Broker Check

March 8, 1993

New Jersey Adopts Taxpayer Bill of Rights

          Effective January 1, 1993 New Jersey has joined a very small list of states that have adopted a Taxpayer Bill of Rights. Among those rights now guaranteed are:

  1. Any tax return postmarked on or before the due date is deemed filed on time. Returns postmarked after the due date are deemed filed on the date received by the Division of Taxation
  2. Notice of final assessment related to final audit determination and Notice and Demand for Payment of Tax letters must be sent by certified mail.
  3. Taxpayers questions should be answered within a resonable time period with regard to the state tax implications of any specific situation, the amount of their state tax liability and how it has been determined, any notice of underpayment or overpayment sent by the Division, and their rights and responsibilities as taxpayers.
  4. Taxpayers must be provided with an explanation of the audit and/or collection process and the taxpayers` rights including their right to consult with an attorney or accountant, before or at the initial interview. The meeting may be recorded by the taxpayer, if the Division is given advance notice, or by the Division, if the taxpayer is provided with a copy of the recording at a reasonable cost.
  5. The time for payment of tax liabilities may be adjusted based upon the financial condition of the taxpayer.

Nonresident Spouse with no NYS Income Not Subject to NY Tax

          Although a nonresident married couple filing a joint federal return must now file a joint New York personal income tax return, the spouse with no New York source income is not required to sign the joint return and cannot be held liable for the tax, penalties, or interest that may be due. When a joint return is filed, the combined income of both spouses is used to determine the base tax subject to the New York-source income percentage allocation. The recent filing status election which allowed a spouse with New York source income to file a separate return will not apply to the 1992 tax year and therafter, pursuant to Brady v. State of New York, a December 1992 Court of Appeals decision.

          This year the spouses must complete and attach a Form IT-203-C (Nonresident and Part Year Resident Spouse`s Certification) to the front of Form IT-203 which will be signed only by the signing spouse with the New York source income. You should be aware that the instructions contained in the Form IT-203 tax return booklets put out by New York State are, therefore, no longer complete and accurate.

Discounted Deluxe Forms-Something for Nothing!

          As part of our attempt to provide our clients additional services at no cost we have become a Deluxe Plus dealer which means simply that if you buy computer forms, tax forms, stationery and onewrite systems, and checks from Deluxe, whether standard or custom, you will be entitled to a 10% discount if you use our Dealer Keycode number. We have elected to rebate the 10% commission to our clients! When you order, call us for details as to how to get your discount. Remember, this especially applies to Accountant Inc. and Dollars and Sense users.

 IRS Calls Home

          The Internal Revenue Service has announced, after the Soliman decision, that it will not disallow deductions for home offices taken for 1991 and prior years if taxpayers followed earlier guidlines issued by the agency. This timeliness in IRS pronouncements is extremely unusual and helpful.

Arab Boycott Update

          In a startling and sweeping statement, the Japanese Foreign Minister has advised leading Japanese firms to stop complying with the Arab boycott of Israel and thereby to stop breaking U.S. law by complying with an illegal secondary boycott. The Japanese government has asked its ambassadors in various Arab League states to urge their host governments to end the blacklisting of companies trading with Israel (the secondary boycott).

          The Korean firms, Goldstar and Daewoo, have ended their participation in the Arab boycott while Hyundai has continued to participate in it.

Refund Offset Program Expanded

          A tax overpayment that remains after payments are credited to outstanding tax liabilities is offset against:

    1. Past due child support and alimony
    2. Debts owed to federal agencies.
    3. Any other debts assigned to a state.

          Any balance remaining after those obligations are satisfied may be credited to future tax liabilities or refunded.
          The recently enacted Cash Management Improvement Act of 1992 has expanded the scope of the program to include more types of debts able to be collected, such as debt that is administered by a third party acting for the federal government. In addition to current requirements, agencies will have to certify that reasonable debt-collection efforts have been made before a tax overpayment is offset under the program.
          If you have any questions on this or any other matter, please do not hesitate to call us.