Eliminates statute of limitations on income tax assessments that arise out of erroneous refunds induced by fraud.

This New Jersey bill eliminates the 5-year statute of limitations for the state to collect income tax from taxpayers who received an erroneous refund due to a fraudulent return. Under the new law, the Division of Taxation can assess additional tax at any time if the refund resulted from a false or fraudulent return filed with intent to evade tax - aligning this treatment with the existing rule for fraudulent returns (which already has no time limit). The bill explicitly excludes cases of negligence, honest mistakes, or reliance on incorrect advice, focusing only on intentional fraud. It applies retroactively to assessments made within the 5 years preceding its enactment.