Official Site of The State of New Jersey

Offshore Voluntary Compliance Initiative

New Jersey Offshore Voluntary Compliance Initiative is Closing on November 1, 2018

The New Jersey Department of the Treasury, Division of Taxation, is continuing its Voluntary Compliance Initiative to complement the Internal Revenue Service Voluntary Disclosure Initiative. The purpose of this program is to help taxpayers identify assets and unreported income from previously sheltered offshore accounts.

As of October 13, 2017, the New Jersey initiative will cover the same tax years as the Internal Revenue Service Offshore Voluntary Compliance Program.

Individuals and businesses accepted into the program will benefit when voluntarily disclosing their tax obligation by avoiding all civil penalties, including the 50% civil fraud penalty. However, a 5% late payment penalty and 5% amnesty penalty will apply and cannot be waived.

Individuals, businesses, or authorized representatives must apply to the Division to participate in our Initiative. They must submit:

An Application Letter including:

• Applicant’s complete name and address;
• The tax type and tax years affected;
• An explanation of the circumstances to support the application;
• A copy of any application submitted to the IRS Offshore Voluntary Disclosure Program; and
• A statement of certification that the applicant will cooperate with the Division of Taxation to establish the correct tax liability incurred from this voluntary disclosure.

Tax Returns and Payment

• A New Jersey original or amended return and a copy of the federal original or amended return (for each pertinent tax year);
• Payment of the additional tax, penalties and interest. Please make checks payable to “The State of New Jersey – TGI”.

The Division promptly reviews and considers all applications and then notifies the applicant or appointed representative of the application status.

Send to:

New Jersey Division of Taxation
Gross Income Tax Audit Branch
P.O. Box 288
Trenton, NJ 08611-0288

Acceptance Process

Once accepted, you must submit a copy of:

• Your IRS Voluntary Compliance Program acceptance letter; and
• The IRS documents reflecting the federal tax examination changes.

We will determine the final New Jersey tax liability after we review the federal information. If the IRS made changes to your application, we will advise you of your actual New Jersey tax, penalty, and interest liability, as well as any additional amount payable or any overpayment that may be due.

New Jersey urges those individuals and business entities with undeclared offshore assets and income to participate in this program. Waiting for discovery by The Division could result in the imposition of all penalties and may include referral for criminal prosecution.

For Individual and Partnership questions, call the Gross Income Tax Audit Branch at 609-322-6672 and ask for Dan Nagle, Audit Supervisor.

For Corporation and related business entity questions, call 609-292-7199 and ask for Joseph Immordino, Audi Supervisor

How Do I Apply For...

Individual Income Tax

Business Taxes