Tax Attorney in New Jersey

Yes. New Jersey imposes a graduated Gross Income Tax under N.J.S.A. Title 54A, with seven brackets running from 1.4 percent on the first $20,000 of taxable income up to 10.75 percent on income above one million dollars. For 2026 the top rate is the fourth-highest state income-tax rate in the country, behind California, Hawaii, and New York. The federal 1040 is filed separately with the IRS.

The U.S. Tax Court does not hold trial sessions inside New Jersey. The two practical places of trial for NJ petitioners are New York City (Jacob K. Javits Federal Building, 26 Federal Plaza) for North and Central Jersey, and Philadelphia for South Jersey. A petitioner designates the preferred place of trial on the petition under Tax Court Rule 140. The Tax Court of New Jersey at the state level is a separate court that hears state-tax disputes only.

Under N.J.S.A. 54:49-6, the Division of Taxation generally has four years from the date a return was filed to assess a deficiency. The period extends in cases of false or fraudulent returns filed with intent to evade tax, and no statute of limitations applies where no return was filed at all. The federal IRS Collection Statute Expiration Date (10 years from assessment under IRC §6502) runs independently from the state SOL.

Yes. The IRS audits federal income tax, federal employment tax, and federal excise tax. The New Jersey Division of Taxation audits state Gross Income Tax (NJ-1040), Corporation Business Tax (CBT-100), Sales and Use Tax, and the other state-administered taxes. The two agencies share information under an information-exchange agreement, so an IRS adjustment to taxable income almost always triggers a follow-up assessment from the Division. Working both sides in parallel is the norm for NJ engagements.

Yes. The New Jersey Division of Taxation operates a closing-agreement program that functions similarly to a federal Offer in Compromise. Under N.J.S.A. 54:53-1, the Director may compromise a state tax liability where there is doubt as to liability, doubt as to collectibility, or where collection of the full amount would create economic hardship. The state program is administered through the Conference and Appeals Branch on a case-by-case basis. The federal OIC under IRC §7122 is the standard mechanism for the IRS side.

Your CSED is calculated from the date of assessment, which appears on your IRS Account Transcript as Transaction Code 150 (return filed) or Transaction Code 290 (additional assessment). Add ten years, then add the days for any tolling events: pending OICs, CDP hearings, bankruptcy stays, and similar suspensions. The IRS publishes the CSED date internally on its CC ACTRA transcript; we pull this for clients as part of every engagement. The practical impact is significant — a debt assessed in 2016 may be approaching expiration in 2026, and aggressive enforcement near the CSED is common.

Probably yes for the federal trust-fund portion. IRC §6672 assesses a Trust Fund Recovery Penalty against any "responsible person" who "willfully" failed to pay over withheld taxes — the FICA and federal income-tax withholding portion of Form 941, not the employer's share. The IRS conducts a Form 4180 interview to identify responsible persons. Anyone with check-signing authority, payroll-decision authority, or knowledge of the unpaid taxes can be assessed. On the state side, New Jersey adds parallel responsible-person liability under N.J.S.A. 54:50-9 for unpaid state withholding tax and collected sales tax, so the same officer faces both federal and state personal exposure.

New York is the source state for wages earned in New York under the NY "convenience of the employer" rule, so a Manhattan-employed NJ resident files a non-resident NY return (IT-203) and pays NY income tax on the work-source wages. New Jersey, as the state of residence, taxes all income but allows a credit on the NJ-1040 for taxes paid to NY under N.J.S.A. 54A:4-1, capped at the NJ tax that would have applied. The math gets messy when there are remote work days, RSU vests, or bonus payments tied to multi-year service periods. Misallocation is one of the most common triggers for parallel NJ and federal CP2000 notices.

Yes — the New Jersey state estate tax was repealed for decedents dying on or after January 1, 2018, under P.L. 2016, c. 57. However, the New Jersey transfer inheritance tax under N.J.S.A. 54:33 et seq. remains in force. The inheritance tax is paid by certain classes of heirs: Class A (spouse, civil union or domestic partner, parent, grandparent, child, stepchild, lineal descendant) and Class E (qualifying charities) are fully exempt; Class C (sibling, son-in-law, daughter-in-law) receives a $25,000 exemption then is taxed between 11 and 16 percent; Class D (everyone else) faces 15 to 16 percent on the entire transfer. The federal estate tax under IRC Subtitle B still applies to estates above the federal exemption amount.

Yes. IRC §7345 authorizes the IRS to certify "seriously delinquent" tax debt — currently $62,000 for 2026, indexed for inflation — to the State Department, which may then deny passport renewal or revoke an active passport. The certification reverses when the debt is paid, an IA is in place, an accepted OIC is in force, an active CDP hearing is pending, or Innocent Spouse Relief is in process. For NJ finance and pharma professionals who travel internationally, decertification is often urgent and can be processed in 30 days or less once the qualifying resolution is in place.

Federal tax-resolution fees vary by matter complexity. A straightforward Installment Agreement typically falls between $1,500 and $3,500. A full Offer in Compromise with Form 433 financial analysis runs $4,000 to $7,500. Audit defense depends on the audit type and the number of issues. A U.S. Tax Court petition with case workup and trial preparation generally starts at $6,000 and rises with complexity. VTL provides a written fee quote after the free consultation. Cal Bar Rule 7.1 prohibits comparisons claiming we are cheaper or faster than competitors without verifiable substantiation, so we do not market on price.

Yes. Communications between you and a licensed attorney for the purpose of seeking legal advice are protected by federal common-law attorney-client privilege, subject to the usual exceptions (crime-fraud, waiver, etc.). The narrower federally-authorized tax practitioner privilege under IRC §7525 applies to non-attorney CPAs and EAs but does not extend to criminal-tax matters. An attorney handling your tax case retains the broader privilege that survives criminal investigation.

The Corporate Transit Fee is a 2.5 percent surcharge enacted in 2024 (P.L. 2024, c. 22) and extended through December 31, 2028. It is imposed on Corporation Business Tax filers (CBT-100) with allocated taxable net income over ten million dollars and stacks on top of the 9 percent base CBT rate, yielding a combined 11.5 percent rate on the entire taxable net income (not just the amount over ten million). The fee does not apply to S corporations on the CBT-100S, public utilities, or filers with net income below the threshold. For 2026 this leaves New Jersey with the highest combined corporate income-tax rate in the United States.

Yes, generally. IRC §6331(k)(1) suspends levy action while an offer is pending and for 30 days after a rejection, and during any timely-filed Appeals review of a rejection. The IRS will not levy on you while a processable OIC is being evaluated. However, the IRS may still file a Notice of Federal Tax Lien during the OIC pendency to protect its position. CSED is also tolled during the pendency. A poorly-prepared OIC that gets returned (not rejected) does not provide the same protection — processability matters.

For administrative protests with the Division of Taxation's Conference and Appeals Branch, taxpayers may represent themselves or be represented by an attorney, a CPA, an enrolled agent, or another authorized representative under Division rules. For formal appeals filed in the Tax Court of New Jersey or in Superior Court, an attorney admitted in New Jersey is required. VTL handles the federal side of overlapping matters under Form 2848 and coordinates with NJ counsel where state-court litigation is necessary. Many Division disputes resolve at the conference stage without ever reaching court.