Section 01 of 06
What does the 3 year rule mean for NJ income tax?
It’s simply the deadline the New Jersey Division of Taxation generally has to send an extra Gross Income Tax bill. In the statute, “assess” signifies the state issues a formal assessment for additional tax within 3 years of the filing date.
Section 02 of 06
When does the clock start on that deadline?
It starts from the return’s “filed” date in accordance with the state rules. In the case of filing before the normal due date, New Jersey treats it as filed on the due date for this purpose.
Section 03 of 06
When can New Jersey assess after the usual deadline?
Specific situations are outside the normal limit. New Jersey is able to assess at any time if no return was filed — or if a false or fraudulent return was filed with intent to evade tax.
Who is writing this
Guidance from a firm that files these every season
Wasserman Accounting has advised New Jersey individuals and businesses since 1993. The positions in this article are the ones we take on real returns.
Since 1993
30+ years in practice
3,054
Clients served
30,426
Returns completed
All 50
States licensed
Section 04 of 06
What should you do if you receive a tax letter?
Take action with the basics in order to keep your reply focused.
- Note the tax year & tax type and response deadline shown on the letter
- Pull proof that comply with the issue — transcript & payment records and the specific line item
- Send a short cover note with only the supporting pages
Section 05 of 06
What records should you pull when you need quick proof?
Pull the record from the office that keeps it. It is the core idea behind NJ transcript requests and local property files.
Valuable checklist:
- The NJ-1040/NJ-1040NR copy or an official transcript
- Payment proof for that year
- The state letter + your draft reply
Goal | Best proof | Where it generally comes from |
Show what you reported | Income tax transcript | NJ Division of Taxation |
Show money sent in | Payment receipt or bank record | State system or your bank |
Support a property figure | Assessment record + tax bill history | Assessor + municipal tax collector |
Confirm ownership or liens | Recorded documents | County clerk/register |
Section 06 of 06
How can Wasserman Accounting CPAs support you?
If you require a second set of eyes before you respond, contact Wasserman Accounting CPAs today. Our team stands ready to confirm which record to request and aid in responding.
