TAX DEBT RELIEF OPTIONS – New Jersey Department of Treasury / Division of Taxation

M&M Financial has been fixing tax problems across the country since 2005 and in New Jersey since 2010.  We deal with the IRS and State, so you don’t have to!  

The New Jersey Department of Treasury / Division of Taxation is known to use a third-party collection company to collect back-tax debts.  It’s a good idea to have someone in your corner that knows your rights! 

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist, please do not hesitate to call us at 866-487-5624.

NEW JERSEY DEPARTMENT OF TREASURY PAYMENT PLANS TO RESOLVE BACK TAXES

New Jersey Department of Treasury / Division of Taxation may grant you an Installment & Repayment Agreement to satisfy your tax liability, if you are not a repeat offender.  If you’ve had a previous payment plan within the last 3 years, then a second payment plan may not be granted, and your case could be referred to Pioneer Credit Recovery.  Pioneer Credit is a third party collection company that simply makes money by collecting back-tax debts for the state of New Jersey.  They will charge a 10.7% Referral Cost Recovery Fee.

BUSINESS TAX & PERSONal INCOME TAX INSTALLMENT AGREEMENTS

NJ-DOT monthly payment plan guidelines for Business Tax Debts and Personal Income Tax are almost identical.   

• 12 month payment plans may be approved without providing supporting financial documentation.  Supporting financial documentation will likely be required for payment plans longer than 12 months.  
• 36 month term isn't out of the ordinary with supporting financial documentation.  Longer terms, up to 72 months, may be considered. 
• A Certificate of Debt (tax lien) will be filed against you and/or your business if your tax liability is greater than $2,500 or your payment plan term is longer than 12 months.  NJ-DOT will file a Certificate of Debt on all responsible persons associated with business tax debts.  

DEPARTMENT OF LABOR & WORKFORCE DEVELOPMENT REPAYMENT PLANS

Businesses that owe New Jersey Department of Labor and Workforce Development Unemployment tax or Workers Compensation can set up a 12-month Installment Payment Plan with a 10% down payment requirement.  Once your 12-month payment plan expires you may be able to renew your payment plan, if you cannot pay the remaining balance in full.  

REDUCE YOUR NEW JERSEY TAX DEBT

Offer in Compromise

The State of New Jersey does not have an Offer in Compromise program; but it does have a “Closing Agreement”.  The language we’ve found used by the state to explain its Closing Agreement is very vague.  If you get one accepted, let us know how you did it.  

Penalty Relief

Pursuant to the Taxpayer Bill of Rights, the Division of Taxation may waive penalties associated with a tax liability if you can show that you reasonably relied on written advice from the NJ-DOT that proved to be erroneous.  What this means in simple terms is that it’s very difficult to get New Jersey to abate penalties.  However, New Jersey does have a Taxpayer Advocate Office to assist if you are suffering a hardship.  

NEW JERSEY TAX RESOLUTION CASE EXAMPLES

The New Jersey Department of Treasure / Division of Taxation have some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.



Get Free Tax Guides & Evaluation