Form 906 Closing Agreement PDF Details

In the State of New Jersey, taxpayers seeking resolution and clarity on their tax obligations have a structured pathway to obtain a legally binding decision through the Form 906 Closing Agreement Request. This request enables individuals and entities to engage with the Division of Taxation to conclusively settle their tax liabilities for specific periods, whether before or after the agreement's date. Packed within this procedure is not just the Form 906 itself but also a comprehensive suite of documents including the statute underlying closing agreements, representation appointment forms, and detailed financial statements. Moreover, the inclusion of the last two years' IRS returns underscores the thoroughness required in this process. By submitting to the New Jersey Division of Taxation, taxpayers can journey towards potentially finalizing their tax duties, subject to conditions such as the absence of fraud or material misrepresentation. The overarching authority for these agreements, granted under N.J.S.A. 54:50-1 et seq., reflects a commitment to providing a structured and conclusive resolution mechanism. Such agreements are nuanced, allowing consideration of various tax liability components, from gross receipts to deductions, showcasing a tailored approach to each taxpayer's situation. The finality clause within these agreements, barring fraud or similar exceptions, instills a certainty beneficial for both the taxpayer and the state. However, it's pivotal to note that these agreements are also subject to evolving legal statutes, emphasizing the dynamic nature of tax law and the need for ongoing vigilance by both parties.

QuestionAnswer
Form NameForm 906 Closing Agreement
Form Length16 pages
Fillable?No
Fillable fields0
Avg. time to fill out4 min
Other names www.state.nj.ustreasurytaxationNJ Division of Taxation - Sales and Use Tax Forms

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State of New Jersey

Division of Taxation

Form 906

CLOSING AGREEMENT REQUEST

Enclosed packet includes:

1.A copy of the Closing Agreement statute.

2.A Closing Agreement Form 906 to complete.

3.Appointment of Taxpayer Representative, if applicable.

4.A Financial Statement of Debtor – Section I through Section V to be completed.

5.National Standard Expenses information to be used in the completion of Section II of Financial Statement of Debtor.

NOTE: Copies of the Taxpayer’s last two years Individual IRS returns, and Corporate returns, if applicable, are required to be submitted with Form 906.

Send completed required information to:

New Jersey Division of Taxation

Closing Agreements

PO Box 245

Trenton, NJ 08695-0245

Closing Agreements

Authority

Unless otherwise expressly noted, all provisions of this chapter were adopted pursuant to authority of N.J.S.A. 54:50-1 et seq. and were filed and became effective on January 27, 1978, as R. 1978 d. 29 Sec: 10 N.J.R. 41(a), N.J.R. 127(d).

Chapter Table of Contents

SUBCHAPTER 1

Closing Agreements

18:33-1.1 General provisions

18:33-1.2 Taxable periods

18:33-1.3 Finality; determination of fraud

18:33-1.4 Procedure with respect to closing agreements

18:33-1.5 Applicability and coverage; policy

18:33-1.6 Procedures

18:33-1.1 General provisions

(a)The Director of the Division of Taxation or any of his delegated representatives may enter into a written agreement with any person relating to the liability of such person (or of the person or estate for whom he acts) in respect to any State tax administered by the Director of the Division of Taxation for any taxable period ending prior or subsequent to the date of such agreement. A closing agreement may be entered into in any case in which there appears to be an advantage in having the case permanently and conclusively closed, or if good and sufficient reasons are shown by the taxpayer for desiring a closing agreement and it is determined by the director that the State of New Jersey will sustain no disadvantage through consummation of such an agreement.

(b)A closing agreement may be executed even though under the agreement the taxpayer is not liable for any tax for the period to which the agreement relates. There may be a series of closing agreements relating to the tax liability for a single period.

18:33-1.2 Taxable periods

(a)Closing agreements with respect to taxable periods ended prior to the date of the agreement may relate to the total tax liability of the taxpayer or to any or more separate items affecting the tax liability of the taxpayer, as, for example, the amount of gross receipt, deduction items, other income items, statutory deductions or exclusions, statutory additions to income, the year in which an item of income is to be included in gross receipts or income, the year in which an item is to be deducted, or the value of property on a specific date.

(b)Closing agreements with respect to taxable periods ending subsequent to the date of the agreement may relate to one or more separate items affecting the tax liability of the taxpayer.

18:33-1.3 Finality; determination of fraud

(a)A closing agreement which is approved within such time as may be stated in such agreement, or later agreed to, shall be final an conclusive, and, expect upon a showing of fraud or malfeasance, or misrepresentation of a material fact.

