Gabrielle Yablonsky v. Director, Division of Taxation

CourtNew Jersey Tax Court
DecidedOctober 20, 2017
Docket015437-2014
StatusUnpublished

This text of Gabrielle Yablonsky v. Director, Division of Taxation (Gabrielle Yablonsky v. Director, Division of Taxation) is published on Counsel Stack Legal Research, covering New Jersey Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gabrielle Yablonsky v. Director, Division of Taxation, (N.J. Super. Ct. 2017).

Opinion

TAX COURT OF NEW JERSEY

Joshua D. Novin Court & Washington Streets Judge P.O. Box 910 Morristown, New Jersey 07963-0910 Tel: (609) 815-2922, Ext. 54680 Fax: (973) 656-4305

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE TAX COURT COMMITTEE ON OPINIONS

October 13, 2017

Ms. Gabrielle Yablonsky 755 Radley Road Westfield, New Jersey 07090

Matthew Erickson, Deputy Attorney General Division of Law R.J. Hughes Justice Complex 25 Market Street P.O. Box 106 Trenton, New Jersey 08625-0106

Re: Gabrielle Yablonsky v. Director, Division of Taxation Docket No. 015437-2014

Dear Ms. Yablonsky and Deputy Attorney General Erickson:

This letter constitutes the court’s opinion following trial in connection with plaintiff’s

challenge to the denial of her 2007 tax year homestead rebate application as untimely. The two

issues facing the court are whether “good cause” existed to extend the time period accorded

plaintiff to file her homestead rebate application: (1) because of illness or hospitalization; or (2)

because plaintiff attempted to timely file said application.

For the reasons explained more fully below, the court concludes plaintiff has established

“good cause” by a fair preponderance of the evidence, that due to her medical condition, she was

unable to file timely her 2007 tax year homestead rebate application. Accordingly, the court

1 reverses the Director, Division of Taxation’s denial of plaintiff’s 2007 tax year homestead rebate

application, as untimely and orders payment to plaintiff of the 2007 tax year homestead rebate.

I. Procedural History and Findings of Fact

In accordance with R. 1:7-4(a), the court makes the following findings of fact based upon

the submissions of the parties, and testimony elicited during trial.

Plaintiff, Gabrielle Yablonsky (“plaintiff”), is a 77-year-old resident of the State of New

Jersey. On or about November 30, 2008, plaintiff filed a 2007 Homestead Rebate Application (the

“homestead rebate application”) with defendant, Director, Division of Taxation (“Director”). The

deadline for submission of the 2007 homestead rebate application was October 31, 2008.

By letter dated January 28, 2009, the Director denied plaintiff’s homestead rebate

application as untimely. However, the Director’s letter notified plaintiff that a statutory exception

may exist for late filing. In order to qualify for this exception, plaintiff was required to furnish the

Director with evidence demonstrating that she suffered from “a serious medical condition [that]

prevented [her] from timely filing the application.”

On December 2, 2009, plaintiff’s certified public accountant (“CPA”) submitted a letter to

the Director. In his letter, the CPA explained that “Ms. Yablonsky. . .indicated to me that she had

previously filed her homestead rebate application for 2007 in a timely fashion.” The CPA further

expressed that his firm was engaged “in the latter part of 2008” to prepare plaintiff’s 2007 personal

income tax returns. When retained, plaintiff advised him that she “already submitted her

homestead rebate application using estimated figures.” The Director received no further

documentation from or on behalf of plaintiff.

Accordingly, on April 20, 2010, the Director issued a Final Determination letter denying

plaintiff’s homestead rebate application (“First Final Determination letter”). The First Final

2 Determination letter explained that the Director did not receive “sufficient documentation to

dispute” the initial denial of plaintiff’s homestead rebate application due to late filing. Plaintiff

did not submit a letter of protest or file a complaint with the Tax Court in response to the First

Final Determination letter.

Several years elapsed without further action and on December 30, 2013, plaintiff forwarded

a letter to the Director raising a number of issues, including questions regarding her homestead

rebate application. In response, on January 14, 2014, the Director issued a second Final

Determination letter denying plaintiff’s homestead rebate application (“Second Final

Determination letter”). The Second Final Determination letter stated:

We have reviewed your account and found that your 2007 homestead rebate application was received on November 30, 2008, after the filing due date of October 31, 2008. You have failed to submit documentation that clearly substantiates that you filed or attempted to file on time.

This denial will be final unless you apply to the Director of the Division of Taxation for a hearing within ninety (90) days. If you disagree with our findings and would like to apply for a hearing, please read and follow the enclosed Tax Appeal Process.

On or about April 12, 2014, plaintiff submitted to the Director a letter protesting denial of

the homestead rebate application (the “Protest Notice”). The Protest Notice was stamped

“RECEIVED” by the Director on April 17, 2014.

By letter dated August 18, 2014, the Director rejected plaintiff’s Protest Notice contending

that the protest and appeal period expired on July 19, 2010, 90-days following the First Final

Determination letter (the “August 18, 2014 letter”). Moreover, the Director maintained that the

Second Final Determination letter erroneously contained protest and appeal rights, and asserted

that the Director’s employees do not possess the authority to extend the 90-day protest and appeal

period. The August 18, 2014 letter afforded plaintiff 90-days to appeal the Director’s

3 determination with respect to the timeliness of the Protest Notice, but not the late filing of

plaintiff’s homestead rebate application.

On November 12, 2014, plaintiff filed a complaint with the Tax Court challenging the

Director’s rejection of her Protest Notice and denial of her homestead rebate application.

On July 9, 2015, the Director issued plaintiff another letter stating, this is “the FINAL

DETERMINATION by the Division of Taxation with regard to your protest and/or request for a

hearing postmarked April 21, 2014 [sic] and your tax court complaint postmarked December 27,

2014” (“Third Final Determination letter”). In concluding the Third Final Determination letter,

the Director stated:

…it has been determined that since you did not file a protest within 90 days of April 20, 2010, this branch has no jurisdiction in this matter and the denial of your 2007 homestead benefit is final.

In the event you are not in accord with the above determination regarding the timeliness of your protest, you may file a complaint with the required fee relative to this determination, which must be received within (90) ninety days from the date of this notice, directly with the Tax Court or New Jersey. . .

On August 28, 2015, plaintiff filed a motion with the court seeking entry of an “[o]rder

granting me my Homestead Rebate for year 2007.” Following receipt of the motion, the court

advised plaintiff and Director that it would consider said motion, as a motion for summary

judgment under R. 4:46-1, and assigned a return date. On January 7, 2016, the Director filed a

cross-motion for summary judgment seeking dismissal of plaintiff’s Complaint.

On March 23, 2016, the court issued a letter opinion denying plaintiff’s motion for

summary judgment, and denying the Director’s cross-motion for summary judgment. The court

found genuine issues of material fact existed concerning the impact, if any, that plaintiff’s medical

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