NJ Bill Would Ax Limit on Going After Fraudulent Tax Refunds

New Jersey lawmakers are considering ending a five-year limit on how long the Division of Taxation can recover taxes from income tax filers who were granted refunds from filing false returns.

A bill in the state Assembly, A4473, would allow tax officials to assess additional taxes on filers anytime it appears they received a refund from filing a false or fraudulent return with the intent to evade tax.

That wouldn’t include false reports from “a taxpayer’s inadvertence, reliance on incorrect technical advise, honest difference of opinion, negligence, or carelessness,” according to an Assembly report on the bill. ...