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Compliance Services

This is a multi-functional branch that provides services to the Division, to the tax paying public and to other State agencies. Some of the specific functions are as follows:

ABC Licensing
Responsible for examining the tax records of each business holding a valid New Jersey Retail Liquor License that disposes of its assets either by sale, transfer, or assignment, other than in the normal course of business, and issues Tax Clearance Certificates for the transfer of the licenses. This section also issues Tax Clearance Certificates to the municipalities for compliant licensees for the annual renewal of Retail Alcoholic Beverage Licenses.

Attorney General Referrals
Whenever the Division has exhausted its collection remedies without success, the case may be referred to the Office of the Attorney General for additional collection actions. Such actions may include domesticating the Division of Taxationís lien in another state where assets of the debtor may have been located and/or instituting wage garnishment proceedings.

The primary function of the Bankruptcy Section is to effectuate collection of delinquent taxes from debtors who have filed for protection under Federal or State Insolvency Statutes by submitting Proofs of Claim to the appropriate courts of jurisdiction.

Bulk Sales
The Bulk Sales Section is responsible for examining tax records of each business, which disposes of its assets, either by Sale, Transfer, or Assignment, other than in the normal course of business.

Business Assistance and Grant Tax Clearance
Reviews the tax records of businesses that are applying for grants, loans, or other incentives from other State agencies. A Tax Clearance Certificate is a precondition to the award by any State agency of assistance or incentive to a business. This unit is also responsible for reviewing the tax accounts of businesses seeking certification as eligible for Urban Enterprise Zone benefits. Casual Sales Section. This section coordinates its efforts with the Motor Vehicle Commission to verify and collect the appropriate sales tax on motor vehicles, boats, and aircraft. The culmination of this effort is the notification to taxpayers when discrepancies arise in the sales tax due and the amount paid. Purchases of motor vehicles by out-of-State taxpayers are also examined.

Clearance/License Verification
This section is responsible for reviewing the tax records for businesses that are licensed by State agencies and confirm that each business is complying with all required laws. If this review reveals unsatisfied tax liabilities, or filing obligations, the taxpayer's business license may be subject to suspension. This Section is also responsible for the review of tax records of State loan/grant applicants to verify that they are in compliance with all applicable tax requirements and the subsequent issuance of Clearance Certificates prior to the issuance of the grant/loan.

Contract Management
Unit has been established to provide an objective view to matters related to the contracted vendor. The main function of the unit is handling the vendorís monthly invoice for payment

Deferred Payment Section
This section provides a framework for taxpayers to repay deficient taxes utilizing a formal payment plan. This activity was recently updated to better serve taxpayer's needs and to allow more sophisticated monitoring of payment plans. A yearly average of 11,000 taxpayers take advantage of this provision provided by the Taxpayer's Bill of Rights.

FOIL, SOIL, Vendor Setoff
This section is responsible for 4 set off programs: Vendor Set-Off Program, which holds payments due State vendors and applies the payments toward deficient taxes. SOIL, Setoff of Individual Liability, a program designed to withhold personal gross income tax refunds, Saver Rebates and Homestead Rebates from taxpayers who have outstanding tax debts. The third program is FOIL, Federal Offset of Individual Liabilities, designed to withhold the Federal Income Tax refunds and apply them against State Tax Liabilities. The Fourth program is TOP, Treasury Offset Program, withholds payments from the Federal government due to contract vendors, and applies them to outstanding tax liabilities and vice versa.

The Judgment Section collects overdue liabilities from taxpayers who neglected or refused to pay taxes and/or file returns through normal channels. The primary collection vehicle is the Certificate of Debt, which is filed with the Clerk of the New Jersey Superior Court. A Certificate of Debt has the same force and effect as a Docketed Judgment adjudicated in any court of law.

The Division of Taxation must verify to the New Jersey Lottery Commission that taxes of prospective lottery machine agents are current. This process is part of the Clearance/License Verification Section.

Project Enforcement Team (PET)
The unit deals with a large variety of topics and investigations relating to both business and personal tax matters. The unit is a multi-faceted group of Investigators and support staff that are cross trained in the various different State taxes. They perform reviews, analysis and make determinations as to the validity of the information filed. The team manages Identity Theft, Partnership Fees, and Taxes, Taxation Data Warehouse projects that include non-filers of both Personal Income Tax and Corporation Business Tax and assists Audit Activity in order to issue Sales Tax refunds to businesses.

In addition, this branch has a Contract Liaison Section that provides administration, quality assurance, and technical support for contracts between the Division and private collection agencies contracted to pursue delinquent and deficient taxes for the Division of Taxation.

Division's Organizational Chart

Last Updated: Thursday, 06/09/16

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