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Governor Phil Murphy • Lt. Governor Tahesha Way

Division of Taxation

Audit-Tax Types

Our Branches audit various tax types we administer.

Gross Income Tax Audit Branch

This Branch conducts audits of New Jersey Individual Income Tax returns filed by:

  • Residents;
  • Nonresident individuals;
  • Estates and trusts.

We develop the Audit selection criteria by using internal information and information from:

  • The Internal Revenue Service;
  • Other States;
  • Other New Jersey State Agencies; and
  • Public sources.

We identify and pursue taxpayers who fail to file tax returns. This includes:

  • S Corporation Shareholders;
  • Partners;
  • Members of LLCs;
  • Beneficiaries of estates and trusts;
  • Self-employed individuals;
  • Entertainers;
  • Professional athletes; and
  • Delinquent business entities such as partnerships, LLCs and employers that withhold New Jersey Gross Income Tax.
Inheritance and Estate Tax Branch

This Branch conducts audits of New Jersey Inheritance and Estate Tax Returns. The auditor reviews the tax return(s) and all supporting documentation to verify:

  • The estate has correctly valued its assets and transfers;
  • All deductions taken are proper; and
  • All distributions are made in accordance with the will and other governing instruments, if any, or the laws of intestacy. If you have any questions regarding your audit, contact the auditor assigned to your case. His/her contact information is listed on your audit correspondence. If you agree with an assessment and would like to make a payment with a check, follow the instructions included with your Notice of Assessment. You can also make an Online Payment. If you disagree with an assessment, you have the right to protest and appeal. Inform your assigned auditor and:
  • Explain that you disagree with the assessment;
  • Clearly state the reasons why; and
  • Provide all necessary documentation to support your position. If you are still not satisfied:
    • Refer to the Protest and Appeal Instructions included with your Notice of Assessment; and
    • File a protest directly with the Chief of the Inheritance and Estate Tax Branch.
    • Do not file a protest with the Conference and Appeals Branch. Visit our New Jersey Inheritance and Estate Taxes overview page for more information.
In-State Field Audit

This Branch consists of 20 field audit teams strategically located throughout the State. Field Audit district offices are located in:

  • Trenton;
  • Newark;
  • Hackensack;
  • Camden;
  • Freehold; and
  • Galloway.

In-State Field Auditors:

  • Examine taxpayer's books and records to ensure compliance with existing laws and regulations;
  • Conduct comprehensive audits on all taxes administered by the Division, including Sales and Use Tax and Corporation Business Tax.

We usually perform Audits on site at the taxpayer's place of business or at sites identified by the taxpayer's representative.

CBT Audit Branch

This Branch audits Corporation Business Tax returns filed by both domestic and foreign corporations. In addition, Branch personnel audit other tax types including:

  • Insurance Premiums Tax, (which includes retaliatory tax)
  • Ocean Marine Tax;
  • Sanitary Landfill Tax; and
  • Risk Retention Tax
Excise Tax Audit Branch

The Excise Tax Audit Branch is responsible for conducting office and field audits of various taxes including:

  • Alcoholic Beverage Tax;
  • Cigarette Tax;
  • Litter Control Fee;
  • Motor Fuels Tax;
  • Petroleum Products Gross Receipts Tax;
  • Public Community Water System Tax;
  • Public Utilities Tax;
  • Sales and Use Tax - Energy;
  • Spill Compensation and Control Tax; and
  • Tobacco and Vapor Products Tax
Out-of-State Field Audit Branch

This Branch:

  • Performs field audits of taxpayers maintaining out-of-State accounting records;
  • Examines taxpayers' books and records to ensure compliance with existing laws and regulations; and
  • Conducts comprehensive audits on all taxes administered by the Division, including Sales and Use Tax and Corporation Business Tax.

Auditors usually perform audits on-site at the taxpayer's place of business. They also can perform audits at sites provided by the taxpayer's representative. Current Out-of-State regional offices:

  • Des Plaines, Illinois

Field auditors also operate out of California, Colorado, Florida, Georgia, Texas & New Jersey.

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Last Updated: Wednesday, 08/10/22