The Taxpayersí Bill of Rights (P.L. 1992, c.175) ensures that: (1) all taxpayers are accorded the basic rights of fair and equitable treatment under the law; and (2) all taxpayers receive the information and assistance they need to understand and meet their State tax responsibilities. This bill also establishes taxpayersí rights and obligations regarding Division of Taxation procedures for refunds, collections, and appeals. This publication gives you an overview of how the Taxpayersí Bill of Rights legislation affects you in your dealings with the Division. It also describes the provisions of P.L. 1998, c.106, which permits taxpayers to apply for a refund even if they have not protested or appealed a paid assessment. Taxpayersí Right to Know ñ As a taxpayer, you have the right to obtain information about: ó the tax implications of any situation or transaction ó your liability and how it was determined ó any notice you receive from the Division ó your responsibilities and rights Responsiveness ñ The Division of Taxation will respond to your questions within a reasonable time period. Statements and Notices ñ All notices you receive from the Division will clearly identify the purpose of the communication and tell you how you should respond to the statement or notice. Information Provided to Taxpayers ñ The Division has prepared statements that explain in simple, nontechnical terms taxpayersí rights and the procedures to follow when disagreeing with assessments or protesting actions of the Division. This information is available to all taxpayers dealing with the Division. Reliance on the Divisionís Written Advice ñ Penalties and interest will be waived if you can show that you reasonably relied on erroneous written advice from the Division, provided the advice was not the result of your failure to provide adequate or accurate information. Interview Rights ñ You may have an attorney and/or accountant with you at any conference. Either you or the Division may record the interview, if prior notice has been given. If the Division records the interview, a copy of the recording will be made available to you for a small fee. Registered or Certified Mail ñ All notices of assessment related to final audits and all ìNotice and Demand for Payment of Taxî letters will be sent by registered or certified mail. Payment Agreements ñ The Director of the Division of Taxation has the authority to enter into payment agreements with taxpayers. Requests for payment agreements will be reviewed on a case by case basis. If a payment agreement is set up for you, it will include your unpaid tax, any penalties you owe, and interest. You should be aware that although a payment agreement extends the time to pay your liability, interest continues to accrue until the liability is paid in full. Legal Action Against the Division ñ If a Division employee knowingly and recklessly disregards any tax law or fails to release a lien, a taxpayer may sue for damages. Award of Court Costs ñ You may be awarded up to $15,000 in court costs if the Tax Court determines that the Division initiated court proceedings without reasonable cause. Likewise, the Division can recover costs if you initiate proceedings without basis. The Taxpayersí Bill of Rights provides consistent treatment for assessments and refunds. The law also standardizes the time for claiming a refund for most taxes administered by the Division of Taxation and establishes a consistent treatment of postmark date for all State taxes.


Daniel Cullinane CPA

25 Plaza 5 25th fl Jersey City NJ                                          phone 732-516-1648 fax 732-516-9778

MBA Taxation

Daniel Cullinane CPA

2500 Plaza 5 25th fl  Jersey City NJ 07311                                                          phone 732-516-1648  fax 732-516-9778

                 MBA TAXATION                                                                                                         

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