1.The case shall not be reopened as to the matters agreed upon or the agreement modified by an officer, employee, or agent of the State of New Jersey; and

2.In any suit, action, or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall

not be annulled, modified, set aside, or disregarded. However, a closing agreement with respect to a taxable period ending subsequent to the date of the agreement is subject to any change in, or modification of, the law enacted subsequent to the date of the agreement and made applicable to such taxable period, and each closing agreement so recited.

(b)Execution and approval of closing agreement does not preclude an additional inspection of the taxpayer’s records to determine whether fraud, malfeasance, or misrepresentation of material fact exists as to execution of agreement.

18:33-1.4 Procedure with respect to closing agreements

(a)A request for a closing agreement which relates to a prior taxable period may be submitted at any time before a case with respect to the tax liability involved is filed in the Division of Tax Appeals. All closing agreements shall be executed on forms prescribed by the Director of the Division of Taxation.

(b)Any tax or deficiency in tax determined pursuant to a closing agreement shall be assessed and collected, and any overpayment determined pursuant thereto shall be credited or refunded, in accordance with the applicable provisions of law.

18:33-1.5 Applicability and coverage; policy

(a)The Director of the Division of Taxation or any Division of Taxation officer or employee authorized in writing by the Director, can enter and approve written closing agreements with any person. Such agreement can relate to the liability of such person (or the taxpayer represented by him), for any State tax administered by the Division of Taxation for any taxable period. The agreement can cover either the total liability of taxpayer or one or more of separate items affecting the liability, if it embraces a tax period ending before the date of the agreement; or one or more separate items affecting tax liability.

There can be a series of agreements covering a single tax period.

(b)A closing agreement may be entered into when it appears advantageous to have the case permanently closed; or where the taxpayer shows sufficient reason for desiring a closing agreement, and there would be no disadvantage to the State of New Jersey in entering into it. Closing agreements can be entered into, although under the agreement taxpayer is not liable for tax for the period covered.

18:33-1.6 Procedures

(a)A request to enter into a closing agreement is executed on prescribed forms and submitted, processed and approved under prescribed procedure. If the proposed agreement relates to a prior taxable period, it must be submitted before a case with respect to the tax liability is filed in the Division of Tax Appeals or in any Division of the Superior Court of New Jersey or in any Federal Court.

(b)Where parties entered into a stipulation, on trial, or any matter regarding taxpayer’s liability, and the action is dismissed with prejudice, taxpayer shall not be permitted to repudiate the agreement because a closing agreement was not executed by the Director of the Division of Taxation.

(c)Taxpayer’s acceptance of a determination of additional tax under which an assessment of additional tax was made and paid, does not preclude the Director from determining an additional deficiency for the year.

(d)The Director of the Division of Taxation is not estopped from issuing a deficiency assessment. Acceptance of a sum submitted with an amended return does not discharge a taxpayer from further liability; a deficiency assessment is not a closing agreement.

Appointment of Taxpayer Representative (Form M-5008-R)

1. Taxpayer Information

Use this form to designate a representative(s) and grant the representative(s) the authority to obligate, bind, and/or appear on your behalf before the New Jersey Division of Taxation. Section 3 of the form allows you to list which tax matters your representative is authorized to handle on your behalf.

Taxpayer Is:

 

 

 

 

 

☐ Individual ☐Corporation ☐Sole Proprietorship

☐Partnership ☐Estate

☐Limited Liability Company

☐Trust(other than a business trust)

Other Specify__________________________________________________________

Taxpayer’s Name

 

 

Social Security Number

 

 

 

 

 

Spouse’s/CU Partner’s Name

 

 

Social Security Number

 

 

 

 

 

 

Mailing Address

 

 

 

 

Country

 

 

 

 

 

(If not US)

City

 

 

State

 

Zip

 

 

 

 

 

 

 

 

 

 

 

NJ Taxpayer ID Number (if other than SS#)

 

 

 

 

 

 

 

 

 

 

Name of Trustee or Executor

 

 

 

 

 

 

 

 

 

 

 

Address of Trustee or Executor

 

 

 

 

Country

 

 

 

 

 

(If not US)

 

 

 

 

 

 

City

 

 

State

 

Zip

 

 

 

 

 

 

2.Representative Information

The named representative(s) must sign and date where indicated in Section 8 on page 2 or this appointment will be rejected. If the representative is a tax practitioner, the representative must enter his/her Preparer Tax Identification Number (PTIN) as the Representative ID. Representatives who do not have a PTIN must enter their Social Security number. The taxpayer(s) named in Section 1 above appoints the person(s) named below as his/her/their taxpayer representative to represent them in connection with the tax matter(s) listed in Section 3.

