N.J. Admin. Code § 18:26-8.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:26-8.6 - Time limit for assessment

(a) Upon the expiration of a period of 15 years after the date of death of a decedent, no proceeding may be instituted to assess or collect any tax, interest, or penalties due to this State for transfer inheritance tax purposes against any estate, executor, administrator, trustee, grantee, donee, buyer, devisee, legatee, heir, next of kin, or beneficiary. However, this subsection does not affect any rights to collection which this State has by reason of filing with the Clerk of the Superior Court, a Certificate of Debt or Decree of Judgment for the New Jersey transfer inheritance tax, including any interest and penalties; nor does the period of limitation affect the rights of this State to assess and collect the New Jersey transfer inheritance tax including any interest and penalties under the terms of a bond or agreement securing the payment of such tax, interest, and penalties.

(b) No assessment of additional transfer inheritance tax can be made after the expiration of more than four years from the date of the filing of an inheritance tax return, except in the following cases:

1. As allowed by the New Jersey State Uniform Tax Procedure Law, N.J.S.A. 54:49-6.b;

2. Tax on executory devises, contingent future interests, and estates subject to a power of appointment is assessed pursuant to the provisions of NJ.A.C. 18:26-8.12, 8.21, 8.24, and 9.16;

3. If the inheritance tax return is amended by the taxpayer to include additional property of a decedent, the assessment of tax on the additional property cannot be made after four years from the date of the filing of the amended return;

4. The assessment of tax on an estate passing to a beneficiary discovered after the filing of an inheritance tax return cannot be made after four years from the date of the discovery of the beneficiary and receipt of notification thereof by the Division; or

5. If a decedent's interest in property, or the value thereof as of the decedent's date of death, has not been determined at the time of the filing of an inheritance tax return due to litigation or controversy, the assessment of tax must be made within four years after the decedent's interest in the property, or the value thereof on the decedent's date of death, has been definitely established and the Division receives notification thereof

(c) Returns that do not meet the terms of the categories in (b) above will be subject to the provisions of (a) above.

(d) For the purposes of (b) above, an inheritance tax return filed before the corresponding day of the eighth month following the decedent's date of death is considered as filed on the corresponding day of the eighth month following the decedent's date of death.

N.J. Admin. Code § 18:26-8.6

Adopted by 50 N.J.R. 1624(a), effective 7/16/2018