N.J. Admin. Code § 18:2-2.3
Current through Register Vol. 56, No. 24, December 18, 2024
Section 18:2-2.3 - Failure to file return on time(a) Any taxpayer failing to file a return within the time prescribed by the act imposing a particular tax is liable for the following: 1. A late filing penalty of $ 100.00 per month or any part of a month that the return is delinquent; plus2. A penalty of five percent per month or any part of a month of the underpayment not to exceed 25 percent of such underpayment; except that3. If a return has not been filed within 30 days of the date on which the first notice of delinquency in filing the return was sent to the taxpayer, the penalty accrues at five percent per month or any part of a month of the total tax liability not to exceed 25 percent of such tax liability.(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:
1. A corporate taxpayer filed its 2013 corporate business tax return with a return due date of April 15, 2014, on May 1, 2014. The taxpayer reported a total tax liability of $ 100,000. However, the taxpayer made a tax payment of $ 80,000 when filing its return. The taxpayer owes the following amounts: | 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* |
2. A corporate taxpayer filed its 2013 corporate business tax return with a return due date of April 15, 2014, on September 16, 2014. The taxpayer reported a total tax liability of $ 100,000. The taxpayer made a payment of $ 80,000 on April 15, 2014. A Notice of Delinquency was sent to the taxpayer on May 16, 2014. 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 N.J.A.C. 18:2-2.4) and may be liable for other penalties (see, for example, N.J.A.C. 18:2-2.4 and N.J.S.A. 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.
N.J. Admin. Code § 18:2-2.3
Amended by 47 N.J.R. 3150(a), effective 12/21/2015