NJ Announces Private Ruling Procedures

Beginning September 15, 2010, the New Jersey Division of Taxation will initiate a private letter ruling procedure. The new procedure will allow taxpayers to obtain a written determination from the Regulatory Services Branch of the Division. The private rulings will be based on the law and Division policies in effect as of the date of the letter ruling or for a period of time specified in the ruling request.

Private letter rulings will be binding on the Division if the party requesting the ruling fully and accurately describes all relevant facts. Ruling will be limited to those fact provided by the requesting taxpayer.

A letter ruling request must satisfy the following requirements:

  • Identify the request as a “Request for Letter Ruling”
  • Identify the taxpayer about whom the request relates
  • Provide a contact name and email address for the party requesting the Letter Ruling that the Division may contact for questions regarding the request or for redaction confirmation
  • Disclose any ongoing New Jersey tax matter, such as audit, refund or appeal with the Division’s Conferences and Appeals Section. The requesting taxpayer must provide provide the case number or other identifying information of any ongoing matter
  • State the issue
  • Include all relevant and necessary facts relating to the request

Optionally, the ruling request can cite  legal authorities relevant to the request and proivde the taxpayer’s analysis.

Rulings issued by the Division may be published on its website. All published rulings will be redacted of private information. The taxpayer to the ruling was issued will have an opportunity to review the redacted document before it is published by the Division.

A private ruling cannot be used as legal precedent by other taxpayers. However similarly situated taxpayers may use such private rulings as guidance.

Kulzer & DiPadova assists its clients and their accounting and financial professionals with ruling requests of the Division of Taxation to determine their obligations under the New Jersey tax laws.