New Jersey: Sales Tax Handbook
How to appeal a sales tax audit or penalty in New Jersey
In New Jersey, the Department of the Treasury will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the New Jersey Department of the Treasury, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Department of the Treasury, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in New Jersey
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed New Jersey sales tax return in the event of underpayment, incorrect reportings, etc. The Department of the Treasury cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in the state of New Jersey is four years from the return filing date.
Appealing to the Department of the Treasury in New Jersey
If you do not agree with a penalty or decision made by the New Jersey Department of the Treasury, you have the right to file an appeal and ask for reconsideration. Petition must be filed with the Director of the Division of Taxation within 90 days after service of notice of assessment
TopAdministrative Sales Tax Appeals in New Jersey
This district has no administrative appeal body
TopJudicial Sales Tax Appeals in New Jersey
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the Tax Court within ninety days of the date of Director's decision. If it is necissary, the Tax Court's decisions may be appealed to the Appellate Division of the Superior Court .
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