Legal Question in Tax Law in New Jersey

Sales Tax Notice of Enquiry

Hi, I have got a Notice of Enquiry on sales ax i paid for the car (used ones) i have taken. We have written less amount on the title for which we paid less sales tax. Now i got a questionnarie asking the reason for low price. I am asking my seller to mention that ''its a favor he has done by giving it for less price.'' . Questionnarie needs a signature from seller & buyer. But seller is not ready to sign the document. Can you please advise on how to take this up.


Asked on 5/18/09, 1:00 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Sales Tax Notice of Enquiry

The State reviews all transactions and questions their legitimacy. If there was not a reason why the lower price was shown, they have the right to use FMV to determine the taxes that should have been paid. Was the Seller a friend or relative? If so, part of the price may have been a "gift" and this may explain the price differential. There should be a box indicating this on the form. More information is needed for a better reply. This is a response to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship.

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Answered on 5/18/09, 1:21 pm


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