Tax amnesty brings in more than expected
Thursday, June 4th, 2009
By: Phil Gregory
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New Jersey's Tax Amnesty Program allows individuals and companies who owe unpaid taxes to pay up without penalties. It also collects money for the state at a time when revenue is declining. The program began May 4th and more than $67 million has already been collected.
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The state's new goal is to collect $200 million, double the original target. Tax Amnesty administrator Mark Wintermute, anticipates companies that owe a lot in taxes will hold off paying until near the end of the amnesty program on June 15th.
Wintermute: History tells us in the last week you get most of your large taxpayers coming forward. We already have some commitments from fairly large taxpayers so we feel pretty confident that we will hit that goal.
Wintermute says he's surprised by the amount of payments that have already been made, given the uncertain state of the economy. Delinquent taxpayers who make payments during the amnesty period will avoid penalties and will only pay half the interest they owe. After the program ends, those still owing taxes will be subject to a five percent penalty.