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Collection 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:

Attorney General Referrals Section
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 Taxation’s lien in another state where assets of the debtor may have been located and/or instituting wage garnishment proceedings.

Bankruptcy Units I & II
The Bankruptcy Units ensure tax compliance by bankrupt individuals and businesses through the prism of Federal Bankruptcy Law. When a taxpayer files bankruptcy, the Division’s normal avenues for collection and compliance are forbidden. This Unit uses other tools such as filing of Proof of Claims with the Superior Court to effectuate collection of delinquent/deficient taxes from these taxpayers.

Bulk Sales Units I & II
The Bulk Sales Units are responsible for examining the tax records of each business that disposes of its assets by Sale, Transfer, or Assignment, other than in the normal course of business. Additional information on the Bulk Sales Act can be located on our website.

Casual Sales & Set Off Unit
  • Casual Sales Section works in conjunction with the Motor Vehicle Commission and other Agencies to verify and collect the appropriate sales tax on purchases of motor vehicles, boats, and aircrafts. Taxpayers are notified when there is a discrepancy between the amount of sales tax due and the amount paid. Purchases of motor vehicles by out-of-State taxpayers are also examined.

  • Set Off Section is responsible for four set off programs: Vendor Set-Off Program, which holds payments due to 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. Additional information on Set Off programs can be located on our website.

Contract Liaison
Maintains contact between the contracted vendor, Pioneer Credit Recovery, the Division, taxpayers and their representatives. The Unit provides assistance in problem situations, guidance and training on Treasury/Taxation policy and procedures in order to enforce the State’s tax laws and the Division’s collection procedures. Please visit our website for additional information on who is Pioneer Credit Recovery.

Contract Management
The Contract Management Unit (CMU) provides an objective view of matters related to the contracted vendor Pioneer Credit Recovery. CMU also monitors the vendor’s employment eligibility on the contract and credential access to our records and systems. Please visit our website for additional information on who is Pioneer Credit Recovery.

Deferred Payment Control Unit
The Deferred Payment Control Unit is made up of two units, the DPC Voluntary Collection Section (VC) and the DPC Liaison Section. Additional information on installment plans please visit our website.
  • The VC Section reviews incoming deferred payment requests to determine whether they meet the Divisions guidelines for an installment plan. They also monitor unique installment plans that will not be monitored by Pioneer Credit Recovery (vendor) because of their complexity.

  • The DPC Liaison Section oversees Pioneer’s management of the Installment Plan Program to ensure our business rules are followed. Our employees do this by reviewing samples of Pioneers work (audits) to ensure they are following our Installment plan rules. They are also charged with resolving any issues that may arise with vendor monitored payment plans.

Judgment Enforcement Team
This Unit collects overdue liabilities from taxpayers who neglected or refused to pay taxes and/or file returns through normal channels by filing Certificates of Debt (CODs). CODs are the primary vehicle for our collection process and are 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 Unit is also tasked with collecting judged personal income tax debt by ordering Warrants of Execution to conduct levy enforcement action such as bank levies or placing liens against motor vehicles coordinated through the Motor Vehicle Commission. Additionally the Unit is responsible for the manual filing of all cancellations and amendments of judgment through the Superior Court.

License Verification
License Verification Units I & II: The License Verification Units (LVU) review the tax records of businesses that are licensed or seeking a license issued by State Agencies to confirm that the licensee is complying with all State tax requirements. If a business is not compliant, their license may be subject to suppression or suspension. This unit is also responsible for reviewing the tax records and issuing tax clearance certificates for businesses that are applying for grants, loans, or other monetary incentives from other State agencies. There are three major sections within these two teams:
  • ABC Licensing is responsible for examining the tax records of each business holding a valid New Jersey Retail Liquor License and issues Tax Clearance Certificates for the transfer of licenses. These licensees are also required to receive a tax clearance for their annual renewal.

  • Business Clearance is responsible for reviewing the tax records of businesses that are applying for grants, loans, or other monetary incentives from other State agencies and then issuing a Tax Clearance Certificate allowing the applicant to receive favorable action.

  • License Verification reviews the tax records of businesses that are licensed by State Agencies to confirm that the business is
    complying with all required laws. If in non-compliance, the taxpayer’s business license may be subject to suspension or suppression.

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.

Should you need additional information on the collection process please visit our website.

Last Updated: Tuesday, 06/05/18

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