structured
				  electronic format.
"Hard-copy" means any documents, records, reports or other data
				  printed on paper.
"Machine-sensible record" means a collection of related
				  information in an electronic format. Machine-sensible records do not include
				  hard-copy records that are created or recorded on paper or hard-copy records that
				  have been converted to an electronic storage medium such as microfilm, microfiche,
				  or any other storage-only imaging systems.
"Storage-only imaging system" means a system of computer hardware
				  and software that provides for the storage, retention and retrieval of documents
				  originally created on paper. It does not include any system, or part of a system,
				  that manipulates or processes any information or data contained on the document in
				  any manner other than to reproduce the document in hard copy or as an optical
				  image.
"Taxpayer" as used in the subchapter means any person owing or
				  liable to pay any State tax or any person deemed by the Director to be so owing or
				  liable.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.3 - Recordkeeping requirements-general

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A taxpayer shall
				maintain all records that are necessary to a determination of the correct tax
				liability. All required records are to be made available on request by the Director
				or his or her authorized representatives. Such records include, but not necessarily
				limited to, books of account, invoices, sales receipts, or other documents required
				to be maintained by any specific tax statute or regulation of this State.
(b) If a taxpayer retains records required to be
				retained under this section in both machine-sensible and hard-copy formats, the
				taxpayer must make the records available to the Director in machine-sensible format
				upon request of the Director.
(c) If the
				machine-sensible or hard-copy records of the taxpayer are determined to be incorrect
				or insufficient, the return(s) filed on the basis of the information obtained from
				such records may be deemed to be incorrect or insufficient and the Director may
				determine the amount of tax due the State by using any information available,
				whether from the taxpayer's place of business or from any other source.
(d) Nothing in this section shall be construed to
				prohibit a taxpayer from demonstrating tax compliance with traditional hard-copy
				documents or reproductions thereof, in whole or in part, whether or not such
				taxpayer also has retained or has the capability to retain records on electronic or
				other storage media in accordance with this regulation. However, this subsection
				does not relieve the taxpayer of the obligation to comply with (b) above.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.4 - Recordkeeping requirements-machine-sensible records

Current through Register Vol. 56, No. 14, July 15, 2024
(a) General requirements
				pertaining to machine-sensible records are as follows:
1. Machine-sensible records used to establish tax
				compliance must contain sufficient transaction-level detail information so that the
				details underlying the machine-sensible records can be identified and made available
				to the Director upon request. A taxpayer has discretion to discard duplicate records
				and redundant information provided its responsibilities under this section are
				met.
2. At the time of an examination,
				the retained records must be capable of being retrieved and converted to a standard
				record format.
3. Taxpayers are not
				required to construct machine-sensible records other than those created in the
				ordinary course of business. A taxpayer who does not create the electronic
				equivalent of a traditional paper document in the ordinary course of business is not
				required to construct such a record for tax purposes.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.5 - Records maintenance requirements

Current through Register Vol. 56, No. 14, July 15, 2024
The taxpayer's computer hardware or software must be able to
				  accommodate the extraction and conversion of retained machine-sensible
				  records.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.6 - Access to machine-sensible records

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The manner in which
				the Director is provided access to machine-sensible records as required in
				18:2-7.3(b)  may be
				satisfied through a variety of means that take into account a taxpayer's facts and
				circumstances through consultation with the taxpayer.
(b) Access pursuant to (a) above shall be provided
				in one or more of the following manners:
1. The
				taxpayer may arrange to provide the Director with the hardware, software and
				personnel resources to access the machine-sensible records;
2. The taxpayer may arrange for a third party to
				provide the hardware, software and personnel resources necessary to access the
				machine-sensible records;
3. The
				taxpayer may convert the machine-sensible records to a standard record format
				specified by the Director, including copies of files, on a magnetic medium that is
				agreed to by the Director; and/or
4. The
				taxpayer and the Director may agree on other means of providing access to the
				machine-sensible records.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.7 - Taxpayer responsibility and discretionary authority

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In conjunction
				with meeting the requirements of
				18:2-7.4, a taxpayer may create files
				solely for the use of the Director. For example, if a data base management system is
				used, it is consistent with this section for the taxpayer to create and retain a
				file that contains the transaction-level detail from the data base management system
				and that meets the requirements of
				18:2-7.4. The taxpayer shall document
				the process that created the separate file to show the relationship between that
				file and the original records as required by
				18:2-7.6(d).
(b) A taxpayer may contract with a third party to
				provide custodial or management services of the records. Such a contract does not
				relieve the taxpayer of its responsibilities under this subchapter.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.8 - Alternative storage media

