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I received below letter from NJ Division of Taxation, What might be the reason for extra documents like below? Did any one receive letters like below ? Please share your thoughts
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Upon review of your 2013 New Jersey Gross Income Tax returns, the Division finds the need for the following
additional information as indicated below:
1) Submit a complete copy of your New Jersey and Federal Returns including all suipporting forms, schedules & W-2s.
2) Submit a complete copy of any out-of-state income tax returns in which you have filed or taken credit for
wages or income firomn other jurisdictions. Also provide a copy of any audit completed by another state.
3) Submit a complete copy of the NJK- 1 schedules and attachments received from all S-Corporations. Also submit
copies of all Federal 1120's tax returns including all Federal Schedule K-i's. Please submit an explanation or
schedule explaining how you determined the new Pro Rata Share of S-Corporation Income on NJ-1040, Line 2 1. Be sure
to provide a schedule indicating the amount of distributions received whether cash or property and a
breakdown of Line 21, Taxes and Licenses
In addition to the above requests, you may send any schedules or attachments that might clarify the submitted information.
If you wish to be represented in this matter, enclose a Power of Attorney form, keeping a copy for your own records.
The requested information & a copy of this form should be submitted within thirty (30) days from the above date to:
You could call them to ask what's going on, but it seems that they are scrutinizing your declared income from the s corp... did you prepare your return yourself or did someone do it for you?
This could be the State of NJ equivalent of the federal compliance research audit, which picks returns at random for a thorough examination. If this is the case, your return may also be audited by the IRS.
You could call them to ask what's going on, but it seems that they are scrutinizing your declared income from the s corp... did you prepare your return yourself or did someone do it for you?
You could call them to ask what's going on, but it seems that they are scrutinizing your declared income from the s corp... did you prepare your return yourself or did someone do it for you?
This could be the State of NJ equivalent of the federal compliance research audit, which picks returns at random for a thorough examination. If this is the case, your return may also be audited by the IRS.
When they audit - what do they look for ? And how much time will this auditing goes ?
they ought to (but I don't have experience being audited myself)
I can't imagine that they'll come out and say they think you underreported your income, but they'll probably say they would like to verify the income you declared. Nothing out of the ordinary. So I would call them first to see if there is further explanation than what they gave you in writing on that letter, and if this is the beginning of an audit. I don't know if they'll tell you that either; maybe that's why they want to see your federal returns first too.
Then, relay that information back to your CPA. I'm wondering if a supporting schedule wasn't filed correctly? Or maybe they really are verifying whether your income was accurate.
If you don't want to handle this yourself you could always appoint somebody to represent you.
You should contact your CPA. S/he should be able to help you and resubmit the information they are seeking. They deal with this all the time.
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