NEW JERSEY DEPARTMENT OF TREASURY / DIVISION OF TAXATION BACK TAX RELIEF
Get started resolving your state tax liabilities using the information below. If you still need help, reach out to us using the contact form to the right of this page.The New Jersey Taxpayer’s Bill of Rights provides some really basic information about the collection process.
NJ-DOT Monthly Payment Plan
First things first. You need to have all your necessary tax returns filed before New Jersey will allow you into a payment agreement.
General Payment Plan Guidelines
- Payment Plans from 3 to 72 months may be considered.
- If you’ve had a payment plan in the past 3 years, it may be more difficult to qualify for the General Payment Plan.
If you don’t get a General Payment Plan, your case will likely be forwarded to Pioneer Credit Recovery and subject to a Referral Cost Recovery Fee of 10.7%.
Personal Income Tax
- Max payment plan of 36 months, additional time possible with backup documentation to justify your request.
- May need to provide financial documentation if your payment plan is more than 12 months.
- If your tax debt is $2,500+ and your payment plan is more than 12 months, a Certificate of Debt (tax lien equivalent) will be filed against you.
Business Tax
- Max payment plan of 36 months, additional time possible with backup documentation to justify your request.
- May need to provide financial information if your payment plan is more than 12 months.
- All Responsible Persons of the business will have to sign an Acknowledgement & Waiver form.
- If your tax debt is $2,500+ and your payment plan is more than 12 months, a Certificate of Debt (tax lien equivalent) will be filed against the business and all responsible persons.
State of New Jersey Offer in Compromise
and Penalty Relief
Does the NJ-DOT have an Offer in Compromise Program? No, not really.
They do have a “Closing Agreement”, which the state of NJ website describes as –
“a contract that both a taxpayer and the Division sign which states a taxpayer will pay, and the Division will accept, an amount that reflects reduced or eliminated penalties and no costs of collection or recovery fees in FULL AND FINAL SATISFACTION of the outstanding tax liability.”
Regarding penalty relief, you may have some luck requesting Abatement of the Late Filing Penalty. Other than that, it’s pretty tough to get penalties removed.
Suffering a hardship due to unresolved NJ tax problems? Office of the Taxpayer Advocate may be able to help.