Ed Bove-Tax Express Blog

NJ Waives Penalties And Slashes Interest In Tax Amnesty Program

Individuals and businesses that owe unpaid  taxes to the State  of New Jersey have until June 15th to take advantage of a Tax Amnesty program being offered by the state Division of Taxation.  Under the program, the state promises to waive all penalties and cut owed interest in half for anyone who participates.

People and businesses with unpaid taxes should seriously consider taking advantage of this opportunity.  Once the deadline passes, it looks like the state is going to crack down.

Once the amnesty period ends, that state plans to impose an additional 5% penalty on all outstanding tax amounts. In addition, all other penalties, interest and other costs authorized by law will be added back and the state Division of Taxation will aggressively pursue collection of the entire liability.

The program will benefit delinquent taxpayers who, because of financial hardship or other factors, have not met their tax obligations.  Nearly everyone, except taxpayers under criminal investigation for a state tax matter, is eligible for the program.

More information about the Tax Amnesty program is available at TaxAmnesty.nj.gov and by calling 800-781-8407.

Court says tuition payments are not charitable contributions

A federal appeals court recently ruled that a couple paying tuition cannot claim it as a charitable contribution on their tax return. The 9th Circuit U.S. Court of Appeals in San Francisco determined that a California couple can't claim tuition paid to their children's religious schools as a tax deduction, according to an story in the Modesto Bee.

Los Angeles couple Michael and Marla Sklar had attempted to claim the tuition payments for their five children as a charitable contribution to a religious organization, according to the newspaper article.  The appeals court ruled that the couple paid only for their children's education and had not demonstrated that any of the tuition was used by the schools as a gift, the article stated.

I don't know if this family plans further appeals, but I don't think it will do them any good.  The rules are pretty clear on this sort of thing.  If you meet the qualifications, you can take a deduction or credit for certain higher education expenses.  But you cannot consider tuition payments a charitable gift just because it's going to a school with a religious affiliation.