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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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What is the statute of limitations from filing income tax return

Resolved Question:

What is the statute of limitations from filing income tax return in the State of New Jersey
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.

Could you please clarify your question. Are you asking how long the state of NJ has to make you file a state income tax return for prior years where you did not file?

Customer: replied 8 years ago.

No. I filed as a non resident in 2005. They are now asserting that I owe NJ tax for 2005. In the meantime, I have not heard anything from them since I filed until May 2009. That is around four years. What is the statute of limitations in NJ to come after me for 2005 taxes? The IRS operates with a three year statute of limitations.

Expert:  Merlo replied 8 years ago.
Hello againCustomer

Actually, the 3 year statue starts from the original due date of the return. Taxes for the 2005 tax year had a due date of 4/15/06. Three years from that date would be 4/15/09, so the IRS has until 4/15/09 to assess additional taxes on a return from the 2005 tax year.

However, many of the states do not follow the same 3 year limitation as the IRS. In the case of NJ, they have a 4 year statute, and again, the starting date is from the original due date of the return. Son in the case of taxes for the 2005 tax year which were due on 4/15/06, they have until 4/15/10 to audit that return and assess additional tax they feel is due. Here is the excerpt from their statutes:

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. Because variations
do exist, the specific provisions of each tax
law should be consulted.

You do, of course, have the right to appeal any decision they made to assess additional tax if you feel the assessment was made in error.

If this was helpful please press the Accept button.

Thank youCustomer and I am sorry I could not give you more encouraging info to go on.

Merlo and other Tax Specialists are ready to help you