N.J. Admin. Code § 18:26-9.12

Current through Register Vol. 56, No. 19, October 7, 2024

Section 18:26-9.12 - Late payment; general provisions

(a) Any payment of the New Jersey transfer inheritance tax after the expiration of the corresponding day of the eighth month following the date on which it became due and payable will bear interest at the rate of 10 percent per annum on any unpaid portion of the tax, from the expiration of eight months after the date on which it became due and payable until the date of actual payment. See N.J.A.C. 18:2-4for general rules regarding timely filing and remittance.

(b) In cases where there is no corresponding day in the eighth calendar month following the date of death, the first business day of the succeeding month will be the effective date for purposes of determining interest and penalties; for example where decedent died June 30, 2013, the tax payment will not bear interest if made on or before March 1, 2014.

(c) In cases where a decedent dies while a member of the Armed Forces of the United States, the tax due begins to bear interest at the rate of 10 percent per annum on any unpaid balance due after the expiration of eight months after receipt of official notification of the death of the decedent by the spouse/civil union partner, parent, or next of kin of such decedent.

(d) Any person liable for the payment of the tax, may, in order to avoid a penalty, estimate and pay the tax believed to be owing prior to actual receipt of a tax bill. In the event of any overpayment of the tax, a refund will be made. In the event of an underpayment, interest will be charged on the balance due.

(e) Tax on any sum recovered as compensation for the death of a person caused by a wrongful act, neglect, or default not paid within 30 days of the receipt of the award or settlement will bear interest at the rate of 10 percent per annum from the expiration of eight months after the date of the award determination to the date of actual payment subject to the exceptions in (a) above.

(f) For returns due on or after July 1, 1993, the Director will waive the payment of any part of any penalty or interest attributable to the executor's, administrator's, or trustee's reasonable reliance on erroneous advice furnished to the taxpayer in writing by an employee of the Transfer Inheritance Tax Branch acting in the employee's official capacity, provided that the penalty or interest did not result from the failure of the executor, administrator, or trustee to provide adequate or accurate information giving rise to the erroneous advice. The executor, administrator, or trustee has the affirmative obligation to show that it was reasonable to rely on the written advice.

N.J. Admin. Code § 18:26-9.12

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