30 Oct I was late on some tax returns. Why did the state keep my refunds?

Q. I recently filed my 2020, 2021, and 2022 taxes this past August. New Jersey is keeping my refunds from two of those years, stating that I owed taxes from 2017 and never paid them so they are keeping my refund from 2020 ($241) and 2021($303). I was never informed that I owed prior to now. I surely would have paid had I known. Can they charge me taxes and penalties and interest from six years ago? Why did they not catch it in 2018 or 2019? I think they somehow made a mistake.
— Taxpayer, finally

A. We’re glad that you’ve gotten your tax returns in order.

Indeed, tax debt can follow you for a long time.

It is unlikely that the Division of Taxation did not generate any tax notices for the 2017 tax year, said Neil Becourtney, a certified public accountant and tax director with Smolin, Lupin & Co. in Red Bank

“If a taxpayer files their income tax return but fails to remit a balance due reported, rest assured that the system routinely generates a tax notice,” he said.

Maybe you had moved and the mail was not forwarded or the notices were discarded, he said.

“You are liable for interest calculated from the original due date of April 15, 2018 as well as a 5% late payment penalty,” he said.

If you feel an error has been made, call the Division of Taxation’s customer service center at (609) 292-6400.

Becourtney said you should have your NJ-1040 forms handy for reference. After providing a representative your name, address and Social Security number, the rep will be able to access your filing history and explain what transpired.

Good luck to you.

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This story was originally published on Oct. 30. 2023.

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