Help needed quickly!!! scam suspicion- NJ Taxation -Corporate Business Tax

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mloxy

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Aug 22, 2011
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Hi Guys,
I need your help quickly!!
Our truck got pulled over by DOT in NJ, there are also people from NJ Department of Treasury on site and they tell us that we owe thousands of $ for Corporate Business Tax to the State of NJ. They are holding our truck and will not release it until we make a wire payment. This all looks like a scam to me but the truth is that DOT is there and and they will not let my truck go.
BTW we are hauling a freight booked with the load broker, we never conduct any business directly with the customers from NJ and we don't receive any payments from them.
Have you ever had a similar situation? Please reply with any ideas.
Any help will be appreciated!
 
NJ is considered an aggressive state in regards to enforcing Nexus compliance with out of state carriers. Nexus is assessed typically if an entity is deemed doing business with the state. NJ along with several other states do require out of state carriers to register and at times pay taxes to the state. NJ considers transportation companies to be doing business with the state if they drop off or pick up in the state period even once. Doesn't matter how you got the load. If you just drive through you do not create a Nexus. So no this is not a scam at all. It used to happen quite often in NJ but I had not heard of anything in several years, looks like they are starting up again.
 
How much are they looking for? We received notice of this, and depending who you speak to in regards everyone has a difference of opinion. Are any carriers on here paying Corporate Business Tax in NJ?
 
Informed said:
NJ is considered an aggressive state in regards to enforcing Nexus compliance with out of state carriers. Nexus is assessed typically if an entity is deemed doing business with the state. NJ along with several other states do require out of state carriers to register and at times pay taxes to the state. NJ considers transportation companies to be doing business with the state if they drop off or pick up in the state period even once. Doesn't matter how you got the load. If you just drive through you do not create a Nexus. So no this is not a scam at all. It used to happen quite often in NJ but I had not heard of anything in several years, looks like they are starting up again.
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Thanks a lot for your input, we just verified with Tax Department the names of the employees that are on the field where my truck is this is looking real now...that really sucks
 
We file a tax return every year to avoid this. We do this with a number of states whose definition of Nexus is not clearly defined or we cannot obtain a letter of non-Nexus. It costs a lot of money but definitely worth it.

PM me if you require the name of a US based transportation accountant who will file these for you.
 
How did they come up the the random $7700 number, and what was the location in NJ that this happened. About 7 or 8 years ago we went through this with a warning provide we obtained a NJ tax number, got the tax number but I believe the terms of taxation were overturned in court against the state shortly there after.
 
bubba-one said:
How did they come up the the random $7700 number, and what was the location in NJ that this happened. About 7 or 8 years ago we went through this with a warning provide we obtained a NJ tax number, got the tax number but I believe the terms of taxation were overturned in court against the state shortly there after.
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They fined us with 1000$ per each year (they called that a minimum fine) we were in the business plus 10% cost of collection.
The truck was stopped at the weight station in Carneys Point NJ. DOT was there accompanied by the state troopers and the NJ Tax Department Investigators. Few other trucks were pulled over too and they were forced to pay fines as well.
 
if you're a member of the OTA, reach out to them. I think they worked out some kind of program with NJ a few years ago when this was happening.
 
If memory recalls the last time this happened we registered for a NJ tax number, but the OTA or some organization force them to rescind their position as it was un-constitutional. We run a couple of trucks per week into NJ so I'm hoping this does get out of hand.
 
We file every year, winds up about $900 while paying someone to do it. OTA had negotiated an amnesty and if you filed you did not pay any late penalties. I think every couple of years they seize a bunch of trucks to scare everyone else.
 
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lowmiler88 said:
We file every year, winds up about $900 while paying someone to do it. OTA had negotiated an amnesty and if you filed you did not pay any late penalties. I think every couple of years they seize a bunch of trucks to scare everyone else.
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This is for how many trucks?
 
It's kind of complicated in they take in your revenue and mileage driven and come up with some answer but I think in reality it is a minimum charge and that is what they get you for. We only go into NJ a couple a times a week, if that, but you have to jump through the hoops to make them happy. If you have a company that does your licensing/fuel tax they should be able to look after it for you.
 
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Just wondering for those who are paying corporate State taxes? Does your Canadian accountant do the US state returns, or does your accountant subcontract to a US accounting firm, or do you deal directly with both a Canadian accountant and a USA accountant. Seems my accountant sold his firm to a larger firm and now I'm faced with higher fees, and looking for options as to best complete all returns.
 
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