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Division of Taxation

Abatement of Penalty (Penalty Waiver)

If you can show reasonable cause for failing to file a return or pay any tax when due, we may waive part or all of a penalty.

What We Can Waive

Late Filing Penalties

If you are requesting abatement of penalty because you were penalized for filing a delinquent return, we may take into account your previous compliance record, with respect to all taxes, when determining whether reasonable cause exists.

Late Payment Penalties

If you are requesting abatement for a late payment, you must demonstrate that you failed to pay the tax by the due date because you suffered an undue hardship.

The type of tax you failed to pay is also taken into consideration when we evaluate your request.

What We Cannot Waive

  • Interest (assessed at a statutory minimum)
  • Collection fees
  • Post-amnesty penalties

How to Request Abatement

Abatements can only be granted once a penalty has been assessed and the taxpayer is notified (billed). You should send your request for abatement to the address listed on your billing notice.

A request for abatement must be in writing. It cannot be granted in person, by phone, or through email.

To request abatement, you must submit the following:

  • A written statement providing all the facts that support the reasonable cause for the abatement; and
  • A signed declaration that it is made under penalties of perjury. The statement must be signed by the taxpayer, taxpayer representative, or other person against whom the penalty or penalties have been assessed or are assessable.

You may submit the form below in lieu of a written statement and declaration.

Applicable Laws and Rules

N.J.S.A. 54:49-11, N.J.S.A. 54:53-16 to 19, N.J.A.C. 18:2-2.7.

Last Updated: Thursday, 12/15/22