T1426 Change Order 3 - 11.13.25 - Contract Amendment 1.pdf

New Jersey Is an Equal Opportunity Employer • Printed on Recycled and Recyclable Paper

PHILIP D. MURPHY

Governor

State of New Jersey

DEPARTMENT OF THE TREASURY

DIVISION OF PURCHASE AND PROPERTY

PROCUREMENT BUREAU

33 WEST STATE STREET

P. O. BOX 230

TRENTON, NEW JERSEY 08625-0230

ELIZABETH MAHER MUOIO

State Treasurer

TAHESHA L. WAY

Lt. Governor

AMY F. DAVIS, ESQ.

Acting Director https://www.njstart.gov

CHANGE ORDER # 3

T1426

BID SOLICITATION # 23DPP00796

CONTRACT # 23-PROS1-109522

TO: The Department of the Treasury, Division of Taxation

DATE: November 13, 2025

FROM: Maria Maguire, Senior Procurement Supervisor

Division of Purchase and Property

SUBJECT: Contract Amendment #1

T1426 - Administration of Deficient and Delinquent Tax Accounts

CONTRACT PERIOD: Contract Term: July 1, 2026 to June 30, 2031

Please be advised that the above referenced Contract awarded to Coast Professional, Inc. has been amended as further described in the executed Agreement attached to this Change Order.

All pricing, terms and conditions shall remain the same.

Please file a copy of this Change Order with your Notice of Award for future reference.

AMENDMENT No. 1

NEW JERSEY STATE CONTRACT 23-PROS1-109522 (T1426)

Administration of Deficient and Delinquent Tax Accounts

THIS CONTRACT AMENDMENT (“Amendment”) is entered into by and between Coast

Professional, Inc., whose address is 4273 Volunteer Road, Geneseo, New York 14454 (the

“Contractor'”), and the State of New Jersey, Department of the Treasury, Division of Purchase and Property (“Division”), whose address is 33 West State Street, Trenton, NJ 08625, on behalf of the Division of Taxation whose business address is 3 John Fitch Way, Trenton, NJ 08611

("Taxation") (Taxation and the Division are collectively referred to as the “State”), the State and the Contractor may be referred to collectively as the “Parties”; and

WHEREAS, on May 23, 2025, the State awarded a Contract (“Contract”) having an effective date of July 1, 2026, to the Contractor for a base term of five (5) years, with the option to extend for an additional two (2) year period, with no single extension exceeding one (1) year, to perform services relating to the administration, resolution and collection of deficient and delinquent taxes;

and

WHEREAS, Taxation is in the process of implementing a new system, entitled the State Tax and

Revenue (“STAR”) system, the use of which will require the granting of FTI (federal tax information) access to the Contractor; and

WHEREAS, Taxation has reviewed the security requirements set forth in Bid Solicitation Section

6.35, Tax Return Data Security, and has proposed the addition of certain security language in view of the Contractor’s access to FTI; and

WHEREAS, pursuant to Section 5.14 of the State of New Jersey Standard Terms and Conditions, the Parties are permitted to amend the Contract upon the written agreement of the State and the

Contractor; and

WHEREAS, the Contractor has agreed to the State’s proposed addition to the security requirements of Bid Solicitation Section 6.35, as well the addition of language referencing the

STAR system in Bid Solicitation Section 4.3.1, as stated below; and

NOW THEREFORE, for good and valuable consideration, the Parties acknowledge and agree to the following modifications to the Contract:

I. Bid Solicitation Section 4.3.1, ACCESS TO TAXNET AND TULIPS AND TAX

INFORMATION, shall be revised to read as follows:

4.3.1 ACCESS TO TAXNET, TULIPS, STAR AND TAX INFORMATION

Taxation will provide the Contractor with access to the TAXNET, TULIPS, and STAR

(State Tax and Revenue) systems and to confidential taxpayer information. All changes to the Contractor equipment specified in Bid Solicitation Sections 4.4.2 - Computer and Software Compatibility and 4.4.3 -Telephone Monitoring Access or changes to other information technology specifications and requirements by Taxation will be provided to the Contractor by the State Contract Manager (SCM) and/or the New Jersey

Office of Information Technology (NJOIT). When Contractor personnel accessing

TAXNET, TULIPS and/or STAR resign or are terminated, or removed for any reason, the Contractor must notify the SCM within one (1) business day so that Taxation can revoke access to all applicable confidential taxpayer records for the employee.

II. Bid Solicitation Section 6.5, TAX RETURN DATA SECURITY, shall be revised to read as follows:

6.35 TAX RETURN DATA SECURITY

A. PERFORMANCE

1. In performance of this Contract, the Contractor agrees to comply with and assume responsibility for compliance by his or her employees with the following requirements:

2. All work will be done under the supervision of the Contractor or the Contractor’s employees;

3. Any return or return information made available in any format shall be used only for the purpose of carrying out the provisions of this Contract Information contained in such material will be treated as confidential and will not be divulged or made known in any manner to any person except as may be necessary in the performance of this Contract Disclosure to anyone other than an officer or employee of the Contractor will be prohibited;

4. All returns and return information will be accounted for upon receipt and properly stored before, during, and after processing. In addition, all related output will be given the same level of protection as required for the source material;

