Beginning in 2004 the Division began to eliminate the issuance of Statements of Account (the first notice sent to taxpayers). Instead, the first notice will be a Bill and it will show TWO "Amount Due
The first Amount Due
will be good only through the "Pay By" date shown on the bill and will be comprised of:
- Late Filing Penalty (5% per month to 25%), and
- Amnesty Penalty if applicable
Any bill not paid by the "Pay By" date indicated will be subject to the second Amount Due.
In addition to the items listed above, the second Amount Due will include a late payment penalty of 5%.
Interest will continue to accrue on the liability until paid, and additional penalties and fees may be assessed as allowed by law.
This is not an increase in the penalties assessed, or a shortening of the time allowed for payment before the imposition of the late payment penalty. It is merely the collapsing of two separate notices -the Statement of Account and the First Bill - into one notice.
REFERRAL COST RECOVERY FEE
Effective July 1, 2016, the Referral Cost Recovery Fee rate is 10.7%
Beginning in October 2003, the Division began imposing a Referral Cost Recovery Fee as authorized by N.J.S.A. 54:49-12.3 and N.J.A.C. 18:2-2.5(d). In cases where any State tax remains unpaid and the Division refers a taxpayer's account to an outside debt collection agency, a Referral Cost Recovery Fee in the amount of 10.7% of the amount referred will be assessed. This fee will be in addition to any interest or penalties imposed.
$100 LATE FILING PENALTY
The Division of Taxation also begin imposing the $100 per month late filing penalty as authorized by N.J.S.A. 54:49-4. The law provides that this penalty may be imposed for each month (or fraction thereof) that a return is late. It will be assessed in addition to the late filing penalty of 5% per month of the underpayment (up to 25%) and, where applicable, the 5% late payment penalty, the referral cost recovery fee, and the cost of collection fee.
The $100 per month penalty will be applicable to business tax delinquencies, including but not limited to gross income tax-employer, corporation business tax, and sales and use tax filings due after December 31, 2003.
The penalty will not be imposed if:
- The taxpayer files the return within 30 days of the date on the notice, AND
- The taxpayer has not previously received 3 delinquency notices for any business tax return due on or after December 31, 2003
The penalty will
be imposed if:
- The delinquency is not satisfied within 30 days of the date on the notice; OR
- The taxpayer previously received 3 prior delinquency notices for any business tax return due on or after December 31, 2003