New Jersey A3238 eliminates the statute of limitations on income tax assessments for erroneous refunds induced by fraud.

New Jersey A3238 amends the statute of limitations for income tax assessments related to erroneous refunds induced by fraud. Currently, the Division of Taxation can assess additional taxes at any time if a taxpayer files a false or fraudulent return. However, if a fraudulent return results in a refund, the assessment can be made within five years from the issuance of the refund. This bill eliminates the five-year statute of limitations for erroneous refunds induced by fraud, aligning the treatment of fraud in both scenarios.

New Jersey A3238 eliminates the statute of limitations on income tax assessments for erroneous refunds induced by fraud.

New Jersey A3238 amends the statute of limitations for income tax assessments related to erroneous refunds induced by fraud. Currently, the Division of Taxation can assess additional taxes at any time if a taxpayer files a false or fraudulent return. However, if a fraudulent return results in a refund, the assessment can be made within five years from the issuance of the refund. This bill eliminates the five-year statute of limitations for erroneous refunds induced by fraud, aligning the treatment of fraud in both scenarios.