5. The Contractor certifies that the data processed during the performance of this

Contract will be completely purged from all data storage components of his or her computer facility, and the Contractor will retain no output at the time the work is completed. If immediate purging of all data storage components is not possible, the Contractor certifies that any IRS data remaining in any storage component will be safeguarded to prevent unauthorized disclosures;

6. Any spoilage or any intermediate hard copy printout that may result during the processing of IRS data will be given to the agency or his or her designee. When this is not possible, the Contractor will be responsible for the destruction of the spoilage or any intermediate hard copy printouts, and will provide the agency or his or her designee with a statement containing the date of destruction, description of material destroyed, and the method used;

7. All computer systems receiving, processing, storing, or transmitting federal tax information must meet the requirements defined in IRS Publication 1075. To meet functional and assurance requirements, the security features of the environment must provide for the managerial, operational, and technical controls. All security features must be available and activated to protect against unauthorized use of and access to federal tax information.

8. No work involving federal tax information furnished under this Contract will be subcontracted without prior written approval of the IRS;

9. The Contractor will maintain a list of employees authorized access. Such list will be provided to the agency and, upon request, to the IRS reviewing office; and

10. The agency will have the right to void this Contract if the Contractor fails to provide the safeguards described above.

B. CRIMINAL/CIVIL SANCTIONS

1. Each officer or employee of any person to whom returns or return information is or may be disclosed will be notified in writing by such person that returns or return information disclosed to such officer or employee can be used only for a purpose and to the extent authorized herein, and that further disclosure of any such returns or return information for a purpose or to an extent unauthorized herein constitutes a felony punishable upon conviction by a fine of as much as

$5,000 or imprisonment for as long as five (5) years’, or both, together with the costs of prosecution. Such person shall also notify each such officer and employee that any such unauthorized further disclosure of returns or return information may also result in an award of civil damages against the officer or employee in an amount not less than $1,000 with respect to each instance of unauthorized disclosure. These penalties are prescribed by IRC sections 7213 and 7431 and set forth at 26 CFR 301.6103(n)-1;

2. Each officer or employee of any person to whom returns or return information is or may be disclosed shall be notified in writing by such person that any return or return information made available in any format shall be used only for the purpose of carrying out the provisions of this Contract Information contained in such material shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of this Contract Inspection by or disclosure to anyone without an official need to know constitutes a criminal misdemeanor punishable upon conviction by a fine of as much as $1,000 or imprisonment for as long as one (1) year, or both, together with the costs of prosecution. Such person shall also notify each such officer and employee that any such unauthorized inspection or disclosure of returns or return information may also result in an award of civil damages against the officer or employee [United States for federal employees] in an amount equal to the sum of the greater of $1,000 for each act of unauthorized inspection or disclosure with respect to which such defendant is found liable or the sum of the actual damages sustained by the plaintiff as a result of such unauthorized inspection or disclosure plus in the case of a willful inspection or disclosure which is the result of gross negligence, punitive damages, plus the costs of the action. These penalties are prescribed by IRC section 7213A and 7431;

3. Additionally, it is incumbent upon the Contractor to inform its officers and employees of the penalties for improper disclosure imposed by the Privacy Act of 1974, 5 U.S.C. 552a. Specifically, 5 U.S.C. 552a(i)(1), which is made applicable to Contractors by 5 U.S.C. 552a(m)(1), provides that any officer or employee of a Contractor, who by virtue of his/her employment or official position, has possession of or access to agency records which contain individually identifiable information, the disclosure of which is prohibited by the Privacy Act or regulations established thereunder, and who knowing that disclosure of the specific material is prohibited, willfully discloses the material in any manner to any person or agency not entitled to receive it, shall be guilty of a misdemeanor and fined not more than $5,000; and

4. Granting a Contractor access to Federal Tax Information (FTI) must be preceded by certifying that each individual understands the agency’s security policy and procedures for safeguarding IRS information. Contractors must maintain their authorization to access FTI through annual recertification per IRS Publication

1075. The initial certification and recertification must be documented and placed in the agency's files for review. As part of the certification and at least annually afterwards, Contractors should be advised of the provisions of IRC Sections 7213, 7213A, and 7431 (see Exhibit 4, Sanctions for Unauthorized Disclosure, and

Exhibit 5, Civil Damages for Unauthorized Disclosure). The training provided before the initial certification and annually thereafter must also cover the incident response policy and procedure for reporting unauthorized disclosures and data breaches. For both the initial certification and the annual certification, the

Contractor should sign, either with ink or electronic signature, a confidentiality statement certifying its understanding of the security requirements.

C. INSPECTION

The IRS and the Agency, with 24 hour notice, shall have the right to send its inspectors into the offices and plants of the Contractor to inspect facilities and operations performing any work with FTI under this Contract for compliance with requirements defined in IRS Publication 1075. The IRS’ right of inspection shall include the use of manual and/or automated scanning tools to perform compliance and vulnerability assessments of information technology (IT) assets that access, store, process or transmit FTI. On the basis of such inspection, specific measures may be required in cases where the Contractor is found to be noncompliant with Contract safeguards.

III. Terms and Conditions - The parties agree to be bound by all other requirements, terms and conditions of the Bid Solicitation, not otherwise modified by this Amendment for the period of the Contract.

IV. Execution of Amendment - The parties hereto agree that this Amendment may be executed in counterpart, each original signed page to become part of the original document.

November 10, 2025

ATTACHMENT 1

T1426 Addendum (003).pdf