Smith v. Director, Division of Taxation

PIZZUTO, J.T.C.

The question presented in this matter is whether plaintiff taxpayers may “piggy-back” a gross income tax refund claim upon their contest to a gross income tax assessment made by defendant Director, Division of Taxation (“Director”). The refund claim concerns a transaction that occurred during the tax period covered *25by the assessment, but the claim was not asserted before the Director’s final determination of the assessment.

Plaintiff taxpayers, husband and wife, filed a joint New Jersey Gross Income Tax return for 1994 on April 15, 1995. They reported income of $2,105,292 as…