N.J. Admin. Code § 18:2-5.9
Current through Register Vol. 56, No. 21, November 4, 2024
Section 18:2-5.9 - Interest on overpayments(a) Interest will be allowed and paid on overpayments of tax at the prime rate, determined for each month or fraction thereof, compounded annually at the end of each calendar year, from the date that such interest commences to accrue to the date of the refund. "The date of the refund" shall be deemed the date set forth on the check or the documents authorizing electronic funds transfer (EFT). If interest must be paid, it will be calculated to accrue from the later of the date of the filing of a refund claim, the date the tax is paid, or the due date of the return. No interest shall be allowed or paid on an overpayment of less than one dollar; or on an overpayment refunded within six months after the last date prescribed, or permitted by extension of time, for filing the return; or within six months after the return is filed, whichever is later. Interest will not be paid on overpayments where the taxpayer has requested that the overpayment be applied to the taxpayer's tax liability.(b) No interest will be paid on a refund of an overpayment issued pursuant to 54:49-16 unless and until six months after the taxpayer files a claim for refund. Example 1: Corporation Business Tax Return (calendar year taxpayer)
| Due Date: | April 15 |
| Postmarked: | March 2 |
| Return with overpayment received by the Division of Taxation: | March 12 |
A refund of overpaid taxes would accrue interest if not refunded by October 15 (six months after the due date of the return, April 15).
Example 2: Corporation Business Tax Return (calendar year taxpayer)
| Due Date: | April 15 |
| Return and overpayment (unknown to taxpayer at time return was filed) received by Division of Taxation: | April 15 |
| Claim for refund received by Division of Taxation: | May 1 |
Interest would accrue on an overpayment not refunded by November 1 (six months after the claim for refund date of May 1).
Example 3: Same as above, except no claim filed. The Division of Taxation discovers the overpayment within two years of payment. No interest is due on the refund of the overpaid tax.
(c) No interest shall be paid on a refund of an overpayment unless the claim for refund or amended return contains: 1. The taxpayer's name, address, and identifying number and the required signatures; and2. Sufficient information (whether on the refund claim, amended return and necessary attachments) to permit the verification of the claim, including a full narrative description of the basis for the claim. (See also 18:2-5.8, Refund claim procedures.)N.J. Admin. Code § 18:2-5.9
Amended by 47 N.J.R. 3150(a), effective 12/21/2015