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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10109
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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CLIENT WAS AUDITED BY IRS IN 2007 AND CLIENT DID NOT REPORT

Customer Question

CLIENT WAS AUDITED BY IRS IN 2007 AND CLIENT DID NOT REPORT CHANGE TO NJ.. 2015 NJ CONTACTS CLIENT AND SUBMIT BILL OF $2K FOR NOT REPORTING IRS... ANY COURT CASES TO FIGHT STATUE OF LIMITATIONS
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.
Hi, From here: http://www.state.nj.us/treasury/taxation/pdf/pubs/misc/aud100.pdf (I've underlined the pertinent part).Statute of Limitations — New Jersey State Tax Law generally places a four-year statute of limitations on tax audits, beyond which the Division may not audit without your written consent. The statute of limitations does not apply, however, for any period during which a taxpayer failed to file a return, failed to report Federal changes, or filed a false or fraudulent return to evade tax.
Expert:  Lane replied 1 year ago.
If you'll give me some time I'll see what I can find in the case law..Doe the client say he DID report?.
Expert:  Lane replied 1 year ago.
So far, nothing at the NJ Tax Court or the Appellate Division of Superior Court (which is where appeals from the Tax Court of NJ are heard).
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Going, next, to Rutgers Newark Law Schools Archives. They have a more comprehensive database, going further back.
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The only thing I've seen, anecdotally - from an attorney, not the court itself - regarding not reporting a Federal change, is that the court would not hear such a case as the person would likely not have standing, because there IS no statutory period.
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This is called a non-justiciable case.
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But again, if you can give me more detail, there may be something situational here that can be used.
Let me know ...
Lane

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