Name

Address

Telephone Number

Name

Address

Telephone Number

3.Tax Matters

Representative ID

Fax Number

Representative ID

Fax Number

I/We appoint the representative(s) named in Section 2 above to represent me/us for:

☐All tax matters

☐Specific tax matters listed below

Type of Tax (New Jersey Gross Income, Sales and Use, Corporation, Years(s) & Period(s) Partnership, Employment, Inheritance, etc.)

4.Acts Authorized

The representative(s) is/are authorized to receive and inspect confidential tax records and is/are granted full power to act with respect to the tax matters described in Section 3 above, and to do and perform all such acts as I/we could do or perform. The authority granted by this appointment does not include the power to endorse a refund check.

☐If you want the representative(s) to have limited power, provide an explanation on the lines below and check this box. You may attach additional information as well.

5.Notices and Communications (audit correspondence only)

We will send original notices and other written communications to you and a copy (other than automated computer notices) to the first representative listed in Section 2 unless you check one or more of the boxes below.

☐I/We do not want the Division to send any notices or communications to my representative(s).

☐I/We want the Division to send a copy of notices and/or communications (other than automated computer notices) to both representatives listed in Section 2.

6.Retention/Revocation of Prior Appointment(s) or Power(s)

The filing of this form automatically revokes all earlier Appointment(s) of Taxpayer Representative and/or Power(s) of Attorney on file with the Division of Taxation for the tax matters and years or periods listed in Section 3 unless you check the box below.

☐I/We do not want to revoke any prior Appointment(s) of Taxpayer Representative and/or Power(s) of Attorney. If you check this box, you must attach copies of the previous Appointment(s) and/or Power(s) that you do not want to revoke.

7.Signature of Taxpayer(s)

If the tax matters covered by this appointment concern a joint Gross Income Tax return and the representative(s) is/are being appointed to represent both spouses/CU partners, both must sign below.

If a corporate officer, partner, guardian, tax matter partner, executor, administrator, or trustee signs the appointment on behalf of the taxpayer, the signature below certifies that they have the authority to execute this form on behalf of the taxpayer(s).

This Appointment of Taxpayer Representative Is Void if not Signed and Dated

Taxpayer Signature

Date

Print Name

Title (if applicable)

Taxpayer Signature

Date

Print Name

Title (if applicable)

8.Acceptance of Representation and Signature

I/ We accept the appointment as representative(s) for the taxpayer(s) who has/have executed this Appointment of Taxpayer Representative.

Representative Signature

 

 

Date

 

 

 

 

Print Name

 

Title (if applicable)

 

 

 

 

 

 

 

 

Representative Signature

 

 

Date

 

 

 

 

Print Name

 

Title (if applicable)

 

 

 

 

Instructions for Form M-5008-R

Use this form to designate a representative(s) and grant the representative(s) the authority to obligate, bind, and/or appear on your behalf before the New Jersey Division of Taxation. Section 3 of the form allows you to list which tax matters your representative is authorized to handle on your behalf.

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1. The Form 906 Closing Agreement necessitates specific information to be typed in. Make certain the next blanks are complete:

Best ways to fill out Form 906 Closing Agreement part 1

2. After performing this part, go on to the next step and enter the necessary particulars in all these fields - Name, Address, Telephone Number, Name, Address, Telephone Number, Tax Matters, Representative ID, Fax Number, Representative ID, Fax Number, IWe appoint the representatives, All tax matters, Specific tax matters listed below, and Type of Tax New Jersey Gross.

Tips on how to fill in Form 906 Closing Agreement part 2

Always be very attentive while filling in Tax Matters and Fax Number, because this is the part in which many people make mistakes.

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The filing of this form, Signature of Taxpayers, and representatives listed in Section inside Form 906 Closing Agreement

4. This next section requires some additional information. Ensure you complete all the necessary fields - This Appointment of Taxpayer, Taxpayer Signature, Print Name, Taxpayer Signature, Print Name, Date, Date, Title if applicable, Title if applicable, Acceptance of Representation and, I We accept the appointment as, Representative Signature, Print Name, Representative Signature, and Print Name - to proceed further in your process!

How one can fill in Form 906 Closing Agreement stage 4

5. This pdf must be finished with this particular part. Here you can find a comprehensive set of blanks that require accurate information for your form submission to be faultless: A request for a Closing Agreement, Social Security, Federal ID, If Corporation please provide a, Address Email Address, and for Type of Tax or Taxes and.

Stage number 5 for filling in Form 906 Closing Agreement

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