NJ A3238

Eliminates the statute of limitations for New Jersey gross income tax assessments when erroneous refunds were induced by the filing of a false or fraudulent return with intent to evade tax, allowing the Division of Taxation to assess additional taxes at any time rather than within five years.

Clarifies that "false or fraudulent return" does not include a taxpayer's inadvertence, reliance on incorrect technical advice, honest difference of opinion, negligence, or carelessness.

Removes the separate "misrepresentation of a material fact" standard from the erroneous refund recovery provision, aligning fraud-induced refund assessments with the existing unlimited assessment period for fraudulent returns that result in underpayment.

Applies retroactively to assessments of deficiencies arising from erroneous refunds made within five years preceding the bill's enactment date.