N.J. Admin. Code § 18:35-6.1 - Extension of time to file New Jersey gross income tax return

(a) A taxpayer may obtain an extension of time to file the New Jersey gross income tax return Form NJ-1040 or Form NJ-1040NR for a period of six months and Form NJ-1041 for a period of five months beyond the original due date, providing that the requirements of (b) below are satisfied. Extensions beyond the previously stated five or six months from the original due date of the return will be granted only in cases where the Director determines that exceptional circumstances exist.

1.Exceptional circumstances can be demonstrated by establishing one of the following:

i. Medical evidence, such as a doctor's certification that the taxpayer is unable to file the return before the expiration of the extension period because of sickness or hospitalization;

ii. Proof that the taxpayer relied entirely on the advice and expertise of a tax preparer who failed to complete the return within the extension period; or

iii. Proof that, despite timely and diligent attempts, the taxpayer is unable to obtain or receive information from third parties which is necessary for the completion of the tax return.

2. This section provides for an extension of time to file and is in no way to be considered an extension of time to pay the tax due. A taxpayer's tax liability is due, in full, by the original due date of the return. The taxpayer will be subject to interest and late filing penalty as described in (f) below if the full amount is not paid by the original due date of the return.

(b) The extension of time to file a New Jersey gross income tax return will be granted only if, by the original due date of the return, the taxpayer has paid in, either through withholdings, estimated payments, or a payment made with the Application for Extension of Time to File, at least 80 percent of the tax liability computed on the New Jersey gross income tax return when filed, and:

1. The taxpayer obtains a valid extension for Federal income tax purposes and attaches a copy of the application for automatic Federal extension to the final New Jersey gross income tax return when filed; or

2. If no Federal extension is requested, the taxpayer completes and submits Form NJ-630 by the original due date of the return.

(c) A taxpayer shall file Form NJ-630, Application for Extension of Time to File New Jersey Gross Income Tax Return, only if:

1. The taxpayer requires a five- or six-month extension for New Jersey purposes, but did not obtain one for Federal purposes; or

2. The taxpayer is required to remit payment to the Division of Taxation by the original due date of the return in order to meet the 80 percent requirement of (b) above.

(d) Failure to satisfy either the 80 percent payment requirement of (b) above by the original due date of the return, or to file the gross income tax return by the extended due date, will result in the retroactive denial of the extension as of the original due date of the return. In those cases, the taxpayer will be subject to interest, late filing penalties, and late payment penalties from the original due date of the return, as described in (e) and (f) below.

(e) A taxpayer who has not satisfied the 80 percent payment requirement of (b) above, or who fails to file the gross income tax return by the extended due date, will be subject to the following late filing penalties (see N.J.S.A. 54:49-4) :

1. $ 100.00 per month or any fraction of a month that the return is delinquent; and

2. Five percent per month or any fraction of a month that the return is delinquent, up to a maximum of 25 percent of the balance of any tax due with the return.

3. Both penalties set forth in (e)1 and 2 above shall be imposed on the first day following the original due date of the return and on the same calendar day of each succeeding month thereafter.

(f)The extension set forth under N.J.S.A. 54A:8-1.b and regulated in this section is an extension of time to file a gross income tax return. It is not an extension of time to pay any tax that may be due. Consequently, a taxpayer who makes a payment of tax after the original due date of the return, with or without an extension of time to file, will be subject to the following late payment penalty and interest:

1. A five percent penalty for late payment of any tax balance (see N.J.S.A. 54:49-4);

2. Interest on the unpaid tax calculated at three percentage points above the prime rate. Interest is imposed for each month (or a fraction thereof) on the unpaid balance of tax. At the end of each calendar year all tax, penalties, and interest remaining due will become part of the unpaid balance on which interest will be charged.

Notes

N.J. Admin. Code § 18:35-6.1

Amended by 48 N.J.R. 295(a), effective 2/16/2016