A Taxpayer who wishes to proceed with a VDA must not be under any criminal investigation and must submit a written proposal detailing all New Jersey business activity. This proposal must include:
- the commencement date of the activity;
- whether the company is registered in New Jersey and for what taxes;
- the taxes to be filed and paid; and
- whether any Trust Fund Taxes have been collected but not remitted.
All business taxes administered by the Division are eligible.
Along with the written proposal, a taxpayer must complete and submit a VDA Fact Pattern Form
All requests for Voluntary Disclosure received will be assigned an identifying number and reviewed by Division Management. Once the terms are agreeable to the Taxpayer and the Division, the Division will send signed copies of the agreement to the Taxpayer’s representative for signature by the Taxpayer. The executed agreement will clearly state which taxes are due and the effective date of the tax eligibility. It will indicate when the returns must be submitted and the requirement for completing the Tax Registration
forms and Nexus Questionnaire. The Division agrees to waive the late filing and late payment penalties relating to the tax returns and periods subject to the agreement. However, a penalty of 5% (not eligible for abatement) for failure to take advantage of the Tax Amnesty Program which ended on June 15, 2009 will be imposed in all instances for Amnesty eligible years. In addition, a 5% penalty will be imposed on any Trust Fund Taxes that were collected but not remitted.
Statutory interest will be assessed for the tax returns and periods included in the agreement. The Division reserves the right to void an executed Voluntary Disclosure Agreement if the Taxpayer has any undisclosed existing compliance issues. The Taxpayer is expected to remain compliant with all on-going and future tax obligations.
As an alternative, the Division is willing to enter into negotiations leading to a Taxpayer specific closing agreement with a Taxpayer who is prepared to come forward with full disclosure of all pertinent information. If you wish to proceed with the VDA process (or if you have any questions regarding the Program), please contact Nicholas Solimando, Office Audit Branch at P.O. Box 269, Trenton, New Jersey 08695-0269,
or by phone at 609-633-7837.
If you are doing business in multiple states, the Multistate Tax Commission
National Nexus Program) also has a Voluntary Disclosure Program.
They can be reached at the:
National Nexus Program,
Multistate Tax Commission,
444 North Capitol Street,
NW Suite 425,
Washington, DC 20001, 202-695-8140.
Referrals from MTC will have to meet the new terms and conditions required by the Division.
Appointment of Taxpayer Representative Form
Nexus Audit Group Questionnaire