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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29975
Experience:  Taxes, Immigration, Labor Relations
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Filed federal tax extension but not filed NJ separately

Customer Question

Filed federal tax extension but not filed NJ separately because the message says NJ will grant if filed Federal extension on time. Now we just received a late filing penalty for $10,000 for $50,000 tax payments we made on October 14, 2015 (filed on time). How can we write a letter to NJ for abate penalty?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Indeed - there is a separate extension from for NJ

You do not need to submit this form if you paid at least 80% of your final tax liability - please verify if that requirement was met.

In additional - you need to enclose a copy of your federal application with the NJ tax return.


Even your extension is valid - you may not simply abate penalty - because you paid late - a late payment penalty is still applied.
That is different from late filing penalty.
A late payment penalty of 5% of the tax due is charged.
Interest is calculated at the annual rate of 3% above the prime rate for every month or portion of a month the tax is unpaid, compounded annually.

Regarding abatement...

See here

(b) An abatement will be granted if the taxpayer can show reasonable cause for failure to file any return or pay any tax when due and makes full payment of the taxes due. All of the facts alleged as a basis for reasonable cause for failure to timely file a return or for failure to timely pay or pay over any tax due must be affirmatively shown in a written statement, containing a declaration that it is made under penalties of perjury, made by the taxpayer or other person against whom the penalty or penalties have been assessed or are assessable. Where the taxpayer or other person is unable to provide such statement or does not have a personal knowledge of such facts, a showing of reasonable cause may be made on behalf of the taxpayer or other person by an individual with a personal knowledge of such facts. In determining whether reasonable cause exists, in addition to an evaluation of such facts, the taxpayer's previous compliance record with respect to all of the taxes imposed may be taken into account.

Please verify your circumstances and let me know.

Expert:  Lev replied 1 year ago.

I appreciate if take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.

Customer: replied 1 year ago.
Based on information I provided, I expected you to provide idea or help me to draft an abate penalty letter not merely repeating regulations that I can find on NJ Tax department web site
Expert:  Lev replied 1 year ago.

Your question was - How can we write a letter...
not a request to create a draft
But that might be my misunderstanding as well...
Nevertheless - that is also possible via additional services - and I will send you an offer.
Still I need more detailed information about your situation - specifically
- list all tax payments and dates
- total tax liability as per your return
- possible reasonable causes we may use based on your specific facts and circumstances
Please review the offer and accept - so we will be able to communicate via a private channels.

Customer: replied 1 year ago.
you mean additional $75 (total $113) or total $75
Expert:  Lev replied 1 year ago.

Correct - That would be the cost of my additional services and it doesn't include your other payments which depends on your service plan.
If that is not acceptable - that is OK. You may simply ignore the offer and the answer.

Customer: replied 1 year ago.
appreciate your offer but would like to deny at this timethank you
Expert:  Lev replied 1 year ago.

That is OK. You may reject the offer.
We may continue to communicate via this public forum if needed.