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Division of Taxation

COVID-19 Related Tax Information

Information about the Federal Economic Impact Payment – Stimulus Check

This payment is from the federal government and is sometimes referred to as a “stimulus payment.” These payments are automatic for most taxpayers who meet the income guidelines. No further action is needed by taxpayers who filed tax returns in 2018 and 2019, including most seniors and retirees.

No State or federal taxes will be taken out of your stimulus check, and any stimulus money received does not affect your 2020 tax return.

New Jersey cannot provide any information about the amount, eligibility, or when you may receive a payment.
Please visit the IRS website at: www.irs.gov.

COVID-19 Related Tax Information

COVID-19 Fiscal Mitigation Act Extends Due Dates, Payment of Interest, and Tax Assessments

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 tax filings and payments originally due on April 15, 2020. In addition, the Act impacts the payment of interest on refunds for all taxes and the timeframe for the Division to make assessments of all taxes.

Extension of Time to File and Pay

Individual Gross Income Tax, Partnership, and Corporation Business Tax calendar year filers now have until July 15 to file and pay these taxes, including estimated tax payments due on April 15. Penalties and interest will not be imposed on the balance of tax due between the original due date and the extended due date for returns and/or payments submitted by July 15, 2020.

Payment of Interest on Refunds

The Division pays interest on refunds that are issued six 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 six 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.

Assessment on Tax

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.

All other returns and payments are due on their original due date (including 2nd quarter estimated tax payments for calendar year filers).

Additional information by topic is located below. To view the information click on the appropriate topic title. We will continue to update this page as additional tax guidance develops.

This page was last updated on Thursday, April 23, 2020.

Assistance for Taxpayers During COVID-19 Pandemic

To help taxpayers facing financial challenges resulting from the COVID-19 pandemic, the New Jersey Division of Taxation is providing taxpayers with increased flexibility, additional time to meet tax obligations, and relief from a number of compliance actions. The goal is to help New Jersey taxpayers and citizens during this unprecedented health crisis.

Governor Murphy signed legislation to extend tax due dates in order to give taxpayers more time to meet their tax obligations during this difficult time. To complement these actions, from April 15, 2020 to July 15, 2020, the Division will adjust many of its tax compliance programs and processes to help individuals and businesses.

Payment Plans

Taxpayers under an existing payment plan may suspend their payments for up to 90 days. The Division will not default any agreements during the COVID-19 crisis if a taxpayer stops making payments or incurs new debts. However, interest will continue to accrue on any unpaid tax balances. Taxpayers must contact the payment plan unit to modify their plan. Please send all requests to modify your plan to paymentplanunit@treas.nj.gov.

We are also making payment plan guidelines more flexible so taxpayers can modify or extend existing payment plans. Please send all requests to paymentplanunit@treas.nj.gov.

If you are not on a payment plan and are unable to pay your taxes, you are urged to request a payment plan to help stay current with your tax filing responsibilities.

Audit Activity

During this period, the Audit Activity Branch will not initiate new desk audits or field audits. The Division will work with taxpayers to complete its review of work that is in progress through correspondence (mail or electronic) where possible and avoid in-person meetings until further notice. To facilitate the progress of open audits, taxpayers are encouraged to respond to any requests for information if they are able to do so. Where field work at a taxpayer's site will be necessary, the Division will work with taxpayers to schedule that work to resume after this period. Keep in mind that depending on developments, it may be determined that resuming field work is in the best interest of both parties due to availability of people and records New legislation effective April 14, 2020 extends the time frame for the Division to make an assessment.

Audit Penalty Abatement and Interest Relief – Existing audit penalty abatement parameters will be broadened for audits that are completed during the remainder of this calendar year.

Inheritance and Estate Tax

Taxpayers can find forms and answers to many common Inheritance and Estate Tax questions on the Division's Inheritance and Estate Tax homepage.

