22 Nov Does N.J. offer an abatement if taxes are overdue for the first time?

Q. Does New Jersey offer a “first time penalty abatement” for overdue taxes, similar to the IRS?
— Taxpayer, finally

A. We’re sorry to hear that you’re behind on your taxes.

Depending on your situation, penalties and interest sure can add up.

The IRS considers requests for relief from penalties if a taxpayer is eligible for first-time abatement, said Gail Rosen, a Martinsville-based certified public accountant.

To be eligible, the taxpayer must be compliant, having filed all required returns, and paid all taxes due for the three preceding years.

But New Jersey does not provide relief from penalties based on a first-time abatement, she said.

“For New Jersey purposes, there must be a good reason for your request like death, serious illness, unavoidable absence of the taxpayer, natural disasters, fires, etc.” she said. “We have experienced that even with a reasonable cause, we have been denied the penalty relief by New Jersey and had to ask again, emphasizing the reason for late payment in order to achieve abatement.”

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This story was originally published on Nov. 22, 2022.

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