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).
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