Official Site of The State of New Jersey

• No previous contact with the taxpayer by the Division or any of its agents;
• Not registered or authorized, but willing to register, for the specific tax for which you wish to come forward by filing Form NJ-REG with the Division of Revenue and Enterprise Services. You may also be required to make a Public Records Filing depending on the type of business ownership;
• Not currently under any criminal investigation;
• Willing to file requested returns and pay outstanding tax liabilities within the established timeframe;
• The Division will not grant a Voluntary Disclosure Agreement where the minimum look-back period is not met. For returns filed annually, the minimum look-back is four years (three prior years plus present year). For returns filed quarterly (Sales and Use Tax and Employer Withholding Tax), the minimum look-back is four years (16 quarters).

We expect you to remain compliant with all on-going and future tax obligations.

Eligible applicants include New Jersey residents and non-residents.

Ineligible applicants include any taxpayer currently under criminal investigation, anyone we contacted regarding delinquencies or deficiencies, or anyone amending a previously filed Individual Income Tax return.

Voluntary Disclosure Agreement Process

• You must request a Voluntary Disclosure Agreement (VDA) in writing. Detail the tax years involved and the reason for not filing the pertinent tax returns.
• We will review the request and make a determination whether a Voluntary Disclosure Agreement can be offered to you.
• If a Voluntary Disclosure Agreement is appropriate, we will send you a letter of confirmation.
• If the request has been made anonymously, you must disclose your name, address, and Social Security number to us once you receive the confirmation letter.
• We will then draft an agreement and send it to you for your signature.

Mail all copies of the signed agreement, return(s), and check payable to "State of New Jersey - TGI" to:

NJ Division of Taxation
Chief - Gross Income Tax Audit Branch
P.O. Box 288
Trenton, New Jersey 08611-0288

You may also email Lauren.McCoy@treas.nj.gov or call the Gross Income Tax Audit Branch at 609-322-6004 with questions regarding the program or to proceed with the VDA process for an individual.

Penalty and Interest

We will waive the late filing and late payment penalties related to the tax years included in the agreement.

We will assess a 5% post amnesty penalty (for any amnesty eligible year) and statutory interest. By law, we cannot abate interest.

After we receive all returns, tax, applicable penalties and statutory interest, we will return a fully executed agreement to the taxpayer. In addition to the conditions outlined above, the taxpayer is expected to remain compliant with all future tax obligations.

Voluntary Disclosure Agreement Process

You must submit the following to request a Voluntary Disclosure Agreement (VDA):

• A VDA Fact Pattern Form detailing all New Jersey business activities; and

• A written proposal that includes all of the following:

• Date taxable business activities commenced in New Jersey;
• Description of the activities that exceeded P.L. 86-272 for the years involved;
• Taxes to be filed and paid. You also must indicate whether any Trust Fund Taxes have been collected, but not yet remitted;
• Provide the estimated tax amount due for the Voluntary Disclosure period by tax type;
• A statement that you are not currently under review or under criminal investigation for any tax obligations;
• A statement regarding your company's registration/authorization status in New Jersey for applicable taxes;
• Which federal business tax return your company files;
• Your accounting period year end date;
• Contact information for you or your representative, including an email address.

We will review each request, assign it an ID number, and contact you regarding the submission.

The executed agreement will clearly state:

• The taxes that are due;
• The effective date of the tax eligibility;
• When you must submit the returns; and
• Your requirement for completing tax registration forms and the Nexus Questionnaire.

We can terminate an executed Voluntary Disclosure Agreement if you have any undisclosed existing compliance issues or fail to comply with any terms of the agreement. We can offer similar incentives if you do not qualify for a formal VDA, but voluntarily come forward to resolve tax issues and bring your company into compliance.

Penalty and Interest

We will waive all penalties relating to the tax returns and periods subject to the agreement.

However, a 5% penalty will be assessed for failing to participate in the Tax Amnesty Program, which concluded on January 15, 2019. This penalty applies to all Amnesty-eligible years and is not subject to abatement under any circumstances. In addition, we will impose a penalty of 5% (not eligible for abatement) on any Trust Fund Taxes that were collected but not remitted.

We assess statutory interest for the tax returns and periods included in the agreement. By law, we cannot abate interest.

If you wish to proceed with the VDA process or if you have any question regarding the program, contact Ella Dillon by phone at 609-322-6222 or by mail at:

NJ Division of Taxation
Office Audit Branch
P.O. Box 269
Trenton, New Jersey 08695-0269

If you are doing business in multiple states, the MultiState Tax Commission (MTC) also has a Voluntary Disclosure Program (through its National Nexus Program). The Commission can be reached at:

National Nexus Program
MultiState Tax Commission
444 N Capitol Street NW STE 425
Washington, DC 20001
Phone: 202-695-8140

Referrals from MTC must also meet the Division's general guidelines as outlined above.