The New Jersey Division of Taxation requires tax practitioners who prepared or filed 50 or more 2006 NJ Resident Income Tax Returns, Form NJ-1040, to electronically file all 2007 NJ Resident Income Tax Returns. A listing of Frequently Asked Questions regarding the mandate is available for your reference.

In meeting the requirement, tax practitioners have two methods of electronically filing a NJ Resident Tax Return for their clients:

The Federal/State E-File Program is a means of filing both Federal and State returns. Most tax software products used for this program have the ability to file a State-only return. For more information about the New Jersey feature of the E-File program, refer to the Electronic Filing Handbook for Practitioners.

NJ WebFile is a means of filing a NJ Resident Tax Return only. It is a free service that is accessed from the Division of Taxation’s website. NJ WebFile will be available on or before January 31, 2008.

Please note that NJ TeleFile, which allowed certain NJ Resident Tax Returns to be filed by telephone, was discontinued following the 2005 tax season.

The E-File Opt-Out Request Form, Form NJ-1040-O, is available for taxpayers who choose not to have their returns electronically filed by a tax practitioner. It is required to be completed when certain conditions are met. Whenever the form is used, both the tax practitioner and the taxpayer must sign it.

The Division of Taxation provides a sign for use by tax practitioners who are required to e-file New Jersey tax returns. Even though it is not mandatory to post, tax preparers may wish to do so in order to inform clients of their requirement.

Updates regarding the E-File Mandate and other matters of general interest are available through ENews. Subscribers receive email messages containing news and/or links to recently posted materials.

For questions concerning the E-File Mandate, you may contact the Division of Taxation by calling (609) 633-6657 or by email.