New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 2 - GENERAL POLICIES AND PROCEDURES
Subchapter 2 - PENALTIES AND INTEREST
Section 18:2-2.3 - Failure to file return on time
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Any taxpayer failing to file a return within the time prescribed by the act imposing a particular tax is liable for the following:
(b) The penalties set forth in (a) above are imposed on the first day following the original due date of the return and the same calendar day of each succeeding month thereafter.
Examples:
Delinquency penalty: $ 100.00 per month for one month | $ 100.00 |
Late filing penalty: five percent per month of the underpayment not to exceed 25 percent | |
Five percent x $ 20,000 ($ 100,000 - $ 80,000) x one month | $ 1,000.00 |
Tax Liability | $ 20,000.00 |
Total | $ 21,100.00* |
In addition to the unpaid tax, the taxpayer owes the following amounts:
Delinquency penalty: $ 100.00 per month for five months | $ 500.00 |
Late filing penalty: five percent per month of the total tax liability not to exceed 25 percent | |
Five percent x $ 100,000.00 x five months | $ 25,000.00 |
Tax Liability | $ 20,000.00 |
Total | $ 45,500.00* |
* The above examples assume that no request for an extension of time to file the applicable returns was made. In addition, the taxpayer will be liable for interest (see 18:2-2.4) and may be liable for other penalties (see, for example, 18:2-2.4 and 54:49-9 and 9.1).
(c) A taxpayer that fails to provide or complete all of the reports, schedules, or other documentation required to be submitted in a return or report, or omits information from a return or accompanying report, is subject to late filing penalties. Such omissions will be treated as a failure to file a return and/or a failure to file a return on time, and the taxpayer shall be liable for penalties and interest as set forth in (a) and (b) above. The only exception to this rule is where a statute or rule authorizes an omission or substitution, and is expressly stated on the return. The imposition of late filing penalties as provided under this subsection is governed by the State Uniform Tax Procedure Law, except as otherwise provided in pertinent State tax statutes or other chapters in Title 18 of the New Jersey Administrative Code.
Example: The failure of an individual taxpayer to include a copy of Federal Schedule C or Form NJ-BUS-1 when reporting net profits from business on the taxpayer's NJ-1040 return is a failure to file a return and/or failure to file a timely return, and applicable penalties will be imposed.