What is the 3 year rule in NJ?

What does the 3 year rule mean for NJ income tax?

It’s simply the deadline the New Jersey Division of Taxation generally has to send an extra Gross Income Tax bill. In the statute, “assess” signifies the state issues a formal assessment for additional tax within 3 years of the filing date.

When does the clock start on that deadline?

It starts from the return’s “filed” date in accordance with the state rules. In the case of filing before the normal due date, New Jersey treats it as filed on the due date for this purpose.

When can New Jersey assess after the usual deadline?

Specific situations are outside the normal limit. New Jersey is able to assess at any time if no return was filed — or if a false or fraudulent return was filed with intent to evade tax.

What should you do if you receive a tax letter?

Take action with the basics in order to keep your reply focused.

Note the tax year & tax type and response deadline shown on the letter
Pull proof that comply with the issue — transcript & payment records and the specific line item
Send a short cover note with only the supporting pages

What records should you pull when you need quick proof?

Pull the record from the office that keeps it. It is the core idea behind NJ transcript requests and local property files.

Valuable checklist:

The NJ-1040/NJ-1040NR copy or an official transcript
Payment proof for that year
The state letter + your draft reply

Goal	Best proof	Where it generally comes from
Show what you reported	Income tax transcript	NJ Division of Taxation
Show money sent in	Payment receipt or bank record	State system or your bank
Support a property figure	Assessment record + tax bill history	Assessor + municipal tax collector
Confirm ownership or liens	Recorded documents	County clerk/register

How can Wasserman Accounting support you?

If you require a second set of eyes before you respond, contact Wasserman Accounting today. Our team stands ready to confirm which record to request and aid in responding.