New Jersey's Modernized Tax Filing System: What to Know for 2025
The New Jersey Division of Taxation (DOT) announced a rollout plan to update its tax filing system to modernize it and make the process easier and more efficient for taxpayers. Although the official release date for the new NJ Tax Portal (the Portal) is unknown, it is clear that the roll-out will be completed in several phases and throughout 2025, with the first phase scheduled for early 2025.
Impact on Sales and Use Tax Filing
Taxpayers will have to prepare for using the new sales and use tax filing system, which should ensure a more secure transfer of data. In addition to a more secure transfer of data and generally safer interaction with the New Jersey tax governing body, the Portal will provide more control for taxpayers over their accounts.
Once launched, the taxpayer will create an account on the Portal using their Tax Identification Number (TIN) and figures from their last filed sale and use tax return. Also, a four-digit PIN will be provided in the Welcome Letter to the registered taxpayers and will serve as a login passcode.
At this point, there are still no guidelines or instructions on how the Portal will operate and how the taxpayer can use it, but the DOT is expected to publish them as soon as the 2025 launch date approaches.
The roll-out will be completed in five phases. During the first phase, 17 taxes under the Sales and Use Tax category will be covered.
Conclusion
The changes to the tax filing system in New Jersey are the first major changes and upgrades in the last 40 years. With the new system in place, taxpayers should find it easier to communicate with the Division of Taxation, file their sales and use tax returns, and comply with sales and use tax rules and regulations.
Source: New Jersey - Division of Taxation
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