New Jersey Sales Tax Guide
Chapter 7: How to manage late New Jersey sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your New Jersey sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my New Jersey sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Division of Taxation?
Filing or paying New Jersey sales tax after the assigned deadline may result in the following penalties:
The late filing penalty is 5% of the tax due for each month or part of a month the return is late (multiple by 0.05). The maximum penalty for late filing is 25% of the late taxes. A penalty of $100 for each month the return is late may also be charged above and beyond the percentage penalty.
When payments are submitted late, a payment penalty of 5% of the tax due may also be charged.
Interest is calculated at the annual rate of 3% above the prime rate for every month or part of a month the tax is remains unpaid, compounded annually. In the event that outstanding taxes, penalties, and interest remain unpaid at the end of the calendar year, the outstanding balance becomes part of the balance on which interest is charged.If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Division of Taxation and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding New Jersey sales and use tax liability.