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For purposes of
				storage and retention, taxpayer may convert hard-copy documents received or produced
				in the normal course of business and required to be retained under this subchapter
				to microfilm, microfiche or other storage-only imaging systems and may discard the
				original hard-copy documents, provided the conditions of this section are met.
				Documents which may be stored on these media include, but are not limited to,
				general books of account, journals, voucher registers, general and subsidiary
				ledgers, and supporting records of details, such as sale invoices, purchase
				invoices, exemption certificates, and credit memoranda.
(b) Microfilm, microfiche, and other storage-only
				imaging systems must meet the following requirements:
1. Documentation establishing the procedures for
				converting the hard-copy documents to microfilm, microfiche, or other storage-only
				imaging system must be maintained and made available on request. Such documentation
				must, at a minimum, contain a sufficient description to allow an original document
				to be followed through the conversion system as well as internal procedures
				established for inspection and quality assurance.
2. Procedures must be established for the
				effective identification, processing, storage, and preservation of the stored
				documents and for making them available for the period they are required to be
				retained under 18:2-7.10.
3. Upon request by the Director, a taxpayer shall
				provide facilities and equipment for reading, locating, and reproducing any
				documents maintained on microfilm, microfiche or other storage-only imaging
				system.
4. When displayed on such
				equipment or reproduced on paper, the documents must exhibit a high degree of
				durability and legibility.
5. All data
				stored on microfilm, microfiche, or other storage-only imaging systems must be
				maintained and arranged in a manner that permits the location of any particular
				record.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.9 - Effect on hard-copy recordkeeping requirements

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Except as
				otherwise provided in this section, the provisions of this subchapter do not relieve
				taxpayers of the responsibility to retain hard-copy records that are created or
				received in the ordinary course of business as required by existing law and
				regulations. Hard-copy records may be retained on a recordkeeping medium as provided
				in 18:2-7.8.
(b) If hard-copy records are not produced or
				received in the ordinary course of transacting business (for example, when the
				taxpayer uses electronic data interchange technology), such hard-copy records need
				not be created.
(c) Hard-copy records
				generated at the time of a credit or debit card transaction must be retained unless
				all the details necessary to determine correct tax liability relating to this
				transaction are subsequently received and retained by the taxpayer in accordance
				with this subchapter. Such details include those listed in
				18:2-7.4(b)1.
(d) Nothing in this section prevents the Director
				from requesting hard-copy printouts in lieu of retained machine-sensible records at
				the time of examination.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.10 - Records retention time period

Current through Register Vol. 56, No. 14, July 15, 2024
See the statute and/or regulations of specific tax laws for
				  applicable records retention requirements.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 7 - RECORDKEEPING AND RETENTION REQUIREMENTS › Section 18:2-7.11 - Corporations

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Corporations are required to maintain all
				records used to determine their tax liabilities and such other records as the
				Director of the Division of Taxation may require, pursuant to
				54:10A-14.1. Corporations that are
				required to collect Sales and Use Tax shall keep records of every purchase, purchase
				for lease, sale or amusement charge or occupancy of all amounts paid, charged or due
				thereon pursuant to
				54:32B-16, including contemporaneous
				sales records, such as cash register tapes and journals, sales slips, invoices,
				receipts or memoranda of price (see N.J.A.C. 18:24-2 ). Corporations that operate
				primarily on a cash basis and that deal primarily in cash purchases and sales,
				including, but not limited to, family-owned restaurant corporations, must maintain
				sufficient records for the determination of the corporation's Corporation Business
				Tax and Sales and Use Tax liabilities.
(b) If a corporation has not maintained records
				adequate to classify the corporation's income for purposes of establishing tax
				liabilities, the Division may make an audit determination that certain amounts of
				unreported income have been distributed to shareholders of the corporation, in the
				form of salary or dividends. Amounts that cannot be identified as arising from some
				aspect of the operations of the business will first be deemed to have been
				distributed to the shareholders as reasonable salary, and includable in the income
				of the shareholders for purposes of the gross income tax pursuant to
				54A:5-1.a. Amounts beyond salary will
				be deemed to have been distributed to the shareholders as a dividend, and includable
				in the income of the shareholders for purposes of the gross income tax pursuant to
				54A:5-1.f. The Division will utilize
				commonly accepted auditing practices to make these determinations. Examples of
				commonly accepted auditing practices are comparisons with other similarly situated
				businesses and analyses of information provided by vendors to the
				business.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 8 - SET-OFF OF STATE VENDOR TAX DEBT › Section 18:2-8.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
As used in this subchapter, the following words shall have the
				  following meanings:
"Set-off" means a reduction in the contract payment due to a
				  vendor by the amount of that vendor's State tax indebtedness or, in the case of a
				  vendor-partnership or vendor-S corporation, by the amount of State tax indebtedness
				  of any member-partner or shareholder of the partnership or S corporation,
				  respectively.
"State" means the State of New Jersey, including the executive,
				  legislative, and judicial branches, or any agencies or instrumentalities of the
				  State of New Jersey.
"State tax" means any tax imposed by Titles 54 and 54A of New
				  Jersey Statutes, on individuals or business entities, and collected by the Division
				  of Taxation.
"Taxpayer" means any vendor who is required to pay or remit a
				  State tax, or, when the vendor is a partnership or S corporation, any partner or
				  shareholder of the vendor-entity who is required to pay or remit a State tax.
"Vendor" means any individual or entity under contract to provide
				  goods or services to the State, or under contract for construction projects of the
				  State.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 8 - SET-OFF OF STATE VENDOR TAX DEBT › Section 18:2-8.2 - Set-off of tax debts against contract payments due to vendors

