Zarathud wrote: Wed Feb 09, 2022 11:45 pm
You received a notice because they had to assess before the statute passed. They identified a discrepancy — either on your end or the employer’s. They don’t have to rely on your employer’s form. Or your return.
Taxes suck, but they’re not an abuse of power.
Sure but it seems pretty abusive when I have issues every two years with my professionally prepared straightforward returns. I only have W2 and some interest income. No fancy income. NJ doesn't allow pretty much any deductions. They suck every last penny they can out of you. Yet NJ won't hesitate to accept too much and come back every 1-2 years to club me over the head with some phantom adjustment.
That NJ makes opaque adjustments, doesn't provide me the information to understand the discrepancy and then says to me - prove us wrong is pretty crappy. How can I when all you tell me is you "compiled data" and "made an adjustment". Literal words. "Perhaps an employer issued a W2C?" Was it? They can't answer that question. I don't even know where to look.
Anyway, I'd have no problem with it if it was 1) timely 2) even a little transparent and 3) reasonable penalties. That is what makes this feel like an abuse of power to me. They have all the power. I have none. I have to pay or else. And I'm fed up with it from NJ. On top the penalty/interest calculation and the explanation for it is Soviet. That underpayment triggered quarterly estimated payments requirements which doubled the interest due. First, I don't understand yet why this even happened since it was a less than 2% discrepancy. In any case they charged me that *additional* interest on those missed quarterly payments which didn't exist until they found the discrepancy. Interest on phantom payments. In other words, this $200 discrepancy on a $8000 tax bill started a snowball chain reaction that'd make a mob boss blush. NJ is hot garbage on the income tax front.
If they don’t charge interest and penalties when you don’t calculate the tax right, the abuse will be worse.
Except they do it to people like me who can't fight it instead of the people actually abusing the system. This argument falls VERY FLAT with me.
Isgrimnur wrote: Thu Feb 10, 2022 12:24 am
Ask them to remove the penalties. The worst they can do is say no.
Already asked and denied. The interest and penalties are statutory. Their 3-year delay in finding this supposed error and telling me about it is my problem. What I have to do is prove the $200 discrepancy is wrong and then they'll readjust everything. But that'll require me to prove that their numbers are wrong. And I have no idea where their numbers come from. I have total adjusted figures. Was it my wife's W2? Was it mine? I don't know. Did they mistakenly match my name with someone else and add in some income? I have no idea. It's a black box.
In context, this isn't some backbreaking thing but the principle of the matter is that this keeps happening and like I said I'm just fed up. It's enough that we're legitimately wondering if it is worth saving 5 to 6 thousand a year at least to live in Yardley, PA (just to throw out a town) where the community standards are very similar to our current one without the Soviet State of NJ picking my pocket. It's pretty tempting.
I'm planning on reaching out to my representative to see if they can help at least get to the right person who can help me figure this out. I'll give the system a chance to not be shitty but I am not going to hold my breath.
Edit: *Chef kiss* I went to the NJ legislature page to look up contact info for my state senator/representative and the NJ legislature web site is throwing 404 errors.
I'm firmly stuck here until the kiddo finishes school and then I can't see me staying much longer. Assuming the housing market doesn't totally tank again. 
Whatever...
