ASSEMBLY, No. 181

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 15, 1996

By Assemblyman KAVANAUGH

An Act concerning taxpayers' signature requirements on gross income tax returns, amending N.J.S.54A:8-1.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. N.J.S.54A:8-1 is amended to read as follows:

    54A:8-1. Payment of tax; returns; extension of time. With respect to each taxpayer, the tax imposed by this act shall be due and payable annually, hereafter, in the manner provided in this section:

    a. Every taxpayer shall annually pay the tax imposed by this act with respect to all or any part of each of his fiscal or calendar accounting years beginning on and after July 1, 1976, to be computed as in this act provided, for such fiscal or calendar accounting year or part thereof, on a return which shall be filed, in the case of a taxpayer reporting on a calendar year basis, on or before April 15 following the close of such calendar year, or, in the case of a taxpayer reporting on a fiscal year basis, on or before the fifteenth day of the fourth month following the close of such fiscal year, and the full amount of the tax shall be due and payable on or before the date prescribed herein for the filing of the return.

    In the case of a taxable year which ends on or after July 1, 1976, and prior to December 31, 1976, an income tax return for such taxable year shall be filed on or before April 15, 1977.

    b. Each return shall carry a [certificate signed] signature by the taxpayer [to the effect] certifying that all statements contained therein are true, under the same penalties as for perjury committed. The director is authorized to promulgate regulations and procedures setting forth the manner in which a taxpayer may satisfy the signature requirement. Blank forms of return shall be furnished on application, but failure to secure the form shall not relieve any taxpayer of the obligation of making any return herein required. Subject to regulations under this act and in such form as may be indicated thereby, taxpayers whose net income taxable under this act is or may be subject to tax under a similar law of another jurisdiction may be permitted to file a simple, short form return attached to a copy of his return as filed or about to be filed by him in such other jurisdiction.

    Subject to regulations under this act, reasonable extensions of time for good cause shown, may be granted for not more than 6 months unless exceptional circumstances justify a longer period, within which returns may be filed.

    In addition, persons in active service with the Armed Forces of the United States, who may be prevented by distance or injury or hospitalization arising out of such service, may be allowed such extension of time for the filing of returns, without interest or penalty, as may be fixed by regulations under this act.

(cf: N.J.S.54A:8-1)

    2. This act shall take effect immediately and apply to returns filed on and after January 1, 1996.

STATEMENT

    This bill changes current law concerning the written verification of gross income tax returns so that such returns may be filed by telephone using a touch-tone telephone keypad.

    Current law requires a gross income tax filer to certify the accuracy of the gross income tax return by signing his or her name under penalty of perjury. This signature represents the taxpayer's oath that the information contained in the return is accurate and that no intentional attempt has been made to defraud the State.

    Under this bill the Director of the Division of Taxation will have authority to promulgate regulations that will allow the use of voice signatures and other technologies, as they evolve, to satisfy the signature requirements of the gross income tax.

    The division has embarked on a pilot program for which approximately 275,000 taxpayers in 12 counties have been selected to file their 1995 gross income tax returns by telephone between January 16 and April 15, 1996. Using a touch-tone telephone and following the recorded instructions, a selected taxpayer may enter the necessary information and have the tax automatically calculated by computer. A taxpayer using this system may receive a refund more quickly than if a paper return had been filed. The division anticipates that approximately 1.3 million taxpayers may be afforded an opportunity next year to file their tax returns in this manner. Under this bill all such returns may be filed with "nonwritten" verified signatures.

Permits the Director of the Division of Taxation in the Department of the Treasury to establish the manner in which the taxpayer signature requirement on gross income tax returns may be satisfied.