STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
SYNOPSIS
Establishes NJ Gross Income Tax EasyFile Program; pilot program to allow Division of Taxation to prepare gross income tax return forms for certain taxpayers.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing a State pilot program to allow the Division of Taxation to prepare gross income tax return forms for certain taxpayers, 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. The Director of the Division of Taxation in the Department of the Treasury shall establish a pilot program known as the NJ Gross Income Tax EasyFile Program that implements a gross income tax final return filing system that provides a simplified personal income tax return in both a printable document form and in a computer-readable form that a taxpayer, whom the director determines may be eligible, may elect to file and that is pre-filled by the division with the eligible taxpayers information available to the division other than by way of submission of the information directly by the taxpayer. The pre-filled personal income tax return shall include the taxpayers personal, wage and other information from the taxpayers gross income tax withholding information, as well as the taxpayers calculated deduction, and set forth tax liability information for a taxpayer who is required to file an income tax return under N.J.S.54A:8-3.1, if the taxpayer meets those conditions as may be applied to the filing system as the director determines, which may include the following:
(1) The taxpayer is not self-employed for any part of the taxable year and prior taxable year for which the taxpayer receives a pre-filled personal income tax return form pursuant to this section;
(2) The taxpayer is employed at a business location in this State during the taxable year and prior taxable year for which the taxpayer receives a pre-filled personal income tax return form pursuant to this section;
(3) The taxpayers annual income is less than $75,000 and the taxpayer is a resident of New Jersey for the entire taxable year and the entire prior taxable year for which the taxpayer receives a pre-filled personal income tax return form pursuant to this section;
(4) The taxpayer filed a New Jersey tax return as a resident taxpayer pursuant to subsection b. of N.J.S.54A:2-1, excluding an estate or trust, with no dependents in the taxable year prior to the taxable year for which the taxpayer receives a pre-filled personal income tax return form pursuant to this section, and the taxpayers dependent or filing status does not change during the taxable year for which the taxpayer receives a pre-filled personal income tax return form pursuant to this section; and
(5) The taxpayers income for the taxable year prior to the taxable year for which the taxpayer receives a pre-filled personal income tax return form pursuant to this section came only from wages found on the taxpayers federal Internal Revenue Service W-2 form provided by the taxpayers employer.
b. (1) The taxpayer may for any reason choose not to use the pre-filled personal income tax return form without any negative inference drawn by the division for that taxpayers choice, and the taxpayer may prepare and file an appropriate personal income tax return instead under any other allowable method, but choosing not to use the pre-filled form shall not exempt the taxpayer from any tax liability;
(2) The taxpayer shall be responsible for verifying information on the pre-filled personal income tax return form before signing and returning the pre-filled form and, if information on the pre-filled form is inaccurate, the taxpayer shall correct the information on the pre-filled form, pursuant to instructions the director shall provide with the pre-filled form;
(3) If the taxpayer files an incorrect pre-filled personal income tax return form the taxpayer shall be liable for any applicable penalties under N.J.S.54A:9-6, notwithstanding the provisions of subsection b. of section 6 of P.L.1975, c.177 (C.54:49-11);
(4) The director shall establish a secure website and a telephone help hotline so that taxpayers may access and file the pre-filled form securely via the internet or telephone, and complete the pre-filled return free of charge in a manner that does not require the use of any third-party proprietary online filing software;
(5) The director shall mail, or provide these forms electronically through the website, to taxpayers by March 15 of the year immediately following the close of the applicable taxable year;
(6) The completed and signed tax return shall be due in accordance with N.J.S.54A:8-1;
(7) The director shall provide the information contained in this section to the taxpayer in clear, large point font on instructions accompanying the pre-filled form, make reasonable efforts to ease a taxpayers compliance burden in completing the pre-filled return, and shall provide to taxpayers a description of the pre-filled return program that shall include, but may not be limited to the following statement that is prominently displayed in the mailed or website provided form:
"This Pre-Filled personal
income tax return form gives a taxpayer access to the wage data received by the
Division of Taxation from a taxpayers employer. It gives a taxpayer the option
of viewing or filing a pre-filled return. A pre-filled return is a completed
tax return that is based on the following: wage data received from an employer,
the taxpayer's filing status from the prior year, amounts withheld by the
employer, and additional taxes owed to the state or refund owed to the
taxpayer."
Immediately below this description and in boldface type and in a large font, the director shall include the following statement:
"The Pre-Filled Return Program is an optional service for the convenience of taxpayers with simple returns. You are under absolutely no requirement to use this program. You may choose not to look at the printed or online program, or to look at the printed or online program and not file the Pre-Filled Return. If you choose not to view or file a Pre-Filled Return, this will not affect your tax liability in any way."; and
(8) Within six months after
the end of the second taxable year in which the director has implemented a pilot
program for the pre-filled personal income tax final return filing system
established pursuant to this act, the director shall submit to the Governor and
the Legislature pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1) a report evaluating the pilot program including but not limited
to a description of the scope of the pilot program, a measure of taxpayer
filing burden reduction of participating taxpayers, rates of acceptance of
participation in the pilot program by eligible taxpayers, and a measure of
processing efficiency and the cost savings experience of the division pursuant
to the pilot program in comparison to other allowable gross income tax return
filing methods. The director may include in the report any recommendations for
legislation that will improve or facilitate an expansion of the pilot program
to include additional taxpayers for eligibility to participate.
2. This act shall take effect immediately and shall apply to taxable years beginning after enactment.
STATEMENT
This bill establishes a State pilot program known as the NJ Gross Income Tax EasyFile Progr