Have questions about COVID-19?
The NJ Poison Control Center and 211 have partnered with the State to provide information to the public on COVID-19:
Call: 2-1-1 for general information (24/7) or 1-800-962-1253 for medical information (24/7)
Text: NJCOVID to 898-211
Visit covid19.nj.gov or nj.gov/health for additional information
On April 14, 2020 Governor Murphy signed into law the “COVID-19 Fiscal Mitigation Act” (P.L. 2020, c.19) that automatically extends the due date to July 15, 2020, for certain taxpayers to file and make payments originally due on April 15, 2020. Individual Gross Income Tax, Partnership, and Corporation Business Tax calendar year filers now have until July 15th to file and pay these taxes, including 1st quarter estimated tax payments. Penalties and interest will not be imposed on the balance of tax due between the original due date and the extended due date, as long as the returns and/or payments are submitted by July 15, 2020.
In addition to the extension of time to file and pay taxes under the Corporation Business Tax Act and the Gross Income Tax Act, the COVID-19 Fiscal Mitigation Act impacts the payment of interest on refunds for all taxes, as well as the assessment of all taxes by the Division.
Generally, the Division pays interest on refunds that are issued 6 months after the date the refund claim was filed, the tax was paid, or the due date of the return, whichever is later (“the original interest payment period”). This provision applies to all taxes administered by the Division. The new law extends the original interest payment period by an additional 6 months after the COVID-19 state of emergency has been lifted (“the extended interest period”). If the original interest payment period ended prior to April 14, 2020 (the effective date of the new law), the payment of interest on the refund will not be affected by the new law. If the original interest payment period ends on or after April 14, 2020, interest will be paid if the refund is issued after the original interest period or the extended interest period, whichever is later.
There is a statutorily prescribed time limit for the Division to audit and/or make assessments on tax returns (“the original assessment time period”). For most taxes, the original assessment time period is within 4 years of the date that a tax return was filed. The original assessment time period is shorter for Gross Income Tax returns, which must be assessed within 3 years of the date that a tax return was filed. A taxpayer may consent to an additional period of time beyond the 3 or 4 year period (“the consent period”). The new law extends both the original assessment time period and the consent period by an additional 90 days after the COVID-19 state of emergency has been lifted (“the extended assessment time period”)
Therefore, if either the original assessment time period or the consent period ends on or after April 14, 2020, the Division can make an assessment on or before the expiration of the extended assessment time period under the new law. If the original assessment time period or the consent period ends before April 14, 2020, the Division would be out of time to make an assessment for the returns(s) that are beyond the 3 or 4 year time period.