The branch is operating with reduced staff and you may experience significant wait times or delays in response to telephone inquiries, emails or general correspondence. For questions regarding an Inheritance or Estate Tax matter, including protest and appeal matters, taxpayers may contact the Inheritance and Estate Tax Service Center at 609-292-5033, Monday through Friday, 8:30 a.m. to 4:30 p.m

Conference and Appeals

All in-person hearings are suspended until further notice. However, limited staff is available and may conduct telephone conferences where appropriate. If you have submitted all documentation that was requested and would like to proceed with a telephone conference, please email the conferee assigned to your matter or call the main number at 609-588-7175 and leave a message, including a telephone number, email address, and the Taxpayer ID#. You will receive a response as to whether a telephone conference can be scheduled.

Taxpayers should continue to file protests and requests for a hearing through either regular mail or by email to conference.appeals@treas.nj.gov.

On March 19, 2020, the Chief Justice of the NJ Supreme Court extended the 90-day timeframe to file a protest. If the 90-day time frame to file a protest expires after March 19, taxpayers have until May 1, 2020, or 30 days after the COVID-19 State of Emergency has ended, whichever is later, to file the protest.

Collections and Enforcement Activities

During this period, the Division will generally not start new fieldwork or casework. We will continue to work current cases without in-person contact. However, we may start new investigations & collection activity where deemed necessary to protect the State's interest. The Division will limit the imposition of new enforcement actions on tax liabilities, but will continue to work to resolve debt for large and complex accounts that remain outstanding. In addition, the Division will continue to pursue taxpayers that willfully avoid meeting their New Jersey tax obligations and take steps where warranted.

The following enforcement actions are temporarily reduced or suspended:

  • Filing Certificates of Debt/Judgment filing
  • Levy action
  • Seizure and Auctions actions

Specialized collection units are operating with reduced staff but are available to provide assistance or answer questions.

Additional information

Tax Clearances and License Renewals

License renewals, tax clearances, and compliance checks will be conducted with a more lenient debt collection/resolution approach. Taxation staff encourages the use of payment plans in order to get your needed renewal or license.

Use of private collection agencies

Taxation's private collection vendor, Pioneer Credit Recovery (PCR) will continue to operate under modified conditions, but will not file certificates of debt during the COVID-19 Crisis. PCR will consider abatements and extensions of time for COVID-19 related issues and will respond to taxpayer inquiries for accounts referred by the Division of Taxation.

Business Non-filer Notices

The Division will continue to send non-filer delinquency notices for business taxes. Businesses are encouraged to file and remit returns and payments using our online business tax system. Please review the schedule of return and payment due dates for additional information.

Once returns have been filed, taxpayers who have a financial hardship can take that opportunity to resolve any outstanding liabilities by entering into a payment plan using the Division's new flexible terms.

Trust Fund Taxes

All collected trust fund monies must be reported and remitted in full in accordance with your filing frequency. There has been no extension of filing or payment dates related to trust fund taxes.

Tax Credit and Incentive Programs

Tax clearances statutorily required will continue to be administered timely to ensure that the State can fulfill contractual obligations to award benefits to those participating in economic development programs.

Conclusion

The Division of Taxation is aware of the urgent need of our State's taxpayers to have increased time and flexibility. This plan affirms our agency's commitment to providing assistance in addressing their tax obligations. This is viewed as a first step in working with taxpayers and practitioners to help maintain and promote tax compliance. Over the next three months, the Division will continue to evaluate if it needs to extend the program and if additional actions can be taken to enable taxpayers to comply with New Jersey tax laws. Where businesses and individuals have not been able to report and pay timely, we plan to fully explore how we can restore their routine voluntary compliance.

Customer Service

Division of Taxation regional and Trenton offices are closed to the public as a precaution to safeguard public health. We anticipate being closed through at least May 3.

Our Call Center is operating with reduced staff on a limited schedule Monday through Thursday, 9:00 a.m. to 4:00 p.m., closed Fridays. You may experience significant wait times or delays in response to telephone inquiries, email services, or general correspondence.

You can file for free at New Jersey Online Income Tax Filing System, download Income Tax forms or make payments from this website.

We apologize for any inconvenience this may cause you. We remain committed to continuing to provide the best service we can and we thank you for your patience.

Be on the Alert for Fraud Schemes

IRS

2019 Return Due Dates

Access our Due Dates page for a list of returns and updated due dates.

