The New Jersey Division of Taxation has announced two voluntary disclosure agreement (“VDA”) programs. The first is for Partnerships that have income that is sourced in New Jersey but have not filed the required returns and paid partnership tax or the per partner fee payable under Corporation Business Tax Act and the Gross Income Tax Act. This VDA program is available for partnerships or individual partners.
The second VDA program is for companies that have a nexus with New Jersey resulting from income from the use of intangible assets located within New Jersey and have not paid the fee for the use of intangible assets in accordance with the Corporation Business Tax Act.
Both VDA programs will be available from March 15, 2014 until May 15, 2014. Under the VDA programs the New Jersey Division of Taxation will limit the look back period to periods beginning on or after January 1, 2010 for partnership reporting and July 1, 2010 for the intangible assets reporting. The Division will waive all penalties, but requires the filing of the returns and payment of the of the tax within 45 days of the date of the execution of the VDA and the interest must be paid within 30 days of the assessment.
If you would like more information on this program, please contact Alan Zuckerman.