N.J.A.C. 18:2-8.2 - Set-off of Tax Debts Against Contract Payments Due to Vendors

(a) The Division of Taxation may seek to set off all or part of a contract payment due to a State vendor in order to satisfy a tax indebtedness owed to the State whenever:

1. The vendor is under contract to provide goods or services or engage in a construction project for the State of New Jersey, or any of its branches, or any of its agencies or instrumentalities;

2. The vendor is entitled to payment from the State for such goods, services or construction project; and

3. The vendor is indebted for any State tax, or, where the vendor is a partnership or S-corporation, any partner or shareholder of the vendor-entity is indebted for such tax.