New Jersey: Just Try To Get a Sales Tax Refund! | AccountingWEB

New Jersey: Just Try To Get a Sales Tax Refund!

New Jersey is proposing to make it more difficult for taxpayers to receive sales tax refunds. What do I mean?

Under a proposed amendment, (N.J. A.C. 18:2-5.8, 42 NJR 56, 1/4/10), the New Jersey Division of Taxation would require taxpayers to submit "sufficient documentation" to allow the division to determine the rationale or basis for the refund to verify the amount of the refund before interest on an overpayment begins to accrue.

What Is "Sufficient Documentation"?Not sure, but the proposed amendment states a taxpayer must attach documentation to the refund claim form indicating the basis for such claim. You cannot just say that "documentation is available upon request."

In some cases, a taxpayer may need to include copies of each invoice where tax was incorrectly charged, and proof of payment of the entire invoice amount.

No More "Protective Refund Claims"?The proposal would also not allow taxpayers to file protective refund claims. According to the New Jersey Division of Taxation, there is no statutory authority that requires the Division to allow protective refund claims.

If you have any questions or would like assistance with the filing of a New Jersey sales tax refund claim, please contact me at

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Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States.  He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect."  For more info, visit his website:

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