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Division of
				Taxation may seek to set off all or part of a contract payment due to a State vendor
				in order to satisfy a tax indebtedness owed to the State whenever:
1. The vendor is under contract to provide goods
				or services or engage in a construction project for the State of New Jersey, or any
				of its branches, or any of its agencies or instrumentalities;
2. The vendor is entitled to payment from the
				State for such goods, services or construction project; and
3. The vendor is indebted for any State tax, or,
				where the vendor is a partnership or S-corporation, any partner or shareholder of
				the vendor-entity is indebted for such tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 8 - SET-OFF OF STATE VENDOR TAX DEBT › Section 18:2-8.3 - Time for initiating set-off procedure

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Division of
				Taxation may initiate procedures to set off the tax debt of a specific vendor upon
				the expiration of 90 days after either:
1. The
				issuance by the Division of a notice and demand for payment of any State tax owed by
				the taxpayer; or
2. The issuance by the
				Division of a final determination on any protest filed by the taxpayer against an
				assessment or final audit determination.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 8 - SET-OFF OF STATE VENDOR TAX DEBT › Section 18:2-8.4 - Set-off of tax liability of a member of a partnership or S corporation under contract with the State

Current through Register Vol. 56, No. 14, July 15, 2024
When a partnership or an S corporation is a vendor, the Division
				  may also seek to reduce the contract payment due to that vendor by the amount of the
				  State tax indebtedness of any of that vendor's partners or shareholders. The amount
				  set off may not exceed the individual partner's or shareholder's proportionate share
				  of the contract payment due to the vendor-partnership or vendor-S
				  corporation.
Example 1: A vendor-partnership earns $ 10,000 providing
				  consulting services to the State. The partnership has two equal partners, one of
				  whom has a $ 100.00 gross income tax debt.
The debtor-partner's share of the contract payment due to the
				  vendor-partnership is $ 5,000. However the partner's tax debt is only $ 100.00.
				  Since the individual's tax debt ($ 100.00) does not exceed his proportionate
				  one-half share of the contract payment ($ 5,000), the contract payment will be set
				  off by the full $ 100.00 debt owed by the debtor-partner.
The vendor-partnership will receive a $ 9,900 contract payment.
				  The debtor partner's gross income tax debt will be satisfied through the
				  set-off.
Example 2: A vendor-S corporation earns $ 10,000 providing
				  electrician services to the State. The S corporation has 10 equal shareholders, one
				  of whom has a $ 10,000 gross income tax debt.
The debtor-shareholder's one-tenth proportionate share of the $
				  10,000 contract payment is $ 1,000. Therefore, although his individual tax debt is $
				  10,000, the portion of that tax debt that can be used to offset the contract payment
				  due to the full S corporation is limited to $ 1,000, that is, the
				  debtor-shareholder's proportionate share of the contract payment.
The vendor-S corporation will receive a contract payment of $
				  9,000. The debtor-shareholder will have a remaining gross income tax indebtedness of
				  $ 9,000.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 8 - SET-OFF OF STATE VENDOR TAX DEBT › Section 18:2-8.5 - Notice of set-off

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Division will give notice both to the
				vendor and to the taxpayer, if the taxpayer is a partner or shareholder of the
				vendor-entity, as soon as the Division takes set-off action under this
				chapter.
(b) The notice will:
1. Specify the contract payment due to the vendor
				that is being sent to the Division of Taxation to offset the taxpayer's tax debt;
				and
2. Provide the vendor with an
				opportunity to protest the set-off action by filing a written protest within 30 days
				of the date of the notice.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 9 - SALE OF TAX INDEBTEDNESS › Section 18:2-9.1 - Time for sale of indebtedness

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The State Treasurer
				is authorized to sell, transfer, or assign all right, title, and interest in any
				State tax indebtedness only when the following conditions have been satisfied:
1. The underlying State tax indebtedness is fixed
				and final and not subject to protest or appeal pursuant to the State Uniform Tax
				Procedure Law or the New Jersey Gross Income Tax Act; and
2. A certificate of debt stating the amount of the
				indebtedness has been filed with the Clerk of the Superior Court.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 9 - SALE OF TAX INDEBTEDNESS › Section 18:2-9.2 - Bidding and sale procedures

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Public advertisement
				for bids and sale of tax indebtedness to bidders will be conducted by the Division
				of Property Management and Construction, which has been designated by the Treasurer
				to carry out the Treasurer's responsibilities pursuant to
				54:50-30.
(b) Pursuant to, and consistent with the authority
				granted by 54:50-35 and
				54:50-29.b, the Director of the
				Division of Taxation has the right to approve any specifications and invitations for
				bids and any forms of contract drafted by the Treasurer's designee pursuant to this
				section.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 9 - SALE OF TAX INDEBTEDNESS › Section 18:2-9.3 - Disclosure to purchaser of tax indebtedness

Current through Register Vol. 56, No. 14, July 15, 2024
Notwithstanding the provisions of
				  54:50-8, pursuant to
				  54:50-32 the Director of the Division
				  of Taxation may provide a purchaser, transferee or assignee of a taxpayer's
				  indebtedness with all information contained in the certificate of debt and with any
				  additional information the Director deems necessary in order for the purchaser to
				  collect the indebtedness represented by the certificate. However, the Director may
				  not make any disclosure to the purchaser, transferee or assignee of the indebtedness
				  that would violate the provisions of
				  26
				  U.S.C. §
										6103(a).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 9 - SALE OF TAX INDEBTEDNESS › Section 18:2-9.4 - Protest or appeal from sale of tax indebtedness

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A protest to
				the Director or an appeal to the Tax Court from the sale of tax indebtedness may be
				brought only on the ground that the underlying indebtedness was not fixed and final
				at the time of the sale, or that there was a technical ministerial error in the
				certificate of debt, including, but not limited to, incorrect identification of
				taxpayer, insufficient notice of certificate of debt, incorrect calculation of
				unpaid balance of a debt paid in part or in full.
(b) A taxpayer who challenges the underlying
				indebtedness after the tax debt has been sold has the burden of proving by clear and
				convincing evidence that the State's claim was not fixed and final at the time of
				sale.
(c) In any appeal by a taxpayer to
				the Tax Court challenging the underlying tax indebtedness, made pursuant to
				54:50-29 et seq., the Director of the
				Division of Taxation shall be the primary party in interest, and the purchaser of
				the lien shall also be joined with the Director as a defendant. Such challenge must
				first have been brought to the Director by protest under
				54:49-18.
(d) Notwithstanding the purchaser's joinder in any
				action or proceeding brought to challenge the underlying indebtedness, the Director
				has the sole authority to determine, in the case of a protest, and advocate, in the
				case of an appeal, whether the matter is fixed and final, whether the Certificate of
				Debt is correct and properly entered, and whether and to what extent any relief
				should be afforded to the taxpayer.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 10 - TAX CLEARANCE FOR BUSINESS ASSISTANCE AND INCENTIVES › Section 18:2-10.1 - Purpose and scope

Current through Register Vol. 56, No. 14, July 15, 2024
(a) This section describes the procedure for the
				application and issuance of a Tax Clearance Certificate by the Director of the
				Division of Taxation as evidence that all State taxes, penalties, interest, and fees
				have been paid or provided for, which is required prior to an award of business
				assistance or incentive by a department or agency of the State government, including
				independent authorities and instrumentalities of the State.
(b) The procedures provided in this subchapter,
				including the fees that are imposed, only apply to a request by a person or business
				entity applying for tax clearance in order to benefit from business assistance or
				incentives offered by a New Jersey department or agency including independent
				authorities and instrumentalities of the State as defined in
				18:2-10.2. The rules in this
				subchapter, including the imposition of an application filing fee of $ 75.00 and an
				expedited processing fee of $ 200.00, are separate and distinct from any other tax
				clearance procedures that may be established in other provisions of New Jersey law
				or within other sections of the New Jersey Administrative Code.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 10 - TAX CLEARANCE FOR BUSINESS ASSISTANCE AND INCENTIVES › Section 18:2-10.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
For purposes of this subchapter, the following words and terms
				  are defined as follows:
"Business assistance or incentive" means monetary or financial
				  assistance in any form, other than a tax credit or tax exemption pursuant to a claim
				  made on a tax return filed with the Division of Taxation in the Department of the
				  Treasury, including, but not limited to, a grant, loan, loan guarantee, or other
				  monetary or financial benefit awarded to a person by a department or agency of the
				  State government, including independent authorities and instrumentalities of the
				  State to assist the person or business entity in the conduct or operation of a
				  business, occupation, trade, or profession in the State, in connection with the
				  following programs:
1. Business employment incentive program established pursuant to
				  34:1B-124 et seq.;
2. The business retention and relocation program established
				  pursuant to 34:1B-112 et seq.;
3. The customized training services provided pursuant to
				  34:15D-5;
4. The business, commercial and industrial components of the
				  clean energy program administered by the Board of Public Utilities;
5. The business grant, loan, and loan guarantee programs
				  administered by:
i. The Economic Development Authority;
ii. The Housing and Mortgage Finance Authority; and
iii. The Casino Reinvestment Development Authority;
6. The science and technology grants provided by or through the
				  New Jersey Commission on Science and Technology; and
7. Any other similar State program that confers a significant
				  monetary or financial benefit upon a business or businesses, as prescribed by the
				  State Treasurer pursuant to rules promulgated pursuant to the Administrative
				  Procedure Act, N.J.S.A. 52:1B-1 et seq.
"Business entity" means a person as referenced in
				  54:50-39, corporation, partnership or
				  limited liability company, or sole proprietor, whether organized under the laws of
				  this State or under the laws of any other state or foreign jurisdiction, which is
				  subject to taxation under any state tax law. All persons and business entities must
				  be registered to operate a business, occupation, trade, or profession in this
				  State.
"Taxes" means all reports, returns, documents, taxes, fees,
				  penalties, interest, and costs required under any tax law of the State of New Jersey
				  that are required to be paid or remitted to or collectible by the Director.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 10 - TAX CLEARANCE FOR BUSINESS ASSISTANCE AND INCENTIVES › Section 18:2-10.3 - Requirements for Tax Clearance Certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The person or
				business entity applying for business assistance or incentive shall apply to the
				Director for a Tax Clearance Certificate and provide the information necessary for
				the Director to make a determination that the applicant is compliant with New Jersey
				tax laws and has satisfied all requirements for filing State tax and information
				returns, and for paying State taxes which the applicant is liable for as a taxpayer
				or collector of tax.
(b) A Tax Clearance
				Certificate may be issued when the following has occurred:
1. An Application for Tax Clearance Certificate
				has been completed and submitted along with a nonrefundable fee of either $ 75.00 or
				$ 200.00, as appropriate;
2. The
				applicant taxpayer's account and the accounts of related entities (for example,
				subsidiaries, officers, partners) that will directly benefit from the assistance
				requested have been reviewed to determine tax compliance; and
3. All taxes and reports required by the applicant
				taxpayer or related entities are current.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 2 - GENERAL POLICIES AND PROCEDURES › Subchapter 10 - TAX CLEARANCE FOR BUSINESS ASSISTANCE AND INCENTIVES › Section 18:2-10.4 - Application for Tax Clearance Certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A completed
				application form requires applicant information including name, business location
				and mailing address, New Jersey tax registration number, business type, names and
				addresses of officers or partners and related entities that will benefit from the
				assistance; and information about the agency issuing the assistance or incentives
				including agency name, the name of the assistance program applied for, and agency
				contact information. A signed certification is required by an authorized
				representative. The application may be downloaded from the following web site
				address:
http://www.state.nj.us/treasury/taxation/pdf/busasstTaxClear.pdf
.
(b) The application must be properly completed and
				submitted to the Division of Taxation accompanied by a statutory fee of $ 75.00, or
				an expedited fee of $ 200.00. All fees related to the application must be paid with
				the initial Application for Tax Clearance Certificate in the form of a check or
				money order payable to the "State of New Jersey" or by electronic means, if the
				Director deems electronic means are appropriate.
1.
				Each application is specific to a particular agency or department's business
				assistance or incentive program. Each certificate is dated and becomes null and void
				90 days after the issue date unless a renewal is requested.
2. A Tax Clearance Certificate that is issued to
				satisfy an application for an award of business assistance or incentive by a State
				agency or department may be renewed an additional three times within a 365-day
				period.
3. No additional fee is required
				for the renewal of a certificate for the same agency or department assistance or
				incentive program that is requested within a 365-day period.
4. Any fees paid in conjunction with this
				application process are nonrefundable.