As our Federal and State governments continue to react to the COVID-19 pandemic in real-time with a primary focus on limiting travel, large gatherings and the movement of our citizens, many businesses are executing contingency plans which require their employees to work remotely where possible. The reassignment of work locations and/or the displacement of workers due to health safety precautions raises many employer and employee concerns.

Employer Withholding Tax

Does the Division plan to issue any written guidance to employers in your state regarding how to source the wages of their employees who regularly work in your state but who are (or will be) telecommuting from an out-of-state home office or who are (or will be) temporarily relocated at an out-of-state employer location? Does the answer differ if the temporary relocation is to another office of the employer or the employee’s home office?

New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed based on a day’s method of allocation. However, during the temporary period of the COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction.

The Reciprocal Personal Income Tax Agreement between New Jersey and Pennsylvania eliminates wage sourcing issues for these employees as there is agreement to not tax the wages of a resident of the other state.

Would the Division advise employers in your state to not change the current work state set-up for employees in their payroll systems who are now telecommuting or are temporarily relocated at an out-of-state employer location?

The Division would not require employers to make that change for this temporary situation. However, employers must consider their unique circumstances and make that decision.

If the answer to the above is yes, will the Division waive under-withheld tax, penalties, and/or interest for employers for this period if examined by the Division at a later date?

Relief may be granted on a case by case basis if circumstances warrant.

Will the Division permit extensions for the filing of employment tax returns and deposits or relief from interest and penalties (like the California Employment Development Division did in its guidance issued on March 9, 2020)?

There is currently no extension of time granted for withholding tax payments.

The Division is not aware of any extensions granted for employment tax returns at this time. However, the Department of Labor administers this program.

Does the Division plan to alter its audit enforcement approach for telecommuters for calendar year 2020 as a result of widespread telecommuting arrangements being instituted by employers to reduce the further spread of the virus?

The Division does not intend to change its audit program at this time. The Division’s current audit program already includes the review of sourcing of income.

Personal Income Tax

Will the Division grant due date extensions for the filing of personal income tax returns and tax remittances or relief from interest and penalties related to the 2019 tax year?

In order to maintain consistency with the federal income tax extension, the Governor, Senate President and Assembly Speaker announced they will work to extend the due date to file and make payment until July 15th. Please check back with the Division’s website for updates and specific information as it becomes available.

Will the Division permit the individual employees to reconcile their 2020 nonresident income allocation on their 2020 state individual income tax returns if employers maintain their existing work state data in their payroll systems?

Taxpayers may use a different allocation if warranted. The Division may request supporting documentation for the allocation.

If the answer to the above is yes, will the Division waive applicable penalties and/or interest for individual taxpayers for this period upon the filing of their 2020 tax returns and/or if examined at a later date?

The Division is unable to waive interest as it is mandated by N.J.S.A. 54A:9-5. Relief from applicable penalties may be granted on a case by case basis if circumstances warrant.

Does the Division plan to issue any written guidance to individual taxpayers regarding how to source their wages for individual income tax purposes if they are performing services as a telecommuter or as a worker temporarily relocated to an out-of-state employer location?

New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed based on a day’s method of allocation. However, during the temporary period of COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction.

The Reciprocal Personal Income Tax Agreement between New Jersey and Pennsylvania eliminates wage sourcing issues for these employees as there is agreement to not tax the wages of a resident of the other state.

2017 Homestead Benefit Program Announcement

Because the COVID-19 pandemic is anticipated to negatively impact the State economy, the New Jersey Department of the Treasury has frozen a portion of spending in order to ensure the State can meet its emergency and statutorily required obligations. Regrettably, this includes freezing funding to support the 2017 Homestead Benefit program.

As a result, any credits intended to be applied to the May 1st property tax bills can no longer be supported by the State at this time. This includes checks or direct deposit to homeowners who previously sold their home, or owners of continuing care and co-op facilities. We empathize with homeowners who depend on these credits, but these proactive steps are necessary at this time. Please continue to check Taxation's website and Treasury's homepage for updated information.

More information on the 2017 Homestead Benefit Program


Last Updated: Thursday, 04/23/20