Guide to Resolving New Jersey Back Taxes & Other Tax Problems

The State of New Jersey, Department of the Treasury, maintains a Division of Taxation that oversees tax assessments, collections, and enforcement of tax laws for the state of New Jersey. You file your individual tax returns with the Division of Taxation, and pay any taxes due and owing to the Division of Taxation.

Installment Payment Plans

If you cannot pay your state taxes owed in full at the time that it is due, the Division of Taxation may allow you to make payment arrangements for back taxes. In order to qualify for an installment payment plan, you must meet the following eligibility requirements:

• All of your tax returns must be filed up to date.
• You generally must be able to pay off your taxes owed within 36 months.
• You typically must owe more than $500 in state taxes.
• If you owe more than $5,000 in state taxes and your installment payment plan is for more than 12 months, the Division will file a Certificate of Liability against you in court and add a 10% cost of collection fee to your taxes owed.
• If you default on your installment plan payments in certain circumstances, the Division will file a Certificate of Liability against you in court and add a 10% cost of collection fee to your taxes owed.

You can request an installment payment plan by submitting the Deferred Payment Request Form that is available on the website of the Division of Taxation. You also can contact the Division of Taxation directly about installment payment plans at (609) 292-6400.

Closing Agreements

If you are unable to pay your state taxes owed in full, but you can make a lump sum payment toward the liability, you may wish to request a closing agreement from the Division of Taxation. In order to do so, you must complete and submit Form 906, Closing Agreement Application, along with copies of the last two years of your federal income tax returns, to the Division of Taxation at the following address:

NJ Division of Taxation
Closing Agreements, 9th Floor
PO Box 245
Trenton, NJ 08695-0245

In your application, you must state why you do not feel that you should pay your entire state taxes owed, the amount of money that you can pay in a lump sum toward your taxes owed, as well as the source of those funds.

Office of the Taxpayer Advocate

The Office of the Taxpayer Advocate offers independent review of state tax problems that taxpayers have been unable to resolve through normal procedures or who are facing an undue hardship as a result of the Division of Taxation’s action or decision. However, you must try to resolve your state tax problem or concern on your own through the Division of Taxation before the Office of Taxpayer Advocate will consider helping you with your case.

You can contact the Office of the Taxpayer Advocate by completing Form NJ-OTA-911, Request for Assistance from the Office of the Taxpayer Advocate, and submitting it as follows:

By mail: State of New Jersey, Division of Taxation, Office of the Taxpayer Advocate
PO Box 240, Trenton, NY 08695-0240
By fax: (609) 984-5147
By email: nj.taxpayeradvocate@treas.state.nj.us

Our Simple Tax Relief Process