Michael Guariglia is quoted in a Law360 article discussing the proposed end of New Jersey’s pandemic-related suspension of its statute of limitations for tax audits under a bill approved by the state Assembly.
Under A.B. 4295, passed by the Assembly 78-0, New Jersey would lift the statute of limitations suspension to audit and assess taxes that it put in place in 2020 amid the spread of COVID-19. The bill would terminate the suspension as of 90 days after the end of the state’s public health emergency which, according to a summary of the bill in a Statement from the Assembly Appropriations Committee, was rescinded on June 4, 2021. The bill will next be considered by the state Senate.
The bill would also void assessments that were allowed under the statute of limitations’ extension and issued after the 90-day period elapsed. In those cases, the bill would require the state Division of Taxation to “return any amounts collected from a taxpayer as a result of such assessment.” That could mean that assessments issued after Sept. 2, 2021, would be voided.