54:53-7 - Compromise of liability, time for payment of liability - New Jersey Statutes

54:53-7.     Compromise of liability, time for payment of liability 
    7. a.  The Director of the Division of Taxation may compromise criminal liabilities and any civil liability arising under the tax laws of the State prior to reference of a case involving such liability to the Attorney General for prosecution or defense.  Any such liability may be compromised only upon one or both of the following grounds: 

   (1)  Doubt as to liability; or

   (2)  Doubt as to collectability.

   No such liability shall be compromised if the liability has been established by a court of competent jurisdiction or is certain, and there is no reasonable doubt as to the ability of the State to collect the amounts owing with respect to such liability. 

   b.   The Director of the Division of Taxation may compromise the time for payment of a liability arising under the tax laws of the State.  The time for payment of a liability shall be compromised under this subsection only on the grounds that the equities of the taxpayer's liability indicate that a compromise would be in the interest of the State and that without such a compromise the taxpayer would experience extreme financial hardship.  A delayed payment or installment payment compromise agreement shall include interest on the unpaid balance of the liability at the rate of three percentage points above the prime rate. 

   L.1975,c.387,s.7; amended 1992,c.175,s.17.