STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Assemblywoman HOLLY T. SCHEPISI
District 39 (Bergen and Passaic)
Assemblyman GORDON M. JOHNSON
District 37 (Bergen)
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
Co-Sponsored by:
Assemblywoman Lampitt
SYNOPSIS
Authorizes innocent spouse relief under the gross income tax.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act authorizing innocent spouse relief under the gross income tax, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. If a taxpayer is allowed relief from the joint and several liability associated with a federal income tax joint return pursuant to section 6015 of the federal Internal Revenue Code (26 U.S.C. s.6015) for a taxable year, the taxpayer shall be allowed comparable relief from the joint and several liability associated with a New Jersey gross income tax joint return for the taxable year.
b. A taxpayer that does not apply for relief from the joint and several liability associated with a federal income tax joint return pursuant to section 6015 of the federal Internal Revenue Code (26 U.S.C. s.6015), but qualifies to do so, may apply to the director for comparable relief from the joint and several liability associated with a New Jersey gross income tax joint return.
c. Notwithstanding a provision of the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 to the contrary, including but not limited to the joint and several liability established by N.J.S.54A:8-3.1, this section shall apply.
2. This act shall take effect immediately and apply to relief sought for liabilities and refunds that would be timely for purposes of section 6015 of the federal Internal Revenue Code (26 U.S.C. s.6015) on or after the date of enactment.
STATEMENT
This bill explicitly authorizes innocent spouse relief under the gross income tax. The purpose of this bill is to allow innocent spouses to disentangle themselves from the gross income tax liabilities of their tax deficient spouses.
The bill allows a taxpayer that has been granted innocent spouse relief for federal income tax purposes to be granted comparable relief for New Jersey gross income tax purposes. The bill also allows a taxpayer that qualifies for innocent spouse relief for federal income tax purposes, but who has not applied, to seek innocent spouse relief for New Jersey gross income tax purposes.
The bill is set to take effect immediately and to allow innocent spouse relief on the same statute of limitation timeline as is used for federal income tax purposes.