Voluntary Disclosure Businesses
If you wish to proceed with a Voluntary Disclosure Agreement (VDA), you must submit:
- 2. A written proposal including:
- Date taxable business activities commenced in New Jersey;
- Description of the activities that exceeded P.L. 86-272 for the years involved;
- Taxes to be filed and paid. You also must indicate whether any Trust Fund Taxes have been collected, but not yet remitted;
- A statement that you are not currently under review or under criminal investigation for any tax obligations;
- A statement regarding your company’s registration/authorization status in New Jersey for applicable taxes;
- Which federal business tax return your company files;
- Your accounting period year end date;
- Contact information for you or your representative, including an email address.
Division Management assigns an identifying number to each request. Once we review the voluntary disclosure request, we will send an email containing our terms and conditions. You must sign a copy of these terms and conditions before they are sent for final review.
The executed agreement will clearly state:
- The taxes that are due;
- The effective date of the tax eligibility;
- When you must submit the returns; and
- Your requirement for completing:
- Tax registration forms; and
- The Nexus Questionnaire.
Penalty and Interest
- We will waive all penalties relating to the tax returns and periods subject to the agreement. However, a penalty of 5% will be imposed for failure to take advantage of the Tax Amnesty Program, which ended January 15, 2019. The penalty, which is not eligible for abatement, will be imposed in all instances for Amnesty-eligible years. In addition, we will impose a penalty of 5% (not eligible for abatement) on any Trust Fund Taxes that were collected but not remitted.
- We assess statutory interest for the tax returns and periods included in the agreement. By law, we cannot abate interest.
We can terminate an executed Voluntary Disclosure Agreement if you have any undisclosed existing compliance issues or fail to comply with any terms of the agreement.
We expect you to remain compliant with all on-going and future tax obligations.
We can offer similar incentives, if you do not qualify for a formal VDA, but voluntarily come forward to resolve tax issues and bring your company into compliance.
If you wish to proceed with the VDA process (or if you have any question regarding the Program), contact Ella Dillon by phone at (609) 984-7413 or by mail at:
NJ Division of Taxation
Office Audit Branch
P.O. Box 269
Trenton, New Jersey 08695-0269
If you are doing business in multiple states, the MultiState Tax Commission (through its National Nexus Program) also has a Voluntary Disclosure Program.
The Commission can be reached at:
National Nexus Program
MultiState Tax Commission
444 N Capitol Street NW STE 425
Washington, DC 20001
Referrals from MTC must also meet the Division’s required terms and conditions as outlined above.