Partner Greg Jenner was quoted in Law360 in an article titled “NJ To Let Taxpayers Settle Debts With No Penalties.” The article discusses tax amnesty programs in New Jersey and elsewhere that give taxpayers the opportunity to pay unpaid state taxes with reduced or no penalties.
New Jersey’s deal applies to taxpayers with outstanding liabilities from 2005 through 2013, and those who participate waive their right to further administrative review or judicial appeal. Similar programs have been used in Massachusetts and Connecticut, with the latter’s program in 2013 collecting more than $175 million, more than five times what the state expected to collect.
Many states rely on tax amnesty programs to make up budget shortfalls, but Jenner warns that overuse of the programs may contribute to tax delinquency. "States need to be very careful about creating too many tax amnesty programs because they may foster a pattern of bad behavior, said Jenner. “Taxpayers may think they'll get a free pass until the next program comes along."
Read “NJ To Let Taxpayers Settle Debts With No Penalties,” published September 17, 2014. (